ACOM Co (8572) AI Stock Analysis

• Market Cap: ¥657.04B
• Dividend Yield: 3.43%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.81
• Revenue Growth: 7.81%
• EPS Growth: -39.49%
• Country: JP
• Employees: 5,404
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -9.44
• Shares Outstanding: 1,566,614,100
• 10 Day Avg. Volume: 1,597,940
• 30 Day Avg. Volume: 1,531,953
• PEG Ratio: 2.35
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 75 Outperform
• Price Target: ¥471.00 ▲(13.11%Upside)

The overall stock score of 75 is driven by strong technical indicators suggesting positive momentum and a stable financial position. However, declining profit margins and cash flow challenges, alongside a moderate valuation, present areas for improvement. The technical analysis is the most significant positive factor.

ACOM Co Business Overview & Revenue Model

Company Description

ACOM Co., Ltd. (8572) is a leading financial services company based in Japan, primarily engaged in the consumer finance sector. The company provides a range of financial products, including unsecured loans, credit card services, installment sales finance, and loan guarantees. ACOM is recognized for its innovative approach to lending and commitment to customer service, catering to both individual and corporate clients across Japan.

How the Company Makes Money

ACOM Co., Ltd. generates revenue primarily through interest income from its various lending operations, such as unsecured loans and credit cards. The company charges interest on the loans it provides to consumers, which constitutes a significant portion of its earnings. Additionally, ACOM earns fees from credit card transactions and installment sales finance services. The company's loan guarantee services also contribute to its revenue, as it partners with banks to offer guarantees on consumer loans, earning fees in return. ACOM's strategic partnerships with financial institutions and its extensive network of branches and automated loan machines enhance its ability to reach a broad customer base and maintain a steady flow of income.

ACOM Co Financial Statement Overview

Summary

ACOM Co exhibits strong profitability and a robust equity position with solid revenue growth and margins. However, it faces challenges in cash flow management, indicated by negative operating and free cash flows. The increasing debt levels could pose risks if not managed carefully.

Income Statement

ACOM Co shows strong profitability with a TTM gross profit margin of 90.33% and net profit margin of 18.64%. Revenue growth rate from the previous year is healthy at 12.89%. However, there is a slight decline in EBITDA margin compared to EBIT margin suggesting higher depreciation or amortization expenses.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 45.13% and a reasonable debt-to-equity ratio of 1.06. Return on Equity is strong at 8.81%, indicating effective use of equity. However, rising debt levels could pose risks if not managed carefully.

Cash Flow

ACOM Co faces challenges with cash flow management, indicated by negative operating cash flows and free cash flows in recent years. The trend of declining free cash flow growth and a negative free cash flow to net income ratio highlights potential liquidity concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
312.64B	294.73B	273.79B	262.15B	266.31B	279.50B
	Gross Profit
282.43B	288.04B	268.12B	255.34B	258.60B	269.50B
	EBIT
124.42B	90.57B	87.29B	34.78B	98.90B	75.64B
	EBITDA
97.88B	94.55B	95.47B	42.83B	107.84B	86.75B
	Net Income Common Stockholders
58.29B	53.09B	54.93B	55.68B	78.86B	59.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.05B	73.49B	57.67B	74.24B	83.32B	82.55B
	Total Assets
1.47T	1.42T	1.30T	1.26T	1.22T	1.28T
	Total Debt
704.20B	664.75B	581.17B	570.59B	609.99B	715.14B
	Net Debt
626.15B	591.26B	523.50B	496.34B	526.67B	632.59B
	Total Liabilities
753.00B	743.23B	677.48B	699.34B	703.98B	839.89B
	Stockholders Equity
661.86B	628.01B	581.09B	531.88B	485.68B	415.32B
Cash Flow		Free Cash Flow
0.00	-41.39B	-6.00B	41.61B	109.83B	16.05B
	Operating Cash Flow
0.00	-36.76B	-1.32B	46.09B	113.18B	19.70B
	Investing Cash Flow
0.00	-6.18B	-2.69B	-4.03B	-4.57B	6.21B
	Financing Cash Flow
0.00	57.16B	-12.93B	-50.16B	-108.79B	-24.34B

ACOM Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 416.40
• 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:8572, the sentiment is Positive. The current price of 416.4 is below the 20-day moving average (MA) of 417.85, above the 50-day MA of 393.67, and above the 200-day MA of 376.54, indicating a neutral trend. The MACD of 5.79 indicates Positive momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8572.

ACOM Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8572	75 Outperform	¥657.04B	20.31	4.89%	3.43%	7.81%	-39.49%
8584	75 Outperform	¥141.16B	7.51		4.72%	3.24%	-21.76%
8252	75 Outperform	$548.71B	21.14	10.51%	4.53%	8.15%	9.57%
8253	74 Outperform	¥646.44B	9.78	9.28%	4.00%	17.27%	-5.74%
8570	73 Outperform	¥280.04B	14.34	4.16%	3.87%	9.27%	-6.56%
8515	68 Neutral	€201.22B	8.74	10.80%	0.25%	10.29%	4.09%
Sector *	64 Neutral	$12.76B	9.77	7.59%	16985.66%	12.30%	-7.71%

ACOM Co Corporate Events

ACOM Co. Announces Corrections to Financial Results

ACOM Co., Ltd. has announced corrections to its previously released financial results for the fiscal year ended March 31, 2025. The amendment involves a minor adjustment in the quantitative outlook for the fiscal year ending March 2026, specifically in the combined receivables from its loan, credit card, and guarantee business, reflecting a slight increase from 2,601.6 billion yen to 2,601.9 billion yen.

ACOM Co. Reports Revenue Growth Amidst Profit Decline

ACOM Co., Ltd. announced its financial results for the fiscal year ending March 2025, reporting a 7.8% increase in operating revenues to 317,742 million yen. However, the company experienced a decline in profitability, with operating profit dropping by 32.2% and profit attributable to owners decreasing by 39.5%. Despite these challenges, ACOM’s total assets and net assets showed growth, indicating a stable financial position.

ACOM Co. Reports Mixed Financial Results for Fiscal Year 2025

ACOM Co., Ltd. reported its financial results for the fiscal year ended March 2025, showing a 7.8% increase in operating revenue to 317,742 million yen. However, the company experienced a significant decline in profits, with operating profit down by 32.2% and profit attributable to owners of the parent dropping by 39.5%. Despite these challenges, the company increased its annual dividend per share from 12.00 yen to 14.00 yen, indicating a commitment to returning value to shareholders. The financial results reflect the company’s ongoing efforts to navigate a challenging market environment, with implications for its financial stability and stakeholder confidence.

ACOM Revises Earnings Forecast Amid Interest Repayment Provisions

ACOM Co., Ltd. has revised its earnings forecast for the fiscal year ended March 2025 due to a significant provision for loss on interest repayment. The company anticipates a shortfall of 40 billion yen, leading to a decrease in expected profits across various metrics. This adjustment reflects a recalculation of interest repayment requests, impacting both consolidated and non-consolidated financial results. Despite a slight increase in operating revenue, the unscheduled provision has led to a substantial reduction in operating and ordinary profits, affecting stakeholders’ expectations.