SOLIZE Corporation (5871) AI Stock Analysis

• Market Cap: ¥9.40B
• Dividend Yield: 2.6%
• Average Volume (3M): 4.26K
• Price to Earnings (P/E): 54.7
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 2,167
• Sector: Technology
• Sector Strength: 93
• Industry: Computer Hardware
• EPS (TTM): 22.50
• Shares Outstanding: 6,000,000
• 10 Day Avg. Volume: 4,900
• 30 Day Avg. Volume: 4,256
• PEG Ratio: -1.43
• Price to Book (P/B): 0.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

SOLIZE Corporation benefits from strong financial stability and revenue growth, driven by an impressive equity ratio and zero debt. However, challenges such as declining profit margins and fluctuating cash flows weigh on its financial performance score. Technical indicators present a mixed picture, with short-term strength but potential long-term resistance. Valuation metrics suggest the stock may be overvalued, balanced slightly by a reasonable dividend yield. Overall, the stock is moderately attractive, but caution is warranted regarding profitability and valuation.

SOLIZE Corporation Business Overview & Revenue Model

Company Description

SOLIZE Corporation provides 3D CAD, CAE, MBD, 3D printing, and innovation engineering services in Japan, North America, China, India, and Europe. It serves automobiles and automobile parts, appliances and electronic devices, medical equipment, energy and infrastructure, heavy industry, construction civil engineering, process industry, aerospace, software, finance and insurance, and BPO sectors. The company was founded in 1990 and is based in Chiyoda, Japan.

How the Company Makes Money

SOLIZE Corporation generates revenue through a diversified portfolio of engineering and IT services. The company earns money by providing consulting and technical services to clients in need of advanced design and analysis solutions. A significant portion of its revenue comes from selling and implementing software products related to 3D design, CAE, and PLM, which aid in enhancing the efficiency of product development cycles. Additionally, SOLIZE may have strategic partnerships with software vendors and other technology providers that contribute to its earnings, although specific details about such partnerships are not publicly available. The company also benefits from long-term contracts with major clients in the automotive and aerospace sectors, ensuring a steady stream of income.

SOLIZE Corporation Financial Statement Overview

Summary

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

SOLIZE Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1808.00
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 1808 is above the 20-day moving average (MA) of 1798.10, below the 50-day MA of 1815.32, and above the 200-day MA of 1641.87, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥17.08B	31.56		0.75%	61.42%	57.43%
5871	69 Neutral	¥9.40B	54.66		2.60%	―	―
Sector *	68 Neutral	¥228.96B	14.53	7.50%	2.69%	9.28%	6.70%
6918	67 Neutral	¥12.91B	12.15		2.80%	-13.64%	-76.09%
6597	66 Neutral	¥7.68B	19.38		1.59%	-2.04%	8.15%
6862	60 Neutral	¥5.88B	15.01		1.85%	29.04%	-74.63%
6836	42 Neutral	¥7.18B	579.43		―	14.80%	70.15%