Plus Alpha Consulting Co. LTD. (4071) AI Stock Analysis

• Market Cap: ¥92.73B
• Dividend Yield: 0.73%
• Average Volume (3M): 309.25K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.81
• Revenue Growth: 25.27%
• EPS Growth: 9.70%
• Country: JP
• Employees: 429
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 26.43
• Shares Outstanding: 42,516,600
• 10 Day Avg. Volume: 318,180
• 30 Day Avg. Volume: 309,246
• PEG Ratio: 2.01
• Price to Book (P/B): 14.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 56.07
• 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: ¥2,500.00
• Price Target Upside: 16.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ―

Plus Alpha Consulting Co. LTD. benefits from strong financial performance, driven by high revenue growth and profitability, and a robust balance sheet with zero debt. However, the stock's technical indicators show bearish trends, suggesting caution in the short term. The valuation appears reasonable, providing some support, but the absence of operating cash flow data for the TTM period and lack of earnings call and corporate event information contribute to a more cautious stance.

Plus Alpha Consulting Co. LTD. Business Overview & Revenue Model

Company Description

Plus Alpha Consulting Co. LTD. (4071) is a Japan-based company specializing in consulting and information technology services. The company primarily operates in the IT consulting sector, offering a range of services including business strategy development, system integration, and IT infrastructure management. Additionally, Plus Alpha Consulting provides solutions in the areas of data analytics, digital transformation, and enterprise resource planning to help businesses optimize their operations and achieve sustainable growth.

How the Company Makes Money

Plus Alpha Consulting Co. LTD. generates revenue through a diversified portfolio of consulting and IT services. The company earns money by offering specialized consulting services that cater to the unique needs of its clients, which include both large enterprises and smaller businesses. Revenue streams include fees from strategic consulting engagements, system integration projects, and IT infrastructure management contracts. The company may also generate income from long-term partnerships and service agreements, where it provides ongoing support and maintenance. Key factors contributing to its earnings include a strong client base, expertise in digital transformation, and a focus on delivering tailored solutions that drive measurable business outcomes for clients.

Plus Alpha Consulting Co. LTD. Financial Statement Overview

Summary

Plus Alpha Consulting Co. LTD. presents a strong financial profile with notable revenue growth, high profitability margins, and a robust balance sheet characterized by zero debt. The company's efficient use of equity and strong cash flow metrics reinforce its financial stability, making it a well-positioned player in the Software - Application industry. However, the absence of TTM cash flow details suggests cautious monitoring of cash flow trends moving forward.

Income Statement

Plus Alpha Consulting Co. LTD. demonstrates strong revenue growth with a TTM revenue increase of 32.9% compared to the previous year. The company maintains impressive profitability margins with a gross profit margin of 72.7% and a net profit margin of 21.3% for TTM. The EBIT margin stands at 31.4% and EBITDA margin is 24.9%, reflecting operational efficiency. High profitability and consistent growth are evident strengths.

Balance Sheet

The balance sheet reflects a robust financial position with zero debt, leading to a favorable debt-to-equity ratio of 0.0. The equity ratio is strong at 80.6%, indicating a significant portion of assets financed by equity. Return on equity is impressive at 27.6% for TTM, showcasing effective use of equity capital to generate profits. The company's stability and low leverage are notable strengths.

Cash Flow

The company shows a stable cash flow position with consistent free cash flow growth, as seen in the increase of free cash flow from the previous year. However, the absence of operating cash flow data for the TTM period limits a comprehensive analysis. Nonetheless, previous annual data indicates a strong operating cash flow to net income ratio, highlighting efficient cash generation relative to net income.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	14.75B	13.91B	11.17B	7.91B	6.12B	4.73B
Gross Profit	10.73B	10.15B	8.21B	5.68B	4.35B	3.39B
EBITDA	4.90B	4.75B	3.95B	2.71B	2.13B	1.46B
Net Income	3.14B	3.09B	2.62B	1.80B	1.43B	1.03B
Balance Sheet
Total Assets	14.14B	15.27B	12.02B	7.94B	6.14B	4.47B
Cash, Cash Equivalents and Short-Term Investments	9.23B	10.19B	8.28B	5.48B	4.61B	3.25B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.72B	3.17B	2.57B	1.48B	1.23B	897.04M
Stockholders Equity	11.40B	12.08B	9.45B	6.46B	4.91B	3.58B
Cash Flow
Free Cash Flow	0.00	3.17B	3.28B	1.63B	1.50B	992.74M
Operating Cash Flow	0.00	3.32B	3.31B	1.81B	1.55B	1.02B
Investing Cash Flow	0.00	-950.67M	-644.71M	-707.87M	-59.17M	143.00M
Financing Cash Flow	0.00	-456.44M	136.18M	-238.47M	-125.39M	-123.14M

Plus Alpha Consulting Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2138.00
• 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:4071, the sentiment is Neutral. The current price of 2138 is below the 20-day moving average (MA) of 2171.55, above the 50-day MA of 1948.58, and above the 200-day MA of 1819.50, indicating a neutral trend. The MACD of 66.22 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4071.

Plus Alpha Consulting Co. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4812	75 Outperform	¥435.97B	28.86		1.73%	7.49%	1.09%
4071	74 Outperform	¥92.73B	26.42		0.73%	25.27%	9.70%
9719	74 Outperform	¥1.38T	30.74		1.67%	24.10%	11.27%
4722	73 Outperform	¥189.00B	18.68		2.15%	19.53%	9.84%
9640	72 Outperform	¥29.39B	19.51		4.96%	2.17%	149.68%
Sector *	69 Neutral	¥229.55B	14.48	7.64%	2.71%	9.13%	8.50%

Plus Alpha Consulting Co. LTD. Corporate Events

Plus Alpha Consulting Co., Ltd. Reports Financial Growth in FY2025 Q1 Amid Strategic Adjustments

Plus Alpha Consulting Co., Ltd. reported a 27.1% increase in net sales and a 9.0% rise in operating profit for the first quarter of FY2025. The company plans to control marketing expenses in future quarters to improve profitability, despite facing challenges with its subsidiary Grow Up and early investment in marketing expenses.

Plus Alpha Consulting Reports Strong Q4 Financial Results with Positive Outlook

Plus Alpha Consulting Co., Ltd. reported consolidated financial results for the three months ending December 31, 2024, with net sales increasing by 27.1% and operating profit rising by 9% compared to the previous year. The company’s strong financial performance indicates a positive outlook, with expected growth in net sales and profits for the fiscal year ending September 30, 2025, reflecting strategic positioning and effective management of recent business combinations.