Misawa & Co., Ltd. (3169) AI Stock Analysis

• Market Cap: ¥4.67B
• Dividend Yield: 1.21%
• Average Volume (3M): 9.35K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.24
• Revenue Growth: 1.09%
• EPS Growth: 583.24%
• Country: JP
• Employees: 181
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Department Stores
• EPS (TTM): -8.44
• Shares Outstanding: 7,112,400
• 10 Day Avg. Volume: 9,250
• 30 Day Avg. Volume: 9,353
• 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: ¥707.00
• Price Target Upside: 7.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥707.00 ▲(7.12% Upside)

Misawa & Co., Ltd. shows strong financial stability with robust revenue growth and improving profitability, although cash flow management needs improvement. The technical analysis indicates a positive trend, supporting the stock's performance. However, the high P/E ratio suggests the stock may be overvalued, which slightly offsets the overall score.

Positive Factors

Revenue Growth

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

Financial Stability

Minimal leverage enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Profitability Improvement

Improved profitability reflects better cost management and operational efficiencies, contributing to stronger financial health.

Negative Factors

Cash Flow Management

Declining cash flows can strain liquidity and limit the company's ability to invest in growth opportunities, impacting long-term sustainability.

Operational Efficiency

Low operational margins suggest inefficiencies that could hinder profitability and competitiveness, requiring strategic improvements.

Cash Conversion Challenges

Difficulty in converting profits into cash flow may affect the company's ability to fund operations and growth without external financing.

Misawa & Co., Ltd. Business Overview & Revenue Model

Company Description

Misawa & Co., Ltd. (3169) operates primarily in the manufacturing and sale of home and building materials. The company engages in the production and distribution of housing equipment, as well as the construction of residential properties. Misawa & Co. is known for its focus on delivering high-quality products and services that cater to the needs of homeowners and builders, ensuring customer satisfaction and sustainable business practices.

How the Company Makes Money

Misawa & Co., Ltd. generates revenue through the sale of home and building materials, which constitutes a significant portion of its income. The company also earns money from its construction services, particularly in residential property development. It maintains a robust supply chain and distribution network that supports its manufacturing activities and facilitates the delivery of products to various markets. Additionally, strategic partnerships with suppliers and contractors enhance its market presence and contribute to its overall earnings.

Misawa & Co., Ltd. Financial Statement Overview

Summary

Misawa & Co., Ltd. demonstrates robust revenue growth and improving profitability, though operational efficiency remains an area for improvement. Its balance sheet is strong with minimal leverage and a high equity ratio, offering financial stability. However, cash flow management appears to be a concern, with declining free cash flow and operating cash flow, which needs attention to maintain financial health.

Income Statement

Misawa & Co., Ltd. shows a strong gross profit margin at approximately 49.8% for the latest year, indicating good cost management. Net profit margin improved significantly to about 1.5%, up from 0.1% the previous year, signaling recovery in profitability. Revenue growth was positive at 4.6%, suggesting healthy sales growth. The EBIT margin of 2.6% and EBITDA margin of 3.3% show improvement but remain relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is low at roughly 0.02, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is modest at 5.9%, reflecting moderate efficiency in using shareholders' equity to generate profits. An equity ratio of approximately 62.4% demonstrates a strong capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow decreased significantly, and free cash flow dropped by 77.9%, indicating potential cash management issues. The operating cash flow to net income ratio of 1.9 suggests good cash generation from operations relative to earnings, though not as strong as prior years. The free cash flow to net income ratio of 0.6 shows some challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.92B	12.64B	12.09B	12.20B	11.63B	10.92B
Gross Profit	5.88B	6.29B	5.81B	6.17B	7.12B	6.71B
EBITDA	197.42M	413.06M	160.12M	631.48M	1.16B	1.04B
Net Income	48.04M	187.36M	12.27M	341.04M	692.53M	614.92M
Balance Sheet
Total Assets	4.78B	5.08B	5.16B	4.52B	4.55B	4.34B
Cash, Cash Equivalents and Short-Term Investments	819.05M	1.10B	1.12B	641.26M	940.25M	1.09B
Total Debt	85.42M	54.17M	79.17M	86.00K	35.84M	240.69M
Total Liabilities	1.79B	1.91B	2.12B	1.40B	1.65B	2.07B
Stockholders Equity	2.99B	3.17B	3.04B	3.12B	2.90B	2.27B
Cash Flow
Free Cash Flow	259.16M	118.91M	538.95M	-159.41M	143.25M	1.35B
Operating Cash Flow	259.16M	357.93M	825.15M	74.79M	251.27M	1.43B
Investing Cash Flow	0.00	-254.03M	-304.88M	-257.29M	-134.32M	-62.36M
Financing Cash Flow	0.00	-117.52M	-44.25M	-116.50M	-262.36M	-782.27M

Misawa & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 660.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3169, the sentiment is Positive. The current price of 660 is above the 20-day moving average (MA) of 648.35, above the 50-day MA of 641.00, and above the 200-day MA of 646.37, indicating a bullish trend. The MACD of 4.56 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 90.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3169.

Misawa & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3169	70 Neutral	¥4.67B	32.33		1.21%	1.09%	583.24%
8260	64 Neutral	¥4.93B	5.27		1.40%	-2.12%	8.28%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
7506	61 Neutral	¥6.49B	80.96		1.81%	-3.92%	-129.57%
8254	61 Neutral	¥2.53B	20.42		―	-10.22%	-23.30%
8247	54 Neutral	¥2.21B	8.85		―	-2.19%	-58.67%
7601	51 Neutral	¥2.13B	6.33		―	-1.56%	-4.68%