SEMBA CORP (6540) AI Stock Analysis

• Market Cap: ¥18.88B
• Dividend Yield: 0.56%
• Average Volume (3M): 15.56K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.61
• Revenue Growth: 13.31%
• EPS Growth: 4.29%
• Country: JP
• Employees: 520
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 15.90
• Shares Outstanding: 10,747,058
• 10 Day Avg. Volume: 12,750
• 30 Day Avg. Volume: 15,560
• PEG Ratio: 0.22
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 4.04
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,001.00 ▲(13.82% Upside)

SEMBA CORP's strong financial performance is the most significant factor driving the stock score, supported by robust revenue growth, profitability, and cash flow. The technical analysis suggests some bearish momentum, but the stock is nearing oversold levels, which could lead to a reversal. The valuation is reasonable, with a fair P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitive positioning.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility, reduces risk, and allows for strategic investments, ensuring long-term stability and growth potential.

Cash Flow Generation

Strong cash flow generation enhances liquidity and supports reinvestment in growth opportunities, underpinning the company's financial health and operational efficiency.

Negative Factors

Profit Margin Pressure

While margins are currently strong, maintaining them amid rising costs and competitive pressures could challenge long-term profitability.

Market Volatility

Market volatility can impact investor confidence and affect capital raising efforts, posing a risk to strategic initiatives and growth plans.

Limited Industry Diversification

Concentration in specific sectors may expose the company to cyclical downturns or technological shifts, affecting revenue stability and growth potential.

SEMBA CORP Business Overview & Revenue Model

Company Description

Semba Corporation engages in the planning, design, construction, and supervision of commercial spaces in Japan and internationally. Its services include investigation and analysis, consulting, conceptual and master planning, working drawing, project management, opening sales promotion, tenant mixed planning, market research, merchandising planning, and construction management. The company also provides commercial spaces and facilities, shopping malls, department stores, specialty stores, cafes, restaurants, toys shops, character and apparel shops, amusement parks, and others. Semba Corporation was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SEMBA CORP generates revenue primarily through its subscription-based software services, offering customers access to its logistics management platforms and data analytics tools on a recurring basis. Key revenue streams include licensing fees from its software products, professional services for implementation and customization, and support and maintenance contracts. Additionally, SEMBA CORP may engage in partnerships with other technology providers and logistics firms, enhancing its product offerings and expanding its customer base. These collaborations can lead to joint ventures that create new revenue opportunities, while the increasing demand for digital transformation in supply chain management contributes significantly to the company's earnings.

SEMBA CORP Financial Statement Overview

Summary

SEMBA CORP demonstrates a strong financial profile with significant revenue and profit growth, robust margins, a debt-free balance sheet, and excellent cash flow generation. These factors indicate efficient operations, financial stability, and strong liquidity.

Income Statement

SEMBA CORP has exhibited strong revenue growth, with a significant increase in total revenue from 24.89 billion JPY in 2023 to 28.96 billion JPY in 2024, marking a 16.33% growth rate. The gross profit margin stands at a robust 19.87%, and the net profit margin has improved to 5.18%, indicating enhanced profitability. The EBIT and EBITDA margins are 6.62% and 7.12%, respectively, reflecting efficient cost management. Overall, the income statement presents a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet of SEMBA CORP is notably strong, characterized by a debt-free status as of 2024, enhancing financial stability. The equity ratio is impressive at 58.43%, showcasing strong equity financing relative to total assets. The ROE is a healthy 11.00%, indicating effective utilization of equity to generate profits. Overall, the balance sheet reflects a solid financial position with low leverage and high equity.

Cash Flow

SEMBA CORP's cash flow position is robust, with significant positive operating cash flow and free cash flow growth. The free cash flow surged from -777.42 million JPY in 2023 to 3.40 billion JPY in 2024, demonstrating a substantial turnaround. The operating cash flow to net income ratio is 2.35, indicating strong cash generation relative to profits. The free cash flow to net income ratio is exceptionally high at 2.27, reflecting efficient cash conversion. Overall, the cash flow statement showcases strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.50B	28.96B	24.89B	22.81B	19.27B	21.71B
Gross Profit	6.72B	5.76B	4.51B	3.82B	3.22B	3.14B
EBITDA	2.78B	2.06B	1.43B	969.88M	603.51M	506.56M
Net Income	1.86B	1.50B	1.03B	451.54M	296.72M	357.26M
Balance Sheet
Total Assets	19.99B	23.32B	19.57B	17.35B	16.81B	15.34B
Cash, Cash Equivalents and Short-Term Investments	9.51B	12.49B	9.32B	10.18B	9.27B	8.81B
Total Debt	75.40M	4.61M	6.54M	5.37M	2.03M	2.87M
Total Liabilities	6.26B	9.70B	7.33B	6.12B	5.94B	4.81B
Stockholders Equity	13.73B	13.62B	12.25B	11.23B	10.86B	10.53B
Cash Flow
Free Cash Flow	0.00	3.39B	-777.42M	1.13B	402.31M	281.45M
Operating Cash Flow	0.00	3.53B	-655.30M	1.28B	536.55M	446.96M
Investing Cash Flow	0.00	2.59M	93.11M	-204.17M	16.14M	250.48M
Financing Cash Flow	0.00	-464.33M	-330.23M	-255.34M	-192.37M	-438.35M

SEMBA CORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1758.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6540, the sentiment is Positive. The current price of 1758 is above the 20-day moving average (MA) of 1686.42, above the 50-day MA of 1722.60, and above the 200-day MA of 1596.91, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of -35.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6540.

SEMBA CORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1770	76 Outperform	¥16.09B	12.37	―	3.71%	-21.52%	-35.65%
9765	76 Outperform	¥16.63B	13.97	―	3.90%	-3.59%	-15.46%
6540	74 Outperform	¥18.88B	12.49	―	0.56%	13.31%	4.29%
1960	73 Outperform	¥20.09B	7.92	―	2.97%	22.32%	5024.88%
1716	71 Outperform	¥15.89B	9.58	―	2.87%	-1.39%	-4.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.67B	13.67	―	4.48%	-6.37%	-16.88%