I. A Group Corporation (7509) AI Stock Analysis

• Market Cap: ¥5.95B
• Dividend Yield: 3.36%
• Average Volume (3M): 306.00
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.26
• Revenue Growth: 7.25%
• EPS Growth: -11.62%
• Country: JP
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 145.24
• Shares Outstanding: 1,645,360
• 10 Day Avg. Volume: 250
• 30 Day Avg. Volume: 306
• PEG Ratio: -0.59
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 4.82
• 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: 73 Outperform
• Price Target: ¥3,930.00 ▼(-2.24% Downside)

The stock's overall score is driven by its strong valuation, with a low P/E ratio and high dividend yield. Financial performance is solid, with stable profitability and efficient cash flow management. Technical analysis shows a positive trend, but momentum indicators suggest caution.

Positive Factors

Strong Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, providing a buffer against cost fluctuations and enhancing profitability.

Manageable Debt Levels

A low debt-to-equity ratio suggests prudent financial management, reducing risk and providing flexibility for future investments and growth opportunities.

Positive Cash Flow Growth

Growing free cash flow indicates strong cash generation capabilities, enabling the company to reinvest in its business, pay down debt, or return capital to shareholders.

Negative Factors

Declining EPS Growth

Negative EPS growth can signal declining profitability, potentially impacting investor confidence and limiting the company's ability to fund future growth initiatives.

Low Net Profit Margin

A low net profit margin may indicate challenges in cost management or pricing power, which could affect long-term profitability and competitiveness.

Moderate Revenue Growth

Moderate revenue growth suggests limited expansion in market share or product adoption, potentially impacting the company's ability to scale and compete effectively.

I. A Group Corporation Business Overview & Revenue Model

Company Description

I.A Group Corporation engages in the car parts business in Japan. The company operates AUTOBACS, a car goods franchise store; and Techno Cube, a vehicle inspection and sheet metal services store. It also engages in leasing, buying, selling, construction, and property management activities related to real estate, as well as bridal business. The company was incorporated in 1980 and is headquartered in Yokohama, Japan.

How the Company Makes Money

I. A Group Corporation generates revenue through multiple streams, primarily from the sale of its technology products and services. The company leverages a subscription-based model for its software solutions, ensuring a steady income from ongoing support and updates. Additionally, it earns revenue through direct sales of electronic products, alongside contract manufacturing services for other companies. Strategic partnerships with leading firms in technology and logistics further enhance its revenue, enabling access to broader markets and shared resources. The company's focus on innovation and customer satisfaction significantly contributes to its competitive edge and financial success.

I. A Group Corporation Financial Statement Overview

Summary

The company demonstrates solid financial health with a strong gross profit margin of 47.4% and stable EBIT and EBITDA margins. The debt-to-equity ratio is manageable at 0.29, and free cash flow shows positive growth. However, there is room for improvement in net profit margins.

Income Statement

The company shows a strong gross profit margin of 47.4% and a net profit margin of 3.4% for the latest year. Revenue growth is moderate at 4.6% compared to the previous year. EBIT and EBITDA margins are stable at 4.8% and 6.9%, respectively, indicating consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio is 0.29, reflecting a manageable level of leverage. The return on equity (ROE) is 8.1%, showing decent profitability relative to shareholder equity. The equity ratio stands at 55.2%, indicating a strong equity position relative to total assets.

Cash Flow

Free cash flow grew by 5.9% year-over-year, showcasing positive cash generation. The operating cash flow to net income ratio is 1.18, suggesting good cash conversion from earnings. The free cash flow to net income ratio is 0.79, indicating a healthy level of free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.73B	37.29B	35.66B	35.51B	35.83B	32.62B
Gross Profit	17.77B	17.66B	16.23B	15.75B	15.73B	13.92B
EBITDA	2.42B	2.56B	2.57B	2.22B	2.24B	-891.63M
Net Income	1.16B	1.25B	1.34B	985.73M	972.68M	-2.21B
Balance Sheet
Total Assets	28.60B	28.13B	27.78B	27.69B	28.54B	29.88B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.37B	1.41B	1.90B	2.13B	1.33B
Total Debt	5.45B	4.44B	5.24B	6.51B	7.70B	8.95B
Total Liabilities	12.92B	12.42B	13.11B	14.21B	15.84B	17.91B
Stockholders Equity	15.51B	15.54B	14.52B	13.34B	12.59B	11.86B
Cash Flow
Free Cash Flow	0.00	993.80M	938.12M	1.35B	2.23B	989.60M
Operating Cash Flow	0.00	1.49B	1.59B	1.77B	2.75B	1.56B
Investing Cash Flow	0.00	-492.20M	-583.06M	-561.28M	-443.56M	-711.49M
Financing Cash Flow	0.00	-1.04B	-1.49B	-1.44B	-1.50B	-875.11M

I. A Group Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 50DMA: Negative
• 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:7509, the sentiment is Positive. The current price of 4020 is above the 20-day moving average (MA) of 4009.75, below the 50-day MA of 4033.20, and above the 200-day MA of 3611.78, indicating a neutral trend. The MACD of -5.76 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 49.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7509.

I. A Group Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7509	73 Outperform	¥5.95B	4.52	―	3.36%	7.25%	-11.62%
8835	68 Neutral	¥6.29B	11.70	―	4.84%	14.94%	2.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥7.89B	25.02	―	2.22%	3.47%	1062.58%
7066	60 Neutral	¥4.53B	9.60	―	3.64%	-1.69%	-18.95%
6838	52 Neutral	¥4.42B	16.44	―	0.74%	―	―
5856	42 Neutral	¥3.16B	-1.35	―	―	-52.40%	-321.23%