Ray Corporation (4317) AI Stock Analysis

• Market Cap: ¥9.37B
• Dividend Yield: 2.31%
• Average Volume (3M): 58.53K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.67
• Revenue Growth: 0.83%
• EPS Growth: 23.88%
• Country: JP
• Employees: 407
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 27.23
• Shares Outstanding: 14,328,976
• 10 Day Avg. Volume: 54,300
• 30 Day Avg. Volume: 58,526
• PEG Ratio: -1.36
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 6.71
• 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: -9.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥589.00 ▼(-9.94% Downside)

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 demonstrates a solid financial position with strengths in its balance sheet and operational efficiency. However, challenges in revenue growth and net profitability, along with inconsistent free cash flow growth, indicate areas for improvement.

Income Statement

Ray Corporation's income statement shows a mixed performance. The gross profit margin is healthy, indicating efficient production and sales processes. However, the net profit margin has shown some volatility over the years, reflecting challenges in cost management or pricing strategy. Revenue growth has been inconsistent, with recent declines suggesting potential market saturation or competitive pressures. EBIT and EBITDA margins are stable, indicating consistent operational efficiency.

Balance Sheet

The balance sheet of Ray Corporation is robust, with a strong equity base and low debt levels, as evidenced by a favorable debt-to-equity ratio. The return on equity is moderate, suggesting effective use of shareholders' funds. The equity ratio is high, indicating a solid financial foundation and low financial risk. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

Ray Corporation's cash flow statement reveals a positive trend in free cash flow, although growth has been uneven. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow to net income ratio suggests some variability in capital expenditures, which could impact future cash flow stability. Overall, the cash flow position is solid but could benefit from more consistent free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.35B	10.46B	11.22B	12.45B	11.05B	7.05B
Gross Profit	4.04B	3.55B	3.79B	4.15B	3.65B	1.57B
EBITDA	1.92B	1.57B	1.68B	1.69B	1.38B	95.43M
Net Income	995.82M	745.58M	818.49M	715.54M	419.47M	-367.98M
Balance Sheet
Total Assets	9.28B	9.12B	9.40B	9.58B	9.79B	8.65B
Cash, Cash Equivalents and Short-Term Investments	2.98B	2.87B	2.83B	3.14B	3.61B	3.02B
Total Debt	748.46M	769.43M	1.02B	1.29B	2.05B	2.18B
Total Liabilities	2.43B	2.33B	2.85B	3.54B	4.32B	3.52B
Stockholders Equity	6.85B	6.80B	6.55B	6.05B	5.47B	5.13B
Cash Flow
Free Cash Flow	0.00	844.33M	384.25M	543.27M	939.10M	751.27M
Operating Cash Flow	0.00	1.69B	1.05B	721.29M	1.03B	849.86M
Investing Cash Flow	0.00	-836.28M	-668.97M	-170.41M	-49.13M	-149.48M
Financing Cash Flow	0.00	-813.04M	-686.68M	-1.02B	-388.49M	263.21M

Ray Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 654.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 654 is above the 20-day moving average (MA) of 653.05, above the 50-day MA of 592.08, and above the 200-day MA of 470.26, indicating a bullish trend. The MACD of 14.00 indicates Positive momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.54 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	¥9.37B	8.84	―	2.31%	0.83%	23.88%
4308	78 Outperform	¥9.90B	18.08	―	3.52%	5.98%	87.95%
4712	73 Outperform	¥13.79B	5.99	―	1.39%	22.92%	65.63%
4772	70 Outperform	¥14.95B	17.22	―	0.79%	1.62%	188.00%
4347	62 Neutral	¥12.79B	33.96	―	2.29%	2.98%	-22.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3686	43 Neutral	¥5.52B	―	―	―	1.74%	51.02%