Commerce One Holdings, Inc. (4496) AI Stock Analysis

• Market Cap: ¥5.71B
• Dividend Yield: 2.5%
• Average Volume (3M): 2.42K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.62
• Revenue Growth: 4.29%
• EPS Growth: -42.71%
• Country: JP
• Employees: 176
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 9.13
• Shares Outstanding: 7,193,400
• 10 Day Avg. Volume: 2,150
• 30 Day Avg. Volume: 2,423
• PEG Ratio: -0.86
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 12.65
• 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: 70 Outperform
• Price Target: ¥891.00 ▲(14.23% Upside)

Commerce One Holdings, Inc. demonstrates strong financial performance with consistent revenue growth and a solid balance sheet, which are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to short-term weakness. Maintaining profitability and cash flow stability will be crucial for future success.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product adoption, supporting long-term business expansion.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments or downturns.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest effective cost management and operational strength, supporting sustainable profitability.

Negative Factors

Net Profit Margin Volatility

Volatile net profit margins may indicate challenges in managing non-operating expenses, impacting long-term profitability.

Free Cash Flow Decline

Declining free cash flow growth could hinder the company's ability to sustain capital investments and manage working capital efficiently.

Decreased Return on Equity

A decreasing return on equity may suggest diminishing efficiency in generating profits from shareholders' equity, affecting investor confidence.

Commerce One Holdings, Inc. Business Overview & Revenue Model

Company Description

Commerce One Holdings Inc. provides solutions for e-commerce business operators to start and operate their businesses. The company provides e-commerce site construction and operation services; sales management and inventory management system for the e-commerce business; and management support tools, such as EC site authentication service and order trend display based on data analysis. The company was incorporated in 2006 and is based in Chiyoda, Japan.

How the Company Makes Money

Commerce One Holdings, Inc. generates revenue primarily through subscription fees for its e-commerce platform and transaction fees associated with sales conducted on its marketplace. The company also earns income from providing premium services, such as enhanced data analytics and customized solutions for enterprise clients. Significant partnerships with major retailers and suppliers further contribute to its earnings by expanding its user base and increasing transaction volumes on its platform. Additionally, the company may generate revenue through advertising and promotional services offered to businesses looking to reach potential customers within its marketplace.

Commerce One Holdings, Inc. Financial Statement Overview

Summary

Commerce One Holdings, Inc. exhibits strong financial health with consistent revenue growth and a solid balance sheet. While operational efficiency is commendable, recent declines in net profit margin and free cash flow growth warrant attention.

Income Statement

Commerce One Holdings, Inc. demonstrates strong revenue growth with a consistent upward trajectory over the past years. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has shown some volatility, particularly in the latest year, which may suggest challenges in controlling non-operating expenses or taxes. EBIT and EBITDA margins are healthy, reflecting solid operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is high, showcasing a solid capital structure. Return on equity has been positive, although it has decreased recently, which could be a point of concern if the trend continues.

Cash Flow

Commerce One Holdings, Inc. has shown fluctuations in free cash flow growth, with a notable decrease in the latest year. The operating cash flow to net income ratio is strong, suggesting good cash generation from operations. However, the decline in free cash flow growth could indicate potential challenges in sustaining capital investments or managing working capital efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.79B	3.69B	3.56B	3.20B	2.94B	2.52B
Gross Profit	2.15B	2.10B	2.02B	1.80B	1.70B	1.47B
EBITDA	586.60M	483.08M	846.67M	699.02M	752.18M	669.64M
Net Income	170.60M	90.63M	414.86M	441.36M	495.98M	393.33M
Balance Sheet
Total Assets	3.68B	3.47B	3.88B	3.51B	3.11B	2.59B
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.86B	1.73B	1.61B	1.64B	1.23B
Total Debt	60.94M	54.44M	47.00M	47.00M	14.15M	17.76M
Total Liabilities	1.02B	948.30M	1.04B	889.59M	822.17M	780.93M
Stockholders Equity	2.65B	2.52B	2.84B	2.62B	2.29B	1.81B
Cash Flow
Free Cash Flow	509.75M	479.30M	661.63M	54.65M	398.37M	363.99M
Operating Cash Flow	557.48M	532.78M	778.61M	163.97M	515.51M	466.62M
Investing Cash Flow	-221.65M	-182.39M	-367.76M	-56.40M	-111.19M	-102.05M
Financing Cash Flow	-227.80M	-213.37M	-307.41M	-142.77M	-3.68M	92.84M

Commerce One Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 780.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4496, the sentiment is Negative. The current price of 780 is below the 20-day moving average (MA) of 798.05, below the 50-day MA of 794.38, and below the 200-day MA of 794.28, indicating a bearish trend. The MACD of 1.89 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 35.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4496.

Commerce One Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4270	77 Outperform	¥5.55B	11.84	―	―	―	―
173A	73 Outperform	¥6.58B	11.02	―	1.99%	―	―
3623	73 Outperform	¥6.37B	16.07	―	1.18%	6.95%	-9.62%
4496	70 Outperform	¥5.71B	33.07	―	2.50%	4.29%	-42.71%
7351	67 Neutral	¥5.78B	13.48	―	1.54%	28.98%	3659.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3680	52 Neutral	¥4.17B	-5.05	―	1.17%	-21.76%	-5832.28%