SOLIZE Corporation (5871) AI Stock Analysis

• Market Cap: ¥8.20B
• Dividend Yield: 2.88%
• Average Volume (3M): 4.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 13.88%
• EPS Growth: -155.89%
• Country: JP
• Employees: 2,167
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -19.14
• Shares Outstanding: 6,000,000
• 10 Day Avg. Volume: 5,150
• 30 Day Avg. Volume: 4,266
• PEG Ratio: -0.51
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 1.11K
• 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: 58 Neutral
• Price Target: ¥1,579.00 ▲(3.95% Upside)

SOLIZE Corporation's strong financial stability and revenue growth are offset by declining profit margins and weak technical indicators. The negative P/E ratio further impacts the score, despite a decent dividend yield.

Positive Factors

Financial Stability

A high equity ratio and zero debt demonstrate SOLIZE's strong financial foundation, reducing leverage risk and enhancing resilience against economic fluctuations.

Revenue Growth

Consistent revenue growth reflects successful market expansion and product adoption, supporting long-term business sustainability and competitive positioning.

Cash Generation

Efficient cash generation ensures liquidity and the ability to invest in growth opportunities, enhancing SOLIZE's operational flexibility and strategic initiatives.

Negative Factors

Declining Profit Margins

Shrinking profit margins could signal cost management issues or pricing pressures, potentially impacting profitability and long-term financial health.

Fluctuating Cash Flows

Volatile cash flows may affect liquidity, limiting the company's ability to fund operations and invest in growth, posing a risk to financial stability.

Decreased EBIT Margin

A declining EBIT margin suggests increased operating expenses or inefficiencies, which could hinder profitability and operational effectiveness over time.

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 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 shows robust revenue growth and a strong balance sheet with zero debt, indicating financial stability. However, declining profit margins and fluctuating cash flows suggest challenges in profitability and liquidity management.

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	24.19B	22.71B	20.08B	17.83B	15.85B
Gross Profit	6.73B	6.45B	5.51B	4.81B	4.01B
EBITDA	86.50M	685.00M	1.02B	912.00M	515.00M
Net Income	-16.00M	254.00M	580.00M	566.00M	292.00M
Balance Sheet
Total Assets	15.09B	15.45B	13.04B	13.67B	12.52B
Cash, Cash Equivalents and Short-Term Investments	4.89B	7.24B	6.21B	7.29B	6.90B
Total Debt	0.00	54.00M	101.00M	118.00M	128.00M
Total Liabilities	4.12B	3.97B	3.38B	3.35B	2.85B
Stockholders Equity	10.96B	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: Neutral
• Last Price: 1519.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1519 is below the 20-day moving average (MA) of 1556.25, below the 50-day MA of 1659.52, and below the 200-day MA of 1693.36, indicating a neutral trend. The MACD of -19.32 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 93.85 is Negative, 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	¥13.05B	23.11	―	0.79%	27.84%	15.69%
6862	75 Outperform	¥6.47B	16.44	―	1.32%	17.06%	30.17%
6597	68 Neutral	¥8.04B	18.46	―	1.67%	3.70%	107.81%
6918	67 Neutral	¥14.54B	20.62	―	2.94%	-17.73%	-83.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥8.20B	-675.81	―	2.88%	13.88%	-155.89%
6836	42 Neutral	¥4.83B	169.83	―	―	17.29%	―