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

• Market Cap: ¥91.86B
• Dividend Yield: 1.19%
• Average Volume (3M): 175.66K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.61
• Revenue Growth: 22.78%
• EPS Growth: 7.57%
• Country: JP
• Employees: 429
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 27.03
• Shares Outstanding: 42,389,150
• 10 Day Avg. Volume: 248,020
• 30 Day Avg. Volume: 175,660
• PEG Ratio: 4.24
• Price to Book (P/B): 7.00
• Price to Sales (P/S): 6.06
• P/FCF Ratio: 20.30
• 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): 124
• Revenue Forecast (FY): ¥19.43B

• Rating: 79 Outperform
• Price Target: ¥2,481.00 ▲(1.81% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by high-quality financial performance (strong growth, high margins, strong cash conversion, and zero debt). Technicals are supportive with price above key moving averages, though momentum appears somewhat stretched near-term. Valuation is the main offset due to a premium P/E and only a modest dividend yield.

Positive Factors

Balance Sheet Strength

Zero reported debt and materially increased equity (¥3.6B in 2020 to ¥14.8B in 2025) reduce financial risk and provide durable flexibility. This strengthens the firm's ability to fund R&D, inorganic growth, buybacks or withstand downturns without stressing liquidity or covenant constraints.

Robust Cash Generation

Consistent, high free cash flow that closely tracks earnings underpins sustainable reinvestment, potential shareholder returns and financial resilience. Strong cash conversion supports durable capital allocation choices and lowers reliance on external financing over multi-year horizons.

High Margins & Multi‑Year Revenue Growth

Sustained multi-year top-line expansion with very high gross and operating margins signals scalable software economics and pricing power. Durable margin structure supports long-term profitability, reinvestment capacity and attractive return on incremental capital as the business scales.

Negative Factors

2025 Net Margin Step‑Down

A material decline in net margin despite revenue growth indicates emerging cost pressures or non‑operating headwinds. If persistent, this reduces long‑term profit retention, constrains free cash flow expansion and weakens the company's ability to sustain prior return levels as it scales.

ROE Decline as Scale Increases

Declining ROE signals that recent equity growth outpaced return generation, reducing capital efficiency. If the trend continues it could limit the company's capacity to generate the same incremental shareholder value and may require higher reinvestment or margin recovery to restore historic returns.

FCF Growth Volatility

While absolute free cash flow is strong, year‑to‑year volatility complicates predictable capital allocation and planning. Episodic declines reduce confidence in stable dividend or buyback funding and raise the need for larger buffers in cash management or contingency planning.

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

Company Description

Plus Alpha Consulting Co.,Ltd. provides marketing solutions business. The company develops and operates visualization engine, a customer experience feedback system; ALPHA SCOPE, a FAQ solution; CustomerRings, a CRM/MA system; and Talent Palette, a talent management system. The company was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Plus Alpha Consulting Co. LTD. Financial Statement Overview

Summary

Strong multi-year revenue growth, consistently high gross and operating margins, robust free-cash-flow generation, and a debt-free balance sheet. Key watch items are the 2025 step-down in net margin and ROE and some year-to-year variability in free cash flow growth.

Income Statement

Revenue expanded strongly over the last several years (from ~¥4.7B in 2020 to ~¥17.1B in 2025), supporting solid scale-up for a software business. Profitability is consistently high with gross margin ~71–74% and operating profitability holding around ~30–34%, indicating strong pricing power and cost control. The main weakness is that the 2025 net margin fell to ~19% from ~22–23% in prior years despite higher revenue, suggesting rising costs or other profitability headwinds.

Balance Sheet

The balance sheet is very conservative with zero debt across all reported periods, which materially reduces financial risk and provides flexibility. Equity increased meaningfully (from ~¥3.6B in 2020 to ~¥14.8B in 2025), reflecting retained profitability and strengthening capitalization. Returns on equity remain strong (~22–29%), though the 2025 level (~22%) is down versus prior years (~26–29%), indicating slightly less efficient equity utilization as the company scales.

Cash Flow

Cash generation is robust: operating cash flow rose to ~¥5.15B in 2025 and free cash flow is similarly strong at ~¥5.10B, implying good cash conversion. Free cash flow closely tracks net income (roughly ~90–99% historically), which supports earnings quality. A watch item is volatility in free cash flow growth (including a modest decline in 2024), even though coverage of earnings by operating cash flow remains healthy (above 1x in the periods provided).

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	17.08B	13.91B	11.17B	7.91B	6.12B
Gross Profit	12.33B	10.15B	8.21B	5.68B	4.35B
EBITDA	6.85B	4.85B	4.02B	2.69B	2.13B
Net Income	3.26B	3.09B	2.62B	1.80B	1.43B
Balance Sheet
Total Assets	18.63B	15.41B	12.02B	7.94B	6.14B
Cash, Cash Equivalents and Short-Term Investments	14.66B	10.19B	8.28B	5.48B	4.61B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.82B	3.31B	2.57B	1.48B	1.23B
Stockholders Equity	14.79B	12.08B	9.45B	6.46B	4.91B
Cash Flow
Free Cash Flow	5.10B	3.17B	3.28B	1.65B	1.50B
Operating Cash Flow	5.15B	3.32B	3.31B	1.81B	1.55B
Investing Cash Flow	-164.09M	-950.67M	-644.71M	-707.87M	-59.17M
Financing Cash Flow	-615.54M	-456.44M	136.18M	-238.47M	-125.39M

