PRAP Japan, Inc. (2449) AI Stock Analysis

• Market Cap: ¥4.21B
• Dividend Yield: 3.81%
• Average Volume (3M): 18.75K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.28
• Revenue Growth: 7.42%
• EPS Growth: 98.27%
• Country: JP
• Employees: 353
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 34.42
• Shares Outstanding: 4,679,010
• 10 Day Avg. Volume: 27,190
• 30 Day Avg. Volume: 18,753
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥1,117.00
• Price Target Upside: 6.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,117.00 ▲(6.48% Upside)

PRAP Japan, Inc. is well-positioned with strong financial stability and attractive valuation metrics. Despite recent declines in profitability and potential technical pullbacks, the company's solid financial foundation and shareholder returns through dividends contribute positively to its overall score.

Positive Factors

Revenue Growth

Stable revenue growth indicates a consistent demand for PRAP Japan's services, which supports long-term business sustainability and market presence.

Financial Stability

Low leverage enhances financial stability, providing PRAP Japan with the flexibility to invest in growth opportunities and weather economic downturns.

Cash Generation

Strong cash generation relative to profit ensures that PRAP Japan can fund operations, invest in growth, and return value to shareholders through dividends.

Negative Factors

Profitability Decline

Declining profitability may impact PRAP Japan's ability to reinvest in the business and maintain competitive pricing, affecting long-term growth.

Cash Flow Efficiency

Reduced cash flow efficiency could limit PRAP Japan's ability to invest in strategic initiatives and respond to market changes, impacting future growth.

Operating Profitability

Decreased operating profitability may hinder PRAP Japan's capacity to expand services and invest in competitive advantages, affecting long-term success.

PRAP Japan, Inc. Business Overview & Revenue Model

Company Description

PRAP Japan, Inc. (2449) is a leading public relations firm based in Japan. The company specializes in providing strategic communication services, including media relations, crisis management, digital marketing, and corporate branding. PRAP Japan serves a diverse range of clients across various industries, leveraging its expertise to enhance brand reputation and stakeholder engagement.

How the Company Makes Money

PRAP Japan, Inc. generates revenue primarily through fees charged for its public relations and communication consultancy services. The company earns money by offering tailored communication strategies, media relations, and crisis management solutions to its clients. These services are often provided on a retainer basis or through project-based engagements. Additionally, the company may derive income from organizing events, conducting market research, and offering digital marketing services. PRAP Japan's strong reputation and client portfolio, along with its ability to adapt to evolving market trends, contribute significantly to its revenue streams.

PRAP Japan, Inc. Financial Statement Overview

Summary

PRAP Japan, Inc. shows stable revenue growth and a strong equity position with low leverage. However, declining profitability and cash flow efficiency suggest challenges in cost management and operational efficiency.

Income Statement

PRAP Japan, Inc. shows a stable revenue growth with a 3.8% increase in the latest year. The gross profit margin is healthy at 37.7%, but there's a notable decline in net profit margin from 6.6% to 3.3%, indicating increased expenses or reduced efficiency. The EBIT and EBITDA margins have also decreased, suggesting pressure on operating profitability.

Balance Sheet

The company maintains a strong debt-to-equity ratio at 0.03, reflecting low leverage and financial stability. Return on equity has decreased to 4.4%, which could be due to reduced net income. Equity ratio remains robust at 73.8%, indicating a strong equity position relative to total assets.

Cash Flow

Free cash flow decreased by 29.7% year-over-year, highlighting potential cash management challenges. The operating cash flow to net income ratio is strong at 2.17, suggesting good cash generation relative to profit. However, the free cash flow to net income ratio has also decreased to 2.10, reflecting reduced cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.07B	6.89B	6.64B	6.27B	8.21B	4.76B
Gross Profit	2.68B	2.59B	2.62B	2.23B	1.83B	1.22B
EBITDA	706.18M	640.43M	933.14M	476.05M	451.81M	274.07M
Net Income	274.65M	226.65M	436.39M	157.17M	140.22M	174.09M
Balance Sheet
Total Assets	6.82B	7.00B	6.85B	6.41B	5.91B	5.22B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.42B	4.23B	3.51B	3.10B	3.82B
Total Debt	34.00M	46.27M	14.00M	17.00M	21.19M	21.48M
Total Liabilities	1.52B	1.56B	1.55B	1.49B	1.52B	843.03M
Stockholders Equity	5.06B	5.16B	5.02B	4.69B	4.22B	4.28B
Cash Flow
Free Cash Flow	0.00	476.20M	677.19M	184.84M	168.59M	288.43M
Operating Cash Flow	0.00	491.97M	789.70M	398.44M	224.39M	317.82M
Investing Cash Flow	0.00	10.37M	36.45M	117.07M	-689.95M	-23.49M
Financing Cash Flow	0.00	-260.21M	-195.85M	165.84M	-310.89M	-131.56M

PRAP Japan, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1049.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2449, the sentiment is Neutral. The current price of 1049 is below the 20-day moving average (MA) of 1089.51, above the 50-day MA of 1042.44, and above the 200-day MA of 934.10, indicating a neutral trend. The MACD of 5.22 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2449.

PRAP Japan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5867	79 Outperform	¥3.85B	12.30		3.50%	―	―
7039	76 Outperform	¥7.40B	10.00		3.08%	11.81%	13.05%
2449	75 Outperform	¥4.21B	11.80		3.81%	7.42%	98.27%
6578	70 Outperform	¥2.53B	14.64		2.61%	82.83%	―
7034	65 Neutral	¥8.52B	35.49		―	125.74%	-109.66%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
3768	61 Neutral	¥3.82B	―		3.02%	3.25%	-114.05%