Crossfor Co. Ltd. (7810) AI Stock Analysis

• Market Cap: ¥2.90B
• Dividend Yield: 0.2%
• Average Volume (3M): 26.87K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.39
• Revenue Growth: 7.20%
• EPS Growth: 34.29%
• Country: JP
• Employees: 74
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): -1.77
• Shares Outstanding: 17,845,000
• 10 Day Avg. Volume: 44,060
• 30 Day Avg. Volume: 26,866
• PEG Ratio: 0.00
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 126.34
• 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

• Rating: 54 Neutral
• Price Target: ¥180.00 ▲(5.88%Upside)

The overall stock score is driven primarily by financial performance, which shows improvements in growth and cash flow but is offset by high leverage and operating profitability challenges. Technical analysis indicates bearish momentum, and the valuation suggests overvaluation with a negative P/E ratio. The lack of earnings call and corporate event data means these factors do not influence the score.

Crossfor Co. Ltd. Business Overview & Revenue Model

Company Description

Crossfor Co. Ltd. (7810) is a Japanese company primarily engaged in the jewelry industry. It is renowned for its innovative designs, particularly the 'Dancing Stone' mechanism, which allows a gemstone to move continuously and sparkle with minimal motion. The company is involved in designing, manufacturing, and selling jewelry pieces, including necklaces, earrings, and rings, both domestically and internationally.

How the Company Makes Money

Crossfor Co. Ltd. generates revenue through the sale of its jewelry products, prominently featuring its unique 'Dancing Stone' technology. The company sells its products through various channels, including direct retail, online platforms, and partnerships with other retailers and jewelers. Additionally, it licenses its 'Dancing Stone' mechanism to other jewelry manufacturers, generating licensing fees. Crossfor Co. Ltd. also engages in partnerships and collaborations to expand its market presence and enhance its brand appeal globally.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.49B	3.41B	3.01B	3.10B	2.81B	2.32B
Gross Profit	1.18B	1.14B	874.55M	1.05B	952.52M	754.13M
EBITDA	110.02M	172.59M	-104.68M	257.23M	1.46M	-426.32M
Net Income	23.23M	28.39M	-272.40M	221.51M	-113.65M	-611.83M
Balance Sheet
Total Assets	5.11B	5.22B	5.26B	5.19B	4.65B	5.20B
Cash, Cash Equivalents and Short-Term Investments	572.00M	958.54M	596.84M	735.60M	823.67M	1.35B
Total Debt	3.04B	3.19B	3.28B	2.81B	2.58B	3.13B
Total Liabilities	3.31B	3.43B	3.45B	3.06B	2.77B	3.22B
Stockholders Equity	1.79B	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: 170.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 170 is below the 20-day moving average (MA) of 177.45, below the 50-day MA of 177.42, and above the 200-day MA of 166.74, indicating a neutral trend. The MACD of -1.44 indicates Positive momentum. The RSI at 38.26 is Neutral, neither overbought nor oversold. The STOCH value of 4.60 is Positive, 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
9904	76 Outperform	¥9.99B	17.55		5.70%	4.03%	13.35%
7878	72 Outperform	¥1.56B	18.86		5.01%	8.57%	-38.37%
7771	67 Neutral	¥1.85B	3.49		―	6.39%	-105.12%
2736	66 Neutral	¥2.35B	12.41		1.02%	9.40%	-56.59%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
7810	54 Neutral	¥2.90B	37.41		0.20%	7.20%	34.29%
7872	49 Neutral	¥6.09B	―		4.71%	-1.35%	64.68%