Apple International Co., Ltd. (2788) AI Stock Analysis

• Market Cap: ¥5.07B
• Dividend Yield: 4.04%
• Average Volume (3M): 42.58K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.70
• Revenue Growth: 3.67%
• EPS Growth: -30.07%
• Country: JP
• Employees: 88
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): 1.98
• Shares Outstanding: 13,861,400
• 10 Day Avg. Volume: 39,000
• 30 Day Avg. Volume: 42,583
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥398.00
• Price Target Upside: 7.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥398.00 ▲(7.28% Upside)

The overall stock score of 75 reflects a combination of strong valuation metrics and positive technical indicators, despite challenges in financial performance. The low P/E ratio and high dividend yield are significant strengths, making the stock attractive for value and income-focused investors. Technical analysis shows short-term bullish momentum, though longer-term resistance may exist. Financial performance highlights the need for improved cash flow management and operational efficiency.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong market demand and successful product adoption, positioning the company well for future expansion.

Stable Financial Structure

A stable financial structure with balanced leverage supports long-term sustainability and reduces financial risk, enhancing investor confidence.

Profitability Improvement

Improved profitability indicates better cost management and operational efficiency, contributing to stronger financial health over time.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flow conversion suggests liquidity issues, which could hinder the company's ability to fund operations and growth initiatives.

Operational Efficiency

Low operational efficiency margins indicate potential inefficiencies, which could affect profitability and competitiveness if not addressed.

Apple International Co., Ltd. Business Overview & Revenue Model

Company Description

Apple International Co., Ltd. (2788) is a diversified company engaged in various sectors including technology, electronics, and telecommunications. The company specializes in the design, manufacturing, and distribution of innovative consumer electronics and software solutions. Its core products include smartphones, tablets, computers, and related accessories, as well as software applications and services that enhance user experiences.

How the Company Makes Money

Apple International Co., Ltd. generates revenue through multiple streams including direct sales of its consumer electronics, software licensing, and services. The bulk of its revenue comes from the sale of flagship products such as smartphones and laptops, complemented by revenue from accessories and peripherals. The company also earns income through service-based offerings, including cloud storage, app subscriptions, and software updates. Strategic partnerships with telecommunications providers for bundled service offerings further enhance its revenue. Additionally, the company focuses on research and development to innovate new products and services that drive future sales.

Apple International Co., Ltd. Financial Statement Overview

Summary

Apple International Co., Ltd. demonstrates strong revenue growth and moderate profitability, but faces challenges in operational efficiency and cash flow generation. The balance sheet shows a stable financial position with balanced leverage, yet high debt levels could pose risks. Improvements in cash flow management are necessary to enhance financial stability.

Income Statement

Apple International Co., Ltd. has shown a strong revenue growth rate of 41.7% from 2023 to 2024, indicating robust expansion. The gross profit margin for 2024 stands at 8.7%, reflecting moderate profitability. The net profit margin improved to 2.7%, showcasing enhanced efficiency in converting revenue to profit. However, the EBIT margin of 3.1% and EBITDA margin of 3.8% suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.83, indicating a balanced leverage position. Return on equity (ROE) is 12.5%, reflecting decent profitability relative to shareholder equity. The equity ratio of 48.5% suggests a stable financial structure with a good proportion of assets funded by equity. However, the high total debt level could pose a risk if not managed properly.

Cash Flow

The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash flow. Free cash flow has decreased significantly, with a negative free cash flow growth rate, highlighting potential liquidity issues. The free cash flow to net income ratio is also negative, suggesting that the company is not generating sufficient cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.27B	43.80B	30.91B	29.22B	18.66B	19.56B
Gross Profit	3.47B	3.82B	3.45B	3.55B	1.96B	2.08B
EBITDA	1.15B	1.67B	1.38B	1.80B	675.36M	610.53M
Net Income	853.99M	1.20B	1.01B	1.33B	403.36M	328.34M
Balance Sheet
Total Assets	20.03B	19.76B	16.87B	15.96B	14.20B	13.37B
Cash, Cash Equivalents and Short-Term Investments	3.15B	4.38B	4.50B	4.46B	4.58B	2.38B
Total Debt	8.25B	7.91B	6.61B	6.63B	5.86B	5.92B
Total Liabilities	10.01B	9.58B	7.90B	8.01B	7.36B	6.91B
Stockholders Equity	9.42B	9.59B	8.43B	7.47B	6.40B	6.06B
Cash Flow
Free Cash Flow	0.00	-1.23B	-290.00M	-626.08M	2.72B	-1.88B
Operating Cash Flow	0.00	-1.21B	-275.00M	-608.65M	2.75B	-1.73B
Investing Cash Flow	0.00	-25.63M	449.62M	-24.68M	-437.46M	-320.92M
Financing Cash Flow	0.00	1.10B	-138.88M	491.05M	-135.20M	2.21B

Apple International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 371.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2788, the sentiment is Positive. The current price of 371 is above the 20-day moving average (MA) of 357.80, above the 50-day MA of 347.76, and below the 200-day MA of 385.29, indicating a neutral trend. The MACD of 6.95 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 73.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2788.

Apple International Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3184	81 Outperform	¥9.07B	7.34		1.62%	9.36%	17.92%
3011	79 Outperform	¥2.49B	9.75		3.23%	9.42%	15.60%
2788	75 Outperform	¥5.07B	7.58		4.04%	3.67%	-30.07%
7623	74 Outperform	$2.61B	11.54		2.28%	8.67%	-11.05%
3377	70 Outperform	¥5.94B	11.46		2.59%	12.55%	―
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
7602	52 Neutral	¥2.79B	139.38		1.48%	0.91%	-517.75%