Quest Co., Ltd. (2332) AI Stock Analysis

• Market Cap: ¥8.14B
• Dividend Yield: 3.17%
• Average Volume (3M): 10.84K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.54
• Revenue Growth: 9.60%
• EPS Growth: 2.11%
• Country: JP
• Employees: 966
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 28.56
• Shares Outstanding: 5,487,768
• 10 Day Avg. Volume: 11,720
• 30 Day Avg. Volume: 10,836
• PEG Ratio: 0.91
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 12.07
• 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: 80 Outperform
• Price Target: ¥1,776.00 ▲(15.55% Upside)

Quest Co., Ltd. demonstrates strong financial performance with robust growth and stability, which is the most significant factor in its high score. The technical analysis supports a positive trend, and the valuation indicates potential undervaluation, both contributing positively to the overall score.

Quest Co., Ltd. Business Overview & Revenue Model

Company Description

Quest Co., Ltd. (2332) is a dynamic company operating primarily within the technology sector, specializing in the development and provision of innovative software solutions and services. The company focuses on enhancing digital transformation for businesses by offering a range of products that include cloud computing services, data analytics tools, and enterprise resource planning (ERP) systems. Quest Co., Ltd. aims to empower organizations to improve operational efficiency and drive growth through cutting-edge technology and tailored solutions.

How the Company Makes Money

Quest Co., Ltd. generates revenue through multiple streams, primarily by selling software licenses and subscriptions for its various technology products. The company also earns income from providing consulting and implementation services to help clients integrate and optimize its software within their operations. Additionally, recurring revenues from cloud-based services contribute significantly to its earnings, as businesses increasingly adopt these solutions for scalability and flexibility. Strategic partnerships with other tech firms and industry leaders enhance Quest's offerings, allowing it to leverage co-marketing opportunities and expand its market reach, further solidifying its revenue base.

Quest Co., Ltd. Financial Statement Overview

Summary

Quest Co., Ltd. exhibits strong financial health with consistent revenue growth and robust profitability margins. A strong balance sheet with minimal leverage and effective cash flow management enhance financial stability and growth prospects.

Income Statement

Quest Co., Ltd. has demonstrated consistent revenue growth, with a notable increase of 5% in the latest year. The gross profit margin has remained strong at approximately 18.4%, and the net profit margin improved from 4.9% to 5.1%. EBIT and EBITDA margins have also shown positive stability, indicating efficient operational management. Overall, the income statement reflects robust profitability and growth trends, enhancing the company's competitive position in the industry.

Balance Sheet

The balance sheet is robust, showcasing a strong equity ratio of approximately 73.9%, which indicates financial stability. The low debt-to-equity ratio of 0.002 highlights minimal leverage, reducing financial risk. Return on Equity (ROE) is healthy at around 10.6%, reflecting efficient use of equity capital. The company's strong equity position provides a solid foundation for future growth and resilience against market fluctuations.

Cash Flow

Quest Co., Ltd. has demonstrated a positive trend in free cash flow growth, with a notable increase of approximately 19% in the latest year. The operating cash flow to net income ratio stands at 0.77, indicating effective cash generation from operations. The free cash flow to net income ratio is also strong at 0.77, reflecting good cash flow management. Overall, the cash flow statement shows healthy cash generation and efficient capital expenditure management, supporting long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.74B	14.94B	14.22B	14.20B	11.81B	11.18B
Gross Profit	2.83B	2.75B	2.62B	2.58B	2.04B	1.93B
EBITDA	1.24B	1.27B	1.23B	1.21B	1.02B	940.69M
Net Income	758.10M	767.59M	696.18M	690.29M	690.41M	636.23M
Balance Sheet
Total Assets	9.98B	9.82B	9.46B	9.04B	8.26B	7.23B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.33B	3.00B	2.66B	2.48B	2.85B
Total Debt	195.70M	11.68M	15.04M	3.80M	113.10M	10.91M
Total Liabilities	2.90B	2.57B	2.67B	2.78B	2.53B	2.04B
Stockholders Equity	7.08B	7.25B	6.79B	6.27B	5.64B	5.20B
Cash Flow
Free Cash Flow	145.76M	588.54M	494.97M	645.16M	449.45M	645.84M
Operating Cash Flow	145.76M	590.98M	709.34M	659.93M	458.29M	653.11M
Investing Cash Flow	4.96M	91.31M	-2.15M	-150.81M	-1.14B	-108.15M
Financing Cash Flow	-131.19M	-265.58M	-251.96M	-326.42M	-210.62M	-184.47M

Quest Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2332, the sentiment is Positive. The current price of 1537 is below the 20-day moving average (MA) of 1545.70, above the 50-day MA of 1514.64, and above the 200-day MA of 1382.28, indicating a bullish trend. The MACD of 15.19 indicates Positive momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2332.

Quest Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥8.14B	11.09	―	3.17%	9.60%	2.11%
3847	76 Outperform	¥10.06B	14.95	―	2.01%	4.08%	17.95%
3799	73 Outperform	¥8.82B	8.00	―	4.46%	5.12%	66.08%
3940	72 Outperform	¥6.16B	15.17	―	2.46%	8.71%	4.70%
2488	69 Neutral	¥8.23B	13.88	―	2.61%	14.39%	22.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	50 Neutral	¥5.96B	―	―	―	-1.18%	-157.03%