Plus Alpha Consulting Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2437.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 2437 is above the 20-day moving average (MA) of 2168.40, above the 50-day MA of 2204.10, and above the 200-day MA of 2295.20, indicating a bearish trend. The MACD of 7.17 indicates Negative momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4071	79 Outperform	¥91.86B	22.31	―	1.19%	22.78%	7.57%
4828	77 Outperform	¥73.78B	21.08	31.71%	1.68%	16.12%	46.57%
4776	70 Outperform	¥95.52B	18.51	―	1.02%	26.47%	142.77%
2492	63 Neutral	¥94.67B	49.92	―	0.72%	22.13%	254.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	61 Neutral	¥140.98B	31.57	―	―	27.65%	96.11%
4478	55 Neutral	¥121.01B	293.64	―	―	31.57%	―

Plus Alpha Consulting Co. LTD. Corporate Events

Plus Alpha Consulting Delivers Strong Q1 Profit Surge on Enterprise-Focused HR Solutions

Plus Alpha Consulting reported first-quarter net sales of 4.43 billion yen, up 14.0% year on year, and operating profit of 1.68 billion yen, up 49.5%, reflecting a stable increase in revenue and a significant improvement in profitability. Progress toward full-year guidance stands at 22.8% for net sales and 22.4% for operating profit, with profit tracking ahead of last year’s pace, underscoring firm execution against its growth plan.

The HR Solutions segment, driven by Talent Palette, delivered strong sales and profit gains as customer numbers and unit prices rose, recurring revenue expanded, and churn remained low while marketing costs were curtailed under an enterprise-focused strategy. Yorisoar continued its upfront investment phase with net sales rising on a growing base of mainly small educational institutions and losses narrower than expected, while OM Network benefited from more large-scale projects and active upselling, steadily increasing recurring revenue and ARPU, which supports the company’s broader shift toward higher-value, subscription-based business.

The most recent analyst rating on (JP:4071) stock is a Buy with a Yen2352.00 price target. To see the full list of analyst forecasts on Plus Alpha Consulting Co. LTD. stock, see the JP:4071 Stock Forecast page.

Plus Alpha Consulting Outlines Q1 FY2026 Results and Strategic Roadmap

Plus Alpha Consulting has released briefing materials for its financial results for the first quarter of the fiscal year ending September 30, 2026, outlining performance across its HR and marketing solution segments. The materials also cover full-year earnings forecasts, shareholder return policies, key business topics, and a medium-term management policy, indicating a structured approach to communicating its strategic direction and financial outlook to investors and other stakeholders.

While detailed figures are not disclosed in the outline, the focus on segment overviews and solutions such as Talent Palette and Yorisoar highlights the company’s emphasis on data-driven HR management and marketing analytics. The inclusion of shareholder return policy and medium-term strategy suggests that Plus Alpha Consulting aims to strengthen market confidence and clarify its long-term growth trajectory in competitive HR tech and marketing technology markets.

The most recent analyst rating on (JP:4071) stock is a Buy with a Yen2352.00 price target. To see the full list of analyst forecasts on Plus Alpha Consulting Co. LTD. stock, see the JP:4071 Stock Forecast page.

Plus Alpha Consulting posts sharp profit growth and projects further earnings surge for FY2026

Plus Alpha Consulting Co., Ltd. reported strong consolidated results for the three months ended December 31, 2025, with net sales rising 14.0% year on year to ¥4,439 million and operating profit jumping 49.5% to ¥1,676 million. Profit attributable to owners of parent increased 51.6% to ¥1,145 million, while basic earnings per share climbed to ¥27.03, underscoring substantial earnings leverage.

The company’s financial position remained solid, with an equity-to-asset ratio of 83.6% as of December 31, 2025, despite a slight decline in total assets from the prior fiscal year-end. For the fiscal year ending September 30, 2026, Plus Alpha is forecasting net sales of ¥19,500 million and profit attributable to owners of parent of ¥5,200 million, signaling expectations of continued double-digit growth in sales and a sharp increase in earnings, which could reinforce its standing in the consulting and analytics market and support higher shareholder returns through dividends.

The most recent analyst rating on (JP:4071) stock is a Buy with a Yen2352.00 price target. To see the full list of analyst forecasts on Plus Alpha Consulting Co. LTD. stock, see the JP:4071 Stock Forecast page.

Plus Alpha Consulting Finalizes Paid Stock Option Terms for Directors

Plus Alpha Consulting has finalized the details of a paid stock option program for its directors, resolving previously undetermined terms authorized by its board on January 19, 2026. The company will issue 724 stock acquisition rights to two directors, each right corresponding to 100 shares of common stock, for a total of 72,400 underlying shares, reinforcing equity-based compensation as part of its executive incentive structure.

The most recent analyst rating on (JP:4071) stock is a Buy with a Yen2764.00 price target. To see the full list of analyst forecasts on Plus Alpha Consulting Co. LTD. stock, see the JP:4071 Stock Forecast page.

Plus Alpha Consulting Issues Performance-Linked Stock Options to Directors

Plus Alpha Consulting Co., Ltd. has approved the issuance of 724 paid stock options (share acquisition rights) to its directors, structured as a market-based investment rather than compensation, with no requirement for shareholder approval as the terms are not deemed particularly favorable. The options, priced at ¥2,500 per right with an exercise price of ¥2,410 per share and a maximum potential dilution of about 0.17% (72,400 shares), are contingent on achieving pre-set performance and share price targets, aligning management incentives with long-term corporate and shareholder value and signaling a focus on medium- to long-term growth and governance-conscious incentive design.

The most recent analyst rating on (JP:4071) stock is a Buy with a Yen2764.00 price target. To see the full list of analyst forecasts on Plus Alpha Consulting Co. LTD. stock, see the JP:4071 Stock Forecast page.