Casa Inc. (7196) AI Stock Analysis

• Market Cap: ¥8.91B
• Dividend Yield: 3.7%
• Average Volume (3M): 49.83K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.35
• Revenue Growth: 6.83%
• EPS Growth: 93.39%
• Country: JP
• Employees: 290
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Mortgages
• EPS (TTM): 8.74
• Shares Outstanding: 11,522,500
• 10 Day Avg. Volume: 49,880
• 30 Day Avg. Volume: 49,829
• PEG Ratio: 0.02
• Price to Book (P/B): 1.27
• 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: ¥888.00
• Price Target Upside: 4.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥888.00 ▲(4.10%Upside)

Casa Inc.'s strong financial performance, particularly in revenue growth and cost management, is a key strength, though liquidity challenges and low cash flow generation present risks. Valuation metrics suggest a favorable position, while technical analysis indicates a stable but cautiously bearish outlook.

Casa Inc. Business Overview & Revenue Model

Company Description

Casa Inc. (7196) is a technology company specializing in creating innovative solutions for smart home automation and security. The company operates in the technology sector, focusing on developing and providing a range of products and services that enhance home connectivity, security, and energy management. Casa Inc.'s core offerings include smart home devices, such as security cameras, smart locks, lighting systems, and energy management tools, all integrated through a user-friendly platform accessible via mobile and web applications.

How the Company Makes Money

Casa Inc. generates revenue primarily through the sale of its smart home automation and security products. The company's key revenue streams include direct sales of hardware devices, subscription fees for its software services, and recurring revenue from maintenance and support services. Casa Inc. also partners with various home builders and technology retailers to distribute its products, thereby expanding its market reach. Additionally, the company leverages strategic alliances with technology firms to integrate its platform with other smart home ecosystems, enhancing its product offerings and increasing its customer base.

Casa Inc. Financial Statement Overview

Summary

Casa Inc. shows strong revenue growth and effective cost management with a solid balance sheet indicating financial stability. However, challenges in maintaining robust cash flows and slightly declining net profit margins suggest areas for improvement.

Income Statement

Casa Inc. has demonstrated consistent revenue growth, with a notable increase of 8.3% in the latest year. Gross profit margins remain strong at 60.76%, indicating effective cost management. However, net profit margins have slightly declined to 4.95%, suggesting room for improvement in expense control. EBITDA margin remains healthy at 15.08%, reflecting solid operational efficiency.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 47.65%, indicating financial stability. The debt-to-equity ratio is low at 0.023, signaling minimal leverage and low financial risk. Return on equity has decreased slightly to 8.01%, indicating that there is potential to enhance shareholder returns.

Cash Flow

Free cash flow has decreased significantly, with a negative growth rate from the previous year, highlighting potential liquidity challenges. The operating cash flow to net income ratio stands at 0.022, indicating that cash generation relative to net income is currently low. While the company has a positive free cash flow to net income ratio of 0.013, maintaining stable cash flows remains crucial.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.16B	11.22B	10.29B	10.34B	10.23B
Gross Profit	7.39B	6.14B	5.85B	6.01B	6.08B
EBITDA	1.83B	1.34B	1.04B	1.45B	1.43B
Net Income	602.00M	605.15M	254.74M	647.48M	611.07M
Balance Sheet
Total Assets	15.77B	14.78B	13.23B	12.91B	13.42B
Cash, Cash Equivalents and Short-Term Investments	2.99B	3.71B	2.89B	2.42B	3.18B
Total Debt	176.00M	193.54M	47.29M	60.81M	5.53M
Total Liabilities	8.26B	7.54B	6.38B	5.92B	6.61B
Stockholders Equity	7.51B	7.24B	6.84B	6.98B	6.81B
Cash Flow
Free Cash Flow	8.00M	932.62M	962.80M	276.72M	598.95M
Operating Cash Flow	13.00M	1.14B	1.17B	728.76M	1.08B
Investing Cash Flow	-334.00M	-11.25M	-300.71M	-1.01B	-445.10M
Financing Cash Flow	-401.00M	-314.72M	-391.39M	-480.39M	-444.48M

Casa Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 853.00
• 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:7196, the sentiment is Positive. The current price of 853 is below the 20-day moving average (MA) of 858.10, above the 50-day MA of 838.82, and above the 200-day MA of 818.22, indicating a neutral trend. The MACD of 2.27 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7196.

Casa Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7325	81 Outperform	¥6.55B	14.41		3.32%	23.67%	81.72%
8772	76 Outperform	¥23.64B	6.98		2.79%	11.58%	2.95%
7192	75 Outperform	¥6.22B	6.33		4.73%	6.40%	12.37%
7183	70 Outperform	¥3.00B	32.19		1.80%	9.70%	-38.92%
7196	69 Neutral	¥8.91B	9.35		3.70%	6.83%	93.39%
7198	66 Neutral	¥37.31B	19.48		4.71%	14.32%	-2.66%
Sector *	62 Neutral	AU$10.03B	9.04	11.83%	4.87%	33.36%	41.81%

Casa Inc. Corporate Events

Casa Inc. Reports Fiscal Year 2025 Financial Results and 2026 Forecast

Casa Inc. reported its consolidated financial results for the fiscal year ending January 2025, showing an 8.3% increase in net sales and significant growth in EBITDA and operating profit. Despite a slight decrease in net income attributable to shareholders, the company maintained a stable financial position with a slight increase in total assets and net assets. The company also announced a forecast for the fiscal year ending January 2026, expecting continued growth in net sales but a decrease in EBITDA and operating profit.

Casa Inc. Increases Dividend Forecast Amid Strong Financial Performance

Casa Inc. announced a revision to its dividend forecast, increasing the year-end dividend per share to JPY 32.0, reflecting profits exceeding forecasts for the fiscal year ending January 2025. This decision underscores the company’s commitment to returning profits to shareholders and enhancing corporate value through sustainable growth.

Casa Inc. Revises Financial Forecasts Following Accounting Estimate Changes

Casa Inc. announced a change in its accounting estimates for the allowance for doubtful accounts, which led to a revision of its financial results for the fiscal year ending January 2025. The company has optimized its risk management approach by shifting from receivable-based to debtor contract-based risk management, resulting in a significant reduction in the allowance for doubtful accounts. This change has positively impacted the company’s financial performance, leading to an increase in net income attributable to shareholders, prompting a revision of the full-year consolidated earnings forecast.