United & Collective Co., Ltd. (3557) AI Stock Analysis

• Market Cap: ¥4.54B
• Dividend Yield: N/A
• Average Volume (3M): 13.21K
• Price to Earnings (P/E): 85.5
• Beta (1Y): 0.24
• Revenue Growth: 5.82%
• EPS Growth: N/A
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Restaurants
• EPS (TTM): 12.85
• Shares Outstanding: 4,824,300
• 10 Day Avg. Volume: 13,050
• 30 Day Avg. Volume: 13,210
• 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: ¥939.00
• Price Target Upside: 0.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: ¥939.00 ▲(0.11% Upside)

The overall stock score is driven by financial performance challenges, particularly high leverage and negative free cash flow. Technical indicators suggest a potential rebound due to oversold conditions, but valuation concerns with a high P/E ratio limit upside potential.

Positive Factors

Revenue Growth

The positive revenue growth trend reflects the company's ability to expand its market presence and adapt to consumer demands, supporting long-term business sustainability.

Profitability Improvement

Improved profitability metrics, including a strong gross profit margin, indicate effective cost management and pricing strategies, enhancing long-term financial health.

Return on Equity

An improved return on equity suggests efficient use of shareholder funds, which can lead to increased investor confidence and potential for reinvestment in growth opportunities.

Negative Factors

High Leverage

High leverage, indicated by a significant debt-to-equity ratio, poses risks to financial stability and may limit the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues and challenges in funding operations or strategic initiatives without relying on external financing.

Operational Efficiency Challenges

Low EBIT margin highlights inefficiencies in operations, which could affect profitability and competitiveness if not addressed through cost management or process improvements.

United & Collective Co., Ltd. Business Overview & Revenue Model

Company Description

United & Collective Co., Ltd. (3557) is a diversified enterprise engaged in various sectors, primarily focusing on consumer goods, lifestyle products, and retail services. The company aims to deliver innovative and high-quality products that cater to the evolving needs of consumers, leveraging strategic partnerships and a robust distribution network to enhance its market presence. With a commitment to sustainability and social responsibility, United & Collective Co., Ltd. seeks to create value for both its customers and stakeholders through its diverse portfolio.

How the Company Makes Money

United & Collective Co., Ltd. generates revenue through multiple streams, including the sale of consumer goods across various categories such as home appliances, personal care products, and lifestyle accessories. The company employs a multi-channel distribution strategy that includes both online and brick-and-mortar retail, allowing it to reach a broad customer base. Additionally, the company may engage in partnerships with other brands and retailers to expand its market reach and enhance product offerings. Promotional activities and seasonal marketing campaigns also contribute to driving sales and increasing revenue. Furthermore, United & Collective Co., Ltd. focuses on customer loyalty programs and subscription services that provide recurring revenue and foster long-term relationships with consumers.

United & Collective Co., Ltd. Financial Statement Overview

Summary

The company shows improved profitability and revenue growth, but faces challenges with high leverage and negative free cash flow. Operational efficiency and debt management need attention.

Income Statement

The company has shown a significant improvement in its profitability metrics over the past year. The gross profit margin is strong at 74.89%, and the net profit margin has turned positive to 0.92% from a negative position in the previous year. Revenue growth is also positive at 5.25%, indicating a recovery trend. However, the EBIT margin is relatively low at 1.78%, suggesting operational efficiency challenges.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio due to substantial liabilities, with a debt-to-equity ratio of 8.03, indicating high leverage. The equity ratio is low at 8.62%, suggesting limited equity buffer. Despite these concerns, the return on equity has improved to 17.45%, indicating better utilization of equity.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow of -115.41 million, although operating cash flow remains positive. The operating cash flow to net income ratio is 2.05, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.49B	6.49B	6.17B	5.35B	2.72B	3.35B
Gross Profit	4.86B	4.86B	4.67B	3.95B	1.96B	2.50B
EBITDA	324.66M	303.81M	127.14M	-946.32M	9.36M	-1.26B
Net Income	58.74M	59.75M	-91.06M	-1.29B	-456.46M	-1.62B
Balance Sheet
Total Assets	3.97B	3.97B	3.93B	4.21B	5.76B	5.62B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.48B	1.55B	1.50B	2.24B	2.27B
Total Debt	2.75B	2.75B	3.24B	3.93B	4.57B	4.44B
Total Liabilities	3.63B	3.63B	4.19B	4.96B	5.39B	5.58B
Stockholders Equity	342.45M	342.45M	-261.20M	-743.30M	376.37M	33.73M
Cash Flow
Free Cash Flow	0.00	-115.41M	67.15M	-297.32M	-849.12M	-1.25B
Operating Cash Flow	0.00	122.24M	159.91M	-172.22M	-441.94M	-1.20B
Investing Cash Flow	0.00	-237.37M	17.04M	-89.08M	-515.08M	-25.85M
Financing Cash Flow	0.00	46.54M	-127.35M	-475.44M	922.77M	2.02B

United & Collective Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 938.00
• 50DMA: Negative
• 100DMA: Positive
• 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:3557, the sentiment is Negative. The current price of 938 is below the 20-day moving average (MA) of 970.85, below the 50-day MA of 970.76, and below the 200-day MA of 957.83, indicating a bearish trend. The MACD of -11.13 indicates Positive momentum. The RSI at 27.25 is Positive, neither overbought nor oversold. The STOCH value of 5.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3557.

United & Collective Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3372	76 Outperform	¥3.47B	9.31		―	4.08%	37.93%
3317	71 Outperform	¥4.23B	11.37		1.02%	8.31%	15.92%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
3358	61 Neutral	¥3.36B	169.94		―	3.29%	-46.50%
3067	53 Neutral	¥4.20B	351.80		―	-3.30%	-124.02%
3557	46 Neutral	¥4.54B	85.52		―	5.82%	―
2762	43 Neutral	¥3.77B	―		―	3.76%	3.77%