ADVAN GROUP CO. LTD. (7463) AI Stock Analysis

• Market Cap: ¥29.04B
• Dividend Yield: 4.33%
• Average Volume (3M): 34.95K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.60
• Revenue Growth: -1.31%
• EPS Growth: 67.27%
• Country: JP
• Employees: 248
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -31.46
• Shares Outstanding: 45,312,690
• 10 Day Avg. Volume: 43,460
• 30 Day Avg. Volume: 34,950
• PEG Ratio: -0.13
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 1.65
• P/FCF Ratio: -259.18
• 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: 66 Neutral
• Price Target: ¥926.00 ▲(1.76% Upside)

The overall stock score is driven by a strong valuation, indicating potential undervaluation and attractive dividend yield. However, financial performance is mixed with challenges in revenue growth and cash flow stability. Technical analysis shows weak momentum, contributing to a moderate overall score.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Profitability Margins

Robust profitability margins indicate efficient operations and pricing power, contributing to sustained financial health and competitive advantage.

Controlled Leverage

Controlled leverage ensures the company can meet its debt obligations without compromising financial stability, supporting long-term growth strategies.

Negative Factors

Declining Revenue

A declining revenue trend can signal weakening demand or competitive pressures, potentially impacting long-term growth and market position.

Fluctuating Cash Flow

Inconsistent cash flow generation can hinder the company's ability to fund operations and invest in growth, affecting financial resilience.

Pressure on Margins

Pressure on operating margins suggests rising costs or pricing challenges, which could erode profitability and affect competitive positioning.

ADVAN GROUP CO. LTD. Business Overview & Revenue Model

Company Description

Advan Group Co., Ltd. manufactures, imports, and sells building materials in Japan. It provides building materials, such as tiles, kitchen products, floorings, around the water products, garage doors, stones and natural stones, washbasins, faucets, vinyl floor tiles, bricks, and wood-burning stoves. The company was founded in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ADVAN GROUP CO. LTD. generates revenue through multiple streams, including the sale of advanced materials and components to manufacturers in the electronics and telecommunications industries. The company typically operates on a B2B model, supplying products that are critical for the production of consumer electronics, industrial equipment, and telecommunications infrastructure. Key revenue streams include direct sales of high-performance materials, long-term contracts with major electronics manufacturers, and potential licensing agreements for proprietary technologies. Additionally, strategic partnerships with leading companies in relevant sectors bolster its market position and contribute to sustained revenue growth.

ADVAN GROUP CO. LTD. Financial Statement Overview

Summary

ADVAN GROUP CO. LTD. shows a balanced financial profile with strong equity and profitability margins. However, it faces challenges with declining revenue and cash flow stability. The company's leverage is controlled, and its asset base is stable, providing resilience.

Income Statement

The company shows a mixed performance in its income statement. While there is a strong net profit margin, the revenue has been on a declining trend over the years, with a noticeable drop in recent periods. The gross profit margin remains healthy, but EBIT and EBITDA margins have been under pressure, indicating potential operational challenges.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio. The debt-to-equity ratio remains manageable, suggesting moderate leverage. However, there has been a decline in stockholders' equity over the years, which could be a concern. The company's asset base is stable, providing a solid foundation for future growth.

Cash Flow

Cash flow analysis reveals some concerns with fluctuating free cash flow and declining operating cash flow over recent periods. The operating cash flow to net income ratio suggests efficient cash earnings, but the free cash flow to net income ratio indicates inconsistent cash generation. Despite these challenges, the company maintains positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.18B	18.52B	20.30B	20.40B	17.57B	17.09B
Gross Profit	7.14B	7.35B	8.15B	8.57B	7.61B	7.91B
EBITDA	-589.72M	9.61B	17.02B	5.88B	6.45B	4.86B
Net Income	7.48B	6.01B	10.30B	3.36B	3.82B	2.73B
Balance Sheet
Total Assets	78.31B	80.29B	78.70B	64.53B	57.59B	56.69B
Cash, Cash Equivalents and Short-Term Investments	9.05B	16.07B	18.02B	16.25B	13.00B	13.91B
Total Debt	20.22B	22.05B	21.83B	18.92B	11.58B	13.72B
Total Liabilities	23.89B	26.43B	29.11B	22.18B	14.93B	15.98B
Stockholders Equity	54.42B	53.86B	49.58B	42.36B	42.66B	40.71B
Cash Flow
Free Cash Flow	1.22B	-117.58M	2.24B	-97.74M	2.64B	4.44B
Operating Cash Flow	4.03B	1.89B	4.97B	3.75B	3.21B	5.46B
Investing Cash Flow	1.72B	1.19B	-5.58B	-8.09B	-506.70M	-4.68B
Financing Cash Flow	-4.70B	-1.64B	-492.22M	3.76B	-3.94B	-1.86B

ADVAN GROUP CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 910.00
• 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:7463, the sentiment is Positive. The current price of 910 is above the 20-day moving average (MA) of 891.55, above the 50-day MA of 879.28, and above the 200-day MA of 846.66, indicating a bullish trend. The MACD of 9.28 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 61.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7463.

ADVAN GROUP CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5363	75 Outperform	¥25.82B	8.71	―	3.52%	6.15%	17.51%
5357	73 Outperform	¥26.58B	14.92	―	5.04%	-2.29%	-41.92%
5356	68 Neutral	¥12.27B	9.66	―	3.42%	8.37%	8.13%
5290	67 Neutral	¥73.79B	13.70	―	2.30%	-0.22%	25.09%
7463	66 Neutral	¥29.04B	4.26	―	4.33%	-1.31%	67.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5386	53 Neutral	¥3.12B	19.62	―	1.59%	-4.01%	-41.29%