Aucfan Co., Ltd. (3674) AI Stock Analysis

• Market Cap: ¥3.91B
• Dividend Yield: N/A
• Average Volume (3M): 45.73K
• Price to Earnings (P/E): 49.3
• Beta (1Y): 1.12
• Revenue Growth: -2.91%
• EPS Growth: -48.56%
• Country: JP
• Employees: 186
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 1.72
• Shares Outstanding: 10,813,700
• 10 Day Avg. Volume: 8,020
• 30 Day Avg. Volume: 45,730
• PEG Ratio: -0.84
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥370.00
• Price Target Upside: 0.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥375.00 ▲(1.63%Upside)

The overall stock score of 53 reflects a combination of mixed financial performance, neutral technical indicators, and an unattractive valuation. The company's declining revenue and cash flow concerns are significant negatives. Technical analysis does not show strong momentum in either direction, while the high P/E ratio suggests overvaluation. Improvement in revenue growth and cash management would be necessary to enhance the stock's attractiveness.

Aucfan Co., Ltd. Business Overview & Revenue Model

Company Description

Aucfan Co., Ltd. (3674) is a Japanese company that specializes in providing an online platform for auction and e-commerce data aggregation. The company operates within the information technology sector and offers services that include price comparison, market research, and data analysis for online auctions and e-commerce sites. Aucfan's core products and services are designed to assist businesses and consumers in making informed decisions by leveraging comprehensive data from multiple online marketplaces.

How the Company Makes Money

Aucfan Co., Ltd. generates revenue primarily through subscription-based services and data analytics solutions offered to businesses and individual users. The company monetizes its extensive database by providing access to auction and e-commerce data, which users can subscribe to for a fee. Additionally, Aucfan offers customized data analysis and market research reports to businesses, helping them optimize their sales strategies and pricing models. The company may also earn revenue through partnerships with major e-commerce platforms, leveraging its data and insights to enhance their services and drive mutual growth.

Aucfan Co., Ltd. Financial Statement Overview

Summary

Aucfan Co., Ltd. presents mixed financials. There is a significant revenue decline with a shrinking net profit margin. The balance sheet shows manageable debt but low ROE. Cash flow is concerning with zero operating and free cash flow, highlighting liquidity issues.

Income Statement

Aucfan Co., Ltd. has seen declining revenue over the years, from 8.38 billion in 2021 to 4.85 billion in TTM 2024, indicating a significant revenue shrinkage. The gross profit margin is strong at 55.96% for TTM 2024, suggesting efficient cost management. However, the net profit margin for TTM 2024 is 3.99%, which is relatively low, indicating limited profitability. EBIT and EBITDA margins are moderate, at 7.21% and 11.63% respectively, reflecting constrained operational profitability.

Balance Sheet

The company has a healthy debt-to-equity ratio of 0.38 in TTM 2024, reflecting manageable leverage. The equity ratio is robust at 56.75%, indicating solid financial stability. However, the return on equity (ROE) is modest at 4.40%, suggesting that the company is not generating high returns on its equity. Overall, the balance sheet is stable but shows room for improvement in profitability.

Cash Flow

Cash flow metrics are concerning with zero operating and free cash flow for the TTM 2024 period, indicating potential liquidity issues. Historical data shows fluctuation in free cash flow, with a negative trend noted recently. The operating cash flow to net income ratio and free cash flow to net income ratio can't be evaluated for TTM 2024, but prior ratios indicate a need for better cash management.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	4.84B	5.15B	6.26B	8.38B	7.87B
Gross Profit	2.68B	2.57B	3.24B	3.53B	3.13B
EBITDA	552.83M	312.64M	672.02M	713.57M	1.08B
Net Income	187.45M	17.08M	56.50M	177.55M	428.69M
Balance Sheet
Total Assets	7.69B	7.10B	7.35B	8.49B	13.38B
Cash, Cash Equivalents and Short-Term Investments	5.59B	4.86B	5.23B	6.09B	10.00B
Total Debt	1.66B	1.27B	1.48B	1.70B	2.17B
Total Liabilities	3.28B	2.47B	2.79B	3.03B	5.27B
Stockholders Equity	4.41B	4.63B	4.56B	5.46B	8.11B
Cash Flow
Free Cash Flow	790.02M	-283.82M	767.78M	852.34M	515.65M
Operating Cash Flow	1.00B	109.91M	1.08B	1.13B	824.01M
Investing Cash Flow	-206.78M	-376.05M	-263.40M	-276.76M	-287.41M
Financing Cash Flow	431.87M	-332.18M	-82.97M	-456.39M	813.36M

Aucfan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 369.00
• 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:3674, the sentiment is Positive. The current price of 369 is below the 20-day moving average (MA) of 371.00, above the 50-day MA of 367.34, and above the 200-day MA of 367.39, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 66.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3674.

Aucfan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.23B	14.75		―	13.96%	200.83%
3770	72 Outperform	¥3.71B	27.65		1.33%	-2.62%	―
3691	64 Neutral	¥5.07B	3,633.15		―	14.51%	84.03%
Sector *	62 Neutral	$41.97B	-1.66	-12.07%	3.33%	2.07%	-69.32%
3645	62 Neutral	¥2.78B	―		0.95%	19.56%	-906.44%
3674	53 Neutral	¥3.91B	49.26		―	-2.91%	-48.56%
2454	45 Neutral	¥5.14B	―		0.80%	-2.38%	-40.23%