Phil Company, Inc. (3267) AI Stock Analysis

• Market Cap: ¥6.41B
• Dividend Yield: 1.94%
• Average Volume (3M): 49.24K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.83
• Revenue Growth: 31.74%
• EPS Growth: 6.45%
• Country: JP
• Employees: 90
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 45.28
• Shares Outstanding: 5,778,000
• 10 Day Avg. Volume: 62,330
• 30 Day Avg. Volume: 49,243
• PEG Ratio: 0.24
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -10.32
• 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: 61 Neutral
• Price Target: ¥1,155.00 ▲(22.09% Upside)
• Action: Downgraded Date: 01/16/26
• Date: Action: Downgraded 01/16/26

The score is most constrained by weak and volatile cash generation and higher leverage despite improved profitability. Technicals are a key offset, showing a strong uptrend with positive momentum, while valuation appears reasonable with a modest dividend.

Positive Factors

Improving profitability margins

Sustained margin improvement through 2025 indicates the company has improved project economics and pricing power. Higher operating and net margins enhance internal cash available for reinvestment, support credit metrics, and bolster the ability to withstand cyclical revenue swings over the medium term.

Recurring subscription and licensing revenue

A subscription/licensing model provides recurring, more predictable revenue and higher customer retention potential. Strategic cloud partnerships expand distribution and reduce go-to-market costs, supporting steady ARR growth and long-term scalability across finance, healthcare, and retail verticals.

Improved return on equity and equity growth

Rising ROE and growing equity indicate better capital efficiency and an improving profitability profile. This creates more internal funding capacity for R&D or selective buybacks/dividends, and signals management progress in converting investments into shareholder returns over multiple years.

Negative Factors

Volatile and weak cash generation

Persistent cash-flow volatility and recent negative operating and free cash flow weaken the firm's ability to self-fund growth, raise cash in stress, and sustain capital allocation plans. Working-capital and project-timing swings increase reliance on external financing and raise execution risk over the medium term.

Rising leverage reduces flexibility

A sharp step-up in leverage materially increases interest burden and sensitivity to earnings volatility. Higher debt limits strategic optionality for M&A, capex, or dividend increases and raises refinancing risk during downturns, weakening the balance sheet cushion over the next several quarters.

Inconsistent revenue growth, 2025 decline

Reversals in top-line growth undermine confidence in demand durability and make margin gains harder to rely on. Inconsistent revenue trends suggest exposure to project timing, competitive pressure, or client concentration, reducing predictability of earnings and cash generation over a multi-quarter horizon.

Phil Company, Inc. Business Overview & Revenue Model

Company Description

Phil Company,Inc. provides architectural design services in Japan. It is also involved in the development, operation, and sell of aerial stores under the Phil Park and Garage House names. In addition, the company provides value-added services to landowners, such as parking lots. Phil Company,Inc. was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Phil Company, Inc. generates revenue through multiple streams, primarily from subscription-based software services and licensing fees for its proprietary technology solutions. The company offers tiered subscription models for its cloud-based applications, providing clients with scalable options based on their needs. Additionally, it earns revenue from consulting services, helping businesses implement and optimize its software solutions. Strategic partnerships with major cloud service providers enhance its offerings and widen its market reach, contributing significantly to its earnings. Furthermore, Phil Company, Inc. explores opportunities in emerging technologies, which may lead to new revenue streams in the future.

Phil Company, Inc. Financial Statement Overview

Summary

Income statement trends improved (higher operating and net margins into 2025), but this is offset by a sharp deterioration in cash flow (negative operating and free cash flow in 2025) and higher leverage (debt-to-equity rising to ~0.92). Revenue also declined in 2025 (-8.0%), reducing confidence in durability.

Income Statement

Profitability improved materially from 2023 to 2025, with net margin rising from ~0.6% (2023) to ~4.8% (2025) and operating margin improving to ~7.3% (2025). Gross margin also firmed versus 2022–2024, indicating better project economics/pricing. The key weakness is growth consistency: revenue accelerated strongly in 2023–2024 but turned negative in 2025 (-8.0%), and margins remain well below the peak levels seen in 2021.

Balance Sheet

The balance sheet shows acceptable but worsening leverage: debt-to-equity increased to ~0.92 in 2025 from ~0.53 in 2024, reducing financial flexibility. Equity has grown over time, and return on equity improved to ~11.9% in 2025 (from very low levels in 2023), which is a positive signal on underlying profitability. The main risk is the sharp step-up in debt in 2025, which raises sensitivity to earnings volatility.

Cash Flow

Cash generation is volatile and currently weak: operating cash flow swung from a strong positive in 2024 to negative in 2025, and free cash flow also turned negative in 2025 after being strongly positive in 2024. The business has a history of large cash flow swings (negative in 2020, 2022, 2023, and 2025), suggesting working-capital and/or project timing risk. This variability lowers confidence in earnings quality and reduces funding flexibility during downturns.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	8.23B	7.18B	5.96B	4.38B	5.43B
Gross Profit	2.20B	1.81B	1.44B	1.03B	1.71B
EBITDA	668.72M	504.21M	219.56M	291.72M	713.36M
Net Income	398.08M	261.87M	38.03M	142.10M	407.47M
Balance Sheet
Total Assets	9.94B	7.50B	5.45B	4.75B	5.45B
Cash, Cash Equivalents and Short-Term Investments	5.44B	4.82B	2.46B	2.25B	4.19B
Total Debt	3.06B	1.59B	1.32B	632.32M	368.31M
Total Liabilities	6.60B	4.52B	2.72B	2.31B	2.68B
Stockholders Equity	3.34B	2.98B	2.73B	2.44B	2.77B
Cash Flow
Free Cash Flow	-482.55M	2.06B	-673.31M	-1.67B	3.28B
Operating Cash Flow	-442.82M	2.08B	-541.35M	-1.66B	3.29B
Investing Cash Flow	-862.47M	354.23M	-498.14M	23.59M	-6.23M
Financing Cash Flow	1.42B	242.56M	938.22M	-302.88M	-1.16B

Phil Company, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 946.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3267, the sentiment is Positive. The current price of 946 is below the 20-day moving average (MA) of 1066.10, below the 50-day MA of 1061.36, and below the 200-day MA of 946.45, indicating a bullish trend. The MACD of 20.53 indicates Negative momentum. The RSI at 65.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3267.

Phil Company, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.69B	10.02	―	1.88%	-16.60%	-19.91%
1758	75 Outperform	¥6.20B	10.75	―	2.03%	14.17%	―
1443	74 Outperform	¥5.60B	9.12	―	0.46%	0.58%	25.48%
6171	69 Neutral	¥6.56B	13.57	―	2.86%	2.87%	55.82%
1438	66 Neutral	¥6.11B	13.08	―	1.99%	20.63%	11.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3267	61 Neutral	¥6.41B	15.54	―	1.94%	31.74%	6.45%