Alphax Food System Co., Ltd (3814) AI Stock Analysis

• Market Cap: ¥986.11M
• Dividend Yield: N/A
• Average Volume (3M): 40.36K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.46
• Revenue Growth: -11.25%
• EPS Growth: N/A
• Country: JP
• Employees: 83
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 3,979,100
• 10 Day Avg. Volume: 100,420
• 30 Day Avg. Volume: 40,363
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥346.00
• Price Target Upside: 39.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ¥284.00 ▲(14.52% Upside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The high leverage poses significant financial risk, overshadowing operational improvements. Fair valuation provides some support, but the lack of dividend yield limits its appeal.

Alphax Food System Co., Ltd Business Overview & Revenue Model

Company Description

Alphax Food System Co., Ltd (3814) is a leading player in the food processing and distribution sector, specializing in the manufacture and supply of high-quality food products and ingredients. The company operates across various segments including frozen foods, ready-to-eat meals, and food service solutions, catering to both retail and commercial clients. With a commitment to innovation and sustainability, Alphax Food System focuses on delivering nutritious, convenient, and safe food options to meet the evolving demands of consumers and businesses alike.

How the Company Makes Money

Alphax Food System Co., Ltd generates revenue primarily through the sale of its diverse range of food products, which includes frozen foods, ready-to-eat meals, and various food ingredients. The company operates a B2B model, supplying its products to retailers, restaurants, and food service companies, which forms a significant portion of its revenue streams. Key partnerships with major supermarket chains and food distributors enhance its market reach and sales volume. Additionally, Alphax leverages economies of scale in production and distribution, which helps to boost profit margins. The company may also explore strategic collaborations with local farms and suppliers to ensure a steady supply of quality ingredients, thus contributing to its overall earnings.

Alphax Food System Co., Ltd Financial Statement Overview

Summary

Alphax Food System Co., Ltd shows moderate financial health with positive cash flow and a return to profitability. However, the high debt level and declining revenue growth are significant concerns, requiring the company to stabilize revenue and reduce leverage.

Income Statement

Alphax Food System Co., Ltd has seen fluctuating revenue with a recent decline. Gross profit margin remains moderate at 38.39%, and net profit margin is low at 3.81%. EBIT and EBITDA margins are positive, reflecting some operational efficiency. Despite a challenging period, the company returned to profitability, but revenue growth is negative at -6.82%, signaling a need for focused growth strategies.

Balance Sheet

The company's debt-to-equity ratio is high, indicating substantial leverage. Return on equity is relatively small at 83.45%, suggesting limited shareholder returns. The equity ratio is weak at 5.25%, highlighting a high reliance on debt financing. The balance sheet reflects substantial financial risk due to high liabilities relative to assets.

Cash Flow

Alphax Food System Co., Ltd has shown a significant improvement in free cash flow, now positive at ¥235.69M. Operating cash flow to net income ratio is strong at 7.06, indicating healthy cash generation relative to earnings. However, the historical volatility in cash flow requires careful attention to sustain this positive momentum.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.66B	1.78B	1.34B	1.57B	1.29B
Gross Profit	637.00M	754.78M	158.43M	575.85M	220.97M
EBITDA	300.85M	296.62M	-337.62M	-58.81M	-433.62M
Net Income	63.30M	104.91M	-598.88M	-272.82M	-655.47M
Balance Sheet
Total Assets	1.44B	1.58B	1.43B	1.80B	2.18B
Cash, Cash Equivalents and Short-Term Investments	196.68M	118.19M	104.05M	121.51M	316.16M
Total Debt	1.13B	1.29B	1.60B	1.57B	1.87B
Total Liabilities	1.37B	1.56B	1.85B	1.77B	2.14B
Stockholders Equity	75.86M	13.36M	-420.60M	28.41M	42.70M
Cash Flow
Free Cash Flow	235.69M	-148.87M	-174.50M	-141.94M	-801.14M
Operating Cash Flow	446.69M	-22.89M	-54.11M	66.91M	-646.28M
Investing Cash Flow	-196.85M	35.28M	-110.98M	-193.42M	-166.45M
Financing Cash Flow	-164.84M	5.75M	160.62M	-61.64M	680.21M

Alphax Food System Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 248.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3814, the sentiment is Negative. The current price of 248 is below the 20-day moving average (MA) of 310.70, below the 50-day MA of 316.38, and below the 200-day MA of 336.38, indicating a bearish trend. The MACD of -16.94 indicates Positive momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3814.

Alphax Food System Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7490	74 Outperform	¥7.61B	12.37		2.19%	0.78%	106.93%
7066	74 Outperform	¥6.33B	11.75		2.52%	7.60%	37.77%
7509	73 Outperform	¥5.58B	4.71		3.19%	5.13%	-20.24%
7795	66 Neutral	¥7.99B	7.65		4.10%	5.00%	25.91%
Sector *	63 Neutral	C$7.32B	2.18	9.30%	2.40%	10.51%	-11.28%
9213	62 Neutral	¥1.07B	50.42		4.56%	-0.42%	-105.78%
3814	49 Neutral	¥986.11M	15.14		―	-11.25%	―