Charle Co., Ltd. (9885) AI Stock Analysis

• Market Cap: ¥5.68B
• Dividend Yield: 2.23%
• Average Volume (3M): 9.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -0.67%
• EPS Growth: -453.71%
• Country: JP
• Employees: 227
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -17.71
• Shares Outstanding: 16,086,250
• 10 Day Avg. Volume: 10,000
• 30 Day Avg. Volume: 9,046
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -1.91
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥358.00 ▲(0.00% Upside)

The overall stock score of 44 reflects significant financial and technical challenges faced by Charle Co., Ltd. The company's declining revenues and negative cash flows are major concerns, despite a strong balance sheet. Technical indicators suggest a bearish trend with weak market momentum. The negative P/E ratio further highlights valuation difficulties, although the dividend yield offers some investor appeal.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt and high equity provides financial stability and flexibility, allowing the company to weather economic challenges and invest in growth opportunities.

Substantial Cash Reserves

Having substantial cash reserves ensures liquidity and the ability to meet short-term obligations, which is crucial for operational stability and strategic investments.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single source, enhancing resilience against market fluctuations and providing multiple growth avenues.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market competitiveness or demand, necessitating strategic changes to reverse the trend and ensure long-term viability.

Negative Cash Flow

Negative cash flow highlights operational inefficiencies and can limit the company's ability to invest in growth or manage debt, impacting long-term sustainability.

Shrinking Profit Margins

Shrinking profit margins and net losses indicate cost pressures and pricing challenges, which can erode profitability and require strategic adjustments to improve efficiency.

Charle Co., Ltd. Business Overview & Revenue Model

Company Description

Charle Co.,Ltd. engages in the sale of apparel, cosmetics, health foods, etc. It primarily sells women's underwear, innerwear, and leg knits, as well as men's and kids clothing; and skin, body, and hair care products. The company sells its products through mail order and door-to-door channels. Charle Co.,Ltd. was founded in 1975 and is headquartered in Kobe, Japan.

How the Company Makes Money

The company generates revenue through multiple key streams, primarily by selling electronic components and systems to manufacturers and businesses in various sectors. Its revenue model includes direct sales, long-term contracts with clients, and partnerships with other technology firms for co-development projects. Additionally, Charle Co., Ltd. benefits from providing after-sales services and support, which creates recurring income. Significant partnerships with industry leaders enhance its market presence, allowing for increased sales and collaborative innovation, further contributing to its overall earnings.

Charle Co., Ltd. Financial Statement Overview

Summary

Charle Co., Ltd. is experiencing financial difficulties, particularly in its income and cash flow statements. Declining revenues and profitability, coupled with negative cash flows, highlight operational inefficiencies. Nonetheless, the company's balance sheet remains robust with strong equity and liquidity positions, providing some stability amidst challenges.

Income Statement

The company has experienced declining revenues and profitability. The gross profit margin has been shrinking, and the company reported a net loss in the most recent period. The EBIT and EBITDA margins are negative, highlighting operational challenges. Revenue growth has been negative over the recent years, showing a need for turnaround strategies.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio and low levels of debt, resulting in a favorable debt-to-equity ratio. However, the return on equity is negative due to recent net losses. The company has a substantial cash reserve, indicating a cushion for short-term obligations.

Cash Flow

The company faces significant challenges with cash flow as evidenced by negative free cash flow growth and operating cash flow in the latest period. The free cash flow to net income ratio is unfavorable due to net losses, suggesting inefficiencies in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.98B	11.55B	13.17B	13.26B	15.56B	13.77B
Gross Profit	5.26B	5.08B	6.56B	6.76B	8.71B	6.16B
EBITDA	-470.00M	-504.00M	1.18B	773.00M	2.33B	-170.00M
Net Income	-902.00M	-1.01B	585.00M	-740.00M	1.02B	-1.33B
Balance Sheet
Total Assets	19.65B	19.26B	21.39B	20.48B	22.14B	20.36B
Cash, Cash Equivalents and Short-Term Investments	7.23B	8.31B	12.70B	11.24B	13.25B	11.11B
Total Debt	391.00M	13.00M	26.00M	60.00M	110.00M	176.00M
Total Liabilities	2.96B	2.40B	3.08B	2.68B	3.33B	2.41B
Stockholders Equity	16.60B	16.85B	18.32B	17.81B	18.81B	17.95B
Cash Flow
Free Cash Flow	0.00	-3.14B	1.10B	-1.37B	2.44B	-1.46B
Operating Cash Flow	0.00	-1.80B	1.51B	-733.00M	3.00B	-1.04B
Investing Cash Flow	0.00	-2.68B	117.00M	-1.08B	-639.00M	3.32B
Financing Cash Flow	0.00	-509.00M	-160.00M	-193.00M	-225.00M	-219.00M

Charle Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 358.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9885, the sentiment is Negative. The current price of 358 is above the 20-day moving average (MA) of 358.00, below the 50-day MA of 364.64, and below the 200-day MA of 377.45, indicating a neutral trend. The MACD of -2.05 indicates Negative momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9885.

Charle Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3320	71 Outperform	¥10.08B	6.45	―	2.77%	-2.28%	36.25%
3123	70 Outperform	¥7.44B	7.02	―	2.75%	-4.76%	8.43%
2776	65 Neutral	¥6.08B	123.72	―	―	157.12%	―
7126	63 Neutral	¥4.49B	9.15	―	2.36%	2.14%	-0.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8127	48 Neutral	¥12.29B	85.78	―	3.35%	-8.02%	-59.42%
9885	44 Neutral	¥5.68B	-5.15	―	2.23%	-0.67%	-453.71%