Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥14.59B
• Dividend Yield: 1.54%
• Average Volume (3M): 372.98K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.15
• Revenue Growth: -54.70%
• EPS Growth: -73.05%
• Country: JP
• Employees: 1,684
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 34.28
• Shares Outstanding: 19,033,194
• 10 Day Avg. Volume: 641,020
• 30 Day Avg. Volume: 372,983
• PEG Ratio: 0.07
• Price to Book (P/B): 13.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.07
• 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: ¥682.00
• Price Target Upside: -11.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥876.00 ▲(13.77%Upside)

Abalance Corp scores highly due to strong technical performance and valuation, with the stock trading above key moving averages and appearing undervalued. Financial performance is solid, though high leverage and cash flow concerns warrant attention.

Abalance Corp Business Overview & Revenue Model

Company Description

Abalance Corporation, listed under the ticker 3856, operates in various sectors with a primary focus on renewable energy, IT services, and environmental solutions. The company is dedicated to providing innovative products and services that contribute to sustainable development. Abalance is involved in the development, construction, and management of solar power plants, as well as offering IT solutions and environmental consulting services.

How the Company Makes Money

Abalance Corporation generates revenue through multiple streams, primarily from its renewable energy segment. The company develops and operates solar power plants, earning revenue from the sale of electricity generated by these facilities. Additionally, Abalance offers IT services and solutions, contributing to its income through consulting, software development, and system integration projects. The company's environmental solutions division also plays a role in its earnings by providing consulting services focused on sustainability and environmental compliance. Key partnerships and projects in the renewable energy sector further enhance Abalance's revenue, supported by government incentives for green energy initiatives.

Abalance Corp Financial Statement Overview

Summary

Abalance Corp exhibits strong profitability and operational margins, evidenced by a high net profit margin and EBIT margin. However, the high debt-to-equity ratio poses a risk in volatile markets. The cash flow statement is positive, but TTM data anomalies suggest monitoring is needed.

Income Statement

Abalance Corp has shown impressive growth in revenue from 2020 to the TTM of 2024. The gross profit margin for the TTM is approximately 23.9%, and the net profit margin is 4.3%, indicating a strong capacity to convert revenue into profit. The EBIT margin stands at 11.3%, while the EBITDA margin is 17.8%, reflecting solid operational efficiency. However, compared to the previous year, revenue has seen a slight decline in the annual report for 2024, signaling potential short-term challenges.

Balance Sheet

The balance sheet of Abalance Corp shows a high debt-to-equity ratio, indicating substantial leverage, which could pose risk in volatile markets. However, the company's return on equity (ROE) for the TTM is approximately 25.7%, showcasing effective use of equity to generate profit. The equity ratio is about 17.2%, suggesting a moderate level of financing through equity.

Cash Flow

The cash flow statement reveals a strong free cash flow for 2024's annual report, indicating good cash generation. However, the TTM data shows zero values for operating and free cash flow, which could be a data anomaly or indicate cash flow management issues. The free cash flow to net income ratio for 2024 is robust, reflecting effective cash conversion of profits.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	126.79B	208.97B	217.41B	92.44B	26.90B	6.68B
Gross Profit	27.25B	44.57B	30.38B	9.71B	4.79B	1.76B
EBITDA	24.28B	31.41B	15.10B	3.19B	2.08B	681.84M
Net Income	5.02B	9.53B	5.45B	867.00M	537.00M	211.00M
Balance Sheet
Total Assets	145.94B	150.17B	144.09B	85.18B	39.39B	14.76B
Cash, Cash Equivalents and Short-Term Investments	26.45B	37.74B	20.62B	3.97B	4.72B	1.21B
Total Debt	56.38B	44.95B	52.03B	31.78B	13.77B	5.44B
Total Liabilities	102.46B	107.74B	120.78B	77.18B	34.61B	12.61B
Stockholders Equity	24.45B	24.11B	13.40B	6.07B	4.02B	2.10B
Cash Flow
Free Cash Flow	-6.59B	33.94B	3.93B	-12.50B	-3.35B	-991.36M
Operating Cash Flow	-5.17B	44.76B	19.27B	-6.35B	-608.00M	-861.84M
Investing Cash Flow	-2.72B	-21.19B	-21.42B	-13.32B	-1.39B	-472.99M
Financing Cash Flow	5.00B	-5.45B	17.23B	17.75B	5.29B	1.47B

Abalance Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 770.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3856, the sentiment is Positive. The current price of 770 is above the 20-day moving average (MA) of 657.70, above the 50-day MA of 627.90, and above the 200-day MA of 704.82, indicating a bullish trend. The MACD of 33.69 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 86.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3856.

Abalance Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3856	82 Outperform	¥14.59B	10.73		1.54%	-54.70%	-73.05%
4299	79 Outperform	¥13.93B	10.75		3.83%	2.13%	7.67%
3800	68 Neutral	¥13.59B	20.04		3.69%	-2.98%	-31.07%
3905	58 Neutral	¥74.93B	―		―	32.00%	55.33%
Sector *	56 Neutral	HK$13.96B	5.37	-5.75%	5.38%	9.34%	-42.23%
4169	48 Neutral	¥12.96B	―		―	18.30%	40.19%

Abalance Corp Corporate Events

Abalance Corporation Reports Transitional Financial Results for FY 2025

Abalance Corporation announced its consolidated financial results for the fiscal year ended March 31, 2025, which was a nine-month period due to an accounting term change. The company reported net sales of 72,417 million yen and a profit attributable to owners of the parent of 951 million yen. The financial results indicate a transitional phase for the company, with a notable decrease in cash flows from operating activities and a lower dividend payout compared to the previous year.