Ray Corporation (4317) AI Stock Analysis

• Market Cap: ¥7.94B
• Dividend Yield: 2.7%
• Average Volume (3M): 80.47K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.64
• Revenue Growth: 0.83%
• EPS Growth: 23.88%
• Country: JP
• Employees: 407
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): 27.23
• Shares Outstanding: 14,328,976
• 10 Day Avg. Volume: 69,740
• 30 Day Avg. Volume: 80,470
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥589.00
• Price Target Upside: 6.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥589.00 ▲(6.32% Upside)

Ray Corporation's stock is rated highly due to its strong technical indicators and attractive valuation. The solid financial performance, particularly in balance sheet strength and operational efficiency, supports the positive outlook. However, challenges in revenue growth and net profitability, along with inconsistent free cash flow growth, are areas to watch.

Ray Corporation Business Overview & Revenue Model

Company Description

Ray Corporation (4317) is a diversified multinational company specializing in advanced technology solutions and services across various sectors, including telecommunications, aerospace, and defense. The company is recognized for its innovative products that enhance communication systems and improve operational efficiency in critical environments. Ray Corporation's core offerings encompass telecommunications equipment, satellite communication systems, and defense technology services tailored to meet the needs of both commercial and government clients.

How the Company Makes Money

Ray Corporation generates revenue through multiple key streams. Primarily, the company earns money by selling telecommunications equipment and satellite systems to various sectors, including commercial enterprises, government agencies, and defense contractors. The company also offers ongoing maintenance and support services, which provide a recurring revenue model. Additionally, Ray Corporation engages in long-term contracts with government entities for defense technology solutions, which contribute significantly to its earnings. Strategic partnerships with other technology firms enhance its product offerings and market reach, facilitating growth and profitability.

Ray Corporation Financial Statement Overview

Summary

Ray Corporation presents a strong financial profile with solid profitability, a robust equity position, and efficient cash flow management. The company maintains stable margins and demonstrates prudent leverage management, which minimizes financial risk. While revenue growth has faced challenges, the overall financial stability and operational efficiency position the company well for future opportunities.

Income Statement

The company exhibits strong profitability with a consistent gross profit margin averaging around 34% over recent years. Despite fluctuations in revenue growth, with a notable decline in the latest year, the EBIT and EBITDA margins remain solid at 9.2% and 13.4% respectively in TTM, indicating efficient operational management. However, the net profit margin shows some variability, reflecting potential areas for cost improvement.

Balance Sheet

A robust equity position is evident with a consistently high equity ratio of approximately 74%, indicating financial stability. The low debt-to-equity ratio of 0.11 in TTM suggests prudent leverage management. Return on equity has been improving, reaching 10.97%, reflecting effective utilization of equity capital. Overall, the balance sheet portrays a strong financial footing with minimal risks from debt.

Cash Flow

The company's cash flow is solid, with a strong operating cash flow to net income ratio of 2.26, indicating efficient cash generation relative to earnings. Free cash flow growth has been substantial, though it saw a dip in the latest year. The free cash flow to net income ratio of 1.13 suggests healthy cash flow coverage. These factors reflect good liquidity and cash management practices.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.46B	11.22B	12.45B	11.05B	7.05B
Gross Profit	3.55B	3.79B	4.15B	3.65B	1.57B
EBITDA	1.57B	1.68B	1.69B	1.38B	95.43M
Net Income	745.58M	818.49M	715.54M	419.47M	-367.98M
Balance Sheet
Total Assets	9.12B	9.40B	9.58B	9.79B	8.65B
Cash, Cash Equivalents and Short-Term Investments	2.87B	2.83B	3.14B	3.61B	3.02B
Total Debt	769.43M	1.02B	1.29B	2.05B	2.18B
Total Liabilities	2.33B	2.85B	3.54B	4.32B	3.52B
Stockholders Equity	6.80B	6.55B	6.05B	5.47B	5.13B
Cash Flow
Free Cash Flow	844.33M	384.25M	543.27M	939.10M	751.27M
Operating Cash Flow	1.69B	1.05B	721.29M	1.03B	849.86M
Investing Cash Flow	-836.28M	-668.97M	-170.41M	-49.13M	-149.48M
Financing Cash Flow	-813.04M	-686.68M	-1.02B	-388.49M	263.21M

Ray Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 554.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4317, the sentiment is Positive. The current price of 554 is above the 20-day moving average (MA) of 519.95, above the 50-day MA of 493.06, and above the 200-day MA of 434.88, indicating a bullish trend. The MACD of 14.33 indicates Negative momentum. The RSI at 73.70 is Negative, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4317.

Ray Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4317	82 Outperform	¥7.94B	7.53		2.70%	0.83%	23.88%
4712	78 Outperform	¥13.94B	6.07		1.36%	22.92%	65.63%
4308	75 Outperform	¥9.20B	16.95		3.78%	5.98%	87.95%
4772	68 Neutral	¥13.79B	16.02		0.84%	1.62%	188.00%
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
4347	60 Neutral	¥12.55B	34.59		2.34%	2.98%	-22.92%
3686	41 Neutral	¥6.26B	―		―	1.74%	51.02%