Tea Life Co., Ltd. (3172) AI Stock Analysis

• Market Cap: ¥5.04B
• Dividend Yield: 3.38%
• Average Volume (3M): 6.31K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.31
• Revenue Growth: -10.86%
• EPS Growth: -28.97%
• Country: JP
• Employees: 161
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 6.68
• Shares Outstanding: 4,267,900
• 10 Day Avg. Volume: 11,110
• 30 Day Avg. Volume: 6,310
• PEG Ratio: 1.79
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• 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

• Rating: 62 Neutral
• Price Target: ―

Tea Life Co., Ltd. shows a strong financial foundation with stable revenue and a solid balance sheet, which supports its valuation. However, the absence of recent cash flow data raises concerns about its cash generation capacity, and the technical analysis suggests potential downward momentum. These factors result in a moderate overall stock score.

Tea Life Co., Ltd. Business Overview & Revenue Model

Company Description

Tea Life Co., Ltd. (3172) is a Japanese company primarily engaged in the development, manufacturing, and sale of tea-related products. The company focuses on offering a wide range of tea products that include traditional Japanese teas, herbal teas, and health-focused beverages. Tea Life Co., Ltd. serves both domestic and international markets, ensuring high-quality standards and innovative product offerings to cater to a diverse customer base.

How the Company Makes Money

Tea Life Co., Ltd. generates revenue through the sale of its tea products across various distribution channels. The company sells directly to consumers via its online platform and retail stores, and it also partners with wholesalers and distributors to expand its market reach. Additionally, Tea Life Co., Ltd. may engage in private label manufacturing for other brands, thereby diversifying its revenue streams. Strategic partnerships with retailers and collaborations with health and wellness brands further contribute to its earnings.

Tea Life Co., Ltd. Financial Statement Overview

Summary

Tea Life Co., Ltd. demonstrates stable revenue and profitability with a strong balance sheet, characterized by low leverage and solid equity. However, concerns arise from the absence of recent cash flow data, which could impact future cash generation capabilities.

Income Statement

The company displayed a relatively stable revenue trend with a slight decline in recent periods, showcasing a TTM (Trailing-Twelve-Months) revenue of 12.28 billion yen. Gross profit margin stands healthy at 35.23%, and net profit margin is modest at 2.86%. The EBIT margin is 4.28%, and EBITDA margin is 5.45%, indicating efficiency in operations despite a decline in profitability from prior years.

Balance Sheet

Tea Life Co., Ltd. maintains a strong equity position, with a debt-to-equity ratio of 0.15, indicating low leverage. The return on equity (ROE) is decent at 5.53%, reflecting the company's ability to generate returns on shareholder investments. An equity ratio of 70.60% signifies a solid capital structure with significant equity backing.

Cash Flow

The cash flow position shows challenges, with no operating cash flow or free cash flow reported in the TTM period. Prior periods indicate fluctuating cash flow, with a free cash flow to net income ratio historically positive. However, lack of recent data raises concerns about current cash generation capabilities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
12.28B	13.00B	13.46B	12.74B	11.72B	10.58B
	Gross Profit
4.33B	4.45B	4.67B	4.95B	5.44B	5.36B
	EBIT
526.00M	551.00M	822.00M	808.00M	901.00M	496.31M
	EBITDA
668.50M	733.00M	971.00M	927.00M	1.01B	681.17M
	Net Income Common Stockholders
351.00M	319.00M	599.00M	566.00M	704.00M	420.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.00B	2.90B	2.68B	2.32B	2.67B	1.99B
	Total Assets
8.98B	8.98B	8.57B	8.27B	8.31B	7.76B
	Total Debt
968.00M	1.02B	663.00M	815.00M	1.01B	1.19B
	Net Debt
-2.03B	-1.88B	-1.96B	-1.51B	-1.66B	-774.69M
	Total Liabilities
2.64B	2.70B	2.40B	2.48B	2.85B	2.83B
	Stockholders Equity
6.34B	6.28B	6.17B	5.79B	5.46B	4.93B
Cash Flow		Free Cash Flow
0.00	242.00M	636.00M	220.00M	905.00M	-445.66M
	Operating Cash Flow
0.00	329.00M	704.00M	380.00M	964.00M	847.30M
	Investing Cash Flow
0.00	-139.00M	-3.00M	-296.00M	121.00M	-1.14B
	Financing Cash Flow
0.00	133.00M	-422.00M	-438.00M	-349.00M	638.22M

Tea Life Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1182.00
• 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:3172, the sentiment is Positive. The current price of 1182 is above the 20-day moving average (MA) of 1166.10, above the 50-day MA of 1146.36, and above the 200-day MA of 1135.20, indicating a bullish trend. The MACD of 8.07 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 96.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3172.

Tea Life Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3190	70 Outperform	¥4.19B	12.53		1.68%	4.34%	63.23%
3396	67 Neutral	¥5.50B	43.52		1.80%	-0.53%	―
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
3172	62 Neutral	¥5.04B	15.75		3.38%	-10.86%	-28.97%
3195	56 Neutral	¥3.24B	―		―	7.56%	-452.52%
3058	49 Neutral	¥4.93B	27.73		―	-4.00%	―
3059	47 Neutral	¥4.15B	262.06		2.35%	-2.66%	-4452.83%