VALUE GOLF Inc. (3931) AI Stock Analysis

• Market Cap: ¥2.82B
• Dividend Yield: 3.49%
• Average Volume (3M): 1.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 10.69%
• EPS Growth: -101.97%
• Country: JP
• Employees: 79
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 19.13
• Shares Outstanding: 1,807,000
• 10 Day Avg. Volume: 1,530
• 30 Day Avg. Volume: 1,596
• PEG Ratio: -3.50
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -42.92
• 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: 50 Neutral
• Price Target: ¥1,591.00 ▲(4.05% Upside)

The overall stock score of 50 reflects significant challenges in financial performance and technical analysis. While revenue growth and a strong gross margin are positives, the high P/E ratio and negative cash flow raise concerns. The stock's bearish technical indicators further contribute to a cautious outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability.

Gross Profit Margin

A robust gross profit margin reflects efficient cost management and pricing power, which are crucial for maintaining profitability.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility and supports long-term growth initiatives.

Negative Factors

Declining Net Income

Declining net income suggests challenges in cost control or revenue generation, impacting overall profitability and shareholder returns.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth without external financing.

Low Return on Equity

Low ROE highlights inefficiencies in using shareholders' funds, which could deter investment and affect long-term growth prospects.

VALUE GOLF Inc. Business Overview & Revenue Model

Company Description

VALUE GOLF Inc., together with its subsidiaries, operates golf, travel, and advertising media production business in Japan. It also provides ASP services, advertising promotion, and support services. The company's travel business provides travel planning services for the golfers, which include business and organized trips. In addition, it's advertising media production business offers recruitment and bridal-related advertising production work, such as interviews, progression, manuscript production, proofreading, and image processing services. The company was incorporated in 2004 and is headquartered in Minato, Japan.

How the Company Makes Money

VALUE GOLF Inc. generates revenue through the sale of golf equipment, apparel, and accessories. The company operates both physical retail locations and an online platform, allowing customers to purchase products directly. Additionally, VALUE GOLF Inc. may engage in partnerships with golf courses, tournaments, and other industry stakeholders to expand its market reach. Revenue streams include direct sales to consumers, bulk sales to golf clubs and retailers, and possibly services such as equipment rentals or golf clinics. The company's earnings are influenced by its ability to maintain competitive pricing, ensure product quality, and adapt to changing consumer preferences in the golf market.

VALUE GOLF Inc. Financial Statement Overview

Summary

VALUE GOLF Inc. shows strong revenue growth and a solid gross margin, but declining net income and negative free cash flow are concerning. The balance sheet is stable with manageable debt, but low ROE indicates inefficiencies.

Income Statement

VALUE GOLF Inc. has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 35.6%, which remains strong. However, the net profit margin has significantly declined to 0.05% due to a sharp drop in net income, indicating challenges in controlling costs or revenue generation. Revenue growth is healthy at 12.9% year-over-year, driven by the company's efforts to expand its top line. Despite an increase in EBIT margin to 2.18%, overall profitability remains a concern.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.84, reflecting manageable leverage. The equity ratio stands at 42.4%, indicating a stable capital structure. However, the return on equity has decreased to 0.18%, highlighting inefficiencies in using shareholders' funds to generate profit. The company maintains a robust asset base, supporting its operations and future growth potential.

Cash Flow

The cash flow statement indicates challenges with free cash flow, which is negative and has declined from the previous year, suggesting potential liquidity issues. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from its operations to cover net income. This raises concerns about the sustainability of operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.40B	4.13B	3.66B	4.44B	4.28B	4.47B
Gross Profit	1.51B	1.47B	1.30B	1.48B	1.51B	1.34B
EBITDA	119.44M	94.12M	71.85M	181.94M	224.00M	115.44M
Net Income	18.43M	5.52M	22.69M	114.84M	123.85M	-32.16M
Balance Sheet
Total Assets	3.33B	2.64B	2.63B	2.51B	2.37B	2.08B
Cash, Cash Equivalents and Short-Term Investments	890.33M	885.00M	1.26B	1.16B	1.17B	978.71M
Total Debt	1.58B	943.00M	988.45M	832.21M	789.09M	636.33M
Total Liabilities	2.22B	1.52B	1.47B	1.33B	1.27B	1.08B
Stockholders Equity	1.11B	1.12B	1.16B	1.18B	1.10B	1.00B
Cash Flow
Free Cash Flow	0.00	-41.00M	-21.63M	473.00K	40.31M	360.84M
Operating Cash Flow	0.00	-33.44M	8.68M	10.08M	56.24M	365.80M
Investing Cash Flow	0.00	-80.00M	-30.43M	-26.20M	-10.73M	-3.74M
Financing Cash Flow	0.00	-266.00M	120.32M	7.02M	142.13M	-50.20M

VALUE GOLF Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1529.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3931, the sentiment is Positive. The current price of 1529 is above the 20-day moving average (MA) of 1517.15, above the 50-day MA of 1482.36, and below the 200-day MA of 1616.07, indicating a neutral trend. The MACD of 25.39 indicates Negative momentum. The RSI at 70.63 is Negative, neither overbought nor oversold. The STOCH value of 64.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3931.

VALUE GOLF Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2481	75 Outperform	¥3.73B	9.42	―	2.95%	1.41%	-6.45%
2376	67 Neutral	¥4.15B	29.55	―	2.04%	4.91%	-60.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2341	58 Neutral	¥3.97B	-7.15	―	2.78%	6.71%	-1627.44%
4833	54 Neutral	¥7.21B	-6.06	―	―	26.55%	-49.99%
3931	50 Neutral	¥2.82B	-2,228.42	―	3.49%	10.69%	-101.97%
3137	41 Neutral	¥2.91B	-173.95	―	―	5.00%	84.92%