CAPITA, Inc. (7462) AI Stock Analysis

• Market Cap: ¥1.61B
• Dividend Yield: 2.37%
• Average Volume (3M): 7.60K
• Price to Earnings (P/E): 731.9
• Beta (1Y): 0.19
• Revenue Growth: -23.49%
• EPS Growth: -95.63%
• Country: JP
• Employees: 83
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.55
• Shares Outstanding: 4,111,000
• 10 Day Avg. Volume: 4,700
• 30 Day Avg. Volume: 7,603
• PEG Ratio: 1.27
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 2.20
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥468.00 ▲(5.88% Upside)

CAPITA, Inc.'s strong financial performance, characterized by solid revenue growth and effective cash flow management, is a key strength. However, the technical indicators suggest potential short-term weakness, and the extremely high P/E ratio indicates overvaluation concerns. The dividend yield offers some compensation for investors.

CAPITA, Inc. Business Overview & Revenue Model

Company Description

CAPITA, Inc. (7462) is a diversified company specializing in providing comprehensive business process outsourcing (BPO) services across various sectors, including government, healthcare, and financial services. The company leverages technology-driven solutions to enhance operational efficiency and deliver high-quality services, including customer management, data analytics, and digital transformation consulting. With a strong emphasis on innovation and customer satisfaction, CAPITA aims to support organizations in optimizing their processes and improving service delivery.

How the Company Makes Money

CAPITA generates revenue primarily through its BPO services, which are structured around long-term contracts with clients in various industries. The company earns money by charging clients for services rendered, which can include transaction-based fees, fixed retainers, and performance-based incentives. Key revenue streams include customer service outsourcing, IT services, and consultancy solutions. CAPITA also benefits from strategic partnerships with technology providers, allowing for the integration of advanced technologies into their service offerings, thereby enhancing value and attracting new clients. Additionally, government contracts form a significant portion of CAPITA's earnings, providing a stable revenue base due to the often long-term nature of these agreements.

CAPITA, Inc. Financial Statement Overview

Summary

CAPITA, Inc. exhibits a robust financial position with strong revenue growth and effective cash flow management. While profitability margins are modest, the company's low leverage and solid equity base provide a stable foundation for future growth. Continued focus on improving net profit margins could enhance overall financial performance.

Income Statement

CAPITA, Inc. has demonstrated solid revenue growth with a 10.67% increase from the previous year. The gross profit margin stands at 26.61%, indicating efficient cost management. However, the net profit margin is relatively low at 0.89%, suggesting room for improvement in profitability. The EBIT margin of 2.36% and EBITDA margin of 1.63% are modest, reflecting operational challenges in the industry.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.57, indicating prudent leverage management. The return on equity is 1.98%, which is low but stable. The equity ratio of 52.79% shows a strong equity base, providing financial stability.

Cash Flow

CAPITA, Inc. has shown a remarkable turnaround in cash flow, with a significant improvement in free cash flow from negative to positive. The operating cash flow to net income ratio is 19.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 18.70, highlighting effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.04B	3.34B	3.34B	2.88B
Gross Profit	896.74M	913.98M	936.64M	920.38M	897.67M
EBITDA	55.05M	73.34M	101.01M	82.89M	32.30M
Net Income	30.11M	22.69M	55.84M	56.49M	15.16M
Balance Sheet
Total Assets	2.89B	3.00B	2.57B	2.40B	1.96B
Cash, Cash Equivalents and Short-Term Investments	605.38M	126.29M	364.32M	444.29M	309.45M
Total Debt	875.83M	969.99M	587.00M	405.23M	1.38M
Total Liabilities	1.36B	1.50B	1.08B	958.30M	565.21M
Stockholders Equity	1.52B	1.51B	1.49B	1.44B	1.39B
Cash Flow
Free Cash Flow	563.06M	-607.38M	-230.54M	-259.82M	87.67M
Operating Cash Flow	575.80M	-22.31M	-187.37M	-248.94M	90.88M
Investing Cash Flow	10.32M	-587.42M	-66.42M	-10.14M	-4.55M
Financing Cash Flow	-107.03M	371.70M	173.82M	393.92M	-13.04M

CAPITA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 442.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7462, the sentiment is Positive. The current price of 442 is below the 20-day moving average (MA) of 447.60, below the 50-day MA of 460.31, and above the 200-day MA of 394.40, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7462.

CAPITA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5009	82 Outperform	―	―	―	―	8.57%	15.83%
5015	73 Outperform	¥21.21B	21.13	―	4.65%	13.76%	13.58%
6239	68 Neutral	¥10.42B	10.64	―	2.41%	-6.19%	-17.01%
5010	66 Neutral	¥3.69B	3.11	―	―	-9.90%	27.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
7462	60 Neutral	¥1.61B	731.91	―	2.37%	-23.49%	-95.63%
5017	50 Neutral	¥36.68B	―	-10.95%	2.52%	-29.16%	34.28%