VELTRA Corporation (7048) AI Stock Analysis

• Market Cap: ¥6.77B
• Dividend Yield: N/A
• Average Volume (3M): 229.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 10.87%
• EPS Growth: 98.92%
• Country: US
• Employees: 258
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 4.52
• Shares Outstanding: 36,599,580
• 10 Day Avg. Volume: 242,780
• 30 Day Avg. Volume: 229,946
• PEG Ratio: -0.04
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 90.73
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥193.00 ▼(-18.22% Downside)

The score is held back primarily by continued unprofitability and unstable margins despite a strong improvement in balance-sheet risk (no debt) and positive operating/free cash flow. Technicals add caution with the price below key longer-term moving averages and a negative MACD, while valuation is weak because losses make the P/E unattractive and no dividend yield is available.

Positive Factors

Asset-light marketplace model

VELTRA’s core transaction-based marketplace model is asset-light and scales with demand; third-party operators fulfill experiences so the company can expand inventory and geographies without large capital expenditures, supporting durable margin recovery potential over time.

De-risked balance sheet (no debt)

A debt-free balance sheet materially reduces financial risk and interest burden, giving management flexibility to invest in platform features, marketing, or M&A. Stronger equity provides a buffer through demand cycles and supports multi-quarter stability in operations and strategic initiatives.

Improving cash generation

Return to positive OCF and FCF alongside revenue recovery indicates the business can generate internal funding for growth and upkeep. While modest, this structural shift from pandemic-era cash burn improves financial resilience and reduces dependence on external financing.

Negative Factors

Persistent unprofitability

Continued negative operating and net margins signal the company has not yet translated revenue recovery into sustainable profitability. This limits reinvestment capacity, prolongs reliance on cost control or external capital, and raises execution risk over multiple quarters.

Volatile and weak FCF conversion

Although cash flow turned positive, large year-to-year swings and low FCF relative to losses reduce predictability of internally funded growth. Volatility complicates budgeting for marketing and product investment and raises the chance of funding gaps in stress periods.

Low returns and earnings quality concerns

Negative ROE shows the company hasn’t generated acceptable returns on capital, while extreme gross margin volatility suggests inconsistent pricing, fulfillment economics, or accounting variability. Both factors undermine confidence in long-term margin sustainability.

VELTRA Corporation Business Overview & Revenue Model

Company Description

VELTRA Corporation (7048) is a Japan-based company operating primarily in the travel and leisure industry. The company specializes in providing an online platform that connects travelers with a wide range of tours and activities across the globe. VELTRA offers a diverse portfolio of travel experiences, including sightseeing tours, adventure activities, cultural experiences, and more, catering to both individual travelers and groups.

How the Company Makes Money

VELTRA Corporation makes money through commission-based revenue by acting as an intermediary between travelers and local tour operators. The company earns a commission on each booking made through its platform. VELTRA's extensive network of local partners worldwide allows it to offer a variety of unique and localized experiences, attracting a broad customer base. The company's revenue is further bolstered by strategic partnerships with other travel-related businesses and platforms, enhancing its offerings and market reach. Additionally, VELTRA may engage in marketing partnerships and collaborations, which can contribute to its revenue streams.

VELTRA Corporation Financial Statement Overview

Summary

Revenue is recovering (+8.8% YoY in 2024) and the balance sheet is de-risked (no debt in 2024), but profitability remains weak with negative EBIT (~-4.1% margin) and a deeper net loss (~-9.5% margin). Cash flow is positive (2024 OCF ~¥0.46B; FCF ~¥0.11B) but volatile and not yet translating into sustainable earnings.

Income Statement

Revenue recovered meaningfully in 2024 (+8.8% YoY) and results are far better than the pandemic-era losses, but profitability remains weak: EBIT margin is still negative (~-4.1%) and net margin is negative (~-9.5%) in 2024 after a near-breakeven 2023 net loss (~-1.8% margin). Gross margin swings are extreme (deeply negative in 2020–2022, then near 100% in 2024), which suggests volatility and limits confidence in earnings quality and sustainability.

Balance Sheet

The balance sheet looks conservatively financed with zero reported debt in 2024 (down from ¥0.5B in 2022–2023), which materially reduces financial risk. Equity increased to ~¥2.5B in 2024, supporting a stronger capital position versus prior years. However, returns remain negative (2024 return on equity ~-16%), indicating the company is still not generating adequate profits from its capital base.

Cash Flow

Cash generation is currently positive, with 2024 operating cash flow of ~¥0.46B and free cash flow of ~¥0.11B, a notable improvement from the large cash burn seen in 2020–2021. That said, free cash flow fell sharply versus 2023 (large negative growth), and cash flow strength is not fully translating into profitability (free cash flow is only ~24% of the 2024 net loss). Overall, cash flows have improved but remain somewhat volatile year to year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.59B	4.30B	3.12B	1.16B	492.66M	890.51M
Gross Profit	386.93M	4.30B	-62.90M	-794.71M	-1.10B	-1.33B
EBITDA	185.79M	-8.00M	45.02M	-551.26M	-918.50M	-1.20B
Net Income	-215.36M	-407.94M	-57.71M	-794.45M	-1.16B	-1.55B
Balance Sheet
Total Assets	8.95B	8.58B	6.47B	4.05B	1.87B	1.72B
Cash, Cash Equivalents and Short-Term Investments	5.62B	5.17B	3.70B	2.80B	1.20B	917.33M
Total Debt	0.00	0.00	500.00M	500.00M	25.02M	760.90M
Total Liabilities	6.25B	5.70B	5.11B	2.67B	694.64M	1.17B
Stockholders Equity	2.36B	2.51B	1.34B	1.37B	1.16B	552.37M
Cash Flow
Free Cash Flow	160.00M	108.56M	1.06B	37.32M	-758.74M	-3.46B
Operating Cash Flow	477.00M	459.56M	1.19B	146.32M	-677.74M	-3.24B
Investing Cash Flow	-742.00M	-436.20M	-352.07M	-58.70M	-43.53M	-213.35M
Financing Cash Flow	-529.00M	1.35B	8.73M	1.44B	970.02M	417.24M

VELTRA Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 236.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7048, the sentiment is Negative. The current price of 236 is above the 20-day moving average (MA) of 186.00, above the 50-day MA of 178.54, and below the 200-day MA of 256.86, indicating a neutral trend. The MACD of 1.95 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 18.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7048.

VELTRA Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9376	71 Outperform	¥3.27B	28.70	―	3.75%	4.12%	-5.53%
6561	63 Neutral	¥11.26B	6.64	―	3.16%	8.41%	20.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7048	46 Neutral	¥6.77B	-3,031.83	―	―	10.87%	98.92%
6548	39 Underperform	¥3.07B	-4.23	―	―	51.63%	-141.13%
6577	39 Underperform	¥3.02B	-95.06	―	0.91%	-8.75%	-111.94%