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

• Market Cap: ¥2.49B
• Dividend Yield: 3.23%
• Average Volume (3M): 33.01K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.56
• Revenue Growth: 9.42%
• EPS Growth: 15.60%
• Country: JP
• Employees: 86
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): 2.91
• Shares Outstanding: 20,236,086
• 10 Day Avg. Volume: 25,090
• 30 Day Avg. Volume: 33,010
• 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: ¥168.00
• Price Target Upside: 8.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥168.00 ▲(8.39% Upside)

Banners Co., Ltd. scores well due to its strong financial performance, characterized by significant revenue and profit growth, and robust cash flow generation. The technical analysis supports a positive trend, and the valuation indicates the stock is undervalued with a solid dividend yield, making it attractive for investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates increasing demand for the company's products, reflecting successful market penetration and expansion strategies.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to reinvest in growth opportunities, pay down debt, and return capital to shareholders.

Profit Margin Improvement

Improved profit margins suggest effective cost control and pricing strategies, enhancing the company's profitability and competitive positioning.

Negative Factors

High Debt Levels

High debt levels can increase financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Moderate Leverage

Moderate leverage requires careful management to prevent financial strain, especially in volatile market conditions or rising interest rate environments.

Equity Utilization

While improved, the return on equity still indicates room for better capital efficiency, which could impact long-term shareholder value if not addressed.

Banners Co., Ltd. Business Overview & Revenue Model

Company Description

Banners Co., Ltd. (3011) specializes in the design, manufacturing, and distribution of high-quality banners and signage solutions. The company operates primarily in the advertising and marketing sectors, offering a wide range of products including custom banners, digital signage, and display stands tailored to meet the promotional needs of businesses and organizations worldwide.

How the Company Makes Money

Banners Co., Ltd. generates revenue through the sale of its banner and signage products to a diverse clientele ranging from small businesses to large corporations. The company's revenue model is based on direct sales, online orders through its e-commerce platform, and bulk orders from business partnerships. Additionally, Banners Co., Ltd. collaborates with advertising agencies and event organizers, providing customized solutions that lead to repeat business and long-term contracts. The company also benefits from strategic partnerships with suppliers to optimize production costs, enhancing its profit margins.

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. The balance sheet shows moderate leverage, which should be monitored to maintain financial stability.

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	5.60B	5.60B	4.68B	4.34B	3.92B	3.55B
Gross Profit	1.30B	1.22B	1.12B	1.02B	952.86M	847.62M
EBITDA	534.23M	536.47M	454.19M	415.75M	353.15M	246.11M
Net Income	249.41M	250.02M	184.07M	155.78M	141.02M	27.22M
Balance Sheet
Total Assets	8.87B	8.87B	8.70B	9.04B	9.14B	9.28B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.10B	837.38M	1.42B	1.52B	1.52B
Total Debt	3.10B	3.10B	3.28B	3.63B	3.83B	4.03B
Total Liabilities	6.21B	6.21B	6.21B	6.60B	6.80B	7.02B
Stockholders Equity	2.64B	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: 155.00
• 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 155 is above the 20-day moving average (MA) of 152.10, above the 50-day MA of 146.00, and above the 200-day MA of 137.95, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 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	79 Outperform	¥2.49B	9.75		3.23%	9.42%	15.60%
7134	78 Outperform	¥9.21B	12.49		2.77%	7.91%	8.30%
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		1.47%	0.91%	-517.75%