ValueCommerce Co., Ltd. (2491) AI Stock Analysis

• Market Cap: ¥21.65B
• Dividend Yield: 7.85%
• Average Volume (3M): 275.04K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.58
• Revenue Growth: -3.20%
• EPS Growth: 34.08%
• Country: JP
• Employees: 404
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 18.84
• Shares Outstanding: 34,471,000
• 10 Day Avg. Volume: 295,840
• 30 Day Avg. Volume: 275,036
• PEG Ratio: 1.36
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 8.80
• 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: 79 Outperform
• Price Target: ¥765.00 ▲(11.68% Upside)

The score is driven primarily by strong financial resilience (notably zero debt and solid profitability/cash conversion) and very attractive valuation (low P/E and high dividend yield). These positives are partially offset by a softer technical/longer-term trend and recent fundamental slowdown (TTM revenue and free cash flow declines).

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances flexibility, allowing the company to navigate market challenges more effectively.

Cash Conversion

Strong cash conversion indicates efficient operations and the ability to generate cash, supporting reinvestment and shareholder returns.

Equity-to-Asset Ratio

A high equity-to-asset ratio suggests a solid financial position, providing a buffer against economic downturns and supporting long-term stability.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact future growth prospects.

Margin Compression

Margin compression suggests increased costs or pricing pressures, which could affect profitability if not addressed.

Free Cash Flow Decline

A decline in free cash flow may limit the company's ability to invest in growth opportunities or return capital to shareholders.

ValueCommerce Co., Ltd. Business Overview & Revenue Model

Company Description

ValueCommerce Co., Ltd. provides marketing solutions in Japan and internationally. The company develops and offers affiliate marketing services, including pay-per-performance advertising services; and Value Point Club, a cash-back program that allows users to shop top brands and earn points for purchases. It also offers STORE's R8, a CRM tool for stores in online shopping malls; Storematch, a service that provides pay-per-click Internet advertising for stores in online shopping malls and manufacturers; and B-Space, an EC operation support tool for e-commerce operators. The company was formerly known as Transpacific Inc. and changed its name to ValueCommerce Co., Ltd. in November 1999. The company was incorporated in 1996 and is based in Tokyo, Japan. ValueCommerce Co., Ltd. operates as a subsidiary of Z Holdings Corporation.

How the Company Makes Money

ValueCommerce Co., Ltd. primarily generates revenue through its affiliate marketing services, which involve connecting advertisers with publishers. The company earns money by taking a commission on sales or actions generated through its network of affiliates. This performance-based model ensures that ValueCommerce profits proportionally with the success of the campaigns it facilitates. Additionally, the company may generate revenue through partnerships with major e-commerce platforms and retailers, further extending its reach and effectiveness in digital marketing. This diversified approach allows ValueCommerce to sustain its profitability by capitalizing on the growing demand for online marketing solutions.

ValueCommerce Co., Ltd. Financial Statement Overview

Summary

ValueCommerce Co., Ltd. has shown strong balance sheet health with no debt and high equity ratios, suggesting financial stability. The income statement indicates moderate profitability with challenges in revenue growth. The cash flow statement reflects efficient cash generation, though there is room for improvement in operational cash flow growth. Overall, the company is financially sound but faces revenue growth challenges.

Income Statement

ValueCommerce Co., Ltd. shows a mixed performance in terms of profitability and revenue growth. The gross profit margin for 2024 is 32.82%, and the net profit margin is 9.39%, indicating a moderate level of profitability. However, the revenue growth has been negative over the recent period, with a decline of 3.88% from 2023 to 2024, suggesting challenges in maintaining revenue momentum. The EBIT margin stands at 13.68%, and the EBITDA margin is 15.10%, reflecting decent operational efficiency but a decline from previous years.

Balance Sheet

The balance sheet of ValueCommerce Co., Ltd. is strong, characterized by zero debt, which results in a debt-to-equity ratio of 0.00. The company holds a high equity ratio of 65.48% for 2024, indicating a robust equity base relative to total assets. The return on equity (ROE) is 22.21%, showing effective use of shareholder capital. These factors contribute to a stable financial position with minimal leverage risk.

Cash Flow

The cash flow performance is solid, with a stable free cash flow of ¥3,371 million in 2024. Although the free cash flow growth rate is 9.66%, there has been a slight decrease in operating cash flow compared to 2023. The operating cash flow to net income ratio is 1.21, indicating that the company generates ample cash relative to its net income. The free cash flow to net income ratio stands at 1.18, underscoring efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.95B	30.41B	29.40B	35.71B	33.56B	29.17B
Gross Profit	8.87B	9.98B	10.15B	12.83B	12.88B	11.58B
EBITDA	4.28B	4.59B	5.70B	8.72B	8.70B	7.32B
Net Income	3.01B	2.85B	3.40B	5.81B	3.26B	4.27B
Balance Sheet
Total Assets	17.95B	19.59B	28.35B	28.20B	23.94B	22.47B
Cash, Cash Equivalents and Short-Term Investments	11.44B	11.78B	21.53B	20.18B	15.50B	11.42B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.96B	6.73B	5.89B	7.38B	7.37B	7.80B
Stockholders Equity	13.99B	12.86B	22.46B	20.82B	16.56B	14.68B
Cash Flow
Free Cash Flow	2.87B	3.37B	3.07B	6.43B	4.98B	5.16B
Operating Cash Flow	2.92B	3.46B	3.50B	6.77B	5.40B	5.89B
Investing Cash Flow	-1.22B	-708.00M	-404.00M	-367.00M	34.00M	-1.21B
Financing Cash Flow	-1.29B	-12.51B	-1.75B	-1.72B	-1.35B	-1.13B

ValueCommerce Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 685.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2491, the sentiment is Positive. The current price of 685 is above the 20-day moving average (MA) of 664.52, above the 50-day MA of 661.77, and below the 200-day MA of 727.15, indicating a neutral trend. The MACD of 1.90 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2491.

ValueCommerce Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2491	79 Outperform	¥21.65B	4.82	―	7.85%	-3.20%	34.08%
6535	75 Outperform	¥29.60B	12.96	―	5.35%	58.08%	29.89%
7068	75 Outperform	¥16.19B	12.56	―	1.27%	7.24%	215.65%
2461	69 Neutral	¥33.86B	23.63	―	5.08%	3.22%	13.97%
6045	68 Neutral	¥13.08B	19.69	―	2.19%	14.43%	10.99%
2389	61 Neutral	¥32.14B	25.44	―	2.14%	-22.10%	-16.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ValueCommerce Co., Ltd. Corporate Events

ValueCommerce Reports Decline in Q3 2025 Financial Results

ValueCommerce Co., Ltd. reported a decline in its financial performance for the first nine months of 2025, with net sales decreasing by 6.5% and operating income dropping by 29.9% compared to the previous year. Despite these challenges, the company achieved a 7.3% increase in net income attributable to owners of the parent, indicating some resilience in its operations. The company’s equity-to-asset ratio improved to 77.9%, suggesting a stronger financial position. The forecast for the fiscal year ending December 31, 2025, anticipates further decreases in net sales and income, reflecting ongoing market challenges.