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

• Market Cap: ¥1.23B
• Dividend Yield: 3.28%
• Average Volume (3M): 2.60K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.80
• Revenue Growth: 3.87%
• EPS Growth: N/A
• Country: JP
• Employees: 350
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 126.43
• Shares Outstanding: 915,444
• 10 Day Avg. Volume: 1,130
• 30 Day Avg. Volume: 2,600
• 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: 68 Neutral
• Price Target: ¥1,663.00 ▲(8.98%Upside)

Alpha Co., Ltd.'s overall stock score is driven primarily by its strong financial recovery and attractive valuation. The technical analysis presents mixed signals, with some short-term weakness but potential for a rebound. The lack of earnings call data or notable corporate events limits further insights.

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
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: Negative
• Last Price: 1526.00
• 50DMA: Negative
• 100DMA: Positive
• 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:4760, the sentiment is Negative. The current price of 1526 is below the 20-day moving average (MA) of 1573.35, below the 50-day MA of 1529.12, and below the 200-day MA of 1530.01, indicating a bearish trend. The MACD of 5.20 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4760.

Alpha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	71 Outperform	¥1.55B	19.86		1.03%	9.15%	2289.13%
4760	68 Neutral	¥1.23B	12.07		3.28%	3.87%	―
Sector *	61 Neutral	$41.24B	-0.79	-14.21%	3.80%	2.39%	-73.52%
9241	59 Neutral	¥1.30B	469.06		―	3.64%	83.67%
2156	56 Neutral	¥1.49B	54.72		1.67%	2.28%	―
9244	56 Neutral	¥1.11B	―		―	1.08%	-1287.36%