Lovable Marketing Group, Inc. (9254) AI Stock Analysis

• Market Cap: ¥1.76B
• Dividend Yield: N/A
• Average Volume (3M): 5.72K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 187
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): 37.02
• Shares Outstanding: 1,446,775
• 10 Day Avg. Volume: 1,610
• 30 Day Avg. Volume: 5,723
• PEG Ratio: -1.78
• Price to Book (P/B): 5.84
• 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: ¥1,513.00
• Price Target Upside: 5.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,554.00 ▲(8.29%Upside)

The overall score is driven primarily by the company's strong financial performance, which highlights impressive revenue growth and cash flow generation. However, the high leverage and past volatility in financial metrics present risks. Technical analysis suggests a neutral to slightly bullish trend, but high valuation metrics without a dividend yield may cap further stock price appreciation.

Lovable Marketing Group, Inc. Business Overview & Revenue Model

Company Description

Lovable Marketing Group, Inc. (9254) is a dynamic marketing firm specializing in digital marketing solutions and brand development strategies. The company operates within the advertising and marketing sector, offering a range of services including social media management, content creation, and digital advertising campaigns designed to enhance brand visibility and engagement.

How the Company Makes Money

Lovable Marketing Group, Inc. generates revenue primarily through service fees charged for its marketing solutions. The company offers customized marketing packages that clients subscribe to, which may include strategic planning, execution of digital campaigns, and ongoing support. Key revenue streams include project-based fees, monthly retainers for ongoing services, and commissions from partnerships with digital advertising platforms. The company's earnings are also bolstered by significant partnerships with technology providers and media companies, enabling them to offer comprehensive and cutting-edge marketing strategies to their clients.

Lovable Marketing Group, Inc. Financial Statement Overview

Summary

Lovable Marketing Group, Inc. exhibits strong financial health with impressive revenue and profit growth, efficient operations, and robust cash flow generation. However, high leverage and past volatility in financial performance pose potential risks.

Income Statement

Lovable Marketing Group, Inc. has demonstrated strong revenue growth of 20.8% year-over-year. Gross profit margin is impressive at 52.2%, indicating efficient cost management. The net profit margin improved to 3.4%, showing enhanced profitability. EBIT and EBITDA margins are at 6.3% and 8.5%, respectively, reflecting solid operational efficiency. However, there has been volatility in EBITDA growth in prior years, which poses a risk.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 15.7%, suggesting moderate financial stability. The debt-to-equity ratio is high at 3.57, indicating significant leverage, which could be risky if not managed properly. Return on equity at 26.8% is strong, showcasing effective use of shareholder capital. However, the declining stockholders' equity over recent periods is a concern.

Cash Flow

Operating cash flow to net income ratio is robust at 3.6, indicating strong cash generation relative to profits. Free cash flow growth is substantial at 211.5%, reflecting efficient capital expenditure management. Free cash flow to net income ratio is exceptionally strong at 3.53, underscoring the company's ability to generate cash relative to its net income. Past fluctuations in cash flows should be monitored.

Breakdown	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.16B	1.79B	1.65B	1.39B	963.64M
Gross Profit	1.13B	938.67M	880.77M	808.84M	482.75M
EBITDA	184.80M	117.86M	94.58M	196.36M	-9.82M
Net Income	72.61M	62.00M	44.35M	91.22M	-33.25M
Balance Sheet
Total Assets	1.73B	1.41B	1.41B	1.33B	782.60M
Cash, Cash Equivalents and Short-Term Investments	986.41M	668.00M	750.63M	863.91M	440.23M
Total Debt	966.72M	551.00M	552.23M	419.91M	492.02M
Total Liabilities	1.42B	832.00M	858.68M	862.00M	674.30M
Stockholders Equity	270.58M	551.00M	534.00M	450.31M	99.23M
Cash Flow
Free Cash Flow	256.20M	82.29M	-231.97M	226.96M	-26.27M
Operating Cash Flow	261.41M	89.14M	-176.20M	227.18M	-21.72M
Investing Cash Flow	-9.42M	-231.43M	-108.74M	13.77M	4.42M
Financing Cash Flow	65.36M	-302.00K	171.66M	182.74M	84.06M

Lovable Marketing Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1435.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9254, the sentiment is Positive. The current price of 1435 is above the 20-day moving average (MA) of 1415.20, above the 50-day MA of 1406.04, and above the 200-day MA of 1431.81, indicating a bullish trend. The MACD of 8.94 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9254.

Lovable Marketing Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	71 Outperform	¥1.77B	19.64		0.89%	9.15%	2289.13%
9254	70 Outperform	¥1.76B	38.62		―	―	―
7357	65 Neutral	¥3.23B	264.75		1.72%	4.86%	-49.46%
9241	59 Neutral	¥1.33B	65.32		―	-0.09%	―
Sector *	58 Neutral	kr14.52B	5.09	19.17%	3.61%	-8.59%	7.48%
9244	56 Neutral	¥1.54B	―		―	1.08%	-1287.36%
6177	44 Neutral	¥1.77B	―		―	102.89%	54.40%