NOVARESE,Inc. (9160) AI Stock Analysis

• Market Cap: ¥8.02B
• Dividend Yield: N/A
• Average Volume (3M): 14.16K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.42
• Revenue Growth: 6.07%
• EPS Growth: -20.19%
• Country: JP
• Employees: 1,130
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Personal Products & Services
• EPS (TTM): 13.49
• Shares Outstanding: 25,073,093
• 10 Day Avg. Volume: 16,390
• 30 Day Avg. Volume: 14,163
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥350.00
• Price Target Upside: 9.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥350.00 ▲(9.38% Upside)

NOVARESE, Inc. showcases strong financial performance with excellent cash flow management and an attractive valuation due to a low P/E ratio. Technical indicators present a stable outlook, with no significant momentum shifts. Despite high leverage, the company's growth and profitability are promising, making it a compelling choice in its industry.

NOVARESE,Inc. Business Overview & Revenue Model

Company Description

NOVARESE, Inc. is a Japan-based company primarily engaged in the bridal and hospitality industry. Established in 2000, the company specializes in the planning, production, and operation of weddings and receptions, as well as the management of banquet halls and restaurants. NOVARESE aims to provide exceptional experiences for its clients through its extensive range of services, focusing on personalized wedding planning and high-quality hospitality.

How the Company Makes Money

NOVARESE, Inc. generates revenue primarily through its wedding and banquet services. The company earns money by organizing and executing wedding ceremonies and receptions, offering a variety of packages that include venue rental, catering, event planning, and coordination services. In addition to weddings, NOVARESE operates banquet halls and restaurants, contributing to its revenue through event hosting and dining services. Key revenue streams include fees for wedding packages, venue hire, and catering services. The company's success is bolstered by its reputation for personalized service and high-quality hospitality, attracting a steady clientele in Japan's competitive bridal market.

NOVARESE,Inc. Financial Statement Overview

Summary

NOVARESE, Inc. exhibits strong revenue and cash flow growth with impressive operational efficiencies, despite high leverage. The company maintains a healthy profit margin and cash flow ratios, although debt levels pose potential risks.

Income Statement

NOVARESE, Inc. shows strong revenue growth with a significant increase from 2021 to 2025, reflecting a consistent recovery and expansion. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 56.36%, indicating strong cost management. Net profit margin stands at a solid 4.06% for TTM, with positive EBIT and EBITDA margins at 7.56% and 20.26% respectively, showcasing improved operational efficiency. However, the decline in EBIT compared to earlier periods needs to be monitored.

Balance Sheet

The company's balance sheet presents a high debt-to-equity ratio of 2.29, pointing to significant leverage, which could pose risks in fluctuating interest rate environments. Return on Equity (ROE) for TTM is 9.17%, showing effective use of equity to generate profits. The equity ratio is moderate at 25.56%, indicating a balanced approach between debt and equity financing. Improvements in stockholder equity over time highlight growth potential.

Cash Flow

NOVARESE, Inc. has demonstrated robust cash flow management, with a strong free cash flow growth rate evident from consistent positive free cash flows. The operating cash flow to net income ratio is 4.74 for TTM, indicating excellent cash generation from operations. The free cash flow to net income ratio is 3.11, reinforcing strong liquidity and the ability to reinvest in growth opportunities. However, declining cash flow from financing activities may limit future leverage options.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.76B	19.30B	18.27B	17.22B	11.19B	7.33B
Gross Profit	11.14B	10.86B	10.18B	10.14B	6.40B	3.40B
EBITDA	4.00B	3.82B	3.91B	4.93B	2.93B	-1.71B
Net Income	801.61M	663.90M	942.27M	1.66B	374.02M	-2.95B
Balance Sheet
Total Assets	34.19B	34.73B	32.30B	31.98B	32.63B	33.86B
Cash, Cash Equivalents and Short-Term Investments	3.12B	3.57B	1.74B	2.82B	2.25B	2.34B
Total Debt	20.00B	13.53B	13.09B	14.13B	22.31B	23.25B
Total Liabilities	25.45B	25.89B	24.12B	24.75B	27.04B	28.64B
Stockholders Equity	8.74B	8.85B	8.18B	7.23B	5.59B	5.22B
Cash Flow
Free Cash Flow	2.49B	2.50B	1.02B	3.26B	2.15B	-2.49B
Operating Cash Flow	3.80B	3.89B	3.00B	4.62B	2.37B	-912.07M
Investing Cash Flow	-1.38B	-1.45B	-2.03B	-1.34B	-253.64M	-1.58B
Financing Cash Flow	-1.95B	-621.47M	-2.04B	-2.73B	-2.21B	1.71B

NOVARESE,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.00
• 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:9160, the sentiment is Positive. The current price of 320 is above the 20-day moving average (MA) of 316.65, above the 50-day MA of 313.92, and above the 200-day MA of 315.49, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9160.

NOVARESE,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2485	81 Outperform	¥13.60B	11.22		3.31%	25.26%	65.66%
4331	78 Outperform	¥13.14B	4.55		4.12%	0.81%	61.06%
2198	76 Outperform	¥23.47B	17.97		3.02%	-1.20%	-30.27%
9160	74 Outperform	¥8.02B	8.88		―	6.07%	-20.19%
2424	72 Outperform	¥3.87B	9.11		1.16%	1.35%	17.94%
2196	71 Outperform	¥3.01B	23.79		―	-3.96%	-73.55%
Sector *	59 Neutral	€9.01B	10.49	-13.89%	4.55%	0.76%	-39.51%