SERENDIP HOLDINGS Co. Ltd. (7318) AI Stock Analysis

• Market Cap: ¥12.27B
• Dividend Yield: N/A
• Average Volume (3M): 80.33K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.06
• Revenue Growth: 26.97%
• EPS Growth: 275.83%
• Country: JP
• Employees: 615
• Sector: Industrials
• Sector Strength: 83
• Industry: Specialty Business Services
• EPS (TTM): -101.06
• Shares Outstanding: 4,751,365
• 10 Day Avg. Volume: 74,220
• 30 Day Avg. Volume: 80,330
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥3,300.00 ▲(15.99%Upside)

The company's strong financial performance, highlighted by revenue growth and profitability, is the primary driver of its stock score. Technical indicators support a positive short-term trend, although overbought signals suggest caution. Valuation metrics further enhance attractiveness, though the lack of dividend yield is a limiting factor.

SERENDIP HOLDINGS Co. Ltd. Business Overview & Revenue Model

Company Description

SERENDIP HOLDINGS Co. Ltd. (7318) is a diversified company engaged in various sectors, including technology, manufacturing, and services. The company focuses on delivering innovative solutions and high-quality products to its customers, leveraging its expertise and resources across different industries to drive growth and create value.

How the Company Makes Money

SERENDIP HOLDINGS Co. Ltd. generates revenue through multiple streams, primarily focusing on the sale of its technology and manufacturing products. The company also provides specialized services that cater to a wide range of industries, enhancing its overall revenue mix. Significant partnerships with key industry players and a strong distribution network further bolster its earnings by expanding market reach and driving sales growth.

SERENDIP HOLDINGS Co. Ltd. Financial Statement Overview

Summary

SERENDIP HOLDINGS Co. Ltd. demonstrates strong financial health with a high income statement score due to robust margins and significant revenue growth. The balance sheet is solid, with a high return on equity and balanced debt usage. However, the cash flow score is lower due to inconsistencies in free cash flow growth, which could indicate potential volatility.

Income Statement

The company shows a healthy gross profit margin of 17.57% for TTM, with a strong net profit margin of 12.31%, indicating efficient cost management and profitability. Revenue growth is evident with a 34.41% increase from 2023 to 2024, showcasing positive business momentum. The EBIT and EBITDA margins are stable at 1.72% and 6.77% respectively, supporting operational profitability.

Balance Sheet

The balance sheet is strong with a solid equity ratio of 24.91% and a reasonable debt-to-equity ratio of 1.79, indicating a balanced use of debt and equity. Return on equity is exceptionally high at 30.07%, reflecting effective management and high returns for shareholders. The company maintains a good level of liquidity with cash reserves.

Cash Flow

Cash flow analysis is limited due to missing TTM data, but the previous year's operating cash flow to net income ratio was robust at 4.97. Free cash flow growth is inconsistent, with historical fluctuations suggesting potential volatility in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
20.43B	19.79B	15.20B	13.81B	14.46B	15.20B
	Gross Profit
3.59B	3.25B	2.47B	2.13B	2.34B	2.42B
	EBIT
350.76M	477.87M	325.14M	194.87M	327.88M	291.00M
	EBITDA
1.38B	1.92B	1.69B	1.29B	1.57B	0.00
	Net Income Common Stockholders
2.52B	518.84M	312.50M	199.98M	398.50M	91.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.69B	4.13B	3.09B	3.62B	3.09B	2.69B
	Total Assets
33.58B	20.27B	16.17B	15.68B	14.80B	12.98B
	Total Debt
14.97B	7.17B	6.37B	7.08B	7.29B	6.15B
	Net Debt
5.28B	3.22B	3.36B	3.49B	4.23B	3.46B
	Total Liabilities
25.00B	14.12B	11.69B	11.12B	11.78B	10.69B
	Stockholders Equity
8.37B	6.15B	4.48B	4.47B	2.92B	2.20B
Cash Flow		Free Cash Flow
0.00	1.21B	186.83M	-505.62M	-899.81M	631.92M
	Operating Cash Flow
0.00	2.58B	1.05B	777.18M	992.64M	1.55B
	Investing Cash Flow
0.00	-2.53B	-392.07M	-1.17B	-1.39B	-983.47M
	Financing Cash Flow
0.00	888.63M	-867.06M	770.80M	848.61M	-1.06B

SERENDIP HOLDINGS Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2845.00
• 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:7318, the sentiment is Positive. The current price of 2845 is above the 20-day moving average (MA) of 2680.15, above the 50-day MA of 2053.10, and above the 200-day MA of 1683.12, indicating a bullish trend. The MACD of 216.73 indicates Positive momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 31.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7318.

SERENDIP HOLDINGS Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5071	82 Outperform	¥10.36B	7.59		3.91%	24.10%	71.19%
7318	78 Outperform	¥12.27B	6.31		―	26.97%	275.83%
9252	76 Outperform	¥10.37B	9.42		0.60%	41.85%	197.36%
4346	76 Outperform	¥10.73B	12.22		2.42%	15.11%	139.25%
6580	74 Outperform	¥10.75B	21.62		0.88%	44.22%	111.83%
4304	68 Neutral	¥10.75B	21.64		2.72%	-10.70%	-0.90%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%

SERENDIP HOLDINGS Co. Ltd. Corporate Events

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth

SERENDIP HOLDINGS Co., Ltd. has announced the acquisition of SURTECKARIYA Co., Ltd., as part of its strategy to achieve 50 billion yen in consolidated sales. The acquisition is aimed at enhancing the company’s planning capability and expanding its global market presence, while also focusing on decarbonization and the promotion of future factory initiatives to boost manufacturing productivity.

SERENDIP HOLDINGS Acquires SURTECKARIYA to Boost Growth and Synergies

SERENDIP HOLDINGS CO., LTD. has acquired all shares of SURTECKARIYA Co., Ltd., marking its largest M&A transaction to date. This acquisition aligns with SERENDIP’s strategic plan to achieve non-organic growth and enhance its position in the automotive industry, particularly as it transitions towards electrification and decarbonization. The acquisition is expected to create synergies by integrating SURTECKARIYA’s expertise in surface treatment and global supply chain with SERENDIP’s existing capabilities, potentially increasing revenue and profits.