Alpha Corporation (3434) AI Stock Analysis

• Market Cap: ¥10.95B
• Dividend Yield: 4.37%
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -5.07%
• EPS Growth: -120.70%
• Country: JP
• Employees: 4,304
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 20.72
• Shares Outstanding: 10,200,000
• 10 Day Avg. Volume: 6,930
• 30 Day Avg. Volume: 7,143
• PEG Ratio: 0.30
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 4.80
• 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: 58 Neutral
• Price Target: ¥1,210.00 ▲(5.68% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company has a stable financial position, challenges in profitability and revenue growth weigh heavily. Technical indicators suggest a neutral to slightly bearish trend. Valuation concerns are significant due to a negative P/E ratio, despite an attractive dividend yield.

Positive Factors

Strong Equity Base

A strong equity base provides financial stability and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Cash Flow Generation

Robust cash generation supports ongoing operations, debt servicing, and potential reinvestment in business expansion, enhancing long-term sustainability.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, providing stability and growth potential across different economic cycles.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term planning and investment, affecting the company's ability to maintain competitive positioning and market share.

Profitability Issues

Deteriorating profitability limits reinvestment capacity and could strain financial resources, impacting long-term operational and strategic initiatives.

Reliance on Debt

High reliance on debt can increase financial risk, limit flexibility, and raise costs, potentially affecting the company's ability to invest in future growth.

Alpha Corporation Business Overview & Revenue Model

Company Description

ALPHA Corporation develops, manufactures, and sells lock and key products for automobile parts, housing hardware products, and coin operated lockers in Japan and internationally. The company operates in two segments, Automobile Parts Business and Security Equipment Business. It offers automobile parts, such as keys, locks, door handles, back door sensors, motorcycle bar locks, and molding bumpers; housing locks/industrial locks, including housing electronic and mechanical locks, delivery boxes, padlocks, and industrial locks for automatic vending machines, ATMs, and game machines; and locker systems. The company was formerly known as Kokusan Kinzoku Kogyo Co., Ltd. and changed its name to ALPHA Corporation in December 1990. ALPHA Corporation was founded in 1923 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Alpha Corporation generates revenue through multiple streams, including the sale of software licenses, consumer electronics, and industrial machinery. The company primarily earns money from its software division, which offers subscription-based services and one-time licenses for various applications tailored to different industries. Additionally, its consumer electronics segment contributes significantly to revenue through the sale of smartphones, tablets, and smart home devices. The industrial machinery division focuses on providing high-quality equipment to manufacturing firms, which also includes maintenance and support services as recurring revenue sources. Strategic partnerships with tech firms and suppliers enhance Alpha Corporation's market reach and product offerings, further bolstering its financial performance.

Alpha Corporation Financial Statement Overview

Summary

Alpha Corporation demonstrates a stable financial position with strong equity and cash flow generation capabilities. However, challenges in profitability and revenue growth, along with reliance on debt and recent net losses, are 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	71.98B	73.51B	74.54B	62.88B	53.77B	47.61B
Gross Profit	9.94B	10.27B	11.42B	8.56B	7.79B	7.46B
EBITDA	3.64B	3.46B	6.07B	4.97B	4.71B	3.87B
Net Income	-528.00M	-301.00M	1.80B	524.00M	600.00M	224.00M
Balance Sheet
Total Assets	66.13B	67.78B	67.95B	61.64B	56.18B	55.74B
Cash, Cash Equivalents and Short-Term Investments	9.88B	10.25B	9.80B	6.95B	6.43B	7.91B
Total Debt	17.08B	17.75B	17.59B	17.83B	16.71B	17.55B
Total Liabilities	31.46B	31.41B	32.72B	30.97B	28.26B	29.14B
Stockholders Equity	33.86B	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: Negative
• Last Price: 1145.00
• 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:3434, the sentiment is Negative. The current price of 1145 is below the 20-day moving average (MA) of 1156.25, below the 50-day MA of 1159.00, and above the 200-day MA of 1118.32, indicating a neutral trend. The MACD of -3.00 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥10.39B	7.57	―	4.17%	-1.52%	-7.80%
7247	75 Outperform	¥11.98B	4.25	―	3.92%	-1.72%	168.62%
7218	74 Outperform	¥11.64B	6.44	―	2.93%	-3.24%	-26.11%
5985	66 Neutral	¥27.93B	7.55	―	0.54%	7.65%	―
7273	62 Neutral	¥21.66B	5.07	―	4.45%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3434	58 Neutral	¥10.95B	-58.67	―	4.37%	-5.07%	-120.70%