FALCO HOLDINGS Co., Ltd (4671) AI Stock Analysis

• Market Cap: ¥25.02B
• Dividend Yield: 5%
• Average Volume (3M): 15.38K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.64
• Revenue Growth: 1.23%
• EPS Growth: 9.96%
• Country: JP
• Employees: 1,117
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 48.22
• Shares Outstanding: 10,880,177
• 10 Day Avg. Volume: 10,950
• 30 Day Avg. Volume: 15,383
• PEG Ratio: 0.64
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 15.96
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,842.00 ▲(10.67% Upside)

The stock's overall score is driven by strong valuation metrics and positive technical indicators. Financial performance is stable but hindered by declining revenue growth and cash flow challenges. The absence of earnings call insights and corporate events does not impact the overall score.

Positive Factors

Balance Sheet Health

FALCO HOLDINGS maintains a strong balance sheet with low leverage, reducing financial risk and enhancing long-term stability.

Profitability

Improved net profit margin indicates better cost management and operational efficiency, supporting sustainable profitability.

Cash Generation

Efficient cash generation relative to profits ensures liquidity and supports investment in growth opportunities.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests challenges in market expansion and product demand, potentially impacting long-term growth.

Free Cash Flow Efficiency

Lower free cash flow efficiency indicates potential issues in cash retention, which may affect future investments and financial flexibility.

EBITDA Margin Trend

A downward trend in EBITDA margins may signal increasing operational costs or pricing pressures, impacting profitability.

FALCO HOLDINGS Co., Ltd Business Overview & Revenue Model

Company Description

FALCO HOLDINGS Co., Ltd (4671) is a diversified investment and holding company based in Japan, primarily engaged in the manufacturing, distribution, and sale of various industrial and consumer products. The company operates across multiple sectors, focusing on innovation and technology-driven solutions. Its core offerings include electronic components, machinery, and consumer goods, catering to both domestic and international markets.

How the Company Makes Money

FALCO HOLDINGS generates revenue through a combination of direct product sales, licensing agreements, and strategic partnerships. The company earns income primarily from the sale of its manufactured goods, which are distributed through both retail and wholesale channels. Additionally, FALCO engages in joint ventures and collaborations with other firms, enhancing its product offerings and market reach. The company also benefits from recurring revenue streams through service contracts and maintenance agreements associated with its industrial products.

FALCO HOLDINGS Co., Ltd Financial Statement Overview

Summary

FALCO HOLDINGS Co., Ltd demonstrates stable financial health with strong balance sheet metrics and reasonable profitability. The company benefits from solid margins and low debt levels, but faces challenges in revenue growth and cash flow efficiency.

Income Statement

The company showcases stable income statement metrics with a modest Gross Profit Margin averaging around 30.8% in the latest year. Net Profit Margin improved to 4.4% from the previous year, indicating better cost management. However, the revenue growth rate has been negative, reflecting a decline from the peak in 2022. The EBIT and EBITDA margins are consistent but show a downward trend from prior years.

Balance Sheet

The balance sheet remains solid with a low Debt-to-Equity Ratio of 0.06, indicating low leverage and financial risk. Return on Equity (ROE) stands at 7.6%, showing moderate profitability. The Equity Ratio is high at 70.1%, indicating strong solvency and financial stability. Overall, the company maintains a robust equity base with manageable liabilities.

Cash Flow

The cash flow statement reveals a decline in Free Cash Flow Growth Rate, with the latest year showing a decrease. Operating Cash Flow to Net Income Ratio remains healthy at 1.4, showcasing efficient cash generation relative to profits. However, Free Cash Flow to Net Income Ratio is 0.8, suggesting potential for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.52B	43.31B	43.01B	46.91B	50.01B	43.61B
Gross Profit	13.57B	13.35B	12.92B	14.64B	17.32B	13.70B
EBITDA	3.83B	3.72B	3.56B	4.75B	6.55B	3.88B
Net Income	1.98B	1.92B	1.67B	2.26B	3.53B	1.85B
Balance Sheet
Total Assets	36.75B	36.02B	36.42B	38.89B	40.26B	37.07B
Cash, Cash Equivalents and Short-Term Investments	9.32B	9.42B	10.06B	12.60B	10.64B	11.62B
Total Debt	1.24B	1.44B	817.00M	2.80B	4.07B	5.90B
Total Liabilities	12.21B	10.76B	10.40B	12.30B	16.78B	16.59B
Stockholders Equity	24.54B	25.25B	26.03B	26.59B	23.48B	20.48B
Cash Flow
Free Cash Flow	0.00	1.54B	2.19B	708.00M	1.94B	1.32B
Operating Cash Flow	0.00	2.62B	3.43B	2.09B	4.13B	2.94B
Investing Cash Flow	0.00	-1.18B	-1.45B	322.00M	-2.69B	-52.00M
Financing Cash Flow	0.00	-2.08B	-4.53B	-448.00M	-2.41B	1.46B

FALCO HOLDINGS Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2568.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4671, the sentiment is Positive. The current price of 2568 is above the 20-day moving average (MA) of 2539.95, above the 50-day MA of 2533.66, and above the 200-day MA of 2348.44, indicating a bullish trend. The MACD of 12.43 indicates Negative momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 74.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4671.

FALCO HOLDINGS Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4694	74 Outperform	€135.37B	22.00	5.59%	3.17%	5.90%	16.30%
4671	73 Outperform	¥25.02B	13.21	―	5.00%	1.23%	9.96%
2395	69 Neutral	¥72.61B	15.60	―	3.34%	28.06%	19.48%
9776	68 Neutral	¥3.76B	7.57	―	2.03%	2.80%	34.63%
3154	67 Neutral	¥17.59B	12.78	―	2.41%	8.52%	25.85%
4544	62 Neutral	¥210.32B	55.27	2.65%	3.42%	2.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%