PRAP Japan, Inc. (2449) AI Stock Analysis

• Market Cap: ¥4.31B
• Dividend Yield: 3.7%
• Average Volume (3M): 2.43K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.30
• Revenue Growth: 7.31%
• EPS Growth: 109.18%
• Country: JP
• Employees: 353
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 9.29
• Shares Outstanding: 4,679,010
• 10 Day Avg. Volume: 2,040
• 30 Day Avg. Volume: 2,426
• PEG Ratio: 0.09
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 9.88
• 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: 75 Outperform
• Price Target: ¥1,357.00 ▲(27.66% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

PRAP Japan, Inc. is financially robust with strong revenue growth and profitability, supported by a solid balance sheet. The valuation is attractive with a low P/E ratio and a healthy dividend yield. Technical indicators suggest mixed momentum, with short-term caution advised. Overall, the stock is well-positioned within the consulting services industry.

Positive Factors

Very low leverage and strong equity base

Extremely low leverage and a high equity ratio give the firm durable financial resilience. This reduces bankruptcy risk, preserves borrowing optionality for capex or M&A, and offers a buffer in cyclical downturns, supporting multi-quarter strategic execution.

Stable operating cash generation

Operating cash flow that comfortably covers net income and near-par free cash flow indicates reliable internal funding for operations, dividends, and reinvestment. This cash conversion supports long-term capital allocation without heavy reliance on external funding.

Tech-enabled, diversified revenue streams

A business model combining core logistics services with technology solutions and potential subscription income creates customer stickiness and recurring revenue. Diversification across warehousing, distribution and software reduces single-source dependence and supports sustainable margins.

Negative Factors

Relatively low net and EBIT margins

A material gap between gross margin and net/EBIT margins signals elevated operating or SG&A costs. Persistently modest operating profitability limits free cash flow expansion, constrains reinvestment capacity, and reduces flexibility to absorb input cost pressures over time.

Volatility in free cash flow growth

Past fluctuations in free cash flow create uncertainty for long-term capital planning. Even with current coverage of net income, inconsistent FCF complicates forecasting for dividends, capex, and M&A, and suggests sensitivity to working capital or project timing.

Modest recent revenue growth

A single-digit, low single-digit top-line increase in the latest year indicates modest organic expansion. In a competitive logistics and tech-enabled services market, slower revenue growth can limit scale economies and delay margin improvement from higher utilization or platform adoption.

PRAP Japan, Inc. Business Overview & Revenue Model

Company Description

PRAP Japan, Inc., together with its subsidiaries, operates as a public relations consultancy company in Japan. It provides communication; digital solution; and media training and crisis management services. PRAP Japan, Inc. was incorporated in 1970 and is based in Tokyo, Japan.

How the Company Makes Money

PRAP Japan, Inc. generates revenue primarily through its logistics and supply chain management services, which include inventory management, warehousing solutions, and distribution services. The company charges clients based on the volume of goods handled, storage space utilized, and additional services provided, such as transportation and order fulfillment. Key revenue streams also include technology solutions that enhance operational efficiency for clients, with potential recurring revenue from software subscriptions or service maintenance contracts. Strategic partnerships with major retail and manufacturing companies further amplify its earnings by ensuring a steady demand for its logistics services.

PRAP Japan, Inc. Financial Statement Overview

Summary

PRAP Japan, Inc. exhibits strong financial health with consistent revenue growth and profitability improvements. The balance sheet is solid with low leverage and a strong equity base. Cash flow generation is stable, although historical fluctuations in free cash flow growth suggest potential volatility.

Income Statement

PRAP Japan, Inc. has demonstrated consistent revenue growth with a 3.2% increase in the latest year. The gross profit margin is strong at 37.6%, indicating effective cost management. Net profit margin improved to 6.4%, showcasing enhanced profitability. However, the EBIT margin of 9.7% suggests room for operational efficiency improvements.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.004, indicating minimal leverage. The return on equity is healthy at 8.9%, reflecting effective use of shareholder funds. The equity ratio of 76.5% underscores a strong equity base, providing financial stability.

Cash Flow

Operating cash flow is robust, covering net income comfortably, with a ratio of 1.26. Free cash flow growth is positive, although it has fluctuated in previous years. The free cash flow to net income ratio of 1.03 indicates efficient cash generation relative to profits.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	7.39B	6.89B	6.64B	6.27B	8.21B
Gross Profit	2.78B	2.59B	2.62B	2.23B	1.83B
EBITDA	921.46M	640.43M	933.14M	476.05M	451.81M
Net Income	476.17M	226.65M	436.39M	157.17M	140.22M
Balance Sheet
Total Assets	7.01B	7.00B	6.85B	6.41B	5.91B
Cash, Cash Equivalents and Short-Term Investments	4.30B	4.42B	4.23B	3.51B	3.10B
Total Debt	20.29M	46.27M	14.00M	17.00M	21.19M
Total Liabilities	1.41B	1.56B	1.55B	1.49B	1.52B
Stockholders Equity	5.36B	5.16B	5.02B	4.69B	4.22B
Cash Flow
Free Cash Flow	488.61M	476.20M	677.19M	184.84M	168.59M
Operating Cash Flow	597.92M	491.97M	789.70M	398.44M	224.39M
Investing Cash Flow	-315.88M	10.37M	36.45M	117.07M	-689.95M
Financing Cash Flow	-368.23M	-260.21M	-195.85M	165.84M	-310.89M

PRAP Japan, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1063.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1063 is below the 20-day moving average (MA) of 1102.00, below the 50-day MA of 1123.84, and above the 200-day MA of 1058.58, indicating a neutral trend. The MACD of -10.23 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 18.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2449.

PRAP Japan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2449	75 Outperform	¥4.31B	9.81	―	3.70%	7.31%	109.18%
4490	71 Outperform	¥5.08B	6.43	―	―	0.36%	―
7033	71 Outperform	¥24.13B	12.88	―	2.18%	17.87%	5.31%
6532	70 Outperform	¥599.32B	16.48	―	1.30%	25.07%	26.47%
2170	69 Neutral	¥54.38B	35.36	―	2.96%	10.63%	7.42%
4792	64 Neutral	¥32.02B	14.00	―	4.39%	2.46%	-31.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%