FRONTIER INTERNATIONAL INC. (7050) AI Stock Analysis

• Market Cap: ¥13.21B
• Dividend Yield: 4.08%
• Average Volume (3M): 6.92K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.18
• Revenue Growth: 51.26%
• EPS Growth: 296.98%
• Country: JP
• Employees: 340
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 110.46
• Shares Outstanding: 4,619,000
• 10 Day Avg. Volume: 3,540
• 30 Day Avg. Volume: 6,920
• PEG Ratio: 0.12
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 5.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,523.00 ▼(-11.84% Downside)

FRONTIER INTERNATIONAL INC. scores well due to its strong financial performance and attractive valuation. The company's low leverage and robust revenue growth are significant strengths. However, technical indicators suggest a neutral to bearish short-term trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory in sales, suggesting expanding market reach and effective business strategies.

Balance Sheet Health

Low leverage reduces financial risk, providing stability and flexibility for future investments and growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic investments, enhancing long-term financial health and shareholder value.

Negative Factors

Cash Conversion Challenges

Challenges in converting income into cash could impact liquidity and limit the ability to reinvest in growth opportunities.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially affecting long-term profitability.

Stock Performance

Neutral stock performance may reflect market uncertainty, potentially impacting investor confidence and future capital raising efforts.

FRONTIER INTERNATIONAL INC. Business Overview & Revenue Model

Company Description

Frontier International Inc. plans, produces, and manages various sales promotions, events, and campaigns. The company also plans, develops, and produces various sales promotion tools, as well as content for TV programs, PV, radio programs, and other soft content; designs and fabricates exteriors of various facilities, space design, and event stages; and plans, develops, produces, and manages interactive communication, including websites and ASP business. It also provides temporary employee placement and management for various sales support and sales promotions. The company was founded in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

FRONTIER INTERNATIONAL INC. generates revenue through multiple streams including service fees for logistics and freight forwarding, commissions on international trade transactions, and customs brokerage fees. The company partners with various manufacturers and distributors to facilitate the movement of goods, earning a percentage from each transaction. Additionally, FRONTIER INTERNATIONAL INC. may engage in value-added services such as inventory management and warehousing, which further contribute to its earnings. Strategic alliances with shipping companies and customs authorities enhance operational capabilities and create competitive advantages, thereby driving revenue growth.

FRONTIER INTERNATIONAL INC. Financial Statement Overview

Summary

FRONTIER INTERNATIONAL INC. exhibits strong revenue growth and improved profitability margins. The balance sheet is robust with low leverage, and cash flow generation is healthy, although there are concerns about the conversion of income into cash.

Income Statement

FRONTIER INTERNATIONAL INC. has shown a strong revenue growth rate of 10.19% in the latest year, indicating a positive trajectory in sales. The gross profit margin has slightly decreased over the years, but the net profit margin has improved to 4.31%, reflecting better cost management. The EBIT and EBITDA margins have also shown improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.0346, indicating minimal leverage and financial risk. The equity ratio is healthy, and the return on equity has improved, showcasing effective use of shareholders' equity to generate profits.

Cash Flow

FRONTIER INTERNATIONAL INC. has demonstrated significant free cash flow growth, although the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains strong, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.08B	20.34B	16.94B	17.05B	25.14B	15.72B
Gross Profit	4.26B	3.89B	3.47B	4.11B	5.28B	2.87B
EBITDA	1.51B	1.45B	857.61M	2.00B	3.15B	769.29M
Net Income	927.82M	876.07M	488.13M	1.30B	2.12B	519.39M
Balance Sheet
Total Assets	13.57B	14.48B	11.62B	11.11B	12.70B	7.83B
Cash, Cash Equivalents and Short-Term Investments	6.60B	7.50B	6.43B	5.10B	6.97B	4.09B
Total Debt	291.00M	310.02M	368.68M	0.00	0.00	0.00
Total Liabilities	4.81B	5.45B	3.38B	3.12B	5.38B	2.53B
Stockholders Equity	8.68B	8.95B	8.25B	8.00B	7.32B	5.30B
Cash Flow
Free Cash Flow	0.00	1.60B	1.53B	-595.94M	3.12B	551.60M
Operating Cash Flow	0.00	1.67B	1.54B	-578.70M	3.12B	625.62M
Investing Cash Flow	0.00	-445.96M	-42.31M	-803.55M	-223.87M	-69.50M
Financing Cash Flow	0.00	-293.73M	-312.21M	-575.19M	-108.56M	-235.50M

FRONTIER INTERNATIONAL INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2862.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7050, the sentiment is Positive. The current price of 2862 is above the 20-day moving average (MA) of 2529.65, above the 50-day MA of 2375.06, and above the 200-day MA of 2152.45, indicating a bullish trend. The MACD of 141.00 indicates Negative momentum. The RSI at 80.30 is Negative, neither overbought nor oversold. The STOCH value of 92.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7050.

FRONTIER INTERNATIONAL INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	81 Outperform	¥13.77B	8.97	―	2.46%	6.38%	18.64%
7050	73 Outperform	¥13.21B	11.93	―	4.08%	51.26%	296.98%
6045	68 Neutral	¥12.55B	18.89	―	2.19%	14.43%	10.99%
6533	66 Neutral	¥11.90B	63.08	―	0.91%	15.68%	-64.57%
2139	66 Neutral	¥2.81B	22.76	―	2.91%	3.80%	-30.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9235	39 Underperform	¥5.20B	-11.60	―	―	49.01%	-21.56%