BALMUDA, Inc. (6612) AI Stock Analysis

• Market Cap: ¥6.45B
• Dividend Yield: N/A
• Average Volume (3M): 6.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -23.54%
• EPS Growth: -14.54%
• Country: JP
• Employees: 100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -53.88
• Shares Outstanding: 8,526,200
• 10 Day Avg. Volume: 6,020
• 30 Day Avg. Volume: 6,256
• PEG Ratio: -1.02
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 6.09
• 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: 51 Neutral
• Price Target: ¥818.00 ▼(-0.49% Downside)

BALMUDA, Inc. has shown financial improvements, particularly in cash flow and cost management, which are positive signs for future stability. However, the stock's technical indicators are bearish, and the negative P/E ratio highlights profitability challenges. The lack of earnings call insights and corporate events further limits the stock's appeal.

Positive Factors

Cash Flow Management

Effective cash flow management indicates a strong ability to generate cash, which is crucial for funding operations and investments, enhancing long-term financial stability.

Balance Sheet Health

A strong equity position with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Cost Efficiency

Improved cost efficiency enhances profitability by reducing expenses relative to sales, which is vital for sustaining competitive advantage and funding future growth.

Negative Factors

Revenue Decline

A declining revenue trend may indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and market position.

Profitability Challenges

Modest profitability metrics suggest limited returns on investments, which could hinder the company's ability to attract investors and finance future growth initiatives.

Operational Volatility

Inconsistent operational margins reflect potential inefficiencies and challenges in managing costs, which could affect the company's ability to maintain stable earnings over time.

BALMUDA, Inc. Business Overview & Revenue Model

Company Description

BALMUDA, Inc. is a Japanese company specializing in innovative home appliances and lifestyle products that blend cutting-edge technology with sleek design. Founded in 2003, BALMUDA focuses primarily on sectors such as kitchen appliances, air purifiers, and lighting solutions. Its core products include the renowned BALMUDA Toaster, BALMUDA The Range (a high-performance steam oven), and various other appliances that enhance everyday living through unique functionalities and aesthetic appeal.

How the Company Makes Money

BALMUDA generates revenue primarily through the sales of its premium home appliances. The company adopts a direct-to-consumer sales model alongside partnerships with various retail outlets, ensuring broad market access. Key revenue streams include the sale of flagship products like toasters, ovens, and air purifiers, which are marketed as high-quality, innovative solutions. Additionally, BALMUDA engages in strategic collaborations with other brands and participates in international markets, which contribute to its overall earnings. The brand's emphasis on design and technology allows it to command premium pricing, thus enhancing its profitability.

BALMUDA, Inc. Financial Statement Overview

Summary

BALMUDA, Inc. has shown improvements in profitability and cash flow in 2024 despite a declining revenue trend. The company has enhanced cost efficiency and cash flow generation, with a strong balance sheet and reduced leverage. However, profitability metrics indicate room for further improvement.

Income Statement

BALMUDA, Inc. has experienced significant volatility in recent years, with revenue showing a declining trend from 2021 to 2024. The company managed a positive net profit margin of 0.54% in 2024, recovering from a negative margin in 2023. The gross profit margin improved to 31.18% in 2024 from 26.92% in 2023, indicating better cost management. However, EBIT and EBITDA margins have been inconsistent, with a significant negative EBIT margin in 2023, reflecting operational challenges.

Balance Sheet

The balance sheet indicates a strong equity position, with an equity ratio of 70.34% in 2024, an improvement from previous years. The debt-to-equity ratio has decreased to 0.10 in 2024, suggesting reduced financial leverage. However, the return on equity remains modest at 1.54% in 2024, a recovery from negative returns in 2023, reflecting improved but still subdued profitability.

Cash Flow

BALMUDA, Inc. has shown a strong recovery in its free cash flow, with substantial growth in 2024 following negative figures in 2023. The operating cash flow to net income ratio is robust at 20.12 in 2024, indicating strong cash generation relative to net income. Moreover, the free cash flow to net income ratio of 17.35 further highlights effective cash flow management despite previous volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.32B	12.46B	13.01B	17.59B	18.38B	12.59B
Gross Profit	3.59B	3.89B	3.50B	5.47B	7.32B	5.45B
EBITDA	207.25M	507.00M	-1.33B	574.00M	1.81B	1.57B
Net Income	-361.00M	67.00M	-2.07B	3.00M	1.01B	834.00M
Balance Sheet
Total Assets	5.54B	6.18B	7.80B	9.91B	10.88B	9.11B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.34B	1.17B	1.25B	1.00B	4.45B
Total Debt	449.00M	428.00M	1.44B	1.41B	1.42B	1.15B
Total Liabilities	1.54B	1.83B	3.54B	3.60B	4.59B	4.36B
Stockholders Equity	4.00B	4.35B	4.26B	6.31B	6.29B	4.76B
Cash Flow
Free Cash Flow	0.00	1.16B	-192.00M	231.00M	-4.12B	1.17B
Operating Cash Flow	0.00	1.35B	246.00M	840.00M	-3.24B	1.58B
Investing Cash Flow	0.00	-205.00M	-371.00M	-621.00M	-964.00M	-421.00M
Financing Cash Flow	0.00	-1.01B	44.00M	5.00M	738.00M	2.05B

BALMUDA, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 822.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6612, the sentiment is Negative. The current price of 822 is above the 20-day moving average (MA) of 763.50, above the 50-day MA of 799.90, and below the 200-day MA of 860.65, indicating a bearish trend. The MACD of -13.67 indicates Negative momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6612.

BALMUDA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5956	81 Outperform	¥4.95B	7.49	―	1.72%	7.17%	214.23%
7807	80 Outperform	¥4.09B	7.73	―	1.48%	0.65%	-39.91%
8119	75 Outperform	¥7.89B	18.08	―	4.59%	-9.68%	-61.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5951	58 Neutral	¥14.74B	10.94	―	2.39%	9.86%	119.10%
6612	51 Neutral	¥6.45B	―	―	―	-23.54%	-14.54%
6897	50 Neutral	¥4.33B	―	―	3.19%	-1.20%	-1136.47%

BALMUDA, Inc. Corporate Events

BALMUDA Inc. Reports Decline in First Half 2025 Financial Results

BALMUDA Inc. reported a significant decline in its financial performance for the first half of 2025, with net sales dropping by 18.1% compared to the previous year. The company experienced operating and ordinary losses, reflecting challenges in maintaining profitability. Despite a decrease in total assets, the equity-to-asset ratio improved slightly, indicating a relatively stable financial position. The company has not announced any changes to its cash dividend forecast, and it anticipates modest growth in net sales for the full fiscal year.