OPRO Co.,Ltd. (228A) AI Stock Analysis

• Market Cap: ¥3.32B
• Dividend Yield: N/A
• Average Volume (3M): 8.39K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: N/A
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Software - Services
• EPS (TTM): 27.25
• Shares Outstanding: 2,331,900
• 10 Day Avg. Volume: 12,000
• 30 Day Avg. Volume: 8,393
• PEG Ratio: 1.60
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 12.92
• 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: 68 Neutral
• Price Target: ¥1,537.00 ▼(-34.93% Downside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is driven primarily by strong financial performance (improving margins, solid free cash flow, and a zero-debt balance sheet). This is partially offset by very weak technicals, with the stock in a pronounced downtrend despite oversold readings. Valuation appears reasonable based on the P/E, but dividend support cannot be assessed.

Positive Factors

Improving margins and profitability

Sustained revenue growth with rising gross and EBIT margins through 2025 indicates improving unit economics and pricing or cost control. These margin gains are structural, improving cash generation potential and resilience to demand swings over the next several quarters.

Very conservative balance sheet

Zero net debt and materially strengthened equity provide durable financial flexibility, lower refinancing risk, and capacity to fund R&D, acquisitions or downturns without stress. That balance-sheet strength reduces solvency risk over a multi-quarter horizon.

Strong operating cash flow and free cash flow

High operating cash flow and FCF near net income in 2024–2025 indicate good cash conversion capacity and earnings quality. Reliable cash generation supports reinvestment, product development and optional shareholder returns across upcoming quarters.

Negative Factors

Revenue growth deceleration

A slowdown in growth momentum in 2025 signals potential saturation of current offerings or softer demand, which can limit long-term operating leverage. If not addressed by new products or expansion, deceleration may press margins and future cash generation.

Volatile free cash flow and moderate cash conversion

Historical FCF volatility and only moderate operating cash conversion versus reported profit reduce predictability of internal funding for growth or distributions. This makes longer-term planning and capital allocation riskier despite recent strong FCF.

Equity step-up / potential dilution

A material equity increase strengthens solvency but may reflect new share issuance, diluting existing shareholders and reducing per-share earnings growth. That trade-off can weigh on long-term shareholder returns absent commensurate business scaling.

OPRO Co.,Ltd. Business Overview & Revenue Model

Company Description

OPRO Co. Ltd. offers cloud services. It develops data optimization solutions, sales management solutions, and others. The company was founded on June 29, 1993 and is headquartered in Tokyo, Japan.

How the Company Makes Money

OPRO Co.,Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and improving profitability, with gross margin rising to ~54% and EBIT margin to ~12% in 2025. Balance sheet is very conservative with effectively no debt, while free cash flow is robust in 2024–2025 though historically volatile and growth decelerated in 2025.

Income Statement

Strong growth and improving profitability. Revenue expanded consistently from 2023–2025 (2025: ~21% growth), while gross margin improved to ~54% in 2025 (from ~49% in 2023–2024). Operating profitability also strengthened, with EBIT margin rising to ~12% in 2025 (from ~6.8% in 2023) and net margin improving to ~9.4% (from ~5.9%). Main watch-out: growth decelerated in 2025 versus 2024, and margins are improving but not yet at top-tier software levels.

Balance Sheet

Very conservative balance sheet with effectively no debt in 2023–2025 and a debt-to-equity ratio of 0.0, reducing financial risk. Equity grew substantially (from ~¥157M in 2023 to ~¥1.33B in 2025), supporting a larger asset base. Key weakness: the sharp equity step-up versus 2023 suggests capital structure changed materially (e.g., new equity), which can dilute per-share economics even as it strengthens solvency.

Cash Flow

Cash generation is solid and generally supports earnings quality. Operating cash flow remained strong in 2024–2025 (~¥439–440M) and free cash flow was robust (2025: ~¥419M), with free cash flow close to net income in 2024–2025 (~0.84–0.95x). However, free cash flow was volatile (down in 2023, then sharp rebound in 2024), and cash conversion vs reported operating profit appears moderate based on the provided operating cash flow coverage figures (~0.30–0.40).

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022
Income Statement
Total Revenue	2.55B	2.10B	1.62B	1.29B
Gross Profit	1.38B	1.04B	800.77M	683.50M
EBITDA	361.69M	241.73M	134.59M	133.43M
Net Income	241.19M	150.87M	95.83M	99.88M
Balance Sheet
Total Assets	2.78B	2.29B	1.10B	845.44M
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.77B	626.52M	477.58M
Total Debt	0.00	0.00	0.00	55.42M
Total Liabilities	1.46B	1.22B	939.31M	784.02M
Stockholders Equity	1.33B	1.08B	157.25M	61.42M
Cash Flow
Free Cash Flow	418.53M	369.19M	170.30M	272.13M
Operating Cash Flow	440.40M	438.88M	278.68M	305.69M
Investing Cash Flow	-1.63B	-69.93M	-60.44M	-126.55M
Financing Cash Flow	4.42M	771.30M	-55.42M	-63.44M

OPRO Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
194A	75 Outperform	¥13.40B	18.75	―	―	―	―
228A	68 Neutral	¥3.32B	13.56	―	―	―	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
5618	44 Neutral	¥2.74B	-17.97	―	―	23.63%	64.65%