and factory, inc. (7035) AI Stock Analysis

• Market Cap: ¥3.24B
• Dividend Yield: N/A
• Average Volume (3M): 626.83K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.48
• Revenue Growth: -36.80%
• EPS Growth: 40.37%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): -1.79
• Shares Outstanding: 11,261,970
• 10 Day Avg. Volume: 110,580
• 30 Day Avg. Volume: 626,826
• PEG Ratio: 0.32
• Price to Book (P/B): 3.02
• 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: ¥276.00
• Price Target Upside: -3.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥302.00 ▲(5.96%Upside)

The company's strong financial performance, particularly in cash generation and revenue growth, positively impacts the score. Technical analysis supports a moderately bullish outlook due to positive price momentum. However, valuation concerns, highlighted by a negative P/E ratio and absence of dividends, weigh down the overall score.

and factory, inc. Business Overview & Revenue Model

Company Description

and factory, inc. (7035) is a company operating in the technology sector, specializing in the development and manufacture of cutting-edge electronic components. The company focuses on providing innovative solutions for consumer electronics, automotive systems, and industrial applications, offering a range of products that include semiconductors, sensors, and other related components.

How the Company Makes Money

and factory, inc. generates revenue primarily through the sale of its electronic components to manufacturers across various industries. The company capitalizes on its expertise in advanced technology to offer high-performance and reliable products, which are integral to the production of consumer electronics, automotive systems, and industrial machinery. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and distribution through a network of partners and resellers. Additionally, strategic partnerships and collaborations with leading technology firms enhance its market reach and contribute to its earnings by expanding its customer base and enabling the development of customized solutions tailored to specific industry needs.

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: Neutral
• Last Price: 285.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 285 is below the 20-day moving average (MA) of 297.95, above the 50-day MA of 261.74, and above the 200-day MA of 235.31, indicating a neutral trend. The MACD of 8.72 indicates Positive momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 31.59 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
5028	77 Outperform	¥3.21B	27.86		―	28.48%	159.39%
5256	74 Outperform	¥2.86B	17.52		―	6.62%	13.88%
7035	64 Neutral	¥3.24B	22.98		―	-36.80%	40.37%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
2334	60 Neutral	¥11.11B	―		―	-17.53%	-928.54%
4199	60 Neutral	¥3.04B	223.88		―	-4.31%	-525.60%
4166	50 Neutral	¥2.04B	―		―	-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.