Corona Corporation (5909) AI Stock Analysis

• Market Cap: ¥27.94B
• Dividend Yield: 2.94%
• Average Volume (3M): 14.67K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.39
• Revenue Growth: 0.41%
• EPS Growth: -51.02%
• Country: JP
• Employees: 2,138
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 9.36
• Shares Outstanding: 29,342,455
• 10 Day Avg. Volume: 15,740
• 30 Day Avg. Volume: 14,666
• PEG Ratio: -1.57
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -15.90
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥987.00 ▲(8.34% Upside)

The score is primarily supported by a very strong, low-risk balance sheet, but is held back by negative operating/free cash flow in the last two fiscal years and consistently thin margins. Technicals are neutral-to-slightly positive, while valuation is a meaningful headwind due to the high P/E relative to the company’s profitability and cash-flow profile.

Positive Factors

Balance Sheet Strength

A strong balance sheet with zero debt provides financial flexibility and reduces refinancing risk, supporting long-term stability.

Revenue Stability

Stable revenue indicates a consistent demand for products, which is crucial for maintaining market position and planning future growth.

Industry Position

Being a recognized player in the home-appliance industry in Japan supports brand strength and customer loyalty, aiding long-term competitiveness.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues and challenges in funding operations, which could impact future growth and investment.

Thin Profit Margins

Thin profit margins suggest limited pricing power and vulnerability to cost increases, which can affect profitability and competitive positioning.

Declining Earnings

Declining earnings reflect challenges in maintaining profitability, which may hinder reinvestment in the business and affect long-term growth.

Corona Corporation Business Overview & Revenue Model

Company Description

Corona Corporation (5909) is a Japanese company that specializes in the manufacture and sale of heating appliances, air conditioners, and other home equipment. The company operates in the consumer electronics sector, providing a range of products that include kerosene heaters, gas heaters, electric heaters, and air conditioning units. Corona Corporation is known for its focus on energy efficiency and user-friendly designs, catering primarily to the domestic market in Japan, with some international presence.

How the Company Makes Money

Corona Corporation generates revenue primarily through the sale of its heating and cooling appliances. The company's key revenue streams include the domestic sales of kerosene and gas heaters, electric heaters, and air conditioning units. Additionally, the company may engage in the export of these products to other markets, although its main focus remains within Japan. Partnerships with retail distributors and suppliers are significant factors in its earnings, allowing for a broad distribution network that enhances product availability and sales. The company also invests in research and development to innovate and improve its product offerings, thereby maintaining competitive advantage and market share.

Corona Corporation Financial Statement Overview

Summary

Corona Corporation presents a mixed financial picture. Strengths include solid gross margins and a strong equity base with no debt, suggesting financial stability. However, challenges such as declining revenue growth, low net margins, and cash flow issues highlight areas for improvement. The company should focus on enhancing operational efficiency and cash flow management to ensure long-term sustainability.

Income Statement

Corona Corporation demonstrates a solid gross profit margin of 21.5% for TTM, showing consistent profitability. However, the net profit margin for TTM stands at approximately 1.4%, highlighting challenges in controlling operating expenses. Revenue growth has been volatile, with a decline in the latest year, indicating potential instability. EBIT and EBITDA margins are relatively healthy, reflecting robust operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.9%, indicating financial stability and low leverage as it carries no debt. The ROE for TTM is modest at about 1.5%, suggesting room for improvement in generating shareholder returns. Overall, the balance sheet reflects financial prudence with substantial cash reserves.

Cash Flow

Corona Corporation's cash flow statement reveals challenges, with no operating or free cash flow reported for TTM. Historical data shows fluctuating free cash flow, with notable negative cash flow in recent periods, indicating potential cash management issues. The lack of operating cash flow also raises concerns about liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.26B	85.21B	82.05B	85.33B	78.65B	81.65B
Gross Profit	18.07B	18.39B	18.04B	18.76B	17.40B	18.68B
EBITDA	2.88B	3.31B	3.99B	3.88B	3.29B	3.54B
Net Income	759.00M	1.10B	1.31B	1.48B	939.00M	626.00M
Balance Sheet
Total Assets	103.15B	102.23B	103.29B	102.16B	98.30B	98.51B
Cash, Cash Equivalents and Short-Term Investments	16.54B	14.74B	18.68B	21.78B	22.22B	22.39B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	27.66B	25.94B	28.11B	29.26B	25.53B	25.43B
Stockholders Equity	75.48B	76.28B	75.18B	72.90B	72.78B	73.08B
Cash Flow
Free Cash Flow	0.00	-1.69B	-2.07B	2.46B	2.33B	4.16B
Operating Cash Flow	0.00	-423.00M	-210.00M	3.67B	3.58B	6.05B
Investing Cash Flow	0.00	-2.75B	-345.00M	-874.00M	-1.41B	-1.82B
Financing Cash Flow	0.00	-817.00M	-863.00M	-816.00M	-815.00M	-959.00M

Corona Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 911.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5909, the sentiment is Positive. The current price of 911 is below the 20-day moving average (MA) of 956.85, below the 50-day MA of 953.60, and below the 200-day MA of 923.50, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5909.

Corona Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5951	82 Outperform	¥15.36B	11.39	―	2.30%	9.86%	119.10%
6484	81 Outperform	¥21.66B	9.13	―	3.46%	3.87%	5.89%
7989	80 Outperform	¥41.22B	12.24	―	2.52%	2.47%	6.88%
6932	69 Neutral	¥37.15B	7.23	―	2.83%	2.27%	24.78%
5946	66 Neutral	¥67.55B	32.66	1.51%	2.27%	1.82%	-32.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5909	56 Neutral	¥27.94B	39.92	―	2.94%	0.41%	-51.02%