Banners Co., Ltd. (3011) AI Stock Analysis

• Market Cap: ¥2.41B
• Dividend Yield: 3.18%
• Average Volume (3M): 7.00K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.64
• Revenue Growth: 8.21%
• EPS Growth: 9.93%
• Country: JP
• Employees: 86
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 3.68
• Shares Outstanding: 20,236,086
• 10 Day Avg. Volume: 4,750
• 30 Day Avg. Volume: 7,000
• PEG Ratio: 0.23
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥162.00 ▲(3.18% Upside)

Banners Co., Ltd. shows strong financial performance with significant growth and profitability improvements, which is the most significant factor in the overall score. The valuation is attractive with a low P/E ratio and a solid dividend yield. However, technical indicators suggest a lack of strong momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Margin Improvement

Improved margins reflect better cost control and operational efficiency, enhancing profitability and competitive positioning.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Negative Factors

Debt Levels

Moderate leverage suggests potential financial risk, requiring careful debt management to avoid constraints on future growth.

Equity Ratio

A low equity ratio indicates dependency on debt, which could pose risks during economic downturns or interest rate hikes.

Industry Competition

The competitive nature of the advertising and marketing sectors may pressure margins and require continuous innovation to maintain market share.

Banners Co., Ltd. Business Overview & Revenue Model

Company Description

Banners Co., Ltd. (3011) is a leading provider of digital printing solutions, specializing in high-quality banners, signage, and promotional materials. The company operates primarily in the advertising and marketing sectors, offering a wide range of products including custom banners, displays, and printed graphics. With a focus on innovation and quality, Banners Co., Ltd. serves businesses of all sizes, helping them enhance their visibility and brand presence in various markets.

How the Company Makes Money

Banners Co., Ltd. generates revenue through the sale of custom printed products, including banners, signs, and promotional materials, which are tailored to meet the specific needs of clients. The company employs a direct sales model, working with businesses, event planners, and marketing agencies to fulfill their printing requirements. Key revenue streams include bulk orders, one-off projects, and long-term contracts with corporate clients. Additionally, the company may engage in partnerships with marketing firms and event organizers, providing them with exclusive printing services or co-branded products, which further contributes to its earnings. The emphasis on high-quality materials and advanced printing technology allows Banners Co., Ltd. to maintain competitive pricing while ensuring customer satisfaction, fostering repeat business and referrals.

Banners Co., Ltd. Financial Statement Overview

Summary

Banners Co., Ltd. exhibits robust financial performance with significant revenue and profit growth, improved margins, and strong cash flow generation. However, moderate leverage on the balance sheet suggests a need for careful debt management.

Income Statement

Banners Co., Ltd. has demonstrated strong revenue growth, with a 19.55% increase from 2024 to 2025. The gross profit margin improved to 21.74% in 2025, indicating efficient cost management. The net profit margin also increased to 4.46%, reflecting enhanced profitability. The EBIT margin rose to 6.14%, and the EBITDA margin reached 9.58%, showcasing operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 1.18, indicating moderate leverage. The return on equity improved to 9.48%, suggesting better utilization of equity capital. However, the equity ratio is 29.73%, reflecting a relatively high reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Banners Co., Ltd. achieved a substantial turnaround in free cash flow, growing from a negative position in 2024 to a positive $497.58 million in 2025. The operating cash flow to net income ratio is 2.06, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.99, highlighting effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.50B	5.60B	4.68B	4.34B	3.92B	3.55B
Gross Profit	1.30B	1.30B	1.12B	1.02B	952.86M	847.62M
EBITDA	522.89M	536.47M	454.19M	415.75M	353.15M	246.11M
Net Income	242.91M	250.02M	184.07M	155.78M	141.02M	27.22M
Balance Sheet
Total Assets	8.64B	8.87B	8.70B	9.04B	9.14B	9.28B
Cash, Cash Equivalents and Short-Term Investments	951.39M	1.10B	837.38M	1.42B	1.52B	1.52B
Total Debt	3.05B	3.10B	3.28B	3.63B	3.83B	4.03B
Total Liabilities	6.01B	6.21B	6.21B	6.60B	6.80B	7.02B
Stockholders Equity	2.61B	2.64B	2.47B	2.43B	2.32B	2.25B
Cash Flow
Free Cash Flow	0.00	497.58M	-171.97M	165.74M	218.84M	-459.31M
Operating Cash Flow	0.00	513.97M	65.52M	334.84M	301.02M	483.87M
Investing Cash Flow	0.00	-35.21M	-111.81M	-171.61M	-70.45M	-996.60M
Financing Cash Flow	0.00	-239.74M	-497.25M	-258.04M	-265.33M	635.41M

Banners Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3011, the sentiment is Positive. The current price of 157 is above the 20-day moving average (MA) of 148.70, above the 50-day MA of 148.20, and above the 200-day MA of 143.46, indicating a bullish trend. The MACD of 2.36 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3011.

Banners Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3011	73 Outperform	¥2.41B	9.30	―	3.18%	8.21%	9.93%
7134	71 Outperform	¥8.66B	11.65	―	2.85%	6.55%	1.07%
2788	66 Neutral	¥4.75B	8.47	―	4.37%	-2.69%	-48.36%
3377	64 Neutral	¥5.61B	20.44	―	2.74%	9.13%	87.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7602	49 Neutral	¥2.81B	-9.35	―	1.50%	-2.36%	-1738.42%