HOUSEI Inc. (5035) AI Stock Analysis

• Market Cap: ¥3.31B
• Dividend Yield: 0.64%
• Average Volume (3M): 9.45K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.51
• Revenue Growth: 3.52%
• EPS Growth: 65.21%
• Country: JP
• Employees: 455
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -4.52
• Shares Outstanding: 7,094,200
• 10 Day Avg. Volume: 11,090
• 30 Day Avg. Volume: 9,453
• PEG Ratio: -1.60
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 10.09
• 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: ¥534.00
• Price Target Upside: 14.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥534.00 ▲(14.35% Upside)

The overall stock score is primarily driven by solid financial performance, although technical indicators and valuation suggest caution. The company's strong balance sheet and cash flow generation are positive, but the high P/E ratio and modest dividend yield limit attractiveness.

HOUSEI Inc. Business Overview & Revenue Model

Company Description

HOUSEI Inc. provides various cloud services in Japan. The company offers contract system development, IT engineer dispatch, cross-border EC platform, AI/big data related technology development, Chinese font license sale, and printing consulting services, as well as sells printing technology products and software. It serves the media industry such as newspapers, publishers, and information publishers, as well as financial, manufacturing, retail, and service industries. The company was founded in 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HOUSEI Inc. generates revenue primarily through the sale of its semiconductor products and electronic components. The company leverages its advanced manufacturing capabilities to produce a wide array of products that meet the specific needs of its clients across various industries. Key revenue streams include direct sales to manufacturers and partnerships with technology firms that incorporate HOUSEI's components into their products. Additionally, the company may enter into licensing agreements for its proprietary technologies, contributing further to its earnings. Significant factors contributing to HOUSEI Inc.'s revenue include its strong research and development initiatives, which drive innovation and allow the company to maintain a competitive edge in the fast-evolving electronics market.

HOUSEI Inc. Financial Statement Overview

Summary

HOUSEI Inc. demonstrates solid revenue growth and a robust balance sheet with prudent financial leverage. However, there is room for improvement in profitability metrics and cost efficiency.

Income Statement

HOUSEI Inc. demonstrated a solid revenue growth from 2023 to 2024 with a growth rate of 6.01%, indicating strong market presence. The gross profit margin of 31.07% and net profit margin of 2.54% reflect decent operational efficiency, although the net margin suggests room for improvement in cost management. The EBIT and EBITDA margins stand at 1.59% and 6.91% respectively, reflecting moderate profitability. Continued focus on reducing operational costs could enhance margins further.

Balance Sheet

The company maintains a robust balance sheet with a debt-to-equity ratio of 0.24, indicating prudent financial leverage. The equity ratio of 63.98% underscores financial stability and a strong capital structure. Return on equity (ROE) at 3.80% suggests moderate returns to shareholders, with potential for improvement through enhanced profitability strategies.

Cash Flow

The cash flow statement highlights positive free cash flow growth, transitioning from a negative to a positive position, showcasing improved liquidity management. The operating cash flow to net income ratio of 2.89 indicates strong cash generation capabilities relative to earnings. However, the free cash flow to net income ratio of 2.66 suggests that further optimization of capital expenditures could enhance cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.92B	4.64B	4.25B	4.10B	3.40B
Gross Profit	1.53B	1.53B	1.23B	1.15B	1.10B	1.06B
EBITDA	353.53M	399.33M	387.12M	362.70M	417.29M	385.50M
Net Income	117.57M	126.00M	147.00M	134.71M	271.44M	219.66M
Balance Sheet
Total Assets	4.82B	5.13B	4.72B	4.23B	3.92B	3.39B
Cash, Cash Equivalents and Short-Term Investments	1.75B	840.29M	830.00M	1.58B	1.09B	691.09M
Total Debt	636.79M	774.76M	729.00M	511.30M	788.49M	837.94M
Total Liabilities	1.68B	1.83B	1.53B	1.27B	1.57B	1.45B
Stockholders Equity	3.13B	3.29B	3.17B	2.95B	2.35B	1.94B
Cash Flow
Free Cash Flow	0.00	279.96M	-470.00M	336.17M	379.54M	-150.38M
Operating Cash Flow	0.00	361.14M	-417.00M	395.54M	413.16M	41.83M
Investing Cash Flow	0.00	-88.87M	-639.00M	-258.78M	-28.57M	43.61M
Financing Cash Flow	0.00	-83.85M	269.00M	131.09M	-49.45M	-38.82M

HOUSEI Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 467.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5035, the sentiment is Negative. The current price of 467 is below the 20-day moving average (MA) of 481.80, below the 50-day MA of 491.06, and below the 200-day MA of 488.86, indicating a bearish trend. The MACD of -7.46 indicates Positive momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5035.

HOUSEI Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5035	66 Neutral	¥3.31B	26.99	―	0.64%	3.52%	65.21%
4447	62 Neutral	¥3.31B	16.93	―	3.89%	42.88%	-5.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	61 Neutral	¥4.84B	31.00	―	―	1.83%	-20.00%
4174	55 Neutral	¥2.88B	98.54	―	3.23%	16.83%	-86.95%
4387	53 Neutral	¥2.86B	28.12	―	―	-4.34%	-1012.18%