Grandes, Inc. (3261) AI Stock Analysis

• Market Cap: ¥2.35B
• Dividend Yield: 2.7%
• Average Volume (3M): 7.82K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.09
• Revenue Growth: 7.47%
• EPS Growth: 148.01%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 3.41
• Shares Outstanding: 4,100,874
• 10 Day Avg. Volume: 8,370
• 30 Day Avg. Volume: 7,820
• PEG Ratio: 0.43
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 23.61
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥687.00 ▼(-42.32% Downside)

The score is held back primarily by very bearish technical conditions (large gap below moving averages and negative momentum). Financial performance is improving on profitability and balance-sheet strength, but declining revenue and only moderate cash-flow efficiency limit the upside. Valuation is reasonable with a modest dividend yield, providing partial support.

Positive Factors

Improved Profitability

Enhanced profitability margins indicate better operational efficiency and cost management, which can lead to sustained earnings growth and competitive advantage.

Reduced Leverage

Lower leverage improves financial stability, reducing risk and interest expenses, which enhances the company's ability to invest in growth opportunities.

Positive Free Cash Flow

Positive free cash flow provides financial flexibility, enabling investment in innovation and expansion, and supports long-term sustainability.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market demand or competitive pressures, which could impact growth prospects and market share.

Moderate Cash Flow Efficiency

Moderate cash flow efficiency indicates potential issues in converting earnings to cash, which may limit the company's ability to fund operations and growth.

Negative Revenue Growth Rate

Negative revenue growth rate highlights potential difficulties in maintaining sales momentum, which could affect long-term profitability and market positioning.

Grandes, Inc. Business Overview & Revenue Model

Company Description

Grandes, Inc. (3261) is a leading player in the advanced manufacturing sector, specializing in the production of precision-engineered components for the aerospace and automotive industries. With a commitment to innovation and quality, the company offers a range of products that includes high-performance materials, custom fabrication services, and integrated supply chain solutions. Grandes, Inc. leverages cutting-edge technology to meet the demands of its clients, ensuring reliability and efficiency in its manufacturing processes.

How the Company Makes Money

Grandes, Inc. generates revenue primarily through the sale of its precision-engineered components and related services. The company's revenue model is built on multiple key streams, including direct product sales to major aerospace and automotive manufacturers, long-term contracts for custom fabrication services, and consulting fees for supply chain optimization. Significant partnerships with industry leaders enhance its market position and drive sales, allowing Grandes, Inc. to benefit from economies of scale and increased production capabilities. Additionally, the company invests in research and development to create innovative products, which helps to attract new clients and retain existing ones, further contributing to its earnings.

Grandes, Inc. Financial Statement Overview

Summary

Grandes, Inc. demonstrates strong profitability improvements and reduced leverage, indicating better financial health. However, the decline in revenue growth is a concern. The company shows positive cash flow trends, but there is potential for further improvement in cash flow efficiency.

Income Statement

Grandes, Inc. has shown a strong improvement in its gross profit margin, increasing from 20.43% in 2023 to 29.82% in 2024. The net profit margin also improved to 5.94% in 2024 from 3.87% in 2023. However, the revenue growth rate was negative at -8.13% in 2024, indicating a decline in total revenue. EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio decreased from 0.59 in 2023 to 0.37 in 2024, indicating reduced leverage. Return on equity (ROE) improved to 9.06% in 2024 from 8.63% in 2023, showing better profitability. The equity ratio increased to 61.23% in 2024, suggesting a strong equity position. Overall, the balance sheet shows improved financial stability.

Cash Flow

Free cash flow turned positive in 2024, with a significant growth rate of 172.34% compared to 2023. The operating cash flow to net income ratio improved to 0.70, indicating better cash generation relative to net income. However, the free cash flow to net income ratio remains moderate at 0.66, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.82B	4.23B	4.60B	2.66B	2.81B	1.77B
Gross Profit	1.18B	1.26B	940.00M	609.15M	622.47M	474.32M
EBITDA	433.60M	507.26M	160.00M	191.81M	352.49M	229.28M
Net Income	144.32M	251.05M	178.00M	65.68M	182.66M	84.24M
Balance Sheet
Total Assets	5.56B	4.53B	4.09B	4.40B	3.78B	4.49B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.61B	1.17B	1.64B	703.11M	830.69M
Total Debt	2.46B	1.04B	1.21B	1.54B	1.59B	2.42B
Total Liabilities	2.95B	1.75B	2.02B	2.46B	1.86B	2.65B
Stockholders Equity	2.61B	2.77B	2.06B	1.93B	1.92B	1.85B
Cash Flow
Free Cash Flow	0.00	165.66M	-229.00M	685.54M	840.65M	-61.89M
Operating Cash Flow	0.00	176.66M	-221.00M	685.81M	845.69M	-55.58M
Investing Cash Flow	0.00	-17.39M	125.00M	362.44M	-29.91M	-23.28M
Financing Cash Flow	0.00	279.08M	-377.33M	-107.33M	-943.35M	177.80M

Grandes, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1191.00
• 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:3261, the sentiment is Negative. The current price of 1191 is above the 20-day moving average (MA) of 790.89, above the 50-day MA of 1001.57, and above the 200-day MA of 1054.08, indicating a bearish trend. The MACD of -143.87 indicates Positive momentum. The RSI at 9.35 is Positive, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3261.

Grandes, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3241	76 Outperform	¥6.36B	7.08	―	3.23%	18.41%	54.19%
5527	69 Neutral	¥9.51B	6.93	―	3.45%	28.82%	672.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
4437	65 Neutral	¥4.58B	15.05	―	0.64%	10.71%	-26.92%
3238	63 Neutral	¥4.03B	7.34	―	3.41%	31.33%	174.39%
3495	60 Neutral	¥6.90B	6.77	―	2.25%	14.92%	39.05%
3261	55 Neutral	¥2.35B	12.27	―	2.70%	7.47%	148.01%