CERESPO CO., LTD. (9625) AI Stock Analysis

• Market Cap: ¥5.97B
• Dividend Yield: 2.24%
• Average Volume (3M): 19.97K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.39
• Revenue Growth: 48.94%
• EPS Growth: -205.25%
• Country: JP
• Employees: 388
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -9.90
• Shares Outstanding: 5,703,500
• 10 Day Avg. Volume: 19,940
• 30 Day Avg. Volume: 19,966
• 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: ¥1,085.00
• Price Target Upside: 1.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥1,085.00 ▲(1.02% Upside)

The overall stock score reflects significant financial challenges, particularly in profitability and valuation. The strong balance sheet and cash flow improvements offer some resilience, but bearish technical indicators and a negative P/E ratio weigh heavily on the stock's outlook.

CERESPO CO., LTD. Business Overview & Revenue Model

Company Description

CERESPO CO., LTD. (9625) is a Japan-based company primarily engaged in the provision of comprehensive event management services. The company operates across various sectors including corporate events, sports events, exhibitions, and cultural events. CERESPO offers a wide range of services from planning, production, and operation to post-event services, ensuring smooth execution and effective engagement for its clients.

How the Company Makes Money

CERESPO CO., LTD. makes money through its diverse range of event management services. The company's revenue model is built on providing end-to-end event solutions, which include planning, logistics, production, and execution of events. Key revenue streams include fees for project management, creative services, equipment rentals, and on-site event execution. The company also partners with other businesses and organizations to co-host events, which can lead to shared revenue opportunities. Additionally, CERESPO may generate income from sponsorship arrangements and advertising opportunities related to the events they manage. Their expertise in handling large-scale events and tailored services for different industries significantly contributes to their earnings.

CERESPO CO., LTD. Financial Statement Overview

Summary

CERESPO CO., LTD. faces profitability challenges with declining revenue and negative income. However, a strong balance sheet with substantial cash reserves provides financial resilience. Cash flow improvements are promising but need to be sustained to offset operational risks.

Income Statement

The income statement indicates declining revenue and a shift from profit to loss over recent years. Gross profit margin and net profit margin have deteriorated, reflecting challenges in maintaining profitability. Revenue growth has been negative, signaling a need for strategic adjustments.

Balance Sheet

The balance sheet shows strong liquidity with significant cash reserves and low net debt, which implies financial stability. The debt-to-equity ratio is low, suggesting conservative leverage, and the equity ratio remains high, indicating a solid financial structure. However, declining stockholder's equity is a concern.

Cash Flow

Cash flow analysis reveals volatility, with recent improvements in free cash flow following periods of negative cash flow. Operating cash flow has rebounded, but past fluctuations highlight potential operational risks. Strong cash flow to net income ratios in recent periods suggest improved cash generation relative to reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.67B	13.67B	8.96B	19.93B	27.01B	4.39B
Gross Profit	4.54B	4.49B	3.00B	6.87B	10.50B	1.11B
EBITDA	-155.51M	-433.03M	-312.26M	3.19B	6.81B	-1.45B
Net Income	-765.34M	-764.99M	-269.44M	2.07B	4.64B	-1.11B
Balance Sheet
Total Assets	13.04B	13.04B	12.15B	14.65B	15.72B	8.44B
Cash, Cash Equivalents and Short-Term Investments	6.79B	6.79B	6.44B	8.09B	7.72B	1.37B
Total Debt	564.62M	564.62M	574.79M	587.29M	615.90M	1.96B
Total Liabilities	3.88B	3.88B	2.13B	3.85B	6.45B	3.89B
Stockholders Equity	9.15B	9.15B	10.03B	10.80B	9.26B	4.55B
Cash Flow
Free Cash Flow	0.00	492.70M	-1.12B	961.82M	7.76B	-2.36B
Operating Cash Flow	0.00	510.26M	-1.08B	1.05B	7.77B	-2.34B
Investing Cash Flow	0.00	-12.72M	-27.34M	-82.63M	-11.58M	44.07M
Financing Cash Flow	0.00	-141.11M	-545.00M	-595.15M	-1.41B	944.54M

CERESPO CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1074.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9625, the sentiment is Neutral. The current price of 1074 is below the 20-day moving average (MA) of 1079.65, below the 50-day MA of 1086.22, and above the 200-day MA of 1055.37, indicating a neutral trend. The MACD of -5.50 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9625.

CERESPO CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	81 Outperform	¥10.67B	9.28	―	3.17%	-5.34%	-21.28%
2180	78 Outperform	¥11.30B	11.79	―	2.93%	9.38%	19.30%
2411	74 Outperform	¥5.25B	10.78	―	4.91%	5.94%	590.54%
2139	66 Neutral	¥2.90B	24.67	―	2.83%	5.42%	-33.20%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	57 Neutral	¥8.14B	73.82	―	2.44%	11.99%	-125.90%
9625	51 Neutral	¥5.97B	21.77	―	2.24%	48.94%	-205.25%