Cleanup Corporation (7955) AI Stock Analysis

• Market Cap: ¥28.70B
• Dividend Yield: 4.05%
• Average Volume (3M): 40.78K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.54
• Revenue Growth: 2.12%
• EPS Growth: 56.08%
• Country: JP
• Employees: 3,503
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 12.72
• Shares Outstanding: 37,442,375
• 10 Day Avg. Volume: 41,990
• 30 Day Avg. Volume: 40,780
• 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: ¥844.00
• Price Target Upside: 8.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥844.00 ▲(8.21% Upside)

Cleanup Corporation's strong financial performance, characterized by robust revenue growth and cash flow generation, is a key strength. The stock's technical indicators suggest a positive trend, and its valuation is attractive with a reasonable P/E ratio and a high dividend yield. These factors contribute to a solid overall stock score.

Cleanup Corporation Business Overview & Revenue Model

Company Description

Cleanup Corporation (7955) is a leading provider of waste management and environmental cleanup services, specializing in industrial, residential, and commercial sectors. The company offers a comprehensive range of services including hazardous waste disposal, recycling, waste collection, and remediation of contaminated sites. With a commitment to sustainability, Cleanup Corporation utilizes innovative technologies and practices to minimize environmental impact while ensuring compliance with regulatory standards.

How the Company Makes Money

Cleanup Corporation generates revenue through multiple streams, primarily from service fees charged for waste management and cleanup operations. The company enters contracts with municipalities and private businesses for regular waste collection and recycling services, providing a stable income source. Additionally, Cleanup Corporation offers specialized services such as hazardous materials handling and site remediation, which command higher fees due to their complexity and regulatory requirements. The company also benefits from partnerships with various industries, including construction and manufacturing, which provide ongoing contracts for waste disposal and environmental compliance services. Furthermore, government contracts play a significant role in the company’s revenue, as municipalities and federal agencies often seek reliable partners for waste management solutions. Overall, Cleanup Corporation's diverse service offerings and strategic partnerships contribute to its robust financial performance.

Cleanup Corporation Financial Statement Overview

Summary

Cleanup Corporation demonstrates robust revenue growth and strong cash flow generation, supported by a stable balance sheet with low leverage. While profitability margins are relatively low, the company's financial health is solid, with opportunities to enhance operational efficiency and profitability.

Income Statement

Cleanup Corporation has shown strong revenue growth, particularly in the TTM period with a 35.3% increase. Gross profit margins are stable around 31.6%, indicating efficient cost management. However, net profit margins are relatively low at 1.32%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.13, indicating low leverage and financial stability. Return on equity is modest at 3.03%, suggesting moderate efficiency in generating returns from equity. The equity ratio stands at 64.4%, highlighting a strong equity base relative to total assets.

Cash Flow

Free cash flow has grown significantly by 160.1% in the TTM period, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.16, indicating adequate cash flow relative to net income. The free cash flow to net income ratio of 0.24 suggests a solid conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.45B	129.99B	127.98B	124.01B	113.31B	104.19B
Gross Profit	41.54B	41.12B	39.94B	39.59B	38.57B	35.49B
EBITDA	8.15B	7.94B	6.52B	6.24B	7.38B	5.75B
Net Income	1.99B	1.72B	1.47B	2.52B	3.15B	1.75B
Balance Sheet
Total Assets	88.54B	90.48B	91.19B	87.94B	85.29B	83.94B
Cash, Cash Equivalents and Short-Term Investments	17.23B	19.23B	19.07B	22.53B	22.78B	22.86B
Total Debt	5.26B	7.18B	5.76B	4.55B	5.29B	7.87B
Total Liabilities	31.48B	33.38B	34.52B	32.08B	30.65B	31.18B
Stockholders Equity	57.05B	57.10B	56.67B	55.86B	54.63B	52.76B
Cash Flow
Free Cash Flow	2.75B	1.06B	-3.62B	918.00M	2.92B	1.03B
Operating Cash Flow	5.50B	4.35B	2.43B	4.30B	5.78B	2.66B
Investing Cash Flow	-4.24B	-4.50B	-5.36B	-2.29B	-2.62B	-1.60B
Financing Cash Flow	-2.93B	251.00M	-572.00M	-2.02B	-3.64B	1.23B

Cleanup Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 780.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7955, the sentiment is Positive. The current price of 780 is above the 20-day moving average (MA) of 772.40, above the 50-day MA of 749.64, and above the 200-day MA of 669.41, indicating a bullish trend. The MACD of 7.91 indicates Positive momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7955.

Cleanup Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	75 Outperform	¥28.70B	13.84	―	4.05%	2.12%	56.08%
7989	73 Outperform	¥40.25B	12.56	―	2.57%	2.31%	2.20%
8119	71 Outperform	¥8.12B	15.97	―	4.47%	-4.39%	-58.25%
7981	63 Neutral	¥168.79B	14.03	―	3.11%	5.38%	27.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	45 Neutral	¥10.47B	361.43	―	4.29%	0.89%	-99.30%

Cleanup Corporation Corporate Events

Cleanup Corporation Exceeds Profit Forecasts Amid Industry Challenges

Cleanup Corporation reported a significant difference between its forecasted and actual earnings for the fiscal year ending March 31, 2025. Despite challenges in the home appliance industry, including sluggish home ownership growth and rising costs, the company exceeded its profit forecasts due to cost reduction measures and effective selling price revisions.

Cleanup Corporation Reports Improved Profits and Positive Outlook

Cleanup Corporation reported a modest increase in net sales by 1.6% for the fiscal year ending March 31, 2025, with significant improvements in operating and ordinary profits by 61.5% and 44.8% respectively. The company’s financial position remains stable with a slight increase in equity-to-asset ratio, and it forecasts continued growth in the next fiscal year, indicating a positive outlook for stakeholders.