Seiwa Chuo Holdings Corporation (7531) AI Stock Analysis

• Market Cap: ¥6.14B
• Dividend Yield: 0.69%
• Average Volume (3M): 496.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -8.94%
• EPS Growth: -143.33%
• Country: JP
• Employees: 226
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -15.99
• Shares Outstanding: 3,945,100
• 10 Day Avg. Volume: 500
• 30 Day Avg. Volume: 496
• PEG Ratio: 0.26
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 3.85
• 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: 57 Neutral
• Price Target: ¥1,717.00 ▲(18.58% Upside)

Seiwa Chuo Holdings Corporation's overall stock score is primarily impacted by its financial performance and valuation. The company's profitability challenges and negative P/E ratio weigh heavily on the score. However, a strengthened balance sheet and positive cash flow management provide some stability. Technical indicators suggest a neutral to slightly positive market sentiment, but valuation concerns remain significant.

Positive Factors

Balance Sheet Health

Reduced debt levels enhance financial stability, providing the company with more flexibility to invest in growth opportunities and weather economic fluctuations.

Cash Flow Management

Positive free cash flow indicates strong cash generation ability, allowing the company to fund operations and strategic initiatives without relying on external financing.

Supply Chain Efficiency

Efficient supply chain management reduces costs and enhances profit margins, providing a competitive advantage in the wholesale distribution market.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by net losses, can hinder the company's ability to reinvest in growth and may impact long-term financial health.

Revenue Decline

A decline in revenue growth can signal weakening market position or demand, potentially affecting future earnings and market competitiveness.

Operational Inefficiencies

Deteriorating margins suggest operational inefficiencies that could erode profitability, requiring strategic adjustments to improve cost management and operational performance.

Seiwa Chuo Holdings Corporation Business Overview & Revenue Model

Company Description

Seiwa Chuo Holdings Corporation engages in the wholesale of general steel products in Japan. It also undertakes processing and related contract works; and cargo handling works. The company was incorporated in 1954 and is based in Osaka, Japan.

How the Company Makes Money

Seiwa Chuo Holdings Corporation generates revenue through its wholesale distribution operations, selling a wide range of products to retailers and businesses. The company's key revenue streams include the direct sale of food products, household items, and industrial supplies, which are sourced from various manufacturers. Additionally, Seiwa Chuo Holdings benefits from long-term partnerships with suppliers, allowing it to negotiate favorable terms and maintain a steady supply of goods. The company's emphasis on logistics and supply chain management also contributes to its efficiency, reducing costs and enhancing profit margins. Furthermore, seasonal promotions and marketing activities play a role in driving sales, particularly in the food sector, where demand can fluctuate based on consumer trends.

Seiwa Chuo Holdings Corporation Financial Statement Overview

Summary

Seiwa Chuo Holdings Corporation faces significant challenges in profitability, as evidenced by recent net losses. The company has managed to strengthen its balance sheet by reducing debt levels, which improves financial stability. Cash flow management remains a strong point, ensuring operational continuity despite earnings volatility.

Income Statement

Seiwa Chuo Holdings Corporation has experienced fluctuations in revenue over the past years, with a notable decline in 2024. The gross profit margin is relatively stable, but the company reported a significant net loss in 2024, pointing to challenges in maintaining profitability. The EBIT and EBITDA margins have also deteriorated, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a stable equity position, with a strong equity ratio. Debt levels have decreased significantly, improving the debt-to-equity ratio and indicating enhanced financial stability. However, the return on equity has been negatively impacted by recent net losses, which is a concern for profitability.

Cash Flow

Operating cash flow decreased in 2024, but the company maintained a positive free cash flow, which is crucial for sustaining operations without relying on external financing. The free cash flow to net income ratio highlights reliance on cash flow management, despite recent profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.08B	51.47B	62.58B	57.55B	45.40B	42.01B
Gross Profit	4.59B	4.52B	4.85B	5.40B	5.70B	3.96B
EBITDA	557.12M	487.04M	655.90M	1.22B	1.81B	491.64M
Net Income	-21.35M	-101.23M	103.31M	610.41M	1.06B	145.16M
Balance Sheet
Total Assets	32.96B	37.44B	39.75B	47.19B	36.37B	27.09B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.48B	1.19B	1.16B	1.03B	1.34B
Total Debt	320.00M	300.00M	1.35B	3.65B	1.98B	680.00M
Total Liabilities	17.01B	21.52B	23.74B	31.13B	21.00B	13.01B
Stockholders Equity	15.74B	15.71B	15.77B	15.81B	15.12B	13.85B
Cash Flow
Free Cash Flow	0.00	1.33B	2.28B	-1.51B	-1.65B	2.34B
Operating Cash Flow	0.00	1.66B	2.72B	-635.21M	-1.23B	2.92B
Investing Cash Flow	0.00	-242.53M	-259.67M	-742.25M	-319.28M	-507.61M
Financing Cash Flow	0.00	-1.12B	-2.43B	1.50B	1.23B	-2.47B

Seiwa Chuo Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1448.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7531, the sentiment is Positive. The current price of 1448 is below the 20-day moving average (MA) of 1460.06, below the 50-day MA of 1509.65, and below the 200-day MA of 1565.75, indicating a neutral trend. The MACD of 7.43 indicates Negative momentum. The RSI at 71.08 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7531.

Seiwa Chuo Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7425	73 Outperform	¥7.20B	7.79	―	2.89%	1.59%	-5.99%
5491	70 Outperform	¥6.35B	4.98	―	―	-5.93%	-36.01%
5542	69 Neutral	¥5.03B	8.10	―	2.77%	-3.45%	34.97%
5446	64 Neutral	¥4.80B	12.45	―	3.17%	-20.10%	-14.13%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7531	57 Neutral	¥6.14B	-182.01	―	0.69%	-8.94%	-143.33%
5476	56 Neutral	¥8.19B	-1.16	―	―	3.22%	-451.22%