and factory, inc. (7035) AI Stock Analysis

• Market Cap: ¥3.47B
• Dividend Yield: N/A
• Average Volume (3M): 515.43K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.50
• Revenue Growth: -36.80%
• EPS Growth: 40.37%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Application
• EPS (TTM): -1.79
• Shares Outstanding: 11,261,970
• 10 Day Avg. Volume: 59,460
• 30 Day Avg. Volume: 515,426
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥316.00
• Price Target Upside: 2.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥316.00 ▲(2.60% Upside)

The stock's overall score is driven by strong financial performance, particularly in revenue growth and cash flow improvements. However, operational profitability challenges and a negative P/E ratio weigh down the score. Technical analysis shows a positive trend, but valuation concerns limit the stock's attractiveness.

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 demonstrates strong revenue growth and excellent cash flow generation with a high free cash flow growth rate, indicating robust liquidity. However, operational challenges are evident with negative EBIT margin and low net profit margin. The balance sheet is stable with low leverage and good equity health.

Income Statement

The company has demonstrated a significant revenue growth rate of 68.71% in the most recent year, indicating strong sales momentum. However, the EBIT margin is negative, reflecting operational challenges, and the net profit margin is relatively low at 1.77%. While there's positive EBITDA, the financial health of the income statement could be strengthened with improved cost management.

Balance Sheet

The balance sheet shows a healthy equity position with an equity ratio of 46.05% and a low debt-to-equity ratio of 0.38, suggesting prudent financial management and stability. However, compared to previous years, the company has reduced its total assets and liabilities, which could indicate a scaling back of operations. The positive return on equity of 7.35% is a positive indicator of shareholder value creation.

Cash Flow

Cash flow analysis indicates robust cash generation with a free cash flow growth rate of 1,520.01%. The operating cash flow to net income ratio is notably high at 20.54, and the free cash flow to net income ratio is 20.43, suggesting strong liquidity and cash efficiency. This strong cash flow performance provides a solid foundation for future investments or debt reduction.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	5.02B	2.98B	2.83B	3.04B	2.95B
Gross Profit	1.39B	1.76B	1.63B	1.67B	1.57B
EBITDA	202.48M	200.88M	-248.65M	-444.96M	-235.25M
Net Income	88.94M	79.67M	-350.38M	-561.39M	-362.08M
Balance Sheet
Total Assets	2.63B	5.28B	4.86B	5.38B	6.34B
Cash, Cash Equivalents and Short-Term Investments	1.56B	925.36M	479.13M	774.73M	1.03B
Total Debt	455.92M	3.31B	3.42B	3.76B	3.81B
Total Liabilities	1.42B	4.15B	4.31B	4.49B	4.89B
Stockholders Equity	1.21B	1.12B	541.00M	888.29M	1.45B
Cash Flow
Free Cash Flow	1.82B	-127.82M	-72.64M	-176.18M	-3.40B
Operating Cash Flow	1.83B	-71.01M	-32.06M	-118.12M	-3.28B
Investing Cash Flow	1.66B	131.67M	69.40M	-79.71M	-316.10M
Financing Cash Flow	-2.85B	385.57M	-332.94M	-55.76M	3.27B

and factory, inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 308.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7035, the sentiment is Positive. The current price of 308 is above the 20-day moving average (MA) of 299.85, above the 50-day MA of 285.36, and above the 200-day MA of 238.28, indicating a bullish trend. The MACD of 6.04 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7035.

and factory, inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5028	79 Outperform	¥3.93B	33.43		―	28.48%	159.39%
5256	75 Outperform	¥2.98B	17.94		―	6.62%	13.88%
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
7035	63 Neutral	¥3.47B	22.98		―	-36.80%	40.37%
2334	60 Neutral	¥14.43B	―		―	-7.04%	-1442.39%
4199	60 Neutral	¥3.26B	223.88		―	-4.31%	-525.60%
4166	54 Neutral	¥2.35B	―		―	-11.56%	50.90%

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.