SEMBA CORP (6540) AI Stock Analysis

• Market Cap: ¥20.23B
• Dividend Yield: 0.58%
• Average Volume (3M): 15.56K
• Price to Earnings (P/E): 10.8
• 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 ▲(15.20% 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 CORP (6540) is a company engaged in the development and provision of innovative solutions within the technology sector, specializing in electronic components and systems. The company focuses on delivering high-quality products and services tailored to various industries, including telecommunications, automotive, and consumer electronics. By leveraging cutting-edge technology and strong engineering capabilities, SEMBA CORP aims to enhance operational efficiency and performance for its clients.

How the Company Makes Money

SEMBA CORP generates revenue primarily through the sale of its electronic components and systems to a diverse clientele across multiple sectors. The company employs a business-to-business (B2B) model, where it partners with manufacturers and service providers to supply essential components that are integral to their products. Key revenue streams include direct sales of product lines, customized solutions for specific industry needs, and long-term contracts with major clients that ensure steady revenue. Additionally, SEMBA CORP's strategic partnerships with technology firms and suppliers enhance its market reach and enable collaborative projects that contribute to its 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: Negative
• Last Price: 1737.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6540, the sentiment is Negative. The current price of 1737 is below the 20-day moving average (MA) of 1775.05, below the 50-day MA of 1845.76, and above the 200-day MA of 1635.19, indicating a neutral trend. The MACD of -33.13 indicates Negative momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 57.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥14.29B	10.57	―	3.87%	-21.52%	-35.65%
9765	76 Outperform	¥16.69B	14.02	―	3.99%	-3.59%	-15.46%
6540	74 Outperform	¥20.23B	10.79	―	0.58%	13.31%	4.29%
1960	73 Outperform	¥22.01B	8.67	―	2.79%	22.32%	5024.88%
1716	71 Outperform	¥14.98B	11.18	―	2.93%	-1.39%	-4.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.00B	11.69	―	4.71%	-6.37%	-16.88%