FLECT Co.,Ltd. (4414) AI Stock Analysis

• Market Cap: ¥10.52B
• Dividend Yield: N/A
• Average Volume (3M): 27.98K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.42
• Revenue Growth: 1.01%
• EPS Growth: 32.52%
• Country: JP
• Employees: 324
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 29.02
• Shares Outstanding: 6,192,560
• 10 Day Avg. Volume: 28,750
• 30 Day Avg. Volume: 27,980
• PEG Ratio: 0.25
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 13.39
• 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): 145.1
• Revenue Forecast (FY): ¥9.60B

• Rating: 73 Outperform
• Price Target: ¥2,125.00 ▲(15.30% Upside)

FLECT Co.,Ltd. demonstrates strong financial performance with robust revenue growth and efficient cash flow generation, which are the primary drivers of the stock score. The technical analysis suggests a neutral to slightly bearish outlook, while the valuation indicates the stock is fairly priced. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product adoption, enhancing long-term business sustainability.

Cash Generation

Improved cash generation strengthens financial flexibility, enabling strategic investments and debt management, supporting long-term growth.

Operational Efficiency

High margins reflect effective cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Liability Increase

Rising liabilities could pressure future cash flows and limit financial flexibility, potentially impacting long-term stability if not managed.

Bearish Momentum

Bearish momentum may reflect market concerns, potentially affecting investor confidence and capital raising ability in the medium term.

Lack of Earnings Call Data

Absence of earnings call data limits transparency and investor insight into management's strategic direction, affecting long-term investor relations.

FLECT Co.,Ltd. Business Overview & Revenue Model

Company Description

FLECT Co., Ltd. (4414) is a Japanese company that specializes in the development and provision of advanced optical devices and related technologies. The company operates primarily within the fields of imaging and display solutions, leveraging innovative optical engineering to serve various sectors, including consumer electronics, automotive, and industrial applications. FLECT is known for its cutting-edge products, such as high-performance lenses and optical components that enhance visual experiences and contribute to the advancement of smart technologies.

How the Company Makes Money

FLECT Co., Ltd. generates revenue through multiple streams, primarily by selling optical components and systems to manufacturers in the electronics and automotive industries. The company also engages in research and development partnerships, collaborating with other tech firms and academic institutions to innovate and expand its product offerings. Licensing agreements for proprietary technologies and patents further contribute to its earnings, along with custom solutions tailored to meet specific client needs. Additionally, FLECT may benefit from government contracts and grants aimed at fostering technological advancement in Japan.

FLECT Co.,Ltd. Financial Statement Overview

Summary

FLECT Co.,Ltd. showcases a robust financial performance with strong revenue and profit growth, improved operational efficiency, and a solid balance sheet. The company's ability to generate cash flow efficiently further strengthens its financial standing. While the increase in liabilities is noteworthy, the overall financial health remains strong with effective leverage and equity utilization.

Income Statement

FLECT Co.,Ltd. has demonstrated strong revenue growth with a significant increase from 6.93 billion JPY to 7.95 billion JPY over the last year, marking a revenue growth rate of 14.72%. The gross profit margin remains robust at 44.57%, and the net profit margin has improved to 9.07%. The company has also seen an increase in EBIT and EBITDA margins, indicating improved operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.19, showcasing strong financial leverage management. The return on equity has improved to 26.47%, indicating effective utilization of equity capital. The equity ratio is strong at 64.84%, suggesting a solid financial structure. However, the total liabilities have increased, which needs monitoring.

Cash Flow

Operating cash flow has improved significantly to 895 million JPY, with a strong free cash flow of 834 million JPY, leading to a favorable free cash flow to net income ratio of 1.16. The operating cash flow to net income ratio of 1.24 indicates efficient cash conversion. The free cash flow growth rate is 79.74%, reflecting enhanced cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.95B	6.93B	5.31B	3.64B	2.56B
Gross Profit	3.53B	3.54B	3.00B	2.05B	1.61B	1.08B
EBITDA	1.12B	1.18B	871.12M	343.06M	318.42M	-110.20M
Net Income	685.34M	720.79M	440.47M	222.50M	266.40M	-194.92M
Balance Sheet
Total Assets	3.96B	4.20B	4.01B	2.88B	2.69B	1.50B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.13B	1.58B	1.16B	1.64B	896.56M
Total Debt	500.93M	517.87M	585.29M	633.11M	691.24M	763.57M
Total Liabilities	1.15B	1.48B	2.02B	1.35B	1.40B	1.26B
Stockholders Equity	2.80B	2.72B	1.99B	1.53B	1.29B	243.03M
Cash Flow
Free Cash Flow	0.00	833.94M	464.01M	-447.92M	97.37M	-317.53M
Operating Cash Flow	0.00	895.21M	600.03M	-306.04M	161.48M	-253.62M
Investing Cash Flow	0.00	-288.05M	-149.63M	-135.81M	-101.29M	13.88M
Financing Cash Flow	0.00	-54.13M	-30.36M	-42.19M	682.32M	618.14M

FLECT Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1843.00
• 50DMA: Negative
• 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:4414, the sentiment is Negative. The current price of 1843 is above the 20-day moving average (MA) of 1775.35, below the 50-day MA of 1854.46, and below the 200-day MA of 1959.48, indicating a bearish trend. The MACD of -45.11 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 15.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4414.

FLECT Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4414	73 Outperform	¥10.52B	14.52	―	―	1.01%	32.52%
2428	69 Neutral	¥12.37B	11.83	―	4.26%	0.54%	9.99%
4811	68 Neutral	¥14.39B	19.22	―	1.04%	15.34%	67.96%
3695	65 Neutral	¥8.78B	27.64	―	5.70%	26.41%	-20.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3665	61 Neutral	¥17.03B	64.33	―	2.39%	8.77%	-63.71%
4488	52 Neutral	¥11.49B	-27.59	―	―	7.00%	-244.58%