Bunkyodo Group Holdings Co., Ltd. (9978) AI Stock Analysis

• Market Cap: ¥2.63B
• Dividend Yield: N/A
• Average Volume (3M): 599.90K
• Price to Earnings (P/E): 78.9
• Beta (1Y): 0.79
• Revenue Growth: -2.94%
• EPS Growth: -58.40%
• Country: JP
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): 1.84
• Shares Outstanding: 43,849,840
• 10 Day Avg. Volume: 1,096,780
• 30 Day Avg. Volume: 599,903
• PEG Ratio: -0.15
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.28
• 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: ¥53.00
• Price Target Upside: -7.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥62.00 ▲(8.77%Upside)

Bunkyodo Group Holdings Co., Ltd. faces significant financial challenges with declining revenues and high leverage, which negatively impact its financial performance score. However, strong technical indicators suggest bullish momentum, contributing positively to the overall score. The high P/E ratio indicates potential overvaluation, keeping the overall score moderate.

Bunkyodo Group Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Bunkyodo Group Holdings Co., Ltd. (9978) is a Japanese company primarily engaged in the retail sector, with a focus on the sale of books, stationery, and lifestyle goods. The company operates through its network of retail stores across Japan, offering a wide range of products to consumers. Bunkyodo is recognized for its diverse selection of books and related goods, serving as a prominent player in the Japanese retail market.

How the Company Makes Money

Bunkyodo Group Holdings Co., Ltd. makes money primarily through its retail operations. The company's key revenue streams include the sale of books, stationery, and lifestyle products through its chain of stores. By leveraging its extensive retail network, Bunkyodo is able to reach a broad customer base, driving sales and generating revenue. In addition to direct retail sales, partnerships with publishers and suppliers play a crucial role in maintaining a diverse inventory, which in turn attracts a wide range of customers and supports sustained revenue growth.

Bunkyodo Group Holdings Co., Ltd. Financial Statement Overview

Summary

The company is experiencing financial difficulties, with declining revenues and profitability margins. High leverage poses a risk, although there have been improvements in equity and reductions in net debt. Cash flows have improved, providing some stability, but the company needs to address revenue decline and manage its debt levels.

Income Statement

The company's revenue has been declining consistently over the years, with a notable decrease from 2020 to 2024. Gross profit margins have also been decreasing, indicating potential challenges in cost management or pricing strategy. The net profit margin is positive but has dropped significantly since 2021, showing reduced profitability. The EBIT and EBITDA margins have also contracted, further highlighting operational challenges.

Balance Sheet

The debt-to-equity ratio is high, suggesting significant leverage which might be risky. However, there has been improvement in stockholders' equity since 2019. The equity ratio remains low, reflecting limited equity financing compared to the company's asset base. Despite high debt levels, the company has managed to reduce net debt over the years, which is a positive sign.

Cash Flow

The operating cash flow has shown volatility but has improved significantly in the latest period. The free cash flow is positive and has grown notably from a negative position in 2023, indicating improved cash generation capacity. The operating cash flow to net income ratio is relatively strong, suggesting that the company is efficient in converting its earnings into cash flows.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	14.85B	14.93B	15.47B	16.49B	18.78B	21.30B
Gross Profit	4.18B	4.18B	4.39B	4.54B	5.00B	5.68B
EBITDA	129.95M	177.99M	236.13M	221.94M	514.39M	470.68M
Net Income	48.00M	42.83M	96.69M	73.22M	365.89M	288.33M
Balance Sheet
Total Assets	10.48B	10.05B	9.92B	10.13B	10.80B	10.96B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.53B	871.22M	1.13B	1.55B	1.59B
Total Debt	4.13B	4.37B	4.55B	4.84B	5.32B	5.67B
Total Liabilities	9.23B	8.74B	8.65B	8.96B	9.70B	10.22B
Stockholders Equity	1.26B	1.31B	1.27B	1.17B	1.10B	732.33M
Cash Flow
Free Cash Flow	0.00	775.84M	-15.97M	-3.73M	237.41M	633.48M
Operating Cash Flow	0.00	797.56M	54.91M	238.10M	349.63M	797.65M
Investing Cash Flow	0.00	30.60M	-22.24M	-178.43M	-30.92M	336.66M
Financing Cash Flow	0.00	-173.65M	-291.16M	-482.43M	-353.65M	-29.28M

Bunkyodo Group Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9978, the sentiment is Positive. The current price of 57 is above the 20-day moving average (MA) of 54.55, above the 50-day MA of 51.90, and above the 200-day MA of 51.12, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 55.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9978.

Bunkyodo Group Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3159	76 Outperform	¥30.36B	7.54		0.91%	2.32%	80.21%
2751	74 Outperform	¥39.41B	19.30		0.27%	24.11%	22.03%
Sector *	63 Neutral	$16.82B	11.32	-7.02%	2.91%	1.72%	-24.85%
9978	58 Neutral	¥2.63B	78.94		―	-2.94%	-58.40%
7640	54 Neutral	¥2.40B	―		2.08%	-3.01%	51.46%
2769	42 Neutral	¥8.23B	―		―	2.96%	-119.07%
8165	40 Underperform	¥11.35B	―		―	-4.20%	-14.64%