Decollte Holdings Corporation (7372) AI Stock Analysis

• Market Cap: ¥1.65B
• Dividend Yield: N/A
• Average Volume (3M): 11.55K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.78
• Revenue Growth: 1.72%
• EPS Growth: -54.67%
• Country: JP
• Employees: 444
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Personal Products & Services
• EPS (TTM): -31.38
• Shares Outstanding: 5,670,000
• 10 Day Avg. Volume: 7,490
• 30 Day Avg. Volume: 11,546
• PEG Ratio: -0.67
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.59
• 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: ¥338.00
• Price Target Upside: 7.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥342.00 ▲(8.57%Upside)

Decollte Holdings Corporation's overall stock score is primarily supported by its strong financial performance, particularly in revenue growth and cash flow generation. The technical analysis suggests a neutral market sentiment, while the valuation indicates the stock is reasonably priced. Improvements in profitability and leverage management could enhance future performance.

Decollte Holdings Corporation Business Overview & Revenue Model

Company Description

Decollte Holdings Corporation (7372) is a Japanese company primarily engaged in the bridal and wedding services industry. The company operates through its group companies to provide a comprehensive range of wedding-related services, including photography, wedding planning, and venue management. Decollte Holdings aims to deliver memorable and personalized wedding experiences, leveraging its expertise and extensive network within the wedding sector.

How the Company Makes Money

Decollte Holdings Corporation generates revenue through various streams centered around the wedding industry. The company earns money by offering wedding photography services, planning and coordinating weddings, and managing wedding venues. Additionally, it may derive income from the rental of wedding dresses and accessories as well as other wedding-related products and services. Strategic partnerships with venues and vendors, along with its ability to offer a wide array of customized wedding solutions, significantly contribute to its revenue. The company's focus on providing high-quality, tailored experiences helps in maintaining a strong customer base, thus driving its earnings.

Decollte Holdings Corporation Financial Statement Overview

Summary

Decollte Holdings Corporation displays healthy revenue growth and operational efficiency, with strong cash flow metrics supporting liquidity and cash generation. However, the company's high leverage and modest profitability ratios highlight areas for potential improvement. Continued focus on enhancing net profit margins and managing leverage will be crucial for maintaining financial stability and growth.

Income Statement

Decollte Holdings Corporation has shown a consistent increase in revenue over the years, with a notable revenue growth of 3.34% in the most recent TTM. Gross profit margin stands at 33.8% for TTM, indicating solid cost management. However, net profit margin is relatively low at 1.95%, suggesting higher operational costs or other expenses impacting the bottom line. EBIT and EBITDA margins are healthy at 13.15% and 18.75% respectively, highlighting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.30, which could indicate potential leverage concerns. However, the company maintains a solid equity ratio of 38.75%, reflecting a stable asset base funded by equity. Return on Equity (ROE) is modest at 2.28% in the TTM, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis shows strong free cash flow growth with a rate of 98.83% in the TTM, indicating improved cash generation capabilities. Operating cash flow to net income ratio is robust at 9.60, reflecting effective conversion of earnings to cash. Additionally, free cash flow to net income ratio is an impressive 9.10, underscoring strong cash flow relative to profits.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	5.78B	5.59B	5.85B	5.32B	4.59B	3.67B
Gross Profit	1.95B	1.84B	2.33B	2.22B	1.97B	1.52B
EBITDA	1.08B	1.08B	1.72B	2.03B	1.38B	819.31M
Net Income	112.46M	106.15M	492.01M	1.02B	574.98M	172.30M
Balance Sheet
Total Assets	12.73B	12.78B	13.65B	12.59B	11.15B	10.84B
Cash, Cash Equivalents and Short-Term Investments	437.47M	222.50M	808.51M	1.35B	1.29B	1.59B
Total Debt	6.43B	6.80B	7.53B	6.93B	5.97B	6.27B
Total Liabilities	7.79B	7.95B	8.89B	8.33B	7.33B	7.71B
Stockholders Equity	4.93B	4.83B	4.76B	4.26B	3.83B	3.13B
Cash Flow
Free Cash Flow	1.02B	515.00M	599.74M	915.23M	959.67M	515.12M
Operating Cash Flow	1.08B	715.87M	1.24B	1.15B	1.25B	636.02M
Investing Cash Flow	-92.95M	-212.56M	-732.84M	198.89M	-356.94M	-62.03M
Financing Cash Flow	-1.04B	-1.09B	-1.05B	-1.29B	-1.19B	61.26M

Decollte Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 315.00
• 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 315 is above the 20-day moving average (MA) of 313.30, above the 50-day MA of 309.28, and above the 200-day MA of 300.13, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 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	70 Outperform	¥1.65B	14.70		―	1.72%	-54.67%
6186	62 Neutral	¥2.16B	7.99		3.58%	-2.43%	-115.41%
Sector *	62 Neutral	C$5.19B	8.81	20.23%	3.49%	3.08%	9.19%
3041	56 Neutral	¥1.81B	2,022.82		2.01%	8.89%	-129.54%
7062	46 Neutral	¥1.98B	―		1.60%	32.79%	-518.42%
4679	43 Neutral	¥1.43B	―		―	-6.77%	60.70%