PCI Hodings INC. (3918) AI Stock Analysis

• Market Cap: ¥12.18B
• Dividend Yield: 2.78%
• Average Volume (3M): 16.43K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.79
• Revenue Growth: -7.36%
• EPS Growth: 35.89%
• Country: JP
• Employees: 1,660
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): 23.71
• Shares Outstanding: 10,122,400
• 10 Day Avg. Volume: 16,100
• 30 Day Avg. Volume: 16,433
• 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: ¥1,213.00
• Price Target Upside: -1.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,213.00 ▼(-1.94% Downside)

PCI Holdings INC. is well-positioned in the Information Technology Services industry, with strong financial fundamentals and a solid valuation profile. The technical indicators show strong momentum, although caution is warranted due to overbought signals. The stock's low P/E ratio and healthy dividend yield further enhance its attractiveness. However, inconsistencies in revenue and cash flow growth pose potential risks.

PCI Hodings INC. Business Overview & Revenue Model

Company Description

PCI Holdings INC. (3918) is a Japan-based company primarily engaged in the information technology (IT) services sector. The company offers a comprehensive range of services including software development, system integration, and IT infrastructure solutions. PCI Holdings INC. caters to a diverse clientele across various industries, providing customized IT solutions that enhance operational efficiency and business performance.

How the Company Makes Money

PCI Holdings INC. generates revenue through multiple streams, primarily from software development and IT service contracts. The company engages in project-based software development for its clients, where it designs, develops, and implements tailored software solutions. Additionally, PCI Holdings INC. provides system integration services, helping businesses integrate and manage their IT systems effectively. Revenue is also derived from IT infrastructure solutions, where the company offers infrastructure design, implementation, and maintenance services. The company may enter into strategic partnerships with other technology firms to enhance its service offerings and expand its market reach, contributing to its financial performance.

PCI Hodings INC. Financial Statement Overview

Summary

Overall, 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, making it a reliable player in the Information Technology Services industry.

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: Positive
• Last Price: 1237.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3918, the sentiment is Positive. The current price of 1237 is above the 20-day moving average (MA) of 1175.15, above the 50-day MA of 1137.66, and above the 200-day MA of 976.80, indicating a bullish trend. The MACD of 26.13 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 94.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3918.

PCI Hodings INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2391	80 Outperform	¥8.38B	18.90		3.44%	0.45%	-1.74%
3683	77 Outperform	¥17.18B	14.85		1.04%	9.81%	81.48%
2332	76 Outperform	¥7.75B	10.55		3.28%	9.60%	2.11%
3918	74 Outperform	¥12.18B	10.34		2.78%	-7.36%	35.89%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
2354	―	¥12.32B	11.54		2.98%	―	―
3924	69 Neutral	¥17.05B	16.05		3.79%	-3.54%	-7.78%