Sunday Co., Ltd. (7450) AI Stock Analysis

• Market Cap: ¥10.67B
• Dividend Yield: 0.5%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -0.60%
• EPS Growth: -386.40%
• Country: JP
• Employees: 583
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): -3.13
• Shares Outstanding: 10,783,700
• 10 Day Avg. Volume: 1,880
• 30 Day Avg. Volume: 3,253
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -20.65
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥1,053.00 ▲(5.51% Upside)

The overall stock score is primarily impacted by weak financial performance, with declining revenues and profitability challenges. Technical analysis shows neutral indicators, while valuation is low due to negative earnings and low dividend yield.

Positive Factors

Market Position

The company's focus on health and wellness technology positions it well in a growing market, potentially leading to increased demand for its innovative solutions.

Revenue Streams

Diverse revenue streams from subscriptions, device sales, and partnerships enhance financial stability and reduce dependency on a single income source.

Partnerships

Strategic partnerships expand market reach and credibility, potentially driving long-term revenue growth and competitive advantage.

Negative Factors

Revenue Decline

Declining revenue growth indicates potential issues in market demand or competitive positioning, impacting long-term financial health.

Profitability Challenges

Negative profit margins and cash flow issues highlight operational inefficiencies, which could hinder sustainable growth and investment capacity.

Negative Return on Equity

Negative return on equity suggests inefficiency in generating profits from shareholders' equity, potentially deterring investment and affecting stock performance.

Sunday Co., Ltd. Business Overview & Revenue Model

Company Description

Sunday Co.,Ltd. operates a chain of home improvement stores in Japan. The company's stores masks, wet wipes, hand soaps, antiseptic solutions, thermometers, and sanitizing sprays; heating supplies, including electric stoves, kerosine stives, gas stoves, kerosene tanks/pumps, wood/casting stoves, chimneys, stove guards, and fuel; electric carpets; electric blankets; hot water bottles; window paste sheets, and duct for hot air heaters, as well as gap/insulation tapes, snow removal supplies. It also provides security, horticulture, gardening articles, food products, seasonal products, food and beverages, stationery products, housing equipment, work clothes, cooking/kitchen supplies, and cleaning/laundry supplies, as well as daily consumables, pet supplies, interior products, furniture/storage products, air conditioners, household appliances, cooking appliances, audio visual equipment, electric appliances, car supplies, work tools, architectural hardware, paint/repair/packaging products, wood/building, fitness equipment, health meters, healthy food, disaster prevention products, outdoor sports, bicycles, and agricultural materials. The company was formerly known as Sunday Years Mart Co., Ltd. and changed its name to Sunday Co.,Ltd. in November 1976. The company was founded in 1930 and is headquartered in Hachinohe, Japan. Sunday Co.,Ltd. operates as a subsidiary of Aeon Co., Ltd.

How the Company Makes Money

Sunday Co., Ltd. generates revenue primarily through the sale of software licenses and subscriptions for its enterprise solutions. Additionally, the company offers consulting services that help clients implement and optimize its technology products, contributing to service revenue. Key revenue streams include recurring income from subscription-based models, project-based income from system integration services, and maintenance agreements. Strategic partnerships with other technology firms and collaborations with industry leaders also play a significant role in the company’s growth, allowing it to expand its market reach and enhance its product offerings.

Sunday Co., Ltd. Financial Statement Overview

Summary

Sunday Co., Ltd. faces challenges in revenue growth and profitability, with declining revenues and negative profit margins. The balance sheet is stable with moderate leverage, but negative return on equity and cash flow issues, particularly negative free cash flow, highlight the need for improved cash management.

Income Statement

Sunday Co., Ltd. has experienced a decline in revenue over the past few years, with a negative revenue growth rate from 2021 to 2025. The company also shows a negative net profit margin and EBIT margin in the most recent year, indicating challenges in maintaining profitability. However, the gross profit margin remains relatively stable, suggesting some level of operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced approach to leverage. However, the return on equity has been negative in recent years due to net losses, which is a concern for investors. The equity ratio is stable, reflecting a consistent capital structure.

Cash Flow

The cash flow statement highlights a concerning trend with negative free cash flow in recent years, driven by high capital expenditures. The operating cash flow to net income ratio is positive, suggesting that the company generates cash from operations, but the free cash flow to net income ratio is negative, indicating insufficient cash generation to cover investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.59B	47.38B	49.09B	49.74B	52.10B
Gross Profit	14.56B	14.98B	15.50B	15.56B	16.14B
EBITDA	-561.76M	950.91M	1.93B	2.21B	2.77B
Net Income	-2.12B	-149.69M	508.22M	719.77M	1.11B
Balance Sheet
Total Assets	32.87B	35.19B	34.41B	33.38B	33.67B
Cash, Cash Equivalents and Short-Term Investments	577.78M	532.84M	632.61M	921.52M	988.18M
Total Debt	13.63B	12.91B	11.50B	10.74B	9.01B
Total Liabilities	23.65B	23.67B	22.59B	21.94B	22.80B
Stockholders Equity	9.22B	11.53B	11.81B	11.44B	10.87B
Cash Flow
Free Cash Flow	-564.91M	-1.24B	-926.25M	-1.64B	2.93B
Operating Cash Flow	107.65M	170.78M	776.22M	-193.96M	3.74B
Investing Cash Flow	-551.21M	-1.51B	-1.66B	-1.40B	-1.13B
Financing Cash Flow	488.51M	1.24B	592.22M	1.53B	-2.50B

Sunday Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 998.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7450, the sentiment is Positive. The current price of 998 is above the 20-day moving average (MA) of 995.20, above the 50-day MA of 996.90, and below the 200-day MA of 1045.90, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7450.

Sunday Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9976	72 Outperform	¥5.58B	11.98	―	3.88%	4.17%	10.59%
8218	67 Neutral	¥169.77B	11.29	―	1.61%	1.69%	3.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8208	61 Neutral	―	―	―	―	-3.21%	56.44%
9903	55 Neutral	¥5.92B	12.25	―	2.34%	-1.54%	―
7450	48 Neutral	¥10.67B	-5.05	―	0.50%	-0.60%	-386.40%
7590	46 Neutral	¥7.96B	―	―	1.22%	6.36%	96.61%