Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥11.37B
• Dividend Yield: 1.67%
• Average Volume (3M): 369.29K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.10
• Revenue Growth: -54.06%
• EPS Growth: -72.85%
• Country: JP
• Employees: 1,684
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 34.28
• Shares Outstanding: 19,033,194
• 10 Day Avg. Volume: 266,340
• 30 Day Avg. Volume: 369,293
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥722.00 ▲(22.58%Upside)

Abalance Corp is well-positioned with strong financial performance and an attractive valuation. The high leverage requires careful monitoring, but the current valuation presents a potential opportunity for investors. Technical indicators suggest neutral sentiment, warranting cautious optimism.

Abalance Corp Business Overview & Revenue Model

Company Description

Abalance Corp (3856) is a diversified company operating in the renewable energy sector, IT solutions, and construction industries. The company primarily focuses on providing solar power solutions, including the development, construction, and operation of solar power plants. It also offers IT services and products such as software development and system integration, as well as engaging in construction projects that include residential and commercial buildings.

How the Company Makes Money

Abalance Corp generates revenue through multiple streams, primarily from its activities in the renewable energy sector. The company earns income from the sale of electricity generated by its solar power plants, as well as from engineering, procurement, and construction (EPC) contracts related to solar energy projects. In the IT sector, Abalance Corp derives revenue from providing software development, system integration, and IT consulting services. Additionally, the construction segment contributes to the company's earnings through the completion of residential and commercial building projects. Strategic partnerships and collaborations in these sectors further enhance its revenue potential.

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
	EBIT
13.97B	23.35B	13.56B	1.70B	1.36B	361.58M
	EBITDA
24.28B	31.41B	15.10B	3.19B	2.08B	681.84M
	Net Income Common Stockholders
5.02B	9.53B	5.45B	867.00M	537.00M	211.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.45B	37.74B	20.62B	3.97B	4.72B	1.21B
	Total Assets
145.94B	150.17B	144.09B	85.18B	39.39B	14.76B
	Total Debt
56.38B	44.95B	52.03B	31.78B	13.77B	5.44B
	Net Debt
29.93B	7.21B	31.41B	27.82B	9.05B	4.23B
	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: Negative
• Last Price: 589.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 589 is below the 20-day moving average (MA) of 650.20, above the 50-day MA of 571.64, and below the 200-day MA of 760.45, indicating a neutral trend. The MACD of 6.73 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 8.72 is Positive, 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
3856	79 Outperform	¥11.37B	8.36		1.67%	-54.06%	-72.85%
4299	79 Outperform	¥13.88B	10.71		3.85%	2.13%	7.67%
3800	68 Neutral	¥13.76B	20.29		3.65%	-2.98%	-31.07%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
3905	58 Neutral	¥48.22B	―		―	32.00%	55.21%
4169	48 Neutral	¥14.40B	―		―	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.