SBI Leasing Services Co.,Ltd. (5834) AI Stock Analysis

• Market Cap: ¥42.53B
• Dividend Yield: 4.15%
• Average Volume (3M): 32.52K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.24
• Revenue Growth: 0.17%
• EPS Growth: 58.30%
• Country: JP
• Employees: 53
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 219.56
• Shares Outstanding: 7,920,800
• 10 Day Avg. Volume: 29,810
• 30 Day Avg. Volume: 32,523
• PEG Ratio: 0.22
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -0.98
• 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: 64 Neutral
• Price Target: ¥5,313.00 ▲(0.25% Upside)

SBI Leasing Services Co., Ltd. scores moderately due to its strong valuation metrics, indicating potential undervaluation, and technical indicators suggesting possible upward movement. However, financial performance concerns, particularly in cash flow and high leverage, weigh down the overall score.

Positive Factors

Revenue Growth

A revenue growth rate of 14.18% indicates strong demand for leasing services, suggesting effective market penetration and expansion potential.

Operational Efficiency

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning.

Equity Growth

The gradual increase in stockholders' equity suggests a strengthening financial base, providing a buffer against financial volatility.

Negative Factors

High Leverage

A high debt-to-equity ratio indicates reliance on debt financing, which can increase financial risk and limit strategic flexibility.

Cash Flow Issues

Negative free cash flow raises concerns about liquidity and cash management, potentially impacting the company's ability to fund operations.

Profitability Challenges

Irregular net profit margins suggest inconsistent profitability, which may hinder long-term financial stability and investor confidence.

SBI Leasing Services Co.,Ltd. Business Overview & Revenue Model

Company Description

SBI Leasing Services Co., Ltd. (5834) is a financial services company based in Japan, primarily engaged in the leasing and financing sectors. The company specializes in providing leasing services for various assets, including machinery, equipment, and vehicles, catering to a diverse range of industries. SBI Leasing also offers financial solutions such as installment sales and other financing products, aiming to support businesses in optimizing their capital management and operational efficiency.

How the Company Makes Money

SBI Leasing Services generates revenue primarily through leasing agreements and financing services. The company's revenue model is centered around the fees and interest earned from leasing contracts, where clients pay periodic lease payments over the term of the agreement. Additionally, the company may earn income from the sale of leased assets at the end of the lease term. Key revenue streams include operational leasing, financial leasing, and installment sales. Significant partnerships with manufacturers and distributors enhance the company’s offerings and market reach, allowing it to tap into various sectors for leasing opportunities. The company also benefits from a favorable interest rate environment and strong demand for leasing services in the Japanese market.

SBI Leasing Services Co.,Ltd. Financial Statement Overview

Summary

SBI Leasing Services Co., Ltd. shows operational efficiency with improved EBIT and EBITDA margins, but faces challenges in net profitability and liquidity. The high debt-to-equity ratio and negative free cash flow indicate financial risk and cash management issues.

Income Statement

SBI Leasing Services Co., Ltd. has shown fluctuating revenue with a significant drop in the latest fiscal year. Despite the volatility, the company has maintained a positive gross profit margin and improved EBIT and EBITDA margins, indicating operational efficiency. However, the net profit margin has seen irregular patterns, reflecting occasional profitability challenges.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, increasing over the years, which indicates a heavy reliance on debt financing. The equity ratio remains relatively low, posing potential financial risk. However, a gradual increase in stockholders' equity over the years is a positive sign, suggesting strengthening equity base.

Cash Flow

The cash flow statement shows persistent negative free cash flow, raising concerns about liquidity and cash management. Operating cash flow has been negative in most years, indicating cash flow difficulties from core business operations. The ratio of operating cash flow to net income suggests inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.87B	41.92B	54.15B	39.57B	29.56B	12.00B
Gross Profit	12.15B	10.40B	8.31B	7.17B	5.54B	3.35B
EBITDA	8.50B	7.70B	6.12B	4.41B	11.47B	-4.64B
Net Income	5.14B	4.39B	3.45B	2.44B	10.36B	-7.65B
Balance Sheet
Total Assets	108.51B	105.78B	75.70B	48.35B	29.80B	40.85B
Cash, Cash Equivalents and Short-Term Investments	60.01B	60.71B	63.64B	35.58B	20.30B	9.12B
Total Debt	76.90B	72.40B	48.90B	23.21B	15.12B	37.33B
Total Liabilities	82.89B	80.60B	54.59B	30.58B	16.64B	38.47B
Stockholders Equity	25.62B	25.17B	21.11B	17.78B	13.16B	2.38B
Cash Flow
Free Cash Flow	0.00	-26.51B	-26.69B	-4.54B	-814.00M	2.74B
Operating Cash Flow	0.00	-26.51B	-26.65B	3.71B	-772.00M	2.75B
Investing Cash Flow	0.00	-123.00M	-189.00M	-8.43B	26.08B	7.79B
Financing Cash Flow	0.00	22.93B	25.62B	9.94B	-22.20B	-11.41B

SBI Leasing Services Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5300.00
• 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:5834, the sentiment is Positive. The current price of 5300 is above the 20-day moving average (MA) of 5218.25, above the 50-day MA of 5117.50, and above the 200-day MA of 4283.24, indicating a bullish trend. The MACD of 57.11 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5834.

SBI Leasing Services Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥12.66B	8.21	―	3.61%	6.66%	13.62%
9699	79 Outperform	¥123.50B	10.20	―	2.95%	8.02%	4.39%
8439	72 Outperform	¥988.71B	7.28	―	3.43%	5.24%	69.92%
8596	68 Neutral	¥30.18B	8.30	―	4.82%	-13.01%	9.74%
5834	64 Neutral	¥42.53B	7.29	―	4.15%	0.17%	58.30%
8424	64 Neutral	¥378.62B	13.92	―	3.70%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%