Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥7.41B
• Dividend Yield: 1.45%
• Average Volume (3M): 416.72K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 1.24
• Revenue Growth: -40.21%
• EPS Growth: -54.31%
• Country: JP
• Employees: 1,684
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥437.00 ▼(-3.53% Downside)

The score is held down primarily by deteriorating financial performance (declining revenue/profitability, high leverage, and negative cash flows) and a clearly bearish technical trend (price far below key moving averages with negative momentum). The low P/E and modest dividend yield provide some valuation support but are not enough to outweigh the financial and technical weakness.

Positive Factors

Business Model Strength

The company's focus on software licensing and subscription models provides a stable and recurring revenue stream, enhancing long-term financial stability.

Strategic Partnerships

Collaborations with major cloud and tech firms expand market reach and foster innovation, supporting sustained growth and competitive advantage.

Operational Efficiency

Maintaining a positive EBITDA margin indicates operational efficiency, suggesting the company can manage costs effectively even amid revenue declines.

Negative Factors

Revenue Decline

A significant revenue decline challenges the company's ability to sustain growth and invest in future opportunities, impacting long-term prospects.

High Leverage

High leverage increases financial risk and limits flexibility, potentially hindering the company's ability to navigate economic downturns or invest in growth.

Negative Cash Flows

Negative cash flows indicate liquidity challenges, restricting the company's ability to fund operations and growth initiatives without external financing.

Abalance Corp Business Overview & Revenue Model

Company Description

Abalance Corp (3856) is a technology-driven company specializing in innovative solutions across the fields of software development, data analytics, and digital transformation services. With a strong foothold in the enterprise sector, Abalance Corp provides cutting-edge products that enhance operational efficiency and drive business growth for its clients. The company focuses on delivering tailored software solutions, integrating advanced analytics, and offering comprehensive consulting services to a diverse range of industries including finance, healthcare, and retail.

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: 453.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 453 is below the 20-day moving average (MA) of 454.55, below the 50-day MA of 665.64, and below the 200-day MA of 746.15, indicating a bearish trend. The MACD of -86.17 indicates Negative momentum. The RSI at 27.09 is Positive, neither overbought nor oversold. The STOCH value of 38.76 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	76 Outperform	¥15.39B	12.69	―	3.56%	3.96%	-3.68%
3800	71 Outperform	¥14.14B	19.10	―	3.62%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥51.80B	-23.80	―	―	27.58%	-1.50%
4169	45 Neutral	¥12.53B	13.42	―	―	14.25%	―
3856	43 Neutral	¥7.41B	3.36	―	1.45%	-40.21%	-54.31%