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

• Market Cap: ¥2.02B
• Dividend Yield: N/A
• Average Volume (3M): 547.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -3.14%
• EPS Growth: -462.01%
• Country: JP
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -4.19
• Shares Outstanding: 43,849,840
• 10 Day Avg. Volume: 911,030
• 30 Day Avg. Volume: 547,896
• PEG Ratio: -1.72
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 5.46
• 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: 48 Neutral
• Price Target: ¥54.00 ▲(12.50% Upside)

The overall stock score is primarily influenced by financial performance and valuation concerns. The company's declining revenues and high leverage are significant risks, though improved cash flows offer some stability. Technical analysis suggests mixed signals with short-term bearish momentum but some longer-term support. The negative P/E ratio and lack of dividend yield further weigh down the score.

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

Company Description

Bunkyodo Group Holdings Co., Ltd. operates various wholesale and retail stores in Japan. The company's stores offer books, magazines, textbooks, stationery, miscellaneous goods, hobby products, etc. It is also involved in the provision of government services, such as war strategy and guidance, as well as education services comprising programming classes and learning support services. The company was founded in 1891 and is headquartered in Kawasaki, Japan.

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

Bunkyodo Group Holdings Co., Ltd. is experiencing financial challenges with declining revenues and profitability margins. High leverage poses a risk, though there have been efforts to improve equity and reduce net debt. Cash flows have shown improvement, providing some stability. The company needs to address revenue decline and manage its debt levels to strengthen its financial position.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.69B	14.93B	15.47B	16.49B	18.78B	21.30B
Gross Profit	4.17B	4.18B	4.39B	4.54B	5.00B	5.68B
EBITDA	151.59M	177.99M	236.13M	221.94M	514.39M	470.68M
Net Income	33.49M	42.83M	96.69M	73.22M	365.89M	288.33M
Balance Sheet
Total Assets	9.03B	10.05B	9.92B	10.13B	10.80B	10.96B
Cash, Cash Equivalents and Short-Term Investments	260.02M	1.53B	871.22M	1.13B	1.55B	1.59B
Total Debt	4.10B	4.37B	4.55B	4.84B	5.32B	5.67B
Total Liabilities	7.69B	8.74B	8.65B	8.96B	9.70B	10.22B
Stockholders Equity	1.34B	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: Negative
• Last Price: 48.00
• 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:9978, the sentiment is Negative. The current price of 48 is below the 20-day moving average (MA) of 48.95, below the 50-day MA of 54.10, and below the 200-day MA of 52.33, indicating a bearish trend. The MACD of -1.92 indicates Negative momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	69 Neutral	¥30.63B	6.49	―	0.90%	6.29%	114.31%
2751	64 Neutral	¥40.96B	22.88	―	0.26%	18.32%	-18.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7640	52 Neutral	¥2.59B	-3.47	―	―	-4.21%	43.38%
9978	48 Neutral	¥2.02B	-13.01	―	―	-3.14%	-462.01%
2769	45 Neutral	¥8.08B	-2.03	―	―	-4.54%	-261.55%
8165	45 Neutral	¥10.60B	3.49	―	―	-4.10%	―