Cross Plus Inc. (3320) AI Stock Analysis

• Market Cap: ¥9.99B
• Dividend Yield: 2.77%
• Average Volume (3M): 12.27K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.51
• Revenue Growth: -2.28%
• EPS Growth: 36.25%
• Country: JP
• Employees: 699
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 83.42
• Shares Outstanding: 7,718,800
• 10 Day Avg. Volume: 4,580
• 30 Day Avg. Volume: 12,273
• PEG Ratio: -0.15
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -11.90
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,419.00 ▲(4.03% Upside)

Cross Plus Inc. has a strong valuation with a low P/E ratio and attractive dividend yield, which are significant positives. However, challenges in cash flow management and a lack of strong market momentum slightly offset these strengths. The company's stable financial position and low leverage provide a solid foundation, but improvements in profitability and cash flow generation are needed for a higher score.

Positive Factors

Low Leverage

Low leverage enhances financial stability, reducing risk and providing flexibility for strategic investments and growth opportunities.

Operational Efficiency

Improved operational efficiency suggests effective cost management, which can lead to better profitability and competitive positioning in the long term.

Equity Base

A strong equity base provides a cushion against financial volatility and supports sustainable growth and investment capacity.

Negative Factors

Profitability Decline

Declining profitability can hinder reinvestment in business operations and innovation, potentially affecting long-term growth and market competitiveness.

Cash Flow Challenges

Challenges in cash flow management can limit the company's ability to finance new projects, pay down debt, or return capital to shareholders, impacting financial health.

Revenue Growth Decline

A decline in revenue growth can signal weakening demand or competitive pressures, potentially affecting the company's market position and future earnings potential.

Cross Plus Inc. Business Overview & Revenue Model

Company Description

Cross Plus Inc. (3320) is a diversified company operating primarily in the manufacturing and distribution sectors. The company specializes in producing high-quality industrial components, focusing on precision engineering and innovative solutions for various industries, including automotive, aerospace, and electronics. With a strong emphasis on research and development, Cross Plus Inc. aims to deliver cutting-edge products that enhance efficiency and performance for its clients.

How the Company Makes Money

Cross Plus Inc. generates revenue through multiple streams, primarily from the sale of its manufactured components to B2B clients across various sectors. The company operates on a direct sales model, where it engages with customers through its sales force and distribution networks. Additionally, Cross Plus Inc. has established strategic partnerships with key players in the automotive and aerospace industries, allowing it to secure long-term contracts that provide a steady income. The company also invests in R&D to create new products, which can lead to higher-margin sales as it captures new market opportunities. Furthermore, Cross Plus Inc. benefits from after-sales services and maintenance contracts that provide recurring revenue, enhancing its overall financial stability.

Cross Plus Inc. Financial Statement Overview

Summary

Cross Plus Inc. shows revenue growth and improved operational efficiency, contributing to a stable financial position with low leverage. However, profitability has declined, and cash flow management remains a concern.

Income Statement

Cross Plus Inc. has shown a positive trend in revenue growth with a recent increase of 3% from the previous year. The EBIT margin has improved to 1.66%, indicating better operational efficiency. However, the net profit margin decreased to 2.08% due to a drop in net income. EBITDA margin remains stable at 2.93%, reflecting consistent cash generation abilities despite challenges in profitability.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.17, indicating low leverage. Stockholders' equity has increased, leading to a robust equity ratio of 61.25%. Return on equity is moderate at 7.61%, suggesting reasonable profitability relative to equity. The company has maintained a solid equity base, enhancing financial stability.

Cash Flow

Cross Plus Inc. faces challenges in cash flow management, highlighted by a negative free cash flow growth rate, primarily due to a decrease in operating cash flow. The operating cash flow to net income ratio is negative, reflecting operational difficulties. The free cash flow to net income ratio is also negative, indicating constraints in generating free cash flow from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.60B	62.00B	60.19B	57.06B	59.13B	63.99B
Gross Profit	16.23B	16.31B	16.63B	13.39B	11.44B	15.32B
EBITDA	1.63B	1.81B	2.05B	809.00M	-1.12B	2.44B
Net Income	1.42B	1.29B	2.06B	455.00M	-1.67B	2.00B
Balance Sheet
Total Assets	28.56B	27.66B	28.37B	26.10B	26.55B	32.42B
Cash, Cash Equivalents and Short-Term Investments	5.34B	4.34B	5.69B	3.92B	3.78B	3.53B
Total Debt	2.39B	2.92B	3.81B	4.21B	4.85B	6.17B
Total Liabilities	10.30B	10.71B	12.85B	13.63B	13.74B	17.56B
Stockholders Equity	18.27B	16.94B	15.52B	12.46B	12.81B	14.86B
Cash Flow
Free Cash Flow	0.00	-603.00M	2.87B	781.00M	1.66B	-3.63B
Operating Cash Flow	0.00	-486.00M	2.94B	883.00M	1.99B	-3.40B
Investing Cash Flow	0.00	232.00M	276.00M	263.00M	-239.00M	-285.00M
Financing Cash Flow	0.00	-1.11B	-1.46B	-754.00M	-1.56B	3.45B

Cross Plus Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1364.00
• 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:3320, the sentiment is Positive. The current price of 1364 is above the 20-day moving average (MA) of 1333.40, above the 50-day MA of 1308.24, and above the 200-day MA of 1181.98, indicating a bullish trend. The MACD of 13.88 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3320.

Cross Plus Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3320	71 Outperform	¥9.99B	6.45	―	2.77%	-2.28%	36.25%
3123	70 Outperform	¥7.43B	7.02	―	2.76%	-4.76%	8.43%
8115	69 Neutral	¥5.42B	8.16	―	4.43%	6.79%	15.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9980	60 Neutral	¥9.52B	19.67	―	1.06%	6.19%	79.98%
8127	48 Neutral	¥12.25B	85.78	―	3.35%	-8.02%	-59.42%
9885	44 Neutral	¥5.65B	-5.16	―	2.23%	-0.67%	-453.71%