SOLIZE Corporation (5871) AI Stock Analysis

• Market Cap: ¥8.81B
• Dividend Yield: 2.75%
• Average Volume (3M): 4.99K
• Price to Earnings (P/E): 56.1
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 2,167
• Sector: Technology
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): -70.42
• Shares Outstanding: 6,000,000
• 10 Day Avg. Volume: 6,100
• 30 Day Avg. Volume: 4,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,856.00
• Price Target Upside: 9.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,856.00 ▲(9.63% Upside)

SOLIZE Corporation's strong financial stability and revenue growth are overshadowed by declining profit margins and negative P/E ratio, indicating potential financial challenges. Technical indicators suggest bearish momentum, contributing to a cautious outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt and a high equity ratio indicates financial resilience, providing flexibility for future investments and growth.

Revenue Growth

Consistent revenue growth reflects the company's successful expansion in its core markets, enhancing its competitive position and supporting long-term sustainability.

Cash Generation

Efficient cash generation supports operational needs and strategic investments, ensuring the company can capitalize on growth opportunities without relying on external financing.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest difficulties in cost management or pricing strategy, which could impact long-term profitability if not addressed.

Fluctuating Cash Flows

Fluctuating cash flows can lead to liquidity challenges, potentially restricting the company's ability to invest in growth initiatives or weather economic downturns.

Decreased EBIT Margin

A declining EBIT margin indicates reduced operational efficiency, which could hinder profitability and competitiveness if not improved.

SOLIZE Corporation Business Overview & Revenue Model

Company Description

SOLIZE Corporation (5871) is a Japanese company specializing in engineering services and IT solutions. The company operates primarily in the manufacturing and technology sectors, providing a range of services including product development, design engineering, and system integration. SOLIZE is known for its expertise in 3D modeling, simulation, and digital transformation, catering to industries such as automotive, aerospace, and machinery.

How the Company Makes Money

SOLIZE Corporation generates revenue through multiple streams, primarily by offering engineering consulting services and IT solutions to various industries. The company's core revenue model is based on project-based contracts, where it charges clients for its expertise in product development and system integration. Additionally, SOLIZE earns income from software sales and licensing related to its proprietary technologies. Strategic partnerships with key players in the manufacturing sector enhance its service offerings, allowing the company to expand its client base and increase its earnings potential. Continuous investment in research and development also supports innovation, helping to drive revenue growth through new service offerings and improved operational efficiency.

SOLIZE Corporation Financial Statement Overview

Summary

SOLIZE Corporation displays robust revenue growth and a strong balance sheet with zero debt, reflecting financial stability. However, declining profit margins and fluctuating cash flows present potential challenges. The company is well-positioned in the computer hardware industry but should focus on improving profitability to enhance overall financial health.

Income Statement

SOLIZE Corporation has demonstrated strong revenue growth over recent years, with a substantial increase from 15,854 million to 22,713 million. However, the net profit margin has decreased from 2.5% to 1.1%, indicating potential challenges in managing costs or pricing. Despite a dip in EBIT margin from 4.4% to 2.0%, the company has maintained stable gross profit margins, underscoring operational efficiency.

Balance Sheet

The company boasts an impressive equity ratio of 74.3%, highlighting financial stability and a strong capital structure. With zero debt in the latest period and a consistent increase in stockholders' equity, SOLIZE Corporation demonstrates prudent financial management. The debt-to-equity ratio has improved to 0, indicating no leverage risk.

Cash Flow

SOLIZE Corporation's operating cash flow has fluctuated, showing a decrease in the latest year, which could impact liquidity. Despite this, the free cash flow remains positive, albeit with modest growth. The company has a high free cash flow to net income ratio, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.72B	22.71B	20.08B	17.83B	15.85B
Gross Profit	6.75B	6.45B	5.51B	4.81B	4.01B
EBITDA	467.50M	685.00M	1.02B	912.00M	515.00M
Net Income	173.00M	254.00M	580.00M	566.00M	292.00M
Balance Sheet
Total Assets	14.77B	15.45B	13.04B	13.67B	12.52B
Cash, Cash Equivalents and Short-Term Investments	5.63B	7.24B	6.21B	7.29B	6.90B
Total Debt	0.00	54.00M	101.00M	118.00M	128.00M
Total Liabilities	3.42B	3.97B	3.38B	3.35B	2.85B
Stockholders Equity	11.35B	11.48B	9.67B	10.32B	9.67B
Cash Flow
Free Cash Flow	0.00	7.00M	350.00M	656.00M	-271.00M
Operating Cash Flow	0.00	297.00M	488.00M	867.00M	270.00M
Investing Cash Flow	0.00	-718.00M	-275.00M	-408.00M	-528.00M
Financing Cash Flow	0.00	1.38B	-1.34B	-129.00M	-34.00M

SOLIZE Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1693.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5871, the sentiment is Negative. The current price of 1693 is below the 20-day moving average (MA) of 1746.60, below the 50-day MA of 1788.06, and above the 200-day MA of 1666.35, indicating a neutral trend. The MACD of -18.70 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5871.

SOLIZE Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5885	78 Outperform	¥16.74B	30.86		0.77%	49.97%	23.17%
6597	74 Outperform	¥8.19B	18.81		1.47%	1.71%	46.50%
6862	70 Outperform	¥6.47B	16.44		1.67%	33.14%	-37.77%
6918	67 Neutral	¥13.37B	15.40		3.04%	-18.21%	-81.79%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
5871	61 Neutral	¥8.81B	56.07		2.75%	―	―
6836	42 Neutral	¥6.51B	1,067.55		―	17.90%	―