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

• Market Cap: ¥4.80B
• Dividend Yield: 3.4%
• Average Volume (3M): 19.89K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.31
• Revenue Growth: -10.86%
• EPS Growth: -28.97%
• Country: JP
• Employees: 161
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 6.68
• Shares Outstanding: 4,267,900
• 10 Day Avg. Volume: 34,970
• 30 Day Avg. Volume: 19,886
• PEG Ratio: 2.51
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 59 Neutral
• Price Target: ¥1,176.00 ▲(5.00%Upside)

Tea Life Co., Ltd.'s stock score is influenced by strong financials, particularly a robust balance sheet, but is weakened by lackluster technical analysis indicating bearish momentum. The valuation appears fair with a reasonable P/E ratio and attractive dividend yield. Absence of recent cash flow data remains a concern.

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

Company Description

Tea Life Co., Ltd. (3172) is a Japanese company that operates in the health and wellness sector, specializing in the development, manufacturing, and retail of tea products. The company offers a wide range of tea blends and related products aimed at promoting health and well-being. Tea Life Co., Ltd. is committed to providing high-quality, natural tea solutions to consumers seeking healthier lifestyle choices.

How the Company Makes Money

Tea Life Co., Ltd. generates revenue primarily through the sale of its tea products, which include a variety of blends and flavors tailored to different health benefits. The company sells its products through multiple channels, including direct-to-consumer sales via its e-commerce platform, as well as through retail partnerships with health stores and other distributors. Additionally, Tea Life Co., Ltd. may engage in collaborations with other companies in the health and wellness industry to expand its market reach and enhance its product offerings. The key revenue streams for the company are product sales, both online and offline, and potential strategic partnerships that leverage its expertise in tea manufacturing and health-focused product development.

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

Tea Life Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3172, the sentiment is Negative. The current price of 1120 is below the 20-day moving average (MA) of 1149.87, below the 50-day MA of 1152.44, and below the 200-day MA of 1120.98, indicating a bearish trend. The MACD of -4.21 indicates Positive momentum. The RSI at 25.04 is Positive, neither overbought nor oversold. The STOCH value of -41.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.22B	14.56		1.68%	4.64%	8.70%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
3195	61 Neutral	¥3.69B	―		―	7.56%	-452.52%
3172	59 Neutral	¥4.80B	14.99		3.40%	-10.86%	-28.97%
3396	58 Neutral	¥5.52B	37.08		1.82%	0.86%	―
3058	52 Neutral	¥4.97B	27.98		―	-4.00%	―
3059	47 Neutral	¥4.07B	262.06		2.38%	-2.66%	-4994.64%