PCI Hodings INC. (3918) AI Stock Analysis

• Market Cap: ¥11.81B
• Dividend Yield: 3.62%
• Average Volume (3M): 8.31K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.84
• Revenue Growth: -2.26%
• EPS Growth: 3.37%
• Country: JP
• Employees: 1,660
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 29.68
• Shares Outstanding: 10,122,400
• 10 Day Avg. Volume: 9,930
• 30 Day Avg. Volume: 8,313
• PEG Ratio: -0.71
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 839.97
• 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: 74 Outperform
• Price Target: ¥1,342.00 ▲(10.27% Upside)

PCI Holdings INC. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and solid dividend yield. Technical analysis presents mixed signals, with short-term weakness but long-term support. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities.

Profit Margins

Stable profit margins suggest effective cost management and pricing power, supporting long-term profitability and competitive positioning.

Operational Efficiency

Healthy EBIT and EBITDA margins indicate strong operational efficiency, enabling the company to maintain profitability despite revenue fluctuations.

Negative Factors

Revenue Growth Decline

Inconsistent revenue growth can hinder long-term expansion and market share gains, potentially impacting future earnings and competitiveness.

Cash Flow Conversion

Low cash flow conversion from net income suggests challenges in liquidity management, which may affect the company's ability to fund operations and growth.

Revenue Growth

Negative revenue growth indicates declining sales, which could signal weakening demand or competitive pressures affecting the company's market position.

PCI Hodings INC. Business Overview & Revenue Model

Company Description

PCI Holdings, Inc. engages in the information service business. It develops embedded control software for automobiles, heavy machinery, construction machinery, etc.; and equipment for telecommunications field, including mobile communication, as well as other information home appliances, various industrial equipment, semiconductor manufacturing equipment, etc. The company also develops software, middleware, and application that control various devices; firmware, such as shooting control for digital cameras; and software for control semiconductor inspection equipment. In addition, it develops information software for finance, manufacturing, distribution, and other companies; and social infrastructure software for transportation and broadcasting, and IT systems. Further, the company constructs and sells solutions utilizing packaged software products; operates and maintains system; and purchases and sells other hardware, etc. Additionally, it develops Internet of Things/Internet of everything solutions; and remote monitoring systems for the power generation industry, as well as provides operation and maintenance support services for renewable energy generation facilities. The company also offers services for semiconductor development, including LSI design, test design, evaluation, and others. PCI Holdings, Inc. was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

PCI Holdings Inc. generates revenue through multiple streams, primarily derived from the performance of its subsidiary companies. These subsidiaries operate in distinct sectors, allowing the parent company to benefit from diversified income sources. Key revenue streams include product sales from technology solutions, manufacturing contracts, and service agreements. Additionally, PCI Holdings may engage in strategic partnerships with other firms to enhance its market reach and customer base, further contributing to its earnings. The company also invests in research and development to create innovative products that can command premium pricing in the market.

PCI Hodings INC. Financial Statement Overview

Summary

PCI Holdings INC. presents a strong financial position with stable profit margins and a robust balance sheet characterized by low leverage. Despite some inconsistencies in revenue and cash flow growth, the company maintains operational efficiency and stability.

Income Statement

PCI Holdings INC. shows a stable gross profit margin with a TTM (Trailing-Twelve-Months) value of 23.15%. The net profit margin stands at 3.80% for TTM, reflecting decent profitability. However, revenue growth has been inconsistent, with a decline observed in the recent TTM period compared to the previous year. EBIT and EBITDA margins are healthy at 4.71% and 5.75% respectively, suggesting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.07 in the TTM, indicating low leverage. The equity ratio is solid at 56.76%, highlighting financial stability. Return on equity is moderate at 10.93%, suggesting reasonable returns for shareholders.

Cash Flow

PCI Holdings INC. has shown erratic free cash flow growth, with a slight increase to 18.35 million in TTM. The operating cash flow to net income ratio is low at 0.05, indicating potential issues in converting net income into cash. However, free cash flow to net income ratio is positive, suggesting some ability to generate free cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.75B	25.08B	28.49B	25.17B	21.25B	16.76B
Gross Profit	5.90B	5.74B	6.94B	6.34B	5.69B	4.50B
EBITDA	1.41B	1.68B	2.33B	1.57B	1.54B	818.21M
Net Income	976.40M	817.59M	1.01B	643.10M	669.80M	286.90M
Balance Sheet
Total Assets	15.90B	15.50B	17.63B	16.92B	17.39B	12.44B
Cash, Cash Equivalents and Short-Term Investments	4.09B	3.97B	4.11B	2.63B	3.31B	4.83B
Total Debt	511.52M	755.89M	1.59B	1.93B	2.79B	3.68B
Total Liabilities	6.45B	6.25B	8.53B	8.54B	9.44B	7.01B
Stockholders Equity	9.02B	8.81B	8.63B	7.82B	7.48B	5.03B
Cash Flow
Free Cash Flow	18.34M	12.33M	1.85B	591.26M	859.42M	1.24B
Operating Cash Flow	47.90M	179.19M	2.04B	736.12M	948.79M	1.33B
Investing Cash Flow	1.08B	1.17B	259.43M	-193.26M	-3.36B	-523.85M
Financing Cash Flow	-516.32M	-1.43B	-884.56M	-1.23B	848.33M	827.63M

PCI Hodings INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1217.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3918, the sentiment is Neutral. The current price of 1217 is below the 20-day moving average (MA) of 1219.45, below the 50-day MA of 1224.83, and above the 200-day MA of 1070.14, indicating a neutral trend. The MACD of 2.61 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3918.

PCI Hodings INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥7.97B	11.03	―	3.20%	14.02%	2.74%
2391	80 Outperform	¥8.31B	19.59	―	3.47%	-0.94%	-7.43%
3918	74 Outperform	¥11.81B	11.67	―	3.62%	-2.26%	3.37%
3924	69 Neutral	¥16.35B	14.74	―	4.09%	-5.92%	3.16%
3683	68 Neutral	¥14.94B	11.77	―	1.20%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%