Marubeni Construction Material Lease Co., Ltd. (9763) AI Stock Analysis

• Market Cap: ¥11.68B
• Dividend Yield: 3.71%
• Average Volume (3M): 13.00K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.71
• Revenue Growth: 9.16%
• EPS Growth: 6.01%
• Country: JP
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 103.18
• Shares Outstanding: 3,429,440
• 10 Day Avg. Volume: 8,330
• 30 Day Avg. Volume: 12,996
• 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: ¥3,348.00
• Price Target Upside: -4.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥3,348.00 ▼(-4.48% Downside)

The stock is supported by strong financial performance and attractive valuation metrics. However, technical indicators are weak, reflecting negative momentum. The absence of updates from earnings calls or corporate events places greater emphasis on financial data.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for leasing services and effective market penetration, supporting long-term business expansion.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability

Stable profitability margins reflect efficient cost management and robust operational performance, ensuring sustainable earnings over time.

Negative Factors

Cash Flow Management

Negative free cash flow suggests challenges in cash management, which could impact the company's ability to fund operations and growth initiatives.

Operating Cash Flow

Low operating cash flow relative to net income indicates potential inefficiencies in converting earnings into cash, which may affect liquidity.

Debt Increase

Rising debt levels could lead to increased financial risk and interest obligations, potentially constraining future financial flexibility.

Marubeni Construction Material Lease Co., Ltd. Business Overview & Revenue Model

Company Description

Marubeni Construction Material Lease Co., Ltd. (9763) is a Japanese company specializing in the leasing of construction machinery and equipment. The company operates in the construction industry, providing essential tools and machinery required for various construction projects. By offering a wide range of leased products, Marubeni Construction Material Lease Co., Ltd. supports infrastructure development and construction activities across different sectors.

How the Company Makes Money

Marubeni Construction Material Lease Co., Ltd. generates revenue primarily through the leasing of construction machinery and equipment to businesses involved in construction projects. The company offers flexible leasing terms and a broad selection of machinery, allowing clients to access necessary equipment without the need for large capital investments. This leasing model provides a steady stream of income as clients pay for the use of equipment over agreed periods. Additionally, the company may benefit from maintenance and service contracts associated with the leased equipment, further contributing to its revenue. Strategic partnerships with construction firms and equipment manufacturers also play a vital role in maintaining a competitive edge and expanding the customer base.

Marubeni Construction Material Lease Co., Ltd. Financial Statement Overview

Summary

The company demonstrates solid revenue growth and profitability with a strong balance sheet, evidenced by a low debt-to-equity ratio and a healthy equity ratio. However, there are cash flow management challenges, as indicated by a decline in free cash flow and a low operating cash flow to net income ratio.

Income Statement

The company has shown a consistent increase in revenue over the years, with a substantial revenue growth rate of 6.95% in the most recent year. The gross profit margin stands at 18.95%, and the net profit margin is 5.34%, indicating stable profitability. The EBIT margin and EBITDA margin are 6.64% and 8.50%, respectively, reflecting efficient operational management and a strong capacity to generate earnings before interest and taxes.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.50. The return on equity is 7.24%, showing a fair return on shareholder investment. The equity ratio is 44.30%, indicating a healthy proportion of equity financing relative to total assets. However, the increase in total debt over the years may warrant monitoring for potential leverage risks.

Cash Flow

The company experienced a decline in free cash flow, moving from positive to negative in the most recent year, indicating potential cash flow management challenges. The operating cash flow to net income ratio is low, suggesting less cash generation relative to reported net income. The free cash flow to net income ratio has turned negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.81B	22.81B	21.32B	20.10B	19.10B	20.03B
Gross Profit	4.32B	4.32B	3.89B	3.59B	3.35B	3.06B
EBITDA	1.80B	1.94B	1.77B	1.35B	1.61B	1.46B
Net Income	1.22B	1.22B	1.16B	1.11B	1.00B	911.00M
Balance Sheet
Total Assets	37.96B	37.96B	32.54B	31.82B	31.95B	32.59B
Cash, Cash Equivalents and Short-Term Investments	2.00B	2.00B	443.00M	736.00M	1.04B	2.40B
Total Debt	8.40B	8.40B	5.30B	5.41B	6.14B	8.13B
Total Liabilities	20.49B	20.49B	16.09B	16.57B	17.25B	17.60B
Stockholders Equity	16.82B	16.82B	15.84B	14.72B	14.19B	14.49B
Cash Flow
Free Cash Flow	0.00	-115.00M	167.00M	1.13B	894.00M	2.08B
Operating Cash Flow	0.00	24.00M	335.00M	1.25B	1.08B	2.35B
Investing Cash Flow	0.00	-829.00M	-171.00M	-115.00M	-191.00M	-1.01B
Financing Cash Flow	0.00	2.36B	-456.00M	-1.44B	-2.25B	-1.13B

Marubeni Construction Material Lease Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3505.00
• 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:9763, the sentiment is Positive. The current price of 3505 is above the 20-day moving average (MA) of 3474.75, above the 50-day MA of 3281.90, and above the 200-day MA of 3051.26, indicating a bullish trend. The MACD of 62.76 indicates Positive momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 41.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9763.

Marubeni Construction Material Lease Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	80 Outperform	¥48.24B	9.91		3.38%	-9.58%	13.22%
9763	71 Outperform	¥11.68B	8.89		3.71%	9.16%	6.01%
7081	71 Outperform	¥12.91B	7.21		3.43%	1.58%	28.43%
7065	69 Neutral	¥5.93B	13.52		3.27%	-1.27%	-26.39%
2445	68 Neutral	¥17.56B	16.72		3.71%	0.02%	-36.92%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%
9223	52 Neutral	¥8.07B	59.05		0.31%	7.34%	-162.02%