A.D.Works Group Co.Ltd (2982) AI Stock Analysis

• Market Cap: ¥20.47B
• Dividend Yield: 2.76%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.91
• Revenue Growth: 45.01%
• EPS Growth: 89.71%
• Country: JP
• Employees: 240
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 14.58
• Shares Outstanding: 50,087,864
• 10 Day Avg. Volume: 676,510
• 30 Day Avg. Volume: 1,115,973
• PEG Ratio: 0.52
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 8.04
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥540.00 ▲(28.57% Upside)

A.D.Works Group Co.Ltd shows strong financial performance with robust revenue growth and improved profitability. The valuation metrics indicate the stock may be undervalued, offering potential investment opportunities. Technical analysis suggests mixed signals with short-term bullish momentum but potential bearish pressure. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, which are crucial for long-term success and competitiveness.

Cash Flow Improvement

Improved cash flow management enhances financial flexibility and supports sustainable growth, reducing reliance on external financing.

Balance Sheet Health

A stable balance sheet with a balanced debt-to-equity ratio ensures financial stability and resilience against market fluctuations.

Negative Factors

Moderate Net Profit Margins

Moderate net profit margins suggest potential inefficiencies in cost management, which could impact long-term profitability if not addressed.

Past Cash Flow Challenges

Historical cash flow challenges highlight the need for consistent cash management strategies to ensure financial resilience during growth phases.

Reliance on Debt Financing

Dependence on debt financing may increase financial risk, especially in volatile markets, potentially impacting long-term financial stability.

A.D.Works Group Co.Ltd Business Overview & Revenue Model

Company Description

A.D. Works Group Co., Ltd. operates in the real estate business. It engages in the real estate leasing and sale activities. The company is also involved in the provision of property management and real estate consulting services, as well as in the real estate tech business. In addition, it offers renovation and repair services. The company was founded in 1886 and is based in Tokyo, Japan.

How the Company Makes Money

A.D.Works Group generates revenue through multiple streams, primarily from its construction and engineering services, which include project management, design, and execution of building projects. The company earns income through contracts awarded for specific projects, which can vary in size and complexity. Additionally, A.D.Works may have long-term partnerships with municipal governments and private enterprises that provide a steady flow of projects. The company may also engage in consultancy services related to construction and urban planning, further diversifying its revenue sources. Key factors contributing to its earnings include the ability to secure government contracts, reputation for quality and reliability, and the strategic use of technology to reduce costs and improve project delivery timelines.

A.D.Works Group Co.Ltd Financial Statement Overview

Summary

A.D.Works Group Co.Ltd demonstrates a robust growth trajectory with improved profitability and financial stability over recent years. The income statement reflects solid revenue growth and profit margins, while the balance sheet shows a stable debt management strategy. Despite past challenges in cash flow, recent improvements indicate better financial health and cash management.

Income Statement

The company has demonstrated a strong revenue growth trajectory, with a significant increase in total revenue from 2020 to 2024. The gross profit margin has also improved, indicating better cost management and efficiency. However, the net profit margin shows moderate levels, suggesting that there is room for improvement in operational costs and expenses. Overall, the company exhibits solid profitability metrics, with both EBIT and EBITDA margins showing steady improvement over the years.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity has shown improvement, signifying effective use of shareholders' funds to generate profits. However, the equity ratio indicates a moderate reliance on debt financing, which could pose risks in volatile market conditions. Overall, the company's financial stability is commendable, with a firm footing in equity and asset management.

Cash Flow

Cash flow performance has seen considerable improvement, with a significant positive shift in free cash flow in the latest year, indicating better cash management. The operating cash flow to net income ratio suggests efficient cash generation from core operations. However, past years have seen negative cash flows, which highlight challenges in sustaining positive cash flow during growth phases. Further efforts in maintaining consistent positive cash flow will strengthen financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.06B	49.91B	41.34B	27.86B	24.96B	22.45B
Gross Profit	10.20B	8.64B	7.02B	5.39B	4.73B	4.14B
EBITDA	4.53B	3.36B	2.59B	1.50B	1.09B	1.01B
Net Income	2.30B	1.61B	1.42B	527.19M	312.28M	353.32M
Balance Sheet
Total Assets	61.40B	59.81B	58.85B	53.36B	42.05B	35.85B
Cash, Cash Equivalents and Short-Term Investments	9.69B	10.13B	9.81B	7.43B	9.49B	7.40B
Total Debt	36.20B	35.66B	34.81B	32.52B	23.08B	19.02B
Total Liabilities	41.59B	41.05B	41.69B	37.50B	27.23B	22.63B
Stockholders Equity	19.79B	18.74B	17.14B	15.81B	14.79B	13.22B
Cash Flow
Free Cash Flow	-19.00M	1.27B	-1.12B	-11.52B	-4.45B	-1.07B
Operating Cash Flow	504.00M	1.73B	-683.62M	-11.45B	-4.44B	-1.06B
Investing Cash Flow	-598.00M	-329.79M	-146.84M	142.11M	-123.59M	-625.09M
Financing Cash Flow	-190.00M	-1.20B	3.01B	10.07B	5.26B	162.61M

A.D.Works Group Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 420.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2982, the sentiment is Negative. The current price of 420 is below the 20-day moving average (MA) of 453.60, below the 50-day MA of 457.78, and above the 200-day MA of 365.49, indicating a neutral trend. The MACD of -10.47 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2982.

A.D.Works Group Co.Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8908	80 Outperform	¥14.87B	8.56	―	4.00%	19.97%	69.40%
2982	74 Outperform	¥20.47B	7.19	―	2.76%	45.01%	89.71%
2970	70 Neutral	¥14.74B	10.26	―	―	57.57%	57.09%
2991	67 Neutral	¥16.62B	6.79	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3300	61 Neutral	¥17.12B	10.08	―	4.52%	-3.46%	-42.76%
8999	60 Neutral	¥18.12B	24.34	―	5.27%	-1.41%	194.28%