Alpha Co., Ltd. (4760) AI Stock Analysis

• Market Cap: ¥1.28B
• Dividend Yield: 3.13%
• Average Volume (3M): 13.09K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.79
• Revenue Growth: 3.87%
• EPS Growth: N/A
• Country: JP
• Employees: 350
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): 126.43
• Shares Outstanding: 915,444
• 10 Day Avg. Volume: 4,520
• 30 Day Avg. Volume: 13,086
• PEG Ratio: -0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.56
• 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

• Rating: 76 Outperform
• Price Target: ¥1,733.00 ▲(8.65%Upside)

Alpha Co., Ltd. scores a solid 75.9, reflecting robust financial recovery and positive technical indicators. Strong financial performance, characterized by a return to profitability and improved cash flows, is the most significant factor. Technical analysis supports upward momentum, complemented by a reasonable valuation with a good dividend yield. Continued focus on maintaining these aspects will be crucial for sustained growth.

Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Alpha Co., Ltd. (4760) is a Japanese company primarily engaged in the provision of information technology services. The company specializes in software development, system integration, and IT consulting, serving a wide range of industries including finance, manufacturing, and public sectors. Additionally, Alpha Co., Ltd. offers support and maintenance services to ensure the seamless operation of IT systems for its clients.

How the Company Makes Money

Alpha Co., Ltd. generates revenue through multiple streams. The primary source of income is derived from the development and customization of software solutions tailored to specific client needs. System integration services also contribute significantly to the company's earnings, as businesses seek to implement and harmonize advanced IT systems within their operations. Furthermore, Alpha Co., Ltd. earns revenue from IT consulting services, providing strategic advice to organizations looking to optimize their technology investments. Ongoing support and maintenance contracts offer a steady income stream by ensuring clients' systems remain operational and up-to-date. Partnerships with major technology providers enhance the company's service offerings, enabling it to deliver comprehensive and cutting-edge solutions to its clientele.

Alpha Co., Ltd. Financial Statement Overview

Summary

Alpha Co., Ltd. has shown commendable financial recovery and growth in 2024. The company turned profitability around with positive net income and margins, coupled with robust revenue growth. The balance sheet remains stable with manageable leverage, and cash flow management has improved significantly, supporting its operational and strategic initiatives.

Income Statement

Alpha Co., Ltd. has shown a substantial improvement in its financial performance over the recent period. The gross profit margin for 2024 is 39.84%, showing strong profitability. The net profit margin has improved significantly to 2.18% in 2024 from a previous negative figure, indicating a return to profitability. Revenue growth is notable at 13.85% from 2023 to 2024, driven by effective cost management and increased sales. Both EBIT and EBITDA margins are now positive at 1.87% and 2.60% respectively, marking a turnaround from previous losses.

Balance Sheet

Alpha Co., Ltd. maintains a moderate debt-to-equity ratio of 1.14, indicating manageable leverage. The return on equity (ROE) has improved to 9.63% in 2024, reflecting better utilization of shareholder funds. The equity ratio stands at 32.37%, providing a solid foundation of equity against total assets. While debt levels are within industry norms, the company should continue to focus on strengthening its equity base to further enhance financial stability.

Cash Flow

Alpha Co., Ltd. has demonstrated significant improvement in cash flow management. Free cash flow grew to 149.32 million in 2024 from a negative figure in the prior year, indicating better operational efficiency. The operating cash flow to net income ratio is 1.25, indicating strong cash earnings. The free cash flow to net income ratio is 1.12, reflecting good conversion of profits to cash. This positive cash flow trend supports future growth and debt servicing capabilities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
6.06B	6.12B	5.38B	5.62B	5.76B	6.13B
	Gross Profit
2.42B	2.44B	2.02B	2.19B	2.47B	2.31B
	EBIT
114.37M	114.31M	-314.25M	-146.10M	-88.20M	-474.36M
	EBITDA
154.66M	159.55M	-366.05M	-103.81M	-610.40M	-396.54M
	Net Income Common Stockholders
113.67M	133.28M	-393.58M	-133.83M	-690.26M	-610.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	1.04B	961.32M	1.12B	1.30B	1.10B
	Total Assets
4.54B	4.27B	3.80B	3.52B	3.82B	4.25B
	Total Debt
1.65B	1.57B	1.81B	1.56B	1.45B	1.30B
	Net Debt
574.00M	930.64M	852.08M	437.16M	151.58M	200.91M
	Total Liabilities
3.18B	2.89B	2.82B	2.39B	2.44B	2.33B
	Stockholders Equity
1.36B	1.38B	979.21M	1.13B	1.39B	1.92B
Cash Flow		Free Cash Flow
0.00	149.32M	-377.26M	-204.19M	35.98M	-460.26M
	Operating Cash Flow
0.00	166.26M	-339.68M	-154.78M	104.84M	-385.19M
	Investing Cash Flow
0.00	296.37M	-50.82M	-73.70M	-83.24M	199.10M
	Financing Cash Flow
0.00	-240.06M	230.95M	74.21M	114.91M	195.72M

Alpha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1595.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4760, the sentiment is Positive. The current price of 1595 is above the 20-day moving average (MA) of 1528.20, above the 50-day MA of 1470.66, and above the 200-day MA of 1537.01, indicating a bullish trend. The MACD of 28.82 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 91.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4760.

Alpha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4760	76 Outperform	¥1.28B	12.62		3.13%	3.87%	―
7067	71 Outperform	¥1.43B	18.35		1.10%	9.15%	2289.13%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
2156	59 Neutral	¥1.51B	55.49		1.66%	2.28%	―
9241	59 Neutral	¥1.28B	469.06		―	3.64%	83.67%
9244	49 Neutral	¥1.07B	―		―	1.08%	-1287.36%