Casa Inc. (7196) AI Stock Analysis

• Market Cap: ¥7.41B
• Dividend Yield: 4.48%
• Average Volume (3M): 20.00K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.38
• Revenue Growth: 5.76%
• EPS Growth: N/A
• Country: JP
• Employees: 290
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -7.06
• Shares Outstanding: 11,522,500
• 10 Day Avg. Volume: 21,360
• 30 Day Avg. Volume: 20,000
• PEG Ratio: -14.60
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 1.04K
• 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: 1
• EPS Forecast (FY): 27,877.28
• Revenue Forecast (FY): ¥2.40T

• Rating: 66 Neutral
• Price Target: ¥854.00 ▲(19.78% Upside)

Casa Inc.'s stock score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, and financial performance highlights cash flow challenges and declining net profit margins, which weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Casa Inc.'s products, suggesting a solid market position and potential for future expansion.

Gross Profit Margin

High gross profit margins reflect effective cost management, allowing Casa Inc. to maintain profitability and reinvest in growth opportunities.

Financial Stability

A strong equity position and low leverage enhance Casa Inc.'s financial stability, providing resilience against economic fluctuations and supporting long-term growth.

Negative Factors

Cash Flow Challenges

Decreasing free cash flow suggests liquidity challenges, potentially limiting Casa Inc.'s ability to invest in growth and manage unexpected expenses.

Net Profit Margin Decline

Declining net profit margins indicate rising costs or pricing pressures, which could affect Casa Inc.'s profitability if not addressed.

Cash Generation

Low cash generation relative to net income may hinder Casa Inc.'s ability to fund operations and growth initiatives, impacting long-term sustainability.

Casa Inc. Business Overview & Revenue Model

Company Description

Casa Inc. engages in the rental guarantee business in Japan. It offers guarantee, special benefit, and consultation services for residents, as well as manages rental properties for landlords. Casa Inc. was founded in 2008 and is headquartered in Tokyo, Japan.

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 high gross profit margin. The balance sheet is stable with low leverage, but cash flow challenges and declining net profit margins indicate 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.50B	12.16B	11.22B	10.29B	10.34B	10.23B
Gross Profit	7.41B	7.39B	6.14B	5.85B	6.01B	6.08B
EBITDA	1.94B	1.83B	1.34B	942.04M	1.45B	1.39B
Net Income	1.15B	602.00M	605.15M	254.74M	647.48M	611.07M
Balance Sheet
Total Assets	15.64B	15.77B	14.78B	13.23B	12.91B	13.42B
Cash, Cash Equivalents and Short-Term Investments	3.00B	2.99B	3.71B	2.89B	2.42B	3.18B
Total Debt	15.00M	176.00M	193.54M	47.29M	60.81M	6.53M
Total Liabilities	8.37B	8.26B	7.54B	6.38B	5.92B	6.61B
Stockholders Equity	7.27B	7.51B	7.24B	6.84B	6.98B	6.81B
Cash Flow
Free Cash Flow	0.00	8.00M	932.62M	962.80M	276.72M	598.95M
Operating Cash Flow	0.00	13.66M	1.14B	1.17B	728.76M	1.08B
Investing Cash Flow	0.00	-334.00M	-11.25M	-300.71M	-1.01B	-445.10M
Financing Cash Flow	0.00	-401.00M	-314.72M	-391.39M	-480.39M	-444.48M

Casa Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 713.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7196, the sentiment is Negative. The current price of 713 is below the 20-day moving average (MA) of 715.10, below the 50-day MA of 718.78, and below the 200-day MA of 795.19, indicating a bearish trend. The MACD of -2.17 indicates Negative momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7196.

Casa Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7325	73 Outperform	¥7.66B	19.10	―	2.79%	12.33%	-15.46%
7192	71 Outperform	¥7.26B	6.89	―	4.05%	7.06%	34.95%
8772	70 Outperform	¥27.27B	7.10	―	2.42%	15.07%	27.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7196	66 Neutral	¥7.41B	7.44	―	4.48%	5.76%	―
7198	66 Neutral	¥38.14B	21.27	―	4.57%	4.86%	-10.59%
7183	54 Neutral	¥2.61B	23.57	―	2.07%	12.86%	-63.06%