Applied Co., Ltd. (3020) AI Stock Analysis

• Market Cap: ¥11.79B
• Dividend Yield: 2.48%
• Average Volume (3M): 2.37K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.61
• Revenue Growth: 11.56%
• EPS Growth: 56.86%
• Country: JP
• Employees: 425
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 236.78
• Shares Outstanding: 2,703,200
• 10 Day Avg. Volume: 1,960
• 30 Day Avg. Volume: 2,366
• PEG Ratio: 0.09
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 2.81
• 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: 80 Outperform
• Price Target: ¥5,171.00 ▲(16.86% Upside)

Applied Co., Ltd. demonstrates strong financial performance with effective cost management and robust cash flow generation. The stock's technical indicators suggest strong bullish momentum, although the RSI indicates overbought conditions. The attractive valuation with a low P/E ratio and reasonable dividend yield further supports the stock's potential for growth and income.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for products and services, enhancing market position and supporting long-term business expansion.

Cash Flow Management

Strong cash flow growth ensures liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Balance Sheet Health

Minimal leverage enhances financial stability, reducing risk and providing a solid foundation for sustainable growth and investment capacity.

Negative Factors

Profit Margin Pressure

While improved, the net profit margin remains relatively low, which could limit reinvestment capabilities and shareholder returns if not further enhanced.

Industry Competition

Highly competitive industries may pressure pricing and margins, requiring continuous innovation and efficiency to maintain market share.

Margin Sustainability

Maintaining current margins may be challenging due to potential cost increases and competitive pressures, impacting long-term profitability.

Applied Co., Ltd. Business Overview & Revenue Model

Company Description

Applied Co.,Ltd. sells personal computers, peripheral equipment, and digital products in Japan. It is also involved in the planning, development, manufacture, sale, and wholesale of private brand PCs and digital products. The company also engages in the procurement, advertising, and sale of products of other manufacturers. In addition, it provides network system construction and maintenance, and remote services. The company was founded in 1977 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

Applied Co., Ltd. generates revenue through multiple streams, primarily by selling its electronic components and systems to businesses in various sectors, including telecommunications and industrial automation. The company's revenue model is driven by both direct sales and long-term contracts with key clients. Additionally, Applied Co. benefits from partnerships with major technology firms, which help to expand its market reach and enhance product offerings. Research and development investments also play a crucial role in creating new products that meet emerging market needs, contributing to the company's overall earnings.

Applied Co., Ltd. Financial Statement Overview

Summary

Applied Co., Ltd. presents a strong financial position with consistent revenue growth, effective cost management, and robust cash flow generation. The low leverage and high equity ratio provide financial stability, while the improving profit margins and return on equity reflect operational efficiency and profitability.

Income Statement

Applied Co., Ltd. has demonstrated strong revenue growth with a 10.4% increase in the latest year. The gross profit margin stands at 21.3%, indicating effective cost management. The net profit margin improved to 3.7%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 5.6% and 6.1%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on equity is 14.9%, reflecting strong profitability relative to shareholder investments. The equity ratio is 58.7%, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Applied Co., Ltd. exhibits robust cash flow management with a 137.3% growth in free cash flow. The operating cash flow to net income ratio is 1.67, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.53, highlighting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.16B	47.29B	42.82B	38.61B	43.96B	39.67B
Gross Profit	10.20B	10.06B	9.49B	8.63B	8.93B	9.59B
EBITDA	3.67B	2.87B	2.11B	1.83B	2.48B	2.59B
Net Income	1.84B	1.77B	1.21B	1.10B	1.49B	1.54B
Balance Sheet
Total Assets	19.49B	20.18B	18.07B	16.93B	16.09B	16.77B
Cash, Cash Equivalents and Short-Term Investments	5.53B	5.97B	3.77B	3.25B	2.51B	2.54B
Total Debt	370.00M	399.00M	654.00M	1.07B	1.61B	2.20B
Total Liabilities	7.33B	8.22B	7.66B	7.52B	7.56B	7.82B
Stockholders Equity	12.05B	11.84B	10.31B	9.32B	8.45B	8.89B
Cash Flow
Free Cash Flow	0.00	2.70B	1.14B	1.53B	758.00M	1.09B
Operating Cash Flow	0.00	2.94B	1.43B	1.83B	996.00M	1.35B
Investing Cash Flow	0.00	-604.00M	-316.00M	-710.00M	-606.00M	-650.00M
Financing Cash Flow	0.00	-498.00M	-628.00M	-771.00M	-816.00M	-215.00M

Applied Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3020, the sentiment is Neutral. The current price of 4425 is below the 20-day moving average (MA) of 4431.50, above the 50-day MA of 4249.90, and above the 200-day MA of 3602.76, indicating a neutral trend. The MACD of 20.20 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3020.

Applied Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3020	80 Outperform	¥11.79B	5.49	―	2.48%	11.56%	56.86%
8093	76 Outperform	¥23.02B	6.15	―	3.83%	41.87%	167.99%
7537	75 Outperform	¥35.54B	11.44	―	5.16%	1.71%	-29.37%
9880	73 Outperform	¥29.14B	22.90	―	3.25%	0.17%	21.01%
8023	72 Outperform	¥14.81B	8.94	―	4.62%	-2.98%	4.56%
4420	68 Neutral	¥9.83B	20.65	―	1.10%	2.20%	-34.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%