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

• Market Cap: ¥2.03B
• Dividend Yield: 1.98%
• Average Volume (3M): 34.23K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.64
• Revenue Growth: 4.13%
• EPS Growth: 45879.60%
• Country: JP
• Employees: 350
• Sector: Communication Services
• Sector Strength: 76
• Industry: Advertising Agencies
• EPS (TTM): 32.53
• Shares Outstanding: 915,444
• 10 Day Avg. Volume: 88,830
• 30 Day Avg. Volume: 34,230
• PEG Ratio: -1.38
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,733.00
• Price Target Upside: -33.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥2,890.00 ▲(11.15%Upside)

Alpha Co., Ltd. benefits from strong financial recovery and positive technical indicators, contributing to a favorable stock score. The valuation metrics suggest a fair market position, though not exceptionally undervalued.

Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Alpha Co., Ltd. (4760) is a Japan-based company that operates in the IT and software development sector. The company specializes in providing a range of IT services, including systems development, IT consulting, and software solutions tailored to meet the needs of various industries. Alpha Co., Ltd. is known for its expertise in cutting-edge technologies and offers products and services that help businesses optimize their operations and improve efficiency.

How the Company Makes Money

Alpha Co., Ltd. generates revenue through its diverse portfolio of IT services and solutions. The company's primary revenue streams include fees from systems development projects, which involve designing and implementing customized software solutions for clients. Additionally, Alpha Co., Ltd. earns income from IT consulting services, where it provides expert advice and strategies to businesses looking to leverage technology to enhance their operations. The company also engages in software licensing, allowing clients to use its proprietary software products for a fee. Furthermore, Alpha Co., Ltd. collaborates with strategic partners to expand its offerings and reach new markets, enhancing its revenue potential.

Alpha Co., Ltd. Financial Statement Overview

Summary

Alpha Co., Ltd. has demonstrated significant financial recovery in 2024 with a return to profitability and strong revenue growth. Profit margins and cash flow metrics have improved notably, though further strengthening of equity is recommended for enhanced stability.

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
EBITDA	154.66M	159.55M	-366.05M	-103.81M	-610.40M	-396.54M
Net Income	113.67M	133.28M	-393.58M	-133.83M	-690.26M	-610.62M
Balance Sheet
Total Assets	4.54B	4.27B	3.80B	3.52B	3.82B	4.25B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.04B	961.32M	1.12B	1.30B	1.10B
Total Debt	1.65B	1.57B	1.81B	1.56B	1.45B	1.30B
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: 2600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2600 is above the 20-day moving average (MA) of 1901.75, above the 50-day MA of 1684.76, and above the 200-day MA of 1562.20, indicating a bullish trend. The MACD of 338.79 indicates Negative momentum. The RSI at 79.81 is Negative, neither overbought nor oversold. The STOCH value of 86.51 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	72 Outperform	¥2.03B	20.97		1.98%	4.13%	45879.60%
7067	71 Outperform	¥1.77B	22.67		0.81%	9.15%	2289.13%
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
9241	61 Neutral	¥1.33B	82.02		―	-0.09%	―
2156	58 Neutral	¥1.49B	54.72		1.69%	2.28%	―
9244	56 Neutral	¥1.54B	―		―	1.08%	-1287.36%