CAPITA, Inc. (7462) AI Stock Analysis

• Market Cap: ¥1.74B
• Dividend Yield: 1.25%
• Average Volume (3M): 19.90K
• Price to Earnings (P/E): 790.7
• Beta (1Y): 0.18
• Revenue Growth: -23.49%
• EPS Growth: -95.63%
• Country: JP
• Employees: 83
• Sector: Energy
• Sector Strength: 63
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.55
• Shares Outstanding: 4,111,000
• 10 Day Avg. Volume: 20,530
• 30 Day Avg. Volume: 19,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥468.00
• Price Target Upside: -3.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥468.00 ▼(-3.31% Downside)

CAPITA, Inc. has a strong financial foundation with effective cash flow management and revenue growth, which are significant positives. However, the stock's high P/E ratio raises valuation concerns, and the technical indicators suggest a lack of strong momentum. These factors result in a moderate overall stock score.

Positive Factors

Cash Flow Management

Effective cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Revenue Streams

Diverse revenue streams from IT services and BPO reduce dependency on a single income source, enhancing business resilience and stability.

Balance Sheet Health

A healthy balance sheet with low leverage and a strong equity base provides a stable foundation for future growth and reduces financial risk.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting long-term business expansion.

Profitability Margins

Low profitability margins suggest operational inefficiencies, which could hinder the company's ability to reinvest in the business and improve shareholder returns.

EPS Growth Decline

A sharp decline in EPS growth indicates potential earnings challenges, which could affect investor confidence and the company's ability to fund future growth.

CAPITA, Inc. Business Overview & Revenue Model

Company Description

CAPITA Inc. engages in the wholesale and direct sale of petroleum products in Japan. The company engages in the management of service stations; management of cycles; real estate leasing; and sales and brokerage of real estate, as well as management of store and rental office building. Capita Inc. was formerly known as Daiya Tsusho Co.,Ltd. and changed its name to Capita Inc. in September 2021. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CAPITA, Inc. generates revenue through multiple streams, primarily by offering IT services and consulting, software licensing, and business process outsourcing (BPO). The company earns money by charging clients for these services on a project basis or through long-term contracts. Key revenue streams include service fees from managed IT services, subscription fees from software products, and performance-based fees from outsourcing contracts. Additionally, CAPITA has established partnerships with major technology vendors, which not only enhances its service offerings but also creates opportunities for joint revenue generation through bundled services and solutions.

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.

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: 484.00
• 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:7462, the sentiment is Positive. The current price of 484 is above the 20-day moving average (MA) of 456.15, above the 50-day MA of 444.26, and above the 200-day MA of 370.67, indicating a bullish trend. The MACD of 12.03 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.42 is Neutral, 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	¥10.55B	12.40		6.69%	8.57%	15.83%
5010	73 Outperform	¥3.87B	3.26		―	-9.90%	27.50%
5015	73 Outperform	¥20.18B	23.59		4.90%	16.98%	-7.36%
6239	68 Neutral	¥10.33B	10.55		2.36%	-6.19%	-17.05%
Sector *	65 Neutral	$15.27B	7.59	4.09%	5.23%	3.88%	-62.31%
7462	65 Neutral	¥1.74B	790.72		1.25%	-23.49%	-95.63%
ACK	―	€148.39M	18.94	-32.70%	―	―	―