SPACE CO., LTD. (9622) AI Stock Analysis

• Market Cap: ¥36.03B
• Dividend Yield: 1.95%
• Average Volume (3M): 36.58K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.62
• Revenue Growth: 12.65%
• EPS Growth: 22.92%
• Country: JP
• Employees: 877
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 27.73
• Shares Outstanding: 26,600,320
• 10 Day Avg. Volume: 29,990
• 30 Day Avg. Volume: 36,580
• PEG Ratio: 0.21
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 15.64
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,529.00 ▲(4.80% Upside)

SPACE CO., LTD. scores well due to its strong financial performance, characterized by consistent revenue and profit growth, a robust balance sheet, and effective cash flow management. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis indicates a neutral to slightly bearish short-term trend, but the positive MACD suggests potential for future gains.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company well for future expansion.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for strategic investments.

Cash Flow Generation

Robust cash flow generation supports operational needs and strategic initiatives, ensuring long-term financial health and growth potential.

Negative Factors

Operating Cash Flow Decline

Declining operating cash flow may indicate challenges in sustaining operational efficiency, potentially impacting future liquidity and investment capacity.

Comprehensive Income Decrease

A decrease in comprehensive income could signal underlying issues affecting overall profitability, requiring strategic adjustments to maintain growth.

Potential Financial Structuring Impact

The disposal of treasury shares may affect financial structuring and stakeholder interests, potentially impacting future capital allocation strategies.

SPACE CO., LTD. Business Overview & Revenue Model

Company Description

SPACE CO., LTD. (9622) is a prominent company specializing in the design, development, and manufacturing of advanced aerospace technologies and solutions. Operating primarily in the aerospace sector, the company focuses on creating innovative products and services related to satellite communications, space exploration, and defense systems. SPACE CO., LTD. aims to enhance global connectivity and security through its cutting-edge technologies and strategic partnerships within the aerospace industry.

How the Company Makes Money

SPACE CO., LTD. generates revenue through multiple streams, primarily by selling high-tech aerospace equipment, satellite systems, and providing engineering services to both commercial and governmental clients. The company earns significant income from contracts with national space agencies and defense organizations for satellite launches and related services. Additionally, SPACE CO., LTD. benefits from partnerships with technology firms and research institutions to develop next-generation aerospace solutions, which further diversifies its revenue. Ongoing projects, maintenance contracts, and licensing agreements also contribute to its overall earnings.

SPACE CO., LTD. Financial Statement Overview

Summary

SPACE CO., LTD. presents a strong financial position with consistent revenue and profit growth, a robust balance sheet, and effective cash flow management. The company demonstrates stability and a low-risk profile, making it well-positioned for future growth and resilience against industry fluctuations.

Income Statement

SPACE CO., LTD. shows strong financial performance with a consistent revenue growth, achieving a 21.56% increase in 2024. The gross profit margin stands at 11.03%, and the net profit margin improved to 3.98% in 2024, indicating effective cost management. EBIT and EBITDA margins are robust at 5.42% and 6.13%, respectively. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The balance sheet of SPACE CO., LTD. is solid, with a low debt-to-equity ratio of 0.002, showcasing financial stability. The return on equity (ROE) is a healthy 7.83%, reflecting efficient use of equity capital. The equity ratio is strong at 79.66%, indicating a sound capital structure with low leverage risk. Overall, the balance sheet demonstrates financial strength and low risk of financial distress.

Cash Flow

The company displays positive cash flow generation, with a significant increase in free cash flow by 137.51% in 2024. The operating cash flow to net income ratio is 0.80, and the free cash flow to net income ratio is 0.69, indicating efficient cash utilization relative to net income. However, a slight decline in operating cash flow over the years poses a minor concern. Despite this, cash flow remains strong and supports financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.93B	64.18B	52.79B	46.71B	42.41B	40.03B
Gross Profit	7.47B	7.08B	6.11B	4.82B	4.78B	3.93B
EBITDA	4.45B	4.00B	3.12B	2.51B	2.69B	2.00B
Net Income	2.88B	2.55B	1.69B	1.39B	1.51B	1.10B
Balance Sheet
Total Assets	43.53B	40.95B	37.63B	35.40B	34.62B	33.77B
Cash, Cash Equivalents and Short-Term Investments	16.13B	13.85B	13.15B	14.05B	15.14B	13.62B
Total Debt	55.44M	60.12M	62.34M	61.13M	63.48M	4.74M
Total Liabilities	10.00B	8.27B	6.87B	5.81B	5.32B	5.33B
Stockholders Equity	33.47B	32.62B	30.70B	29.56B	29.28B	28.42B
Cash Flow
Free Cash Flow	0.00	1.75B	738.17M	-104.25M	2.25B	3.50B
Operating Cash Flow	0.00	2.05B	2.13B	-29.79M	2.28B	3.82B
Investing Cash Flow	0.00	630.42M	-3.17B	-82.08M	-89.93M	311.31M
Financing Cash Flow	0.00	-1.03B	-882.28M	-1.01B	-830.21M	-1.04B

SPACE CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1459.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9622, the sentiment is Positive. The current price of 1459 is above the 20-day moving average (MA) of 1435.35, above the 50-day MA of 1406.26, and above the 200-day MA of 1232.84, indicating a bullish trend. The MACD of 26.15 indicates Negative momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 59.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9622.

SPACE CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	80 Outperform	¥27.56B	13.66	―	2.33%	3.01%	-13.60%
6542	79 Outperform	¥8.75B	11.36	―	3.19%	1.85%	8.25%
9622	74 Outperform	¥36.03B	11.05	―	1.95%	12.65%	22.92%
6540	74 Outperform	¥18.77B	12.42	―	0.57%	13.31%	4.29%
9788	71 Outperform	¥23.45B	14.57	―	4.20%	5.13%	22.57%
9612	69 Neutral	¥17.44B	7.67	―	―	15.30%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SPACE CO., LTD. Corporate Events

SPACE CO., LTD. Reports Strong First Half 2025 Financial Results

SPACE CO., LTD. reported a positive financial performance for the first half of 2025, with net sales increasing by 6.6% and operating profit rising by 18.5% compared to the previous year. The company anticipates continued growth for the full year, projecting a 2% increase in net sales and a significant rise in profits, indicating strong operational momentum and potential benefits for investors.

SPACE CO., LTD. Revises 2025 Financial and Dividend Forecasts Upward

SPACE CO., LTD. has revised its financial forecasts for the first half and full year of 2025, citing increased demand in the specialty store and restaurant sectors. The company expects higher net sales and profits than initially projected, leading to an upward revision of its dividend forecast, with the annual dividend now anticipated to be 60 yen per share, reflecting a 6 yen increase from previous estimates.