AP Holdings Co., Ltd. (3175) AI Stock Analysis

• Market Cap: ¥12.04B
• Dividend Yield: N/A
• Average Volume (3M): 16.73K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.33
• Revenue Growth: 3.90%
• EPS Growth: N/A
• Country: JP
• Employees: 723
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.78
• Shares Outstanding: 12,883,150
• 10 Day Avg. Volume: 8,220
• 30 Day Avg. Volume: 16,726
• PEG Ratio: 3.60
• Price to Book (P/B): -221.63
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -49.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥953.00 ▲(0.21% Upside)

The overall stock score of 52 reflects significant financial challenges, including persistent unprofitability and high leverage, which are major concerns. Technical analysis indicates a lack of strong momentum, and the valuation suggests the stock is expensive given its financial instability. The absence of a dividend yield further detracts from its attractiveness.

Positive Factors

Sustainable Building Technologies

Investing in sustainable technologies positions AP Holdings as a forward-thinking company, potentially reducing costs and enhancing appeal in eco-conscious markets.

Revenue Diversification

Diversified revenue streams from leasing and management services provide stability and reduce reliance on a single income source, supporting long-term financial health.

Effective Cost Management

High gross margins indicate strong cost control, which can sustain profitability even when revenue growth is challenged, ensuring business resilience.

Negative Factors

High Leverage

Excessive leverage can limit financial flexibility and increase risk, especially in downturns, posing a threat to long-term financial stability.

Persistent Unprofitability

Ongoing unprofitability undermines financial health and can erode investor confidence, necessitating strategic changes to achieve sustainable growth.

Negative Equity Position

Negative equity indicates financial distress, which can hinder investment and growth opportunities, requiring urgent corrective measures.

AP Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

AP Holdings Co.,Ltd. manages restaurants in Japan and Singapore. The company also manages poultry and fruit farms, ranches, and fisheries. In addition, it processes, distributes, and sells poultry products; processes, distributes, sells, and exports food products; and offers franchises management services. The company operates approximately 206 outlets under 16 brands. The company was formerly known as AP Company Co., Ltd. AP Holdings Co.,Ltd. was founded in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AP Holdings generates revenue primarily through its real estate operations, which include leasing residential and commercial properties. The company earns rental income from its extensive portfolio of properties, which includes apartments, office buildings, and retail spaces. Additionally, AP Holdings derives income from property management services, where it manages properties on behalf of other owners, charging management fees. The company may also profit from real estate development projects by selling newly constructed properties or by increasing the value of existing properties through renovations. Strategic partnerships with construction firms and local governments can further enhance revenue opportunities, especially in collaborative urban development projects.

AP Holdings Co., Ltd. Financial Statement Overview

Summary

AP Holdings Co., Ltd. faces significant financial challenges with persistent unprofitability and high leverage. The negative equity position and ongoing cash flow issues indicate financial instability. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

The company exhibited fluctuations in revenue with a significant decline post-2020. Gross profit margins are consistently above 60%, showing effective cost management despite decreasing revenues. However, net profit margins are negative for multiple years, indicating persistent unprofitability, which is a major concern. EBIT and EBITDA margins have improved in the latest year but remain volatile.

Balance Sheet

The company has a concerning negative equity position as of the latest year, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, and high total liabilities exceed total assets, suggesting high leverage. Return on equity is not assessable due to negative equity. The equity ratio is negative, reflecting financial distress.

Cash Flow

Operating cash flow has been positive in recent years, showing some operational strength, but free cash flow remains negative, indicating issues with capital expenditures and liquidity. The operating cash flow to net income ratio is favorable due to positive cash flow despite net losses, but the free cash flow to net income ratio highlights ongoing cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.42B	21.07B	20.60B	17.18B	8.00B	8.94B
Gross Profit	13.68B	13.49B	13.40B	11.02B	4.51B	5.36B
EBITDA	1.03B	539.22M	297.33M	-558.86M	795.26M	-2.91B
Net Income	416.40M	-36.86M	-452.90M	-1.31B	31.41M	-3.55B
Balance Sheet
Total Assets	7.03B	7.69B	8.28B	9.14B	9.68B	10.01B
Cash, Cash Equivalents and Short-Term Investments	582.17M	920.33M	1.65B	1.82B	1.49B	2.21B
Total Debt	4.67B	5.76B	6.01B	6.82B	7.74B	7.97B
Total Liabilities	6.57B	7.74B	8.11B	9.02B	9.14B	9.49B
Stockholders Equity	455.33M	-51.51M	112.53M	40.43M	465.77M	449.28M
Cash Flow
Free Cash Flow	0.00	-232.82M	-136.03M	507.07M	-430.88M	-3.77B
Operating Cash Flow	0.00	541.22M	250.00M	1.02B	113.30M	-3.56B
Investing Cash Flow	0.00	-818.12M	-68.15M	-560.38M	-580.79M	-234.95M
Financing Cash Flow	0.00	-442.57M	-386.32M	-159.64M	-284.05M	4.13B

AP Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 951.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3175, the sentiment is Negative. The current price of 951 is below the 20-day moving average (MA) of 955.95, above the 50-day MA of 950.76, and above the 200-day MA of 930.94, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3175.

AP Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3082	64 Neutral	¥10.60B	28.00	―	0.78%	10.30%	1.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9950	56 Neutral	¥10.00B	99.85	―	0.59%	3.51%	-47.40%
3418	56 Neutral	¥10.91B	23.77	―	0.74%	6.26%	-4.84%
8207	55 Neutral	¥11.37B	665.57	―	―	4.19%	-88.64%
3175	52 Neutral	¥12.04B	22.91	―	―	3.90%	―
3053	44 Neutral	¥11.49B	-95.05	―	―	1.54%	-18.59%