Crossfor Co. Ltd. (7810) AI Stock Analysis

• Market Cap: ¥2.76B
• Dividend Yield: 0.22%
• Average Volume (3M): 69.81K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.37
• Revenue Growth: 7.20%
• EPS Growth: 34.29%
• Country: JP
• Employees: 74
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Luxury Goods
• EPS (TTM): -1.77
• Shares Outstanding: 17,845,000
• 10 Day Avg. Volume: 15,440
• 30 Day Avg. Volume: 69,810
• 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: ¥180.00
• Price Target Upside: 11.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥180.00 ▲(11.80% Upside)

The overall stock score of 54 reflects the company's improving financial performance, particularly in revenue growth and cash flow generation, which are offset by high leverage and negative profitability. Technical indicators suggest a neutral to slightly bearish trend, while valuation metrics highlight challenges in profitability and limited dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong demand for Crossfor's products and successful market expansion, supporting long-term business stability.

Cash Flow Generation

Positive free cash flow reflects efficient operations and provides financial flexibility for reinvestment and debt reduction, enhancing long-term viability.

Gross Profit Margin Improvement

Improved gross margins suggest better cost management and pricing power, which can lead to enhanced profitability over time.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Operating Profitability

Negative operating margins indicate ongoing challenges in achieving sustainable profitability, which could hinder long-term financial health.

Moderate Financial Stability

A moderate equity ratio reflects limited financial stability, which may affect the company's ability to withstand economic downturns or invest in growth.

Crossfor Co. Ltd. Business Overview & Revenue Model

Company Description

Crossfor Co. Ltd. is a Japanese company primarily engaged in the jewelry industry. The company is renowned for its patented 'Dancing Stone' technology, which allows the center stone in a piece of jewelry to move continuously, enhancing its brilliance. Crossfor offers a wide range of jewelry products, including necklaces, earrings, and rings, which are sold both domestically and internationally.

How the Company Makes Money

Crossfor Co. Ltd. generates revenue primarily through the design, manufacture, and sale of jewelry products that utilize its proprietary 'Dancing Stone' technology. The company licenses this technology to other jewelry manufacturers, generating licensing fees. Additionally, Crossfor benefits from strategic partnerships and collaborations with retailers and distributors worldwide, expanding its market reach and driving sales. Its revenue streams include direct sales of jewelry products to consumers, wholesale distribution to retailers, and licensing fees from patented technology.

Crossfor Co. Ltd. Financial Statement Overview

Summary

Crossfor Co. Ltd. is showing notable improvements in revenue growth and profitability metrics, signaling a positive trend, especially in cash flow generation. However, the company's high leverage continues to be a risk, and profitability at the operating level remains a challenge. Continued improvement in profitability and debt management will be crucial for sustaining financial health.

Income Statement

The company has shown a positive revenue growth rate of 13.58% in the last year, improving from previous declines. Gross profit margin has improved to 33.41% from 29.09%, indicating better cost management. However, the company is still facing challenges with profitability as both EBIT and EBITDA margins remain negative, albeit improving significantly from the previous year. The net profit margin turned positive at 0.83%, showing signs of recovery.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.78, indicating a leveraged position. Return on equity has improved from negative to 1.59%, reflecting better net income performance. The equity ratio stands at 34.31%, suggesting a moderate degree of financial stability. Overall, while improvements are noted, high debt remains a concern.

Cash Flow

The company exhibited a significant turnaround in free cash flow, moving from negative to positive. The operating cash flow to net income ratio is robust at 17.02, indicating strong cash generation relative to net income. Free cash flow to net income ratio is very high at 16.59, suggesting efficient conversion of revenue into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.60B	3.41B	3.01B	3.10B	2.81B	2.32B
Gross Profit	1.21B	1.14B	874.55M	1.05B	952.52M	754.13M
EBITDA	196.78M	172.59M	-104.68M	257.23M	1.46M	-426.32M
Net Income	80.90M	28.39M	-272.40M	221.51M	-113.65M	-611.83M
Balance Sheet
Total Assets	4.98B	5.22B	5.26B	5.19B	4.65B	5.20B
Cash, Cash Equivalents and Short-Term Investments	847.93M	958.54M	596.84M	735.60M	823.67M	1.35B
Total Debt	2.96B	3.19B	3.28B	2.81B	2.58B	3.13B
Total Liabilities	3.17B	3.43B	3.45B	3.06B	2.77B	3.22B
Stockholders Equity	1.80B	1.79B	1.81B	2.13B	1.89B	1.98B
Cash Flow
Free Cash Flow	0.00	471.00M	-567.26M	-374.58M	27.95M	42.09M
Operating Cash Flow	0.00	483.12M	-406.38M	-248.33M	176.38M	136.22M
Investing Cash Flow	0.00	-72.57M	-165.01M	-121.97M	-163.95M	-104.92M
Financing Cash Flow	0.00	-104.64M	415.55M	230.09M	-546.13M	610.47M

Crossfor Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7810, the sentiment is Negative. The current price of 161 is below the 20-day moving average (MA) of 161.65, below the 50-day MA of 161.80, and below the 200-day MA of 164.71, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7810.

Crossfor Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7878	72 Outperform	¥1.92B	23.29		4.02%	8.57%	-38.37%
9904	72 Outperform	¥9.99B	20.67		5.36%	3.88%	0.84%
7771	69 Neutral	¥2.25B	3.49		―	-1.41%	-155.66%
2736	62 Neutral	¥2.18B	11.45		1.15%	5.68%	-60.91%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.76B	37.41		0.22%	7.20%	34.29%