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Abalance Corp (JP:3856)
:3856
Japanese Market

Abalance Corp (3856) AI Stock Analysis

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JP

Abalance Corp

(3856)

Rating:79Outperform
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 (3856) vs. iShares MSCI Japan ETF (EWJ)

Abalance Corp Business Overview & Revenue Model

Company DescriptionAbalance 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 MoneyAbalance 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
85
Very Positive
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
78
Positive
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
70
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
126.79B208.97B217.41B92.44B26.90B6.68B
Gross Profit
27.25B44.57B30.38B9.71B4.79B1.76B
EBIT
13.97B23.35B13.56B1.70B1.36B361.58M
EBITDA
24.28B31.41B15.10B3.19B2.08B681.84M
Net Income Common Stockholders
5.02B9.53B5.45B867.00M537.00M211.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.45B37.74B20.62B3.97B4.72B1.21B
Total Assets
145.94B150.17B144.09B85.18B39.39B14.76B
Total Debt
56.38B44.95B52.03B31.78B13.77B5.44B
Net Debt
29.93B7.21B31.41B27.82B9.05B4.23B
Total Liabilities
102.46B107.74B120.78B77.18B34.61B12.61B
Stockholders Equity
24.45B24.11B13.40B6.07B4.02B2.10B
Cash FlowFree Cash Flow
-6.59B33.94B3.93B-12.50B-3.35B-991.36M
Operating Cash Flow
-5.17B44.76B19.27B-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-5.45B17.23B17.75B5.29B1.47B

Abalance Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price589.00
Price Trends
50DMA
571.64
Positive
100DMA
594.86
Negative
200DMA
760.45
Negative
Market Momentum
MACD
6.73
Positive
RSI
45.39
Neutral
STOCH
8.72
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥11.37B8.36
1.67%-54.06%-72.85%
79
Outperform
¥13.88B10.71
3.85%2.13%7.67%
68
Neutral
¥13.76B20.29
3.65%-2.98%-31.07%
62
Neutral
$11.92B10.48-7.50%2.95%7.40%-8.18%
58
Neutral
¥48.22B
32.00%55.21%
48
Neutral
¥14.40B
18.30%40.19%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3856
Abalance Corp
589.00
-729.61
-55.33%
JP:3800
UNIRITA, Inc.
1,907.00
-3.79
-0.20%
JP:3905
Datasection, Inc.
2,457.00
457.00
22.85%
JP:4169
Enechange Ltd.
341.00
-196.00
-36.50%
JP:4299
HIMACS, Ltd.
1,210.00
-92.32
-7.09%

Abalance Corp Corporate Events

Abalance Corporation Reports Transitional Financial Results for FY 2025
Jun 5, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.