Alpha Corporation (3434) AI Stock Analysis

• Market Cap: ¥13.03B
• Dividend Yield: 4.27%
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.61
• Revenue Growth: -5.07%
• EPS Growth: -120.70%
• Country: JP
• Employees: 4,304
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 51.09
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥1,416.00 ▲(17.71% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Balance Sheet Strength

A strong equity base and healthy equity ratio provide a durable capital cushion that supports operations, absorbs shocks and funds strategic investments. This structural strength reduces bankruptcy risk and improves long-term credit access even if earnings remain cyclical.

Cash Generation

Consistent positive free cash flow and a robust operating cash flow-to-net-income relationship underpin the firm's ability to self-fund capex, service debt and maintain shareholder returns. Durable cash generation supports strategic flexibility through cycles.

Stable Gross Margins

Relatively stable gross margins indicate resilient core product economics or pricing power in parts production. That structural margin stability helps preserve operating earnings when volumes fluctuate and supports long-term margin recovery as revenue stabilizes.

Negative Factors

Revenue Decline

A recent decline in revenue growth signals weakening demand or loss of market share in the auto-parts market. Sustained top-line deterioration limits operating leverage, constrains margin recovery and reduces capacity to invest in product development or distribution.

Net Losses & Margin Pressure

Posting a net loss and deteriorating net margins erode retained earnings and reduce internal funding for growth. Persistent profitability weakness increases reliance on external financing and limits ability to sustain dividends or strategic investments over the medium term.

Reliance on Debt

A moderately high debt-to-equity position raises interest and refinancing risk, especially given earnings volatility. Structural reliance on debt can constrain capital allocation, raise fixed costs and impair resilience to demand shocks in the auto-parts cycle.

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.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	4.50B	4.76B	6.29B	4.56B	4.20B	3.97B
Net Income	-527.00M	-301.00M	1.80B	524.00M	601.00M	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	28.25B	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	4.26B	43.00M	-263.00M	334.00M
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: 1203.00
• 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 1203 is below the 20-day moving average (MA) of 1364.45, below the 50-day MA of 1308.28, and above the 200-day MA of 1185.64, indicating a neutral trend. The MACD of 19.43 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 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	¥11.26B	2.84	―	4.12%	-1.52%	-7.80%
6356	77 Outperform	¥25.63B	6.66	―	0.92%	-1.79%	-8.54%
7247	75 Outperform	¥13.69B	6.74	―	3.90%	-1.72%	168.62%
7218	74 Outperform	¥11.13B	7.10	―	2.91%	-3.24%	-26.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3434	58 Neutral	¥13.03B	5.88	―	4.27%	-5.07%	-120.70%
7277	56 Neutral	¥11.98B	8.29	―	2.23%	-4.06%	―