Amagasa Co., Ltd. (3070) AI Stock Analysis

• Market Cap: ¥6.90B
• Dividend Yield: N/A
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 34.74%
• EPS Growth: 39.63%
• Country: JP
• Employees: 30
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -3.22
• Shares Outstanding: 78,423,200
• 10 Day Avg. Volume: 868,370
• 30 Day Avg. Volume: 2,630,266
• PEG Ratio: 0.09
• Price to Book (P/B): 9.01
• Price to Sales (P/S): 2.23
• P/FCF Ratio: -2.91
• 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 Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: ¥79.00 ▼(-7.06% Downside)

Amagasa Co., Ltd. is facing significant financial and technical challenges, with declining revenues, negative profitability, and weak market momentum. The negative P/E ratio and lack of dividend yield further highlight valuation concerns. These factors collectively result in a low overall stock score, indicating high risk and limited attractiveness for investors.

Positive Factors

Diverse Sales Channels

The use of both physical and digital sales channels allows Amagasa to reach a wide customer base, enhancing market presence and resilience against market shifts.

Partnerships and Collaborations

Strategic partnerships and collaborations help Amagasa broaden its market reach and attract trend-conscious consumers, supporting long-term revenue growth.

Revenue Growth

A significant revenue growth rate indicates strong product demand and effective market strategies, contributing to potential long-term business success.

Negative Factors

Financial Stability

High leverage and a low equity ratio suggest financial instability, which could limit Amagasa's ability to invest in growth and weather economic downturns.

Cash Flow Issues

Negative free cash flow indicates poor cash generation from operations, potentially hindering the company's ability to fund new projects or manage debt effectively.

Profitability Challenges

Declining profit margins and continuous losses highlight operational inefficiencies, which could undermine long-term profitability and competitiveness.

Amagasa Co., Ltd. Business Overview & Revenue Model

Company Description

Amagasa Co., Ltd. (3070) is a Japanese company primarily engaged in the planning, development, and sale of footwear. The company offers a diverse range of footwear products including women's shoes, men's shoes, and children's shoes. Amagasa operates through both physical retail outlets and online platforms, catering to a broad customer base with its stylish and functional footwear collections.

How the Company Makes Money

Amagasa Co., Ltd. generates revenue through the sale of its footwear products. The company's primary revenue stream comes from direct sales through its retail stores and e-commerce platforms. By leveraging a mix of physical and digital sales channels, Amagasa reaches a wide array of customers. Additionally, the company benefits from partnerships with fashion retailers and department stores, expanding its distribution network and enhancing its market presence. Seasonal collections and collaborations with fashion designers also contribute to the company's earnings by attracting trend-conscious consumers seeking the latest in footwear fashion.

Amagasa Co., Ltd. Financial Statement Overview

Summary

Amagasa Co., Ltd. is facing severe financial difficulties, with declining revenues, negative profitability, high leverage, and negative cash flows. These issues pose significant risks to the company's financial stability and require urgent strategic interventions.

Income Statement

Amagasa Co., Ltd. has experienced a significant decline in revenue over the years, with a pronounced negative revenue growth rate. The gross profit margin is reducing, and the net profit margin is deeply negative, indicating continuous losses. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies. The company is struggling to maintain profitability and needs to address its revenue challenges to improve its income statement health.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio, indicating high leverage and potential risk. The equity ratio is low, suggesting limited financial stability. The company has also experienced declining stockholders' equity over the years. While there is some cash reserve, the overall financial health is weakened by liabilities exceeding assets significantly, necessitating a strategic focus on reducing debt or increasing equity.

Cash Flow

Amagasa Co., Ltd. has consistently negative free cash flow, which is worsening, indicating poor cash generation from operations. The operating cash flow to net income ratio is negative, further highlighting cash constraints. Despite some positive cash from financing activities, the company struggles with operational cash flow, indicating a need for improved cash management and cost control.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	819.00M	831.62M	919.75M	1.39B	1.57B	2.39B
Gross Profit	422.53M	409.49M	531.85M	834.47M	811.96M	1.03B
EBITDA	-516.79M	-513.94M	-589.57M	-684.92M	-832.21M	-752.68M
Net Income	-539.29M	-519.97M	-596.31M	-697.67M	-861.68M	-786.53M
Balance Sheet
Total Assets	1.32B	629.00M	596.43M	647.24M	948.97M	1.37B
Cash, Cash Equivalents and Short-Term Investments	300.74M	265.17M	310.06M	312.11M	476.62M	875.11M
Total Debt	269.89M	181.78M	215.63M	252.47M	294.91M	885.26M
Total Liabilities	532.47M	423.20M	482.96M	530.70M	626.55M	1.31B
Stockholders Equity	785.70M	205.80M	113.47M	116.54M	322.42M	66.05M
Cash Flow
Free Cash Flow	0.00	-636.94M	-615.34M	-633.96M	-910.83M	-653.72M
Operating Cash Flow	0.00	-621.29M	-610.82M	-606.53M	-886.06M	-638.51M
Investing Cash Flow	0.00	-1.16M	62.66M	-8.69M	-31.53M	1.14B
Financing Cash Flow	0.00	574.87M	554.33M	448.75M	513.99M	-154.99M

Amagasa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3070, the sentiment is Negative. The current price of 85 is below the 20-day moving average (MA) of 86.70, below the 50-day MA of 94.26, and below the 200-day MA of 152.27, indicating a bearish trend. The MACD of -4.96 indicates Negative momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3070.

Amagasa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8013	53 Neutral	¥2.29B	-112.18	―	―	0.58%	-2526.19%
2778	52 Neutral	¥1.67B	-42.24	―	―	-6.40%	-590.11%
8025	49 Neutral	¥5.38B	―	―	2.24%	12.99%	-364.77%
7494	43 Neutral	¥8.02B	16.95	―	4.13%	-10.82%	―
7603	38 Underperform	¥4.10B	―	―	―	-7.88%	-11.22%
3070	37 Underperform	¥6.90B	-3.50	―	―	34.74%	39.63%