Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥21.19B
• Dividend Yield: 0.27%
• Average Volume (3M): 685.88K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.32
• 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: 578,860
• 30 Day Avg. Volume: 685,876
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,289.00
• Price Target Upside: 25.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,289.00 ▲(25.02% Upside)

The overall stock score reflects a balance between strong technical indicators and undervaluation against significant financial performance challenges. The bullish technical trend and low P/E ratio are positive, but financial instability and cash flow issues weigh heavily on the overall assessment.

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 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 faces significant challenges in revenue growth and cash flow management, with high leverage posing additional risks. While profitability metrics show some operational strengths, the company's financial health is under pressure, requiring strategic adjustments to improve stability and growth prospects.

Income Statement

Abalance Corp's income statement shows significant volatility. The company experienced a sharp decline in revenue growth rate of -33.89% in the latest period, indicating potential challenges in maintaining sales momentum. Gross profit margin and net profit margin have decreased over time, reflecting pressure on profitability. However, the company has managed to maintain a reasonable EBIT and EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The balance sheet reveals a mixed picture. The debt-to-equity ratio has improved from previous years but remains relatively high, indicating leverage risk. Return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis indicates challenges with negative operating and free cash flows in the latest period, highlighting liquidity concerns. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting earnings into cash. These factors point to potential cash management issues.

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	15.10B	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: Neutral
• Last Price: 1031.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3856, the sentiment is Neutral. The current price of 1031 is below the 20-day moving average (MA) of 1135.85, above the 50-day MA of 988.18, and above the 200-day MA of 716.15, indicating a neutral trend. The MACD of 37.95 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 9.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	14.78B	11.70	―	3.53%	4.86%	4.48%
3800	68 Neutral	13.87B	19.29	―	3.62%	-1.03%	-3.19%
3856	61 Neutral	¥21.19B	9.29	―	0.27%	-40.21%	-54.31%
3905	54 Neutral	63.88B	-58.27	-27.47%	―	32.51%	40.51%
4169	48 Neutral	15.39B	67.39	361.25%	―	18.68%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.