Alue Co., Ltd. (7043) AI Stock Analysis

• Market Cap: ¥1.96B
• Dividend Yield: 0.9%
• Average Volume (3M): 2.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: 4.29%
• EPS Growth: -2895.03%
• Country: JP
• Employees: 195
• Sector: Industrials
• Sector Strength: 93
• Industry: Staffing & Employment Services
• EPS (TTM): -51.28
• Shares Outstanding: 2,554,400
• 10 Day Avg. Volume: 1,820
• 30 Day Avg. Volume: 2,510
• PEG Ratio: 0.10
• Price to Book (P/B): 1.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥819.00 ▲(5.68%Upside)

The overall stock score reflects a mix of financial performance challenges and positive technical momentum. The company's strong equity position and stable revenue are overshadowed by profitability and cash flow issues. Technical indicators show bullish momentum, but valuation concerns due to a negative P/E ratio weigh down the score.

Alue Co., Ltd. Business Overview & Revenue Model

Company Description

Alue Co., Ltd. (7043) is a Japan-based company primarily engaged in the provision of human resource development solutions. The company operates in sectors related to education and training, offering a range of services designed to enhance the skills and competencies of individuals and organizations. Alue Co., Ltd. focuses on providing training programs, consulting services, and e-learning platforms to support continuous professional development and organizational growth.

How the Company Makes Money

Alue Co., Ltd. generates revenue through various streams centered around its human resource development services. The company offers customized training programs and workshops for corporate clients, which serve as a primary revenue source. These programs are tailored to meet specific client needs, thereby attracting a diverse clientele across different industries. Additionally, the company provides e-learning solutions that allow for scalable distribution of educational content, expanding its reach and revenue potential. Consulting services, which include organizational development and strategic human resource management, also contribute to Alue Co., Ltd.'s earnings. Partnerships with educational institutions and businesses further enhance its service offerings and market penetration, supporting its overall revenue model.

Alue Co., Ltd. Financial Statement Overview

Summary

Alue Co., Ltd. demonstrates a stable revenue base and solid equity foundation. However, the company faces profitability and cash flow challenges, as evidenced by negative net income and free cash flow. Addressing these operational inefficiencies will be crucial for future financial health and growth.

Income Statement

Alue Co., Ltd. has experienced fluctuating profitability with a negative net income in the most recent year. The gross profit margin remains strong at approximately 59.4%, but the net profit margin turned negative at -2.4%. Revenue growth is modest, showing a 2% increase from the previous year. EBIT and EBITDA margins both declined significantly, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.38, indicating low leverage. Return on equity is currently negative due to the net loss. However, the equity ratio stands at 62.3%, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Alue Co., Ltd. faces cash flow challenges with negative free cash flow growth and operating cash flow. The operating cash flow to net income ratio is negative, highlighting difficulties in converting sales into cash. Free cash flow to net income also indicates inefficiencies in cash generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.09B	3.03B	2.77B	2.40B	1.82B
	Gross Profit
1.83B	1.86B	1.77B	1.50B	1.01B
	EBIT
-64.56M	85.02M	230.76M	278.36M	-218.75M
	EBITDA
-12.42M	128.31M	276.41M	323.70M	-221.67M
	Net Income Common Stockholders
-73.71M	56.85M	166.87M	183.29M	-191.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
822.00M	986.86M	1.10B	1.33B	1.29B
	Total Assets
1.90B	1.72B	1.86B	2.02B	1.95B
	Total Debt
448.00M	214.15M	397.61M	667.09M	954.50M
	Net Debt
-373.81M	-772.71M	-698.45M	-660.43M	-339.30M
	Total Liabilities
716.89M	464.04M	652.61M	979.99M	1.10B
	Stockholders Equity
1.18B	1.26B	1.20B	1.04B	844.34M
Cash Flow		Free Cash Flow
-86.79M	83.62M	44.41M	309.40M	-290.40M
	Operating Cash Flow
-37.30M	133.10M	90.02M	365.85M	-266.31M
	Investing Cash Flow
-218.84M	-52.35M	-48.21M	-60.54M	-25.71M
	Financing Cash Flow
76.01M	-201.21M	-286.18M	-285.63M	860.48M

Alue Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 775.00
• 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:7043, the sentiment is Positive. The current price of 775 is below the 20-day moving average (MA) of 776.50, above the 50-day MA of 726.20, and above the 200-day MA of 701.67, indicating a neutral trend. The MACD of 14.09 indicates Positive momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7043.

Alue Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6538	76 Outperform	¥3.77B	17.56		2.76%	13.99%	―
7089	76 Outperform	¥5.00B	13.74		―	8.13%	-7.47%
6551	72 Outperform	¥5.65B	16.42		1.52%	13.79%	16.63%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
7043	60 Neutral	¥1.96B	―		0.90%	4.29%	-2895.03%
6558	50 Neutral	¥1.79B	693.75		―	5.27%	-155.03%
7041	46 Neutral	¥1.73B	―		―	-11.60%	-264.63%