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

• Market Cap: ¥2.49B
• Dividend Yield: 0.71%
• Average Volume (3M): 4.16K
• Price to Earnings (P/E): 42.3
• Beta (1Y): -0.10
• Revenue Growth: 10.53%
• EPS Growth: N/A
• Country: JP
• Employees: 195
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 86.21
• Shares Outstanding: 2,554,400
• 10 Day Avg. Volume: 8,190
• 30 Day Avg. Volume: 4,156
• PEG Ratio: 0.09
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -17.28
• 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: ¥953.00
• Price Target Upside: -3.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥953.00 ▼(-3.44% Downside)

The overall stock score of 67 reflects strong technical momentum as the most significant factor, supported by the stock's performance above key moving averages. However, financial performance challenges and high valuation metrics weigh down the score. Addressing profitability and cash flow issues will be crucial for improving the company's financial health.

Alue Co., Ltd. Business Overview & Revenue Model

Company Description

Alue Co.,Ltd. provides educational services for working adults using human resource development data and machine learning technology primarily in Japan. Its services include level-specific training, global human resource development, thematic training, and e-training services. The company was incorporated in 2003 and is based in Tokyo, Japan.

How the Company Makes Money

Alue Co., Ltd. generates revenue primarily through its diverse portfolio of technology solutions. The company earns money by selling software licenses, providing cloud-based services, and offering consulting services related to digital transformation. Key revenue streams include subscription fees from cloud services, one-time fees from software sales, and ongoing maintenance and support contracts. Additionally, Alue Co., Ltd. has established significant partnerships with major tech firms, which not only expands its market reach but also enhances its product offerings, thereby contributing to its overall earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35B	3.09B	3.03B	2.77B	2.40B	1.82B
Gross Profit	2.03B	1.83B	1.86B	1.77B	1.50B	1.01B
EBITDA	207.29M	-12.42M	128.31M	276.41M	323.70M	-221.67M
Net Income	59.86M	-73.71M	56.85M	166.87M	183.29M	-191.46M
Balance Sheet
Total Assets	2.27B	1.90B	1.72B	1.86B	2.02B	1.95B
Cash, Cash Equivalents and Short-Term Investments	1.29B	822.00M	986.86M	1.10B	1.33B	1.29B
Total Debt	682.21M	448.00M	214.15M	397.61M	667.09M	954.50M
Total Liabilities	1.01B	716.89M	464.04M	652.61M	979.99M	1.10B
Stockholders Equity	1.25B	1.18B	1.26B	1.20B	1.04B	844.34M
Cash Flow
Free Cash Flow	0.00	-86.79M	83.62M	44.41M	309.40M	-290.40M
Operating Cash Flow	0.00	-37.30M	133.10M	90.02M	365.85M	-266.31M
Investing Cash Flow	0.00	-218.84M	-52.35M	-48.21M	-60.54M	-25.71M
Financing Cash Flow	0.00	76.01M	-201.21M	-286.18M	-285.63M	860.48M

Alue Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 987.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 987 is above the 20-day moving average (MA) of 917.80, above the 50-day MA of 895.58, and above the 200-day MA of 756.19, indicating a bullish trend. The MACD of 27.52 indicates Negative momentum. The RSI at 80.66 is Negative, neither overbought nor oversold. The STOCH value of 76.26 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
7089	76 Outperform	¥6.35B	14.91	―	―	11.03%	24.40%
6551	69 Neutral	¥6.61B	18.87	―	1.82%	14.80%	0.23%
7043	67 Neutral	¥2.49B	42.35	―	0.71%	10.53%	―
6538	66 Neutral	¥6.68B	23.39	―	1.55%	12.93%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6558	60 Neutral	¥1.69B	693.75	―	―	-12.60%	-335.07%
7041	40 Underperform	¥1.77B	―	―	―	-6.63%	-86.78%