NOVARESE,Inc. (9160) AI Stock Analysis

• Market Cap: ¥8.25B
• Dividend Yield: N/A
• Average Volume (3M): 19.82K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.35
• Revenue Growth: 11.07%
• EPS Growth: 5.85%
• Country: JP
• Employees: 1,130
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Personal Products & Services
• EPS (TTM): 13.49
• Shares Outstanding: 25,073,093
• 10 Day Avg. Volume: 17,540
• 30 Day Avg. Volume: 19,823
• 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: ¥369.00
• Price Target Upside: 12.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥369.00 ▲(12.16% Upside)

NOVARESE, Inc. has a solid overall stock score driven by strong technical analysis and a favorable valuation. The company's financial performance shows promise with revenue growth and profitability improvements, but high leverage and cash flow challenges need attention. The stock's bullish momentum is a positive indicator, though investors should be cautious of potential overbought conditions.

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. demonstrates strong revenue growth and improving profitability metrics, though it faces challenges with high leverage and cash flow generation. The company is on a positive trajectory, but needs to address its debt levels and enhance cash flow stability to ensure long-term financial health.

Income Statement

NOVARESE, Inc. shows a solid revenue growth rate of 3.9% TTM, with consistent improvements in EBIT and EBITDA margins. However, the net profit margin remains modest at 4.1%, indicating room for profitability enhancement. The company has successfully increased its gross profit margin over time, reflecting efficient cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 2.29, suggesting significant leverage. However, the return on equity is improving, currently at 9.5%, indicating effective use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure.

Cash Flow

The free cash flow growth rate is negative at -8.8% TTM, indicating challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion, but the free cash flow to net income ratio indicates potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.53B	19.30B	18.27B	17.22B	11.19B	7.33B
Gross Profit	11.52B	10.86B	10.18B	10.14B	6.40B	3.40B
EBITDA	4.19B	3.82B	3.91B	4.93B	2.93B	-1.75B
Net Income	899.56M	663.90M	942.27M	1.66B	374.02M	-2.95B
Balance Sheet
Total Assets	34.52B	34.73B	32.30B	31.98B	32.63B	33.86B
Cash, Cash Equivalents and Short-Term Investments	2.40B	3.57B	1.72B	2.80B	2.25B	2.34B
Total Debt	14.34B	13.53B	19.01B	14.13B	22.31B	23.25B
Total Liabilities	25.44B	25.89B	24.12B	24.75B	27.04B	28.64B
Stockholders Equity	9.08B	8.85B	8.18B	7.23B	5.59B	5.22B
Cash Flow
Free Cash Flow	2.27B	2.50B	1.02B	3.26B	2.15B	-2.49B
Operating Cash Flow	3.93B	3.89B	3.00B	4.62B	2.37B	-912.07M
Investing Cash Flow	-1.81B	-1.45B	-2.03B	-1.34B	-253.64M	-1.58B
Financing Cash Flow	-2.39B	-621.47M	-2.04B	-2.73B	-2.21B	1.71B

NOVARESE,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 329.00
• 50DMA: Positive
• 100DMA: Positive
• 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:9160, the sentiment is Positive. The current price of 329 is above the 20-day moving average (MA) of 327.80, above the 50-day MA of 319.68, and above the 200-day MA of 315.13, indicating a bullish trend. The MACD of 2.93 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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	¥12.06B	9.96		3.73%	25.26%	65.66%
2198	76 Outperform	¥23.68B	18.12		2.98%	-1.20%	-30.27%
4331	75 Outperform	¥12.58B	4.36		4.67%	0.81%	61.06%
9160	73 Outperform	¥8.25B	9.13		―	11.07%	5.85%
2424	72 Outperform	¥3.90B	9.18		1.16%	1.35%	17.94%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%
2196	60 Neutral	¥3.01B	23.79		―	-3.96%	-73.55%