CERES INC. (3696) AI Stock Analysis

• Market Cap: ¥25.07B
• Dividend Yield: 2.84%
• Average Volume (3M): 308.36K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.46
• Revenue Growth: 10.23%
• EPS Growth: 152.86%
• Country: JP
• Employees: 669
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 72.73
• Shares Outstanding: 12,116,500
• 10 Day Avg. Volume: 204,940
• 30 Day Avg. Volume: 308,363
• PEG Ratio: 0.11
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 89.81
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,315.00 ▲(8.94% Upside)

The overall stock score reflects strong financial performance with robust revenue growth and profitability. However, technical indicators suggest bearish momentum, which is a significant risk factor. The valuation is reasonable, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for CERES INC.'s products, supporting long-term market expansion and competitive positioning.

Profitability Margins

Improving profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth and innovation.

Balanced Capital Structure

A balanced capital structure with prudent debt levels provides financial stability and flexibility to pursue strategic initiatives and withstand economic fluctuations.

Negative Factors

Cash Flow Management

Inefficiencies in cash flow management could hinder CERES INC.'s ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Free Cash Flow Decline

A decline in free cash flow growth suggests challenges in converting revenue into cash, which may limit the company's ability to invest in future opportunities.

Cash Conversion Efficiency

Modest cash conversion efficiency indicates potential issues in transforming earnings into cash, which could affect liquidity and operational flexibility.

CERES INC. Business Overview & Revenue Model

Company Description

Ceres Inc. engages in the mobile and financial services in Japan. The company offers smartphone advertising media services with point site name Moppy that provides its users with given points that can be exchanged for cash or electronic money; and content media, which operates sites in various fields, such as smartphone games and real estate for investment, as well as provides the latest information. It also provides cryptocurrency/blockchain related, online factoring, and investment development services. The company was incorporated in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

CERES INC. generates revenue through a combination of digital advertising services, media management, and digital content delivery. The company earns money by providing advertising solutions that help businesses increase their visibility and customer engagement through mobile and online platforms. Key revenue streams include fees from advertising placements, media management services, and content distribution. Additionally, CERES INC. may establish partnerships with other technology and media companies to enhance its service offerings and reach a broader audience, thereby contributing to its earnings.

CERES INC. Financial Statement Overview

Summary

CERES INC. shows strong revenue growth and improving profitability margins. The company maintains a balanced capital structure with prudent debt levels. However, cash flow management needs improvement, particularly in cash conversion efficiency.

Income Statement

CERES INC. demonstrates strong financial performance with consistent revenue growth and improving profitability. The gross profit margin has increased to 48.1%, and the net profit margin has improved to 5.3% over the past year. Revenue growth rate is impressive at 15.1% from the previous year, indicating robust top-line expansion. EBIT margin is also solid at 8.0%, reflecting efficient operations.

Balance Sheet

The balance sheet shows a healthy equity base with a debt-to-equity ratio of 0.85, indicating balanced leverage. Return on Equity (ROE) is fairly strong at 13.3%, demonstrating effective utilization of equity. The equity ratio stands at 33.8%, reflecting moderate financial stability. Despite increased liabilities, the company maintains a cautious approach to debt.

Cash Flow

CERES INC.'s cash flow statements reveal a decline in operating cash flow to net income ratio, now at 0.49, suggesting potential inefficiencies in cash generation. However, free cash flow remains positive, albeit with a negative growth rate of -28.8%, indicating room for improvement in cash management. Free cash flow to net income ratio is at 0.27, showing modest cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.41B	27.71B	24.07B	20.54B	23.40B	20.21B
Gross Profit	13.85B	13.34B	10.59B	8.06B	7.77B	6.25B
EBITDA	5.35B	2.88B	1.33B	1.12B	4.32B	1.76B
Net Income	2.36B	1.48B	451.15M	46.61M	2.78B	744.60M
Balance Sheet
Total Assets	32.28B	32.98B	25.92B	22.60B	20.23B	16.23B
Cash, Cash Equivalents and Short-Term Investments	13.19B	14.13B	11.09B	9.29B	9.14B	7.89B
Total Debt	7.56B	9.52B	7.36B	5.89B	4.22B	3.82B
Total Liabilities	19.60B	20.25B	15.87B	12.90B	10.41B	9.14B
Stockholders Equity	12.05B	11.15B	9.19B	8.88B	9.08B	6.52B
Cash Flow
Free Cash Flow	1.26B	397.00M	557.52M	-314.19M	983.77M	1.86B
Operating Cash Flow	1.32B	722.00M	1.06B	101.78M	1.16B	2.26B
Investing Cash Flow	776.00M	-518.00M	-738.91M	-1.69B	-787.23M	-482.52M
Financing Cash Flow	-2.85B	3.27B	1.23B	1.19B	408.15M	363.41M

CERES INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2125.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3696, the sentiment is Negative. The current price of 2125 is below the 20-day moving average (MA) of 2140.75, below the 50-day MA of 2306.82, and below the 200-day MA of 2354.28, indicating a bearish trend. The MACD of -39.15 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3696.

CERES INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2462	75 Outperform	¥28.69B	13.07	―	3.89%	5.66%	-10.44%
4439	75 Outperform	¥29.61B	12.11	―	0.90%	21.54%	-6.60%
9564	67 Neutral	¥15.42B	23.12	―	1.10%	21.85%	13.02%
4685	66 Neutral	¥48.77B	13.05	―	2.31%	17.96%	30.46%
3696	64 Neutral	¥25.07B	8.26	―	2.84%	10.23%	152.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9248	48 Neutral	¥14.84B	9.33	―	3.72%	15.50%	―

CERES INC. Corporate Events

CERES INC. Increases Year-End Dividend Forecast Amid Strategic Expansions

CERES INC. has announced an increase in its year-end dividend forecast for the fiscal year ending December 31, 2025, raising it to JPY 80 per share, which includes a special dividend of JPY 20. This decision follows the company’s strategic moves, including the sale of its subsidiary YUMEMI, Inc., and the reallocation of resources to enhance shareholder returns and reinforce its market position.

The most recent analyst rating on (JP:3696) stock is a Buy with a Yen2915.00 price target. To see the full list of analyst forecasts on CERES INC. stock, see the JP:3696 Stock Forecast page.

CERES INC. Introduces Cryptocurrency-Based Shareholder Benefits Program

CERES INC. announced a new shareholder benefits program for the fiscal year ending December 31, 2025, which aims to enhance corporate value and shareholder engagement by offering cryptocurrency as a benefit. Eligible shareholders will receive Ethereum and Zipangcoin, with the amount based on their shareholding, to be deposited in their CoinTrade accounts. This initiative reflects CERES INC.’s strategy to deepen shareholder understanding and participation in their business, potentially strengthening their market position and stakeholder relations.

The most recent analyst rating on (JP:3696) stock is a Buy with a Yen2915.00 price target. To see the full list of analyst forecasts on CERES INC. stock, see the JP:3696 Stock Forecast page.

CERES INC. Completes Acquisition of ‘Point Income’ and ‘AD-LEAP’

CERES INC. has completed the acquisition of the ‘Point Income’ online rewards site and the ‘AD-LEAP’ affiliate program from FIVEGATE Inc. This transaction will now be reflected in CERES INC.’s consolidated financial results, with potential impacts on the company’s fiscal year ending December 31, 2025, still under evaluation.

The most recent analyst rating on (JP:3696) stock is a Buy with a Yen2806.00 price target. To see the full list of analyst forecasts on CERES INC. stock, see the JP:3696 Stock Forecast page.