Alpha Corporation (3434) AI Stock Analysis

• Market Cap: ¥11.52B
• Dividend Yield: 4.15%
• Average Volume (3M): 7.76K
• Price to Earnings (P/E): 47.2
• Beta (1Y): 0.72
• Revenue Growth: -3.59%
• EPS Growth: -130.55%
• Country: JP
• Employees: 4,304
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 24.22
• Shares Outstanding: 10,200,000
• 10 Day Avg. Volume: 7,540
• 30 Day Avg. Volume: 7,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,254.00
• Price Target Upside: 4.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥1,254.00 ▲(4.15% Upside)

The overall stock score of 55 reflects a stable financial position with strong equity and cash flow generation, but challenges in profitability and revenue growth. The technical indicators suggest a bullish trend, but caution is warranted due to overbought signals. The valuation is concerning due to a negative P/E ratio, although the dividend yield offers some compensation.

Positive Factors

Cash Flow Generation

Positive free cash flow indicates strong cash generation, providing the company with flexibility to invest in growth opportunities and manage debt.

Strategic Partnerships

Partnerships with tech leaders boost innovation and market penetration, supporting long-term revenue growth and competitive positioning.

Strong Equity Base

A strong equity base indicates financial stability, enabling the company to withstand economic fluctuations and invest in future growth.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term expansion and profitability, affecting the company's ability to scale and compete effectively.

Net Profit Margin Deterioration

Deteriorating net profit margins reduce profitability, limiting resources for reinvestment and potentially impacting shareholder returns.

Reliance on Debt

High reliance on debt can increase financial risk, potentially affecting the company's ability to finance operations and invest in growth.

Alpha Corporation Business Overview & Revenue Model

Company Description

Alpha Corporation (3434) is a diversified multinational company operating in the technology and manufacturing sectors. The company specializes in developing innovative electronic products, software solutions, and advanced manufacturing processes. Its core offerings include consumer electronics, enterprise software platforms, and automation solutions for various industries, including healthcare, automotive, and telecommunications.

How the Company Makes Money

Alpha Corporation generates revenue through multiple streams. The primary source of income comes from the sale of consumer electronics, which includes smartphones, tablets, and smart home devices. Additionally, the company earns substantial revenue from its enterprise software solutions, which are sold to businesses on a subscription basis, providing ongoing support and updates. The manufacturing segment contributes to earnings through contracts with third-party manufacturers, enabling Alpha to leverage economies of scale. Strategic partnerships with leading tech firms enhance its market reach and innovation capabilities, further solidifying its financial performance. Furthermore, the company invests in research and development to create cutting-edge products that cater to emerging market demands, ensuring sustained growth and profitability.

Alpha Corporation Financial Statement Overview

Summary

Alpha Corporation demonstrates a stable financial position with strong equity and cash flow generation capabilities. However, the company faces challenges in profitability and revenue growth, with recent net losses and reliance on debt being areas of concern.

Income Statement

Alpha Corporation's income statement reveals a mixed performance. The gross profit margin has been relatively stable, but the net profit margin has deteriorated, with the company posting a net loss in the latest year. Revenue growth has been inconsistent, with a recent decline. EBIT and EBITDA margins have also decreased, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet shows a strong equity base with a healthy equity ratio, suggesting financial stability. However, the debt-to-equity ratio is moderately high, indicating reliance on debt financing. Return on equity has been volatile, reflecting fluctuating profitability.

Cash Flow

Cash flow analysis indicates a positive free cash flow, although there has been a decline in free cash flow growth. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio has been inconsistent due to fluctuating net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.51B	73.51B	74.54B	62.88B	53.77B	47.61B
Gross Profit	10.27B	10.27B	11.42B	8.56B	7.79B	7.46B
EBITDA	3.78B	3.46B	6.07B	4.97B	4.71B	3.87B
Net Income	-302.00M	-301.00M	1.80B	524.00M	600.00M	224.00M
Balance Sheet
Total Assets	67.78B	67.78B	67.95B	61.64B	56.18B	55.74B
Cash, Cash Equivalents and Short-Term Investments	10.25B	10.25B	9.80B	6.95B	6.43B	7.91B
Total Debt	17.75B	17.75B	17.59B	17.83B	16.71B	17.55B
Total Liabilities	31.41B	31.41B	32.72B	30.97B	28.26B	29.14B
Stockholders Equity	35.46B	35.46B	34.23B	29.57B	26.76B	25.49B
Cash Flow
Free Cash Flow	0.00	2.21B	3.37B	-60.00M	-335.00M	276.00M
Operating Cash Flow	0.00	5.89B	7.11B	2.91B	1.87B	3.06B
Investing Cash Flow	0.00	-3.92B	-3.26B	-2.78B	-1.65B	-1.96B
Financing Cash Flow	0.00	-1.90B	-1.09B	62.00M	-1.74B	-1.34B

Alpha Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1204.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3434, the sentiment is Positive. The current price of 1204 is above the 20-day moving average (MA) of 1197.70, above the 50-day MA of 1186.74, and above the 200-day MA of 1111.71, indicating a bullish trend. The MACD of 7.01 indicates Positive momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3434.

Alpha Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7551	82 Outperform	¥10.25B	7.17		4.23%	0.94%	-1.43%
7218	78 Outperform	¥10.76B	6.26		2.90%	-7.85%	-34.41%
7247	74 Outperform	¥12.75B	5.08		3.68%	0.85%	94.79%
5985	68 Neutral	¥27.41B	7.87		3.25%	20.25%	―
7273	67 Neutral	¥23.71B	8.87		0.28%	17.13%	429.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3434	55 Neutral	¥11.52B	47.19		4.15%	-3.59%	-130.55%