Decollte Holdings Corporation (7372) AI Stock Analysis

• Market Cap: ¥2.42B
• Dividend Yield: N/A
• Average Volume (3M): 16.74K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.06
• Revenue Growth: 8.17%
• EPS Growth: 36.84%
• Country: JP
• Employees: 444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -19.02
• Shares Outstanding: 5,670,000
• 10 Day Avg. Volume: 8,670
• 30 Day Avg. Volume: 16,736
• PEG Ratio: -0.19
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 3.00
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥503.00 ▲(9.83% Upside)

Decollte Holdings Corporation's stock is moderately attractive, driven by strong technical indicators and reasonable valuation. However, financial performance is hindered by low profitability and high leverage, which are significant risks. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and attract more customers, which is crucial for long-term sustainability in the competitive wedding services industry.

Cash Generation

Strong cash generation enhances the company's ability to invest in growth opportunities, reduce debt, and improve financial flexibility, which are vital for enduring success and operational resilience.

Business Model Strength

A diversified revenue model across various wedding services provides stability and reduces dependency on a single income stream, supporting long-term business viability.

Negative Factors

Profitability Concerns

Low profitability can hinder reinvestment in the business and affect competitive positioning, making it crucial for the company to improve operational efficiency and cost management.

High Leverage

High leverage increases financial risk and can limit the company's ability to finance new projects or weather economic downturns, necessitating a focus on debt reduction.

Return on Equity

Low return on equity suggests that the company is not efficiently using its equity base to generate profits, which may impact investor confidence and long-term growth prospects.

Decollte Holdings Corporation Business Overview & Revenue Model

Company Description

Decollte Holdings Corporation (7372) is a Japanese company primarily engaged in the design, development, and manufacturing of advanced electronic components and systems. Operating within the technology and electronics sectors, the company specializes in semiconductor devices, high-performance integrated circuits, and related software solutions. With a focus on innovation and quality, Decollte Holdings serves various industries, including automotive, telecommunications, and consumer electronics, providing cutting-edge products that enhance functionality and efficiency.

How the Company Makes Money

Decollte Holdings Corporation generates revenue through the sale of its electronic components and systems, which are integral to various applications in multiple industries. Key revenue streams include the direct sale of semiconductor devices and integrated circuits, as well as licensing fees for software solutions associated with its products. The company also engages in partnerships with major technology firms and manufacturers, allowing for collaborative development and distribution of specialized products, which further enhances its income. Additionally, Decollte Holdings benefits from long-term contracts with clients in critical sectors, ensuring a steady flow of revenue and positioning itself as a reliable supplier in the competitive electronics market.

Decollte Holdings Corporation Financial Statement Overview

Summary

Decollte Holdings Corporation demonstrates moderate financial performance with positive revenue and cash flow growth. However, profitability remains a concern with low net profit margins and high leverage, indicating potential financial risks. The company should focus on improving operational efficiency and reducing debt levels to enhance financial stability.

Income Statement

Decollte Holdings Corporation shows a moderate revenue growth rate of 3.02% in the TTM, indicating a positive trend compared to the previous period's decline. The gross profit margin is stable at 33.79%, but the net profit margin remains low at 1.95%, reflecting limited profitability. The EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is high at 1.30, indicating significant leverage, which could pose financial risks. However, the return on equity is modest at 2.28%, showing limited returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet suggests a need for improved financial stability.

Cash Flow

Free cash flow growth is strong at 25.58%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.47, suggesting moderate cash flow efficiency. The free cash flow to net income ratio is high at 0.95, reflecting strong cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.95B	5.59B	5.85B	5.32B	4.59B	3.67B
Gross Profit	2.08B	1.84B	2.33B	2.22B	1.97B	1.52B
EBITDA	1.23B	1.10B	1.72B	2.03B	1.38B	819.31M
Net Income	213.26M	106.15M	492.01M	1.02B	574.98M	172.30M
Balance Sheet
Total Assets	13.00B	12.78B	13.65B	12.59B	11.15B	10.84B
Cash, Cash Equivalents and Short-Term Investments	489.41M	222.50M	808.51M	1.35B	1.29B	1.59B
Total Debt	6.38B	6.80B	7.53B	6.93B	5.97B	6.27B
Total Liabilities	7.92B	7.95B	8.89B	8.33B	7.33B	7.71B
Stockholders Equity	5.08B	4.83B	4.76B	4.26B	3.83B	3.13B
Cash Flow
Free Cash Flow	1.29B	515.00M	599.74M	915.23M	959.67M	515.12M
Operating Cash Flow	1.36B	715.87M	1.24B	1.15B	1.25B	636.02M
Investing Cash Flow	-137.55M	-212.56M	-732.84M	198.89M	-356.94M	-62.03M
Financing Cash Flow	-1.14B	-1.09B	-1.05B	-1.29B	-1.19B	61.26M

Decollte Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7372, the sentiment is Positive. The current price of 458 is above the 20-day moving average (MA) of 432.75, above the 50-day MA of 453.54, and above the 200-day MA of 370.79, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 76.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7372.

Decollte Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7372	74 Outperform	¥2.42B	11.34	―	―	8.17%	36.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	54 Neutral	¥2.10B	-7.58	―	3.69%	-2.06%	-109.18%
3041	49 Neutral	¥1.83B	133.89	―	1.17%	6.83%	1654.82%
4679	45 Neutral	¥1.42B	-1,175.59	―	―	-6.45%	99.39%
7062	41 Neutral	¥2.01B	-7.18	―	―	31.45%	―