Balance Sheet StrengthQuest's equity ratio (~73.9%) and negligible debt-to-equity (0.002) provide durable financial flexibility and low financial risk. This strong capital structure reduces refinancing and interest-rate sensitivity, supports ongoing capex, dividends or strategic M&A, and preserves resilience through downturns.

Cash GenerationFree cash flow growth (~19%) and an operating-cash-flow-to-net-income ratio of 0.77 show quality earnings conversion to cash. Reliable FCF sustains working capital, funds reinvestment in services and infrastructure, and supports distributions or strategic investments without adding leverage.

Stable Profitability MarginsConsistent gross margin (~18.4%) with a rising net margin (4.9% to 5.1%) points to disciplined pricing and cost control across projects. Margin stability supports predictable earnings, enabling sustainable reinvestment in talent and platforms that underpin long-term client relationships and service offering quality.

Bears Say

Modest Net MarginA net margin of ~5.1%, while improving, is modest in absolute terms and limits the pace of internal capital accumulation. This constrains retained-earnings-funded expansion, makes EPS and dividend growth sensitive to cost inflation, and reduces the buffer against revenue or margin shocks.

Constrained Gross MarginGross margin around 18.4% constrains operating leverage for an IT services provider because less gross profit is available to cover SG&A, R&D and sales investments. Sustained growth will require efficiency gains or a shift toward higher-margin offerings to meaningfully expand operating profitability.

Moderate ROEROE of ~10.6% indicates competent capital use but not high returns on equity. Over a multi-month horizon this implies the company needs continued earnings growth or better capital allocation to materially improve shareholder returns; otherwise equity holders may see only modest gains.

Quest Co., Ltd. News

Quest Co. grows revenue but margins tighten as it reaffirms full-year outlook

An announcement from Quest Co., Ltd. ( ($JP:2332) ) is now available. Quest Co., Ltd. reported consolidated net...

24d ago

2332

Quest Co., Ltd. Announces Increased Dividend Payout

Quest Co., Ltd. ( ($JP:2332) ) just unveiled an update. Quest Co., Ltd. announced an increase in its...

10M ago

2332

Quest Co., Ltd. Completes Acquisition of Sept Inc.

Quest Co., Ltd. ( ($JP:2332) ) just unveiled an update. Quest Co., Ltd. has completed the acquisition of...

11M ago

2332

Quest Co., Ltd. Announces Leadership Change to Drive Growth

An announcement from Quest Co., Ltd. ( ($JP:2332) ) is now available. Quest Co., Ltd. has announced a...

12M ago

2332

Quest Co., Ltd. Acquires Sept Inc. to Bolster Growth Strategy

The latest update is out from Quest Co., Ltd. ( ($JP:2332) ). Quest Co., Ltd. announced its decision...

12M ago

2332

Quest Co., Ltd.: Commitment to Ethics and Diversity

Quest Co., Ltd. (JP:2332) has released an update. Quest Co., Ltd. is committed to long-term growth and maximizing...

2y ago

2332

2332 FAQ

What was Quest Co., Ltd.’s price range in the past 12 months?

Quest Co., Ltd. lowest stock price was ¥1101.00 and its highest was ¥2105.00 in the past 12 months.

What is Quest Co., Ltd.’s market cap?

Quest Co., Ltd.’s market cap is ¥8.72B.

When is Quest Co., Ltd.’s upcoming earnings report date?

Quest Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 72 days.

How were Quest Co., Ltd.’s earnings last quarter?

Quest Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥41.05 earnings per share for the quarter, beating the consensus estimate of N/A by ¥41.05.

Is Quest Co., Ltd. overvalued?

According to Wall Street analysts Quest Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Quest Co., Ltd. pay dividends?

Quest Co., Ltd. pays a Annually dividend of ¥55 which represents an annual dividend yield of 3.16%. See more information on Quest Co., Ltd. dividends here

What is Quest Co., Ltd.’s EPS estimate?

Quest Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Quest Co., Ltd. have?

Quest Co., Ltd. has 5,487,768 shares outstanding.

What happened to Quest Co., Ltd.’s price movement after its last earnings report?

Quest Co., Ltd. reported an EPS of ¥41.05 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.422%.

Which hedge fund is a major shareholder of Quest Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2332

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Quest Co., Ltd.

Quest Co., Ltd. provides IT services and solutions in Japan. It provides system development and maintenance services; IT infrastructure design, construction, maintenance, operation, and management services; application and infrastructure solutions; IT value-enhancement services; and business process outsourcing services, as well as offers IT consulting services. The company was formerly known as Keihin Keisan Center Co., Ltd. and changed its name to Quest Co., Ltd. in April 1988. Quest Co., Ltd. was incorporated in 1965 and is headquartered in Tokyo, Japan.