and factory, inc. (7035) AI Stock Analysis

• Market Cap: ¥2.42B
• Dividend Yield: N/A
• Average Volume (3M): 39.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -36.13%
• EPS Growth: -466.63%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -13.65
• Shares Outstanding: 11,261,970
• 10 Day Avg. Volume: 35,610
• 30 Day Avg. Volume: 39,470
• PEG Ratio: 4.15
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 1.82
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥274.00 ▲(27.44% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and cash flow improvements. However, technical indicators suggest a bearish trend, and valuation metrics are concerning due to negative earnings. These factors collectively result in a moderate stock score.

Positive Factors

Revenue Growth

Significant revenue growth indicates successful market expansion and product demand, supporting long-term business sustainability.

Cash Flow Improvements

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction, strengthening the company's future.

Debt Reduction

Reduced leverage lowers financial risk and interest burden, improving the company's balance sheet health and long-term financial stability.

Negative Factors

Operational Profitability Challenges

Negative EBIT margin indicates operational inefficiencies, which could hinder profitability and require strategic adjustments to improve cost management.

Gross Profit Margin Decline

A declining gross profit margin suggests cost pressures or competitive pricing, which may impact profitability unless addressed through cost control or pricing strategies.

Valuation Concerns

Negative earnings and valuation concerns could limit investor confidence and capital access, necessitating a focus on improving profitability to enhance market perception.

and factory, inc. Business Overview & Revenue Model

Company Description

And Factory, Inc. (7035) is a leading manufacturing company specializing in the production of high-quality industrial components and consumer goods. Operating in various sectors, including automotive, electronics, and home appliances, the company is known for its commitment to innovation and sustainability. Its core products range from precision-engineered parts to fully assembled products, catering to both B2B and B2C markets.

How the Company Makes Money

And Factory, Inc. generates revenue through multiple streams, primarily by selling its manufactured products to businesses in various industries, including automotive and electronics. The company operates on a business-to-business (B2B) model, where it supplies components and assemblies to other manufacturers, which constitutes a significant portion of its revenue. Additionally, And Factory, Inc. has a growing consumer segment, selling directly to customers through online platforms and retail partnerships. Key revenue streams include bulk orders from industrial clients and direct sales of consumer products. Strategic partnerships with major retailers and distributors further enhance its market reach and profitability, while investments in technology and process optimization reduce production costs and increase margins.

and factory, inc. Financial Statement Overview

Summary

The company has shown strong revenue growth and improved cash flow metrics, indicating a positive trajectory. However, challenges with operational profitability, as seen in the negative EBIT margin, and potential risks from past high debt levels need attention.

Income Statement

The company has demonstrated strong revenue growth with a 68.7% increase from the previous year. However, the gross profit margin decreased from 59.1% to 27.7%, indicating rising costs or pricing pressures. The net profit margin improved slightly to 1.8%, but EBIT margin turned negative, suggesting operational challenges. EBITDA margin remains positive at 4.0%, showing some operational cash flow strength.

Balance Sheet

The debt-to-equity ratio improved significantly, indicating reduced leverage, with total debt decreasing and equity increasing. The equity ratio is 46.0%, showing a healthy balance between equity and assets. Return on equity improved to 7.4%, reflecting better profitability relative to equity. However, the company still faces potential risks from past high leverage.

Cash Flow

The company has shown a remarkable turnaround in cash flow, with free cash flow growing significantly. The operating cash flow to net income ratio is strong at 20.5, indicating efficient cash generation from operations. The free cash flow to net income ratio is also robust at 20.4, highlighting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21B	5.02B	2.98B	2.83B	3.04B	2.95B
Gross Profit	1.44B	1.39B	1.76B	1.63B	1.67B	1.57B
EBITDA	46.09M	202.48M	167.25M	-248.65M	-444.96M	-235.25M
Net Income	-17.93M	88.94M	79.67M	-350.38M	-561.39M	-362.08M
Balance Sheet
Total Assets	2.13B	2.63B	5.28B	4.86B	5.38B	6.34B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.56B	925.36M	479.13M	774.73M	1.03B
Total Debt	379.80M	455.92M	3.31B	3.42B	3.76B	3.81B
Total Liabilities	1.08B	1.42B	4.15B	4.31B	4.49B	4.89B
Stockholders Equity	1.05B	1.21B	1.12B	541.00M	888.29M	1.45B
Cash Flow
Free Cash Flow	0.00	1.82B	-127.82M	-72.64M	-176.18M	-3.40B
Operating Cash Flow	0.00	1.83B	-71.01M	-32.06M	-118.12M	-3.28B
Investing Cash Flow	0.00	1.66B	131.67M	69.40M	-79.71M	-316.10M
Financing Cash Flow	0.00	-2.85B	385.57M	-332.94M	-55.76M	3.27B

and factory, inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 215.00
• 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:7035, the sentiment is Neutral. The current price of 215 is above the 20-day moving average (MA) of 208.95, below the 50-day MA of 223.74, and below the 200-day MA of 244.96, indicating a neutral trend. The MACD of -3.55 indicates Negative momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7035.

and factory, inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5256	75 Outperform	¥3.03B	14.27	―	―	13.48%	61.77%
5028	70 Outperform	¥3.44B	20.64	―	―	33.55%	293.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2334	60 Neutral	¥13.59B	-24.52	―	―	56.35%	―
7035	56 Neutral	¥2.42B	-7.43	―	―	-36.13%	-466.63%
4199	51 Neutral	¥1.90B	-14.76	―	―	-5.44%	-242.43%
4166	39 Underperform	¥1.92B	-11.20	―	―	12.27%	73.45%

and factory, inc. Corporate Events

and factory, inc Reports Nine-Month Financial Results with Notable Losses

and factory, inc reported consolidated financial results for the nine months ending May 31, 2025, showing a net sales figure of 2,418 million yen but also a net loss of 172 million yen. The company’s financial position includes total assets of 2,125 million yen and an equity ratio of 49.2%. The transition to consolidated financial statements marks a significant change, and the inclusion of SouthWorks Co., Ltd could impact future operations. The company has not revised its earnings forecasts and continues to face challenges in achieving profitability.