Yonkyu Co., Ltd. (9955) AI Stock Analysis

• Market Cap: ¥30.98B
• Dividend Yield: 0.74%
• Average Volume (3M): 9.12K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.15
• Revenue Growth: -2.02%
• EPS Growth: 103.08%
• Country: JP
• Employees: 126
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 203.55
• Shares Outstanding: 12,290,862
• 10 Day Avg. Volume: 3,860
• 30 Day Avg. Volume: 9,123
• PEG Ratio: -1.37
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 25.30
• 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: 65 Neutral
• Price Target: ¥2,849.00 ▲(4.67% Upside)

Yonkyu Co., Ltd.'s overall stock score is driven primarily by its stable financial performance and positive technical indicators. However, the negative revenue growth and high P/E ratio suggest potential risks. The strong balance sheet provides some financial stability, but the valuation concerns and modest dividend yield limit the attractiveness of the stock.

Positive Factors

Strong Balance Sheet

Yonkyu's low leverage and high equity ratio of 74.2% provide financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Improved Cash Flow Management

The shift to positive free cash flow indicates better cash management, enhancing Yonkyu's ability to fund operations and strategic initiatives without relying heavily on external financing.

Operational Efficiency

Stable operational efficiency, as indicated by EBIT and EBITDA margins, suggests Yonkyu effectively manages costs, supporting long-term profitability despite revenue challenges.

Negative Factors

Negative Revenue Growth

Declining revenue growth raises concerns about Yonkyu's ability to expand its market presence and sustain long-term sales momentum, potentially impacting future profitability.

Low Return on Equity

A low ROE indicates that Yonkyu may not be using its equity base efficiently to generate profits, which could hinder shareholder value creation over time.

Volatile Free Cash Flow

Volatility in free cash flow suggests potential inconsistencies in capital expenditures or operational cash flows, which could affect Yonkyu's ability to plan and execute long-term investments.

Yonkyu Co., Ltd. Business Overview & Revenue Model

Company Description

The Yonkyu Co.,Ltd., together with its subsidiaries, operates in the fishery industry in Japan. It operates through Fresh Fish Sales Business, Food and Feed Sales Business, and Other Business segments. The company engages in the sale of fresh fish, and wild fish and yellowtail fillets; procurement and sale of natural juvenile fish to aquaculture companies; production and sale of artificially hatched fry to aquaculture companies; and farming and sales of tuna and eels. It also sells live feed, compound feed, moist pellets, etc. for farmed fish to aquaculture companies. In addition, the company provides general cargo transportation services. The Yonkyu Co.,Ltd. was founded in 1961 and is headquartered in Uwajima, Japan.

How the Company Makes Money

Yonkyu Co., Ltd. generates revenue through the sale of its chemical products and materials to a diverse range of industries. Key revenue streams include the production of specialty chemicals for automotive applications, electronic materials, and industrial coatings. The company often enters into long-term contracts with major manufacturers, ensuring a steady demand for its products. Additionally, Yonkyu may engage in strategic partnerships with other firms to develop new technologies or expand its market reach, further enhancing its revenue potential. The focus on research and development allows the company to innovate and stay competitive, driving sales growth through the introduction of new and improved products.

Yonkyu Co., Ltd. Financial Statement Overview

Summary

Yonkyu Co., Ltd. displays a mixed financial performance. While profitability and operational efficiency are stable, negative revenue growth poses a challenge. The strong balance sheet with low leverage provides a cushion against financial risks, but the company needs to enhance its growth trajectory to improve overall financial health. Cash flow management has improved, yet volatility remains a concern that requires monitoring.

Income Statement

Yonkyu Co., Ltd. shows moderate profitability with a gross profit margin of 11.9% and a net profit margin of 3.2% for the latest year, indicating efficient cost management. However, the revenue growth rate has been negative, declining by 0.5% from the previous year, which raises concerns about the company's ability to grow its top line. The EBIT margin of 3.4% and EBITDA margin of 6.2% suggest stable operational efficiency, though they have declined compared to prior years.

Balance Sheet

The company maintains a strong financial position with a debt-to-equity ratio of 0.19, indicating low leverage and a solid equity base. The return on equity (ROE) stands at 3.6%, which is relatively low and suggests limited profitability in relation to equity. The equity ratio of 74.2% underscores a strong balance sheet with a high proportion of equity in the capital structure, enhancing financial stability.

Cash Flow

Yonkyu Co., Ltd. has shown significant improvement in free cash flow, turning positive to JPY 1.04 billion from a deficit in the previous year, indicating improved cash management. The operating cash flow to net income ratio of 1.6 reflects adequate cash generation from operations relative to net income. Nonetheless, free cash flow growth has been volatile, which might signal inconsistencies in capital expenditures or operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.54B	44.89B	45.13B	40.23B	35.21B	36.39B
Gross Profit	5.08B	5.32B	5.91B	6.14B	5.65B	5.86B
EBITDA	2.28B	2.79B	2.93B	3.55B	3.38B	2.42B
Net Income	1.15B	1.42B	1.63B	2.31B	2.00B	1.21B
Balance Sheet
Total Assets	51.82B	52.34B	51.38B	47.27B	42.85B	38.91B
Cash, Cash Equivalents and Short-Term Investments	20.43B	20.68B	20.00B	21.42B	21.03B	19.93B
Total Debt	7.22B	7.28B	7.27B	6.77B	6.34B	5.22B
Total Liabilities	12.98B	13.48B	14.25B	12.36B	11.22B	9.22B
Stockholders Equity	38.83B	38.85B	37.12B	34.90B	31.63B	29.69B
Cash Flow
Free Cash Flow	0.00	1.04B	-1.68B	685.32M	549.54M	3.93B
Operating Cash Flow	0.00	2.23B	-60.60M	2.50B	2.03B	4.29B
Investing Cash Flow	0.00	-1.31B	982.48M	-2.45B	-1.88B	-1.02B
Financing Cash Flow	0.00	-233.82M	253.50M	183.08M	883.41M	1.18B

Yonkyu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2722.00
• 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:9955, the sentiment is Positive. The current price of 2722 is above the 20-day moving average (MA) of 2597.95, above the 50-day MA of 2628.50, and above the 200-day MA of 2364.54, indicating a bullish trend. The MACD of 24.51 indicates Negative momentum. The RSI at 62.37 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9955.

Yonkyu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1384	78 Outperform	¥24.95B	8.46	―	2.17%	21.60%	116.17%
1333	75 Outperform	$176.55B	7.58	9.42%	2.96%	2.63%	-7.81%
2874	74 Outperform	¥72.42B	15.92	―	1.79%	4.41%	-41.73%
1381	72 Outperform	¥22.01B	10.81	―	2.70%	5.47%	44.78%
8041	72 Outperform	¥21.99B	4.32	―	2.42%	5.27%	9.51%
9955	65 Neutral	¥30.98B	9.25	―	0.74%	-2.02%	103.08%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%