Verite Co., Ltd. (9904) AI Stock Analysis

• Market Cap: ¥10.20B
• Dividend Yield: 5.26%
• Average Volume (3M): 14.68K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.12
• Revenue Growth: 6.89%
• EPS Growth: -1.46%
• Country: JP
• Employees: 388
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 3.83
• Shares Outstanding: 27,230,824
• 10 Day Avg. Volume: 12,440
• 30 Day Avg. Volume: 14,676
• PEG Ratio: 1.29
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 30.60
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥420.00 ▲(12.30% Upside)

Verite Co., Ltd. scores well due to its strong financial performance and balanced valuation. The technical analysis suggests stability, though not indicating strong momentum. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Financial Health

The company's robust financial health, marked by profitability and cost efficiency, ensures stability and supports long-term growth and investment capacity.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Verite Co., Ltd. to invest in growth opportunities and withstand economic fluctuations.

Profit Margins

Improving profit margins reflect effective cost management and operational efficiency, contributing to sustainable profitability and competitive advantage.

Negative Factors

Revenue Growth

While revenue growth is positive, the modest pace may indicate challenges in expanding market share or product adoption, potentially limiting long-term growth prospects.

Market Trends Impact

Dependence on market trends and consumer preferences introduces volatility in earnings, posing risks to consistent revenue and profit growth.

Technical Momentum

Lack of strong technical momentum may reflect market skepticism or limited investor interest, potentially affecting stock performance and capital raising ability.

Verite Co., Ltd. Business Overview & Revenue Model

Company Description

Verite Co., Ltd. (9904) is a diversified company primarily engaged in the manufacturing and sale of high-quality electronic components and solutions. Operating in the technology sector, the company focuses on providing innovative products that cater to various industries, including telecommunications, consumer electronics, and automotive. Verite Co., Ltd. is recognized for its commitment to research and development, ensuring that it remains at the forefront of technological advancements.

How the Company Makes Money

Verite Co., Ltd. generates revenue through multiple streams, primarily by selling its electronic components and solutions to manufacturers in various industries. The company benefits from volume sales and long-term contracts with key clients, which provide a stable revenue base. Additionally, Verite Co., Ltd. invests heavily in research and development, allowing it to introduce new and innovative products that meet market demands. Strategic partnerships with other technology firms and suppliers further enhance its market presence and revenue potential. The company may also explore licensing agreements and collaborations that contribute to its earnings, leveraging its intellectual property to create additional revenue channels.

Verite Co., Ltd. Financial Statement Overview

Summary

Verite Co., Ltd. demonstrates strong financial health with consistent profitability, robust operational efficiency, and solid cash flow generation. The balance sheet is stable with prudent leverage and a strong equity base, though continued focus on revenue growth is advisable.

Income Statement

Verite Co., Ltd. showcases strong profitability with a consistent gross profit margin around 68% in recent years. The net profit margin improved from 6.6% to 7.2% over the last year, indicating efficient cost management. Revenue growth is modest but positive, with a 4% increase from 2024 to 2025. EBIT and EBITDA margins remain healthy, reflecting robust operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of approximately 0.34, indicating prudent leverage. The equity ratio is stable at around 59%, reflecting a strong equity base. Return on Equity is commendable, improving to 12.7% in 2025, highlighting effective capital utilization.

Cash Flow

Verite Co., Ltd. exhibits a healthy cash flow position, with free cash flow growing by 7.7% from 2024 to 2025. Operating cash flow remains strong relative to net income, underscoring solid cash generation capabilities. The free cash flow to net income ratio is healthy, supporting financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.95B	7.64B	7.62B	7.27B	7.54B
Gross Profit	5.38B	5.34B	5.42B	5.19B	4.42B
EBITDA	1.05B	936.00M	996.00M	899.00M	703.00M
Net Income	569.00M	502.00M	545.00M	464.00M	583.00M
Balance Sheet
Total Assets	7.55B	7.66B	7.38B	7.57B	8.06B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.12B	1.88B	2.16B	2.49B
Total Debt	1.50B	1.50B	1.00B	1.50B	1.10B
Total Liabilities	3.08B	3.22B	2.92B	3.20B	2.65B
Stockholders Equity	4.47B	4.44B	4.46B	4.37B	5.41B
Cash Flow
Free Cash Flow	321.00M	298.00M	722.00M	777.00M	711.00M
Operating Cash Flow	407.00M	456.00M	893.00M	864.00M	857.00M
Investing Cash Flow	-37.00M	-168.00M	-201.00M	-98.00M	-157.00M
Financing Cash Flow	-504.00M	-45.00M	-970.00M	-1.10B	-423.00M

Verite Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 374.00
• 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:9904, the sentiment is Positive. The current price of 374 is below the 20-day moving average (MA) of 374.60, above the 50-day MA of 373.58, and above the 200-day MA of 362.07, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9904.

Verite Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥10.20B	21.57	―	5.26%	6.89%	-1.46%
7638	72 Outperform	¥26.01B	10.11	―	2.97%	34.99%	211.99%
7937	64 Neutral	$35.40B	22.54	2.46%	3.43%	22.68%	-9.41%
2736	62 Neutral	¥2.12B	11.88	―	1.19%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7872	50 Neutral	¥6.19B	―	―	4.64%	-0.68%	46.43%
7810	41 Neutral	¥2.56B	115.72	―	0.23%	10.06%	-22.67%