Global Communication Planning Co.Ltd. (4073) AI Stock Analysis

• Market Cap: ¥1.45B
• Dividend Yield: N/A
• Average Volume (3M): 4.03K
• Price to Earnings (P/E): 132.8
• Beta (1Y): 0.80
• Revenue Growth: -1.36%
• EPS Growth: -175.54%
• Country: JP
• Employees: 112
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 8.35
• Shares Outstanding: 2,508,160
• 10 Day Avg. Volume: 2,150
• 30 Day Avg. Volume: 4,033
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥579.00
• Price Target Upside: -2.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥579.00 ▼(-2.20% Downside)

The company's financial performance indicates recovery in revenue and net income but faces challenges in profitability and cash flow. Technical analysis shows neutral market sentiment with mild bullish signals. However, the negative P/E ratio and lack of dividend yield highlight valuation concerns, impacting the overall score.

Global Communication Planning Co.Ltd. Business Overview & Revenue Model

Company Description

Global Communication Planning Co. Ltd. (4073) is a leading firm specializing in strategic communication and marketing solutions. Operating primarily in the telecommunications and technology sectors, the company offers a wide range of services including media planning, public relations, digital marketing, and brand management. By leveraging advanced analytics and market insights, Global Communication Planning Co. Ltd. assists businesses in enhancing their communication strategies and reaching their target audiences effectively.

How the Company Makes Money

The company generates revenue through multiple streams, including service fees for its consultancy and strategic planning services, project-based contracts with clients, and retainer agreements for ongoing communication management. Key revenue streams include media buying and placement, where the company earns commissions from media outlets, and performance-based marketing initiatives that provide additional revenue based on client success metrics. Significant partnerships with major advertising platforms and technology providers further enhance its service offerings and contribute to earnings by expanding its client base and improving service efficiency.

Global Communication Planning Co.Ltd. Financial Statement Overview

Summary

The company's financial performance is weak with declining revenue, negative profitability, high leverage, and negative cash flow. Despite some improvement in Return on Equity, significant challenges in cost and debt management remain.

Income Statement

The company has experienced declining revenue over the years, with the latest TTM showing a significant drop from previous periods. Gross Profit Margin stands at 31.3%, indicating moderate efficiency in managing production costs relative to revenue. However, the company has been struggling with profitability, as shown by negative EBIT and Net Income in recent periods, leading to negative Net Profit Margin. These negative margins highlight potential issues in cost management and revenue generation.

Balance Sheet

The company's Debt-to-Equity ratio is high, signaling potential leverage risk, with total debt surpassing equity. The Equity Ratio is relatively low at 20.7%, implying a heavy reliance on debt financing. On a positive note, Return on Equity has improved from negative in the past to a less negative position, indicating potential for recovery if managed well. Overall, the balance sheet reflects financial instability but shows room for improvement with strategic financial management.

Cash Flow

Cash flow management appears to be a challenge, with consistent negative Free Cash Flow in recent years, indicating that the company is not generating sufficient cash from operations to cover capital expenditures. The Operating Cash Flow to Net Income ratio is unavailable due to a lack of recent positive net income, suggesting difficulties converting earnings into actual cash flow. This raises concerns about the company's ability to sustain operations without external financing.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.74B	1.55B	1.59B	2.08B	2.64B
Gross Profit	654.56M	493.29M	633.36M	874.37M	1.19B
EBITDA	59.35M	-698.21M	11.78M	257.31M	453.14M
Net Income	72.60M	-773.82M	-91.66M	126.58M	268.09M
Balance Sheet
Total Assets	1.76B	1.57B	1.51B	1.34B	2.01B
Cash, Cash Equivalents and Short-Term Investments	769.22M	790.99M	447.26M	560.79M	1.15B
Total Debt	956.26M	844.89M	65.28M	155.19M	799.53M
Total Liabilities	1.35B	1.23B	376.40M	555.30M	1.33B
Stockholders Equity	415.45M	340.28M	1.14B	781.57M	681.36M
Cash Flow
Free Cash Flow	-142.56M	-390.26M	-454.20M	80.88M	261.95M
Operating Cash Flow	63.49M	-251.28M	-273.86M	214.08M	357.63M
Investing Cash Flow	-190.77M	-143.78M	-189.38M	-136.80M	-100.29M
Financing Cash Flow	101.94M	735.20M	346.05M	-670.70M	520.05M

Global Communication Planning Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 592.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4073, the sentiment is Positive. The current price of 592 is above the 20-day moving average (MA) of 589.65, above the 50-day MA of 581.74, and above the 200-day MA of 585.20, indicating a bullish trend. The MACD of 2.56 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4073.

Global Communication Planning Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2351	78 Outperform	¥2.73B	11.05		0.87%	-3.70%	119.79%
Sector *	61 Neutral	$36.26B	7.13	-7.27%	1.97%	7.78%	-8.61%
3042	58 Neutral	¥2.49B	58.20		0.61%	4.56%	-81.30%
4378	58 Neutral	¥1.63B	86.11		―	4.33%	-248.75%
4288	54 Neutral	¥2.12B	―		―	25.38%	1.69%
4073	48 Neutral	¥1.45B	132.85		―	-1.36%	-175.54%