PostPrime Inc. (198A) AI Stock Analysis

• Market Cap: ¥5.86B
• Dividend Yield: N/A
• Average Volume (3M): 86.41K
• Price to Earnings (P/E): 67.0
• Beta (1Y): 1.33
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 22
• Sector: Technology
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): -1.73
• Shares Outstanding: 10,108,600
• 10 Day Avg. Volume: 133,280
• 30 Day Avg. Volume: 86,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 73 Outperform
• Price Target: ―

PostPrime Inc. demonstrates strong financial health with significant revenue and profit growth, supported by a robust balance sheet and efficient cash flow generation. However, the technical indicators suggest potential short to medium-term challenges with bearish trends. Additionally, the stock's high P/E ratio could be a risk if growth expectations are not sustained. Despite these valuation concerns, the company's financial stability and performance provide a solid foundation for future growth.

PostPrime Inc. Business Overview & Revenue Model

Company Description

PostPrime Inc is a Japan-based company mainly engaged in operating of a social networking service (SNS) named PostPrime. The Company operates its business in the financial and economic information platform segment. PostPrime is a platform that allows users to register as members for free and choose from a variety of information dissemination methods, including text, images, audio, video, and live-streaming, and to post information for free as well as view and listen to posts by other users and others. The Company is also engaged in operating a YouTube channel.

How the Company Makes Money

PostPrime Inc. generates revenue through a multi-faceted model that includes subscription fees, advertising revenue, and transaction fees. Content creators can subscribe to premium services that offer enhanced tools and analytics, providing a steady stream of subscription income. Additionally, the platform monetizes user engagement through targeted advertising, leveraging its substantial user base and data-driven insights to provide value to advertisers. PostPrime also earns transaction fees on in-platform purchases and transactions facilitated between creators and their audiences. Strategic partnerships with brands and content distributors further bolster its revenue streams by expanding its reach and enhancing service offerings.

PostPrime Inc. Financial Statement Overview

Summary

PostPrime Inc. is performing exceptionally well across all financial verticals. The income statement shows strong revenue and profit growth, the balance sheet reflects financial stability with no debt and high equity, while the cash flow statement indicates efficient cash generation. The company's financial health positions it favorably for future expansion in the competitive internet content and information industry.

Income Statement

PostPrime Inc. demonstrates a strong financial performance with impressive revenue growth of approximately 20.1% year-over-year. The company has sustained high gross profit margins around 89% and improved its net profit margin to approximately 27.8%. The EBIT and EBITDA margins are robust at 37.1% and 37.3%, respectively, indicating effective cost management and operational efficiency. Overall, the income statement reflects a trajectory of solid growth and profitability.

Balance Sheet

The balance sheet of PostPrime Inc. is notably strong, with no debt and a high equity ratio of approximately 67.9%, reflecting financial stability and low leverage. The return on equity is attractive at around 30.3%, showcasing efficient use of shareholder funds to generate earnings. The company maintains a healthy cash position, underscoring its ability to fund operations and invest in growth opportunities without the need for external financing.

Cash Flow

PostPrime Inc. exhibits a stable cash flow profile with a slight decrease in operating cash flow to net income ratio from the previous year. The free cash flow remains strong, although witnessing a minor decline in growth rate due to reduced operating cash flow. The company's ability to generate significant free cash flow relative to net income highlights its efficiency in converting earnings into cash, supporting future growth and shareholder returns.

Breakdown	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	945.28M	787.14M	644.38M
Gross Profit	841.35M	709.00M	635.85M
EBITDA	352.82M	248.00M	369.97M
Net Income	263.15M	186.10M	200.85M
Balance Sheet
Total Assets	1.28B	918.04M	529.51M
Cash, Cash Equivalents and Short-Term Investments	1.11B	842.17M	364.08M
Total Debt	0.00	0.00	0.00
Total Liabilities	411.13M	312.48M	110.35M
Stockholders Equity	868.41M	605.55M	419.16M
Cash Flow
Free Cash Flow	316.37M	357.61M	322.19M
Operating Cash Flow	320.31M	359.80M	323.88M
Investing Cash Flow	109.48M	-19.49M	-17.40M
Financing Cash Flow	260.00K	3.21M	0.00

PostPrime Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 549.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:198A, the sentiment is Negative. The current price of 549 is below the 20-day moving average (MA) of 696.20, below the 50-day MA of 700.64, and below the 200-day MA of 640.48, indicating a bearish trend. The MACD of -32.56 indicates Positive momentum. The RSI at 30.58 is Neutral, neither overbought nor oversold. The STOCH value of 1.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:198A.

PostPrime Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3981	80 Outperform	¥8.27B	6.58		1.68%	-6.36%	72.25%
5138	76 Outperform	¥6.68B	17.44		―	29.90%	58.22%
198A	73 Outperform	¥5.86B	67.04		―	―	―
6049	70 Outperform	¥6.14B	21.90		―	-4.64%	―
5571	68 Neutral	¥6.27B	34.09		2.33%	14.37%	-6.48%
6185	65 Neutral	¥6.25B	21.37		―	21.35%	―
Sector *	51 Neutral	AU$1.68B	2.26	-31.66%	3.52%	16.55%	-7.79%