PCI Hodings INC. (3918) AI Stock Analysis

• Market Cap: ¥10.74B
• Dividend Yield: 3.94%
• Average Volume (3M): 17.90K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.73
• Revenue Growth: -4.10%
• EPS Growth: 18.34%
• Country: JP
• Employees: 1,660
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 23.29
• Shares Outstanding: 10,122,400
• 10 Day Avg. Volume: 16,230
• 30 Day Avg. Volume: 17,903
• PEG Ratio: 6.74
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 587.93
• 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

• Rating: 74 Outperform
• Price Target: ¥1,213.00 ▲(11.18%Upside)

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 Japanese-based company specializing in information technology services. The company operates in various sectors, including system development, information processing, and IT infrastructure services. Its core offerings encompass software development, IT consulting, and systems integration, catering to a diverse range of industries.

How the Company Makes Money

PCI Holdings INC. generates revenue primarily through its IT services and solutions. The company's key revenue streams include software development projects, IT infrastructure management, and consulting services. By providing tailored IT solutions to businesses across different sectors, PCI Holdings INC. capitalizes on the growing demand for digital transformation and technology integration. Additionally, the company may engage in strategic partnerships and collaborations to enhance its service offerings and expand its market reach, although specific partnerships contributing to earnings are not detailed.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
25.25B	25.08B	28.49B	25.17B	21.25B	16.76B
	Gross Profit
5.85B	5.74B	6.94B	6.34B	5.69B	4.50B
	EBIT
1.19B	1.05B	1.71B	1.45B	1.17B	750.21M
	EBITDA
1.45B	1.68B	2.33B	1.57B	1.54B	818.21M
	Net Income Common Stockholders
960.29M	817.59M	1.01B	643.10M	669.80M	286.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.15B	3.97B	4.11B	2.63B	3.31B	4.83B
	Total Assets
16.36B	15.50B	17.63B	16.92B	17.39B	12.44B
	Total Debt
1.34B	755.89M	1.59B	1.93B	2.79B	3.68B
	Net Debt
-1.82B	-3.21B	-2.52B	-704.86M	-516.71M	-1.15B
	Total Liabilities
7.46B	6.25B	8.53B	8.54B	9.44B	7.01B
	Stockholders Equity
8.47B	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: 1091.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1091 is above the 20-day moving average (MA) of 1071.35, above the 50-day MA of 941.28, and above the 200-day MA of 939.73, indicating a bullish trend. The MACD of 44.36 indicates Positive momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.48 is Neutral, 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	¥8.30B	18.72		3.43%	1.49%	-2.81%
2332	76 Outperform	¥7.24B	9.74		4.16%	5.00%	10.16%
3683	76 Outperform	¥15.00B	17.47		1.27%	6.22%	29.99%
3918	74 Outperform	¥10.74B	11.07		3.94%	-4.10%	18.34%
3924	69 Neutral	¥13.04B	12.74		4.96%	4.11%	-5.13%
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%