Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥18.31B
• Dividend Yield: 0.81%
• Average Volume (3M): 416.72K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.28
• Revenue Growth: -40.21%
• EPS Growth: -54.31%
• Country: JP
• Employees: 1,684
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 34.28
• Shares Outstanding: 19,033,194
• 10 Day Avg. Volume: 390,200
• 30 Day Avg. Volume: 416,716
• PEG Ratio: -0.11
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -0.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥680.00 ▼(-8.72% Downside)

Abalance Corp's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While the stock appears undervalued, the financial challenges and negative market momentum present significant risks.

Positive Factors

Business Model Strength

The company's focus on software licensing and subscription models provides a stable and recurring revenue stream, enhancing financial predictability and customer retention over the long term.

Strategic Partnerships

Collaborations with major cloud and tech firms expand market reach and foster innovation, positioning the company to leverage industry advancements and enhance its competitive edge.

Operational Efficiency

Maintaining a positive EBITDA margin indicates operational efficiency, allowing the company to sustain core operations and invest in growth initiatives despite revenue challenges.

Negative Factors

Revenue Decline

A significant decline in revenue growth reflects challenges in market demand or competitive positioning, potentially impacting long-term financial health and strategic initiatives.

High Leverage

High leverage increases financial risk, limiting flexibility in capital allocation and potentially affecting the company's ability to invest in growth or withstand economic downturns.

Weak Cash Flow

Negative cash flows highlight liquidity challenges, restricting the company's ability to fund operations, repay debt, or invest in strategic opportunities, impacting long-term sustainability.

Abalance Corp Business Overview & Revenue Model

Company Description

Abalance Corporation, together with its subsidiaries, engages in information technology (IT), construction machine sales, and solar power generation businesses in Japan. It offers KnowledgeMarket, an information sharing/knowledge management tool; Robowiser Framework, a tool that realizes automation of tasks; and Nintex Workflow related products, as well as provides outsourcing and consulting services. The company also offers photovoltaic power generation systems; develops, designs, manufactures, and sells Maxar, a solar module; and Eco Smart View, a solar monitoring system for green energy facilities. In addition, it engages in the sale, lease, and rental of new and used construction and equipment. The company was formerly known as REALCOM Inc. and changed its name to Abalance Corporation in March 2017. Abalance Corporation was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Abalance Corp generates revenue primarily through its software licensing and subscription models, where clients pay for access to its proprietary software tools and platforms. Additionally, the company earns income from professional services, including custom software development and consulting, which are billed on a project basis or through retainer agreements. Strategic partnerships with major cloud service providers and technology firms also contribute to its earnings by enabling collaborative projects and expanding its market reach. Furthermore, Abalance Corp benefits from recurring revenue streams through maintenance and support services provided to existing clients.

Abalance Corp Financial Statement Overview

Summary

Abalance Corp faces significant financial challenges, with declining revenue and profitability, high leverage, and weak cash flow performance. The company's financial health is under pressure, requiring strategic improvements to stabilize and enhance financial metrics.

Income Statement

Abalance Corp's income statement shows a significant decline in revenue growth, with a negative growth rate of -23.85% in the latest year. Gross profit margin and net profit margin have also decreased compared to previous years, indicating reduced profitability. Despite these challenges, the company maintains a positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.31, indicating significant leverage and potential financial risk. Return on equity has decreased substantially, reflecting lower profitability for shareholders. The equity ratio is not explicitly provided, but the high debt levels suggest a lower proportion of equity in the capital structure.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.79B	96.56B	208.97B	217.41B	92.44B	26.90B
Gross Profit	27.25B	14.41B	44.57B	30.38B	9.71B	4.79B
EBITDA	24.28B	14.69B	31.41B	17.75B	4.51B	2.08B
Net Income	5.02B	1.27B	9.53B	4.96B	867.00M	537.00M
Balance Sheet
Total Assets	145.94B	145.80B	150.17B	144.09B	85.18B	39.39B
Cash, Cash Equivalents and Short-Term Investments	26.45B	26.45B	37.74B	20.62B	3.97B	4.72B
Total Debt	56.38B	56.38B	44.95B	52.03B	31.78B	13.77B
Total Liabilities	102.46B	102.46B	107.74B	120.78B	77.18B	34.61B
Stockholders Equity	24.45B	24.45B	24.11B	12.86B	6.07B	4.02B
Cash Flow
Free Cash Flow	-6.59B	-14.35B	33.94B	3.93B	-12.50B	-3.35B
Operating Cash Flow	-5.17B	-10.36B	44.76B	19.27B	-6.35B	-608.00M
Investing Cash Flow	-2.72B	-2.62B	-21.19B	-21.42B	-13.32B	-1.39B
Financing Cash Flow	5.00B	4.13B	-5.45B	17.23B	17.75B	5.29B

Abalance Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 745.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3856, the sentiment is Negative. The current price of 745 is below the 20-day moving average (MA) of 847.60, below the 50-day MA of 923.00, and below the 200-day MA of 759.25, indicating a bearish trend. The MACD of -63.14 indicates Positive momentum. The RSI at 38.36 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3856.

Abalance Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4299	79 Outperform	¥13.88B	11.44	―	3.76%	3.96%	-3.68%
3800	68 Neutral	¥13.91B	18.79	―	3.65%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥46.88B	-42.76	―	―	27.58%	-1.50%
3856	45 Neutral	¥18.31B	8.29	―	0.81%	-40.21%	-54.31%
4169	45 Neutral	¥13.38B	58.59	―	―	14.25%	―

Abalance Corp Corporate Events

Abalance Corp Establishes Third-Party Committee for Transaction Investigation

Abalance Corporation has established a third-party committee to investigate past transactions under its new management structure. This move follows feedback from an external organization and aims to ensure sustained business activities. The investigation will focus on re-examining a previous report, potential impairment losses for the Taiwa Town Solar Power Plant, and related party transactions. The company assures stakeholders that the investigation is not expected to impact financial results, except for possible impairment losses, and promises prompt disclosure of findings.

The most recent analyst rating on (JP:3856) stock is a Hold with a Yen1119.00 price target. To see the full list of analyst forecasts on Abalance Corp stock, see the JP:3856 Stock Forecast page.

Abalance Corp Reports Strong Financial Turnaround for Q2 2025

Abalance Corporation reported its consolidated financial results for the three months ended June 30, 2025, showing significant improvements compared to the previous period. The company achieved net sales of ¥36,251 million and a profit attributable to owners of the parent of ¥1,172 million, marking a turnaround from the previous year’s losses. The financial position also strengthened with total assets increasing to ¥156,916 million and an equity ratio of 18.4%. These results indicate a positive shift in the company’s financial health, potentially enhancing its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:3856) stock is a Hold with a Yen1119.00 price target. To see the full list of analyst forecasts on Abalance Corp stock, see the JP:3856 Stock Forecast page.