Corona Corporation (5909) AI Stock Analysis

• Market Cap: ¥27.15B
• Dividend Yield: 3.07%
• Average Volume (3M): 15.32K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.41
• Revenue Growth: 2.68%
• EPS Growth: -42.92%
• Country: JP
• Employees: 2,138
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -18.23
• Shares Outstanding: 29,342,455
• 10 Day Avg. Volume: 15,440
• 30 Day Avg. Volume: 15,323
• 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

• Rating: 67 Neutral
• Price Target: ―

Corona Corporation shows financial stability with a strong equity base and no debt, but it faces challenges in revenue growth and cash flow management. Technical analysis indicates a neutral trend with no strong momentum, while its valuation appears reasonable with a fair P/E ratio and a decent dividend yield. The company would benefit from focusing on operational efficiency and liquidity improvements to enhance its overall performance.

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: Negative
• Last Price: 911.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 911 is below the 20-day moving average (MA) of 933.24, below the 50-day MA of 934.28, and below the 200-day MA of 916.24, indicating a bearish trend. The MACD of -7.28 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5909.

Corona Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6484	80 Outperform	¥17.07B	7.57	―	3.78%	2.57%	12.42%
7989	73 Outperform	¥39.30B	12.27	―	2.63%	2.31%	2.20%
6932	72 Outperform	¥33.01B	6.28	―	3.06%	5.28%	31.11%
5946	69 Neutral	$63.36B	28.40	1.70%	2.42%	3.64%	-26.54%
5909	67 Neutral	¥27.15B	35.85	―	3.07%	2.68%	-42.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5951	58 Neutral	¥14.28B	11.14	―	2.51%	4.20%	46.05%

Corona Corporation Corporate Events

Corona Corporation Reports Modest Sales Growth Amid Profit Challenges

Corona Corporation’s latest financial report shows a slight increase in net sales for the quarter ending December 2024, with a 2.6% rise from the previous year. However, there is a decline in key profit metrics, with operating profit down by 5.7%, ordinary profit by 6.5%, and profit attributable to owners of the parent by 8.0%. Despite these challenges, the company’s financial position remains stable, as indicated by a high capital adequacy ratio of 71.9%. The annual dividend forecast remains consistent at 28 yen per share, reflecting stability for stakeholders.