Unite & Grow Inc. (4486) AI Stock Analysis

• Market Cap: ¥5.90B
• Dividend Yield: 7.28%
• Average Volume (3M): 19.45K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.58
• Revenue Growth: 11.92%
• EPS Growth: -16.48%
• Country: JP
• Employees: 244
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 13.10
• Shares Outstanding: 7,950,200
• 10 Day Avg. Volume: 39,370
• 30 Day Avg. Volume: 19,446
• 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: ¥866.00
• Price Target Upside: 19.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥866.00 ▲(19.61% Upside)

Unite & Grow Inc. receives a strong overall score driven primarily by its excellent financial performance, characterized by robust revenue growth, high profitability, and strong cash flow generation. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. The valuation is fair with an attractive dividend yield, enhancing the stock's appeal.

Unite & Grow Inc. Business Overview & Revenue Model

Company Description

Unite & Grow Inc. (4486) is a company that specializes in offering comprehensive IT solutions, including managed services, IT consulting, and system integration. The company caters to various sectors, providing tailored technology strategies and support to enhance operational efficiency for its clients.

How the Company Makes Money

Unite & Grow Inc. generates revenue primarily through its managed IT services, where businesses outsource their IT operations and infrastructure management to the company. Additional income streams include consulting services, where the company advises clients on IT strategy and implementation, and system integration projects that involve combining various subsystems into a cohesive and efficient IT infrastructure. Unite & Grow Inc. may also engage in strategic partnerships with technology providers to enhance its service offerings and expand its customer base.

Unite & Grow Inc. Financial Statement Overview

Summary

Unite & Grow Inc. exhibits strong financial performance with significant revenue growth, robust profit margins, a low debt-to-equity ratio, and strong cash flow generation. The company demonstrates effective cost management and operational efficiency, indicating a well-managed and financially healthy position.

Income Statement

Unite & Grow Inc. exhibits strong revenue growth with a 11.22% increase from the previous year, reflecting positive market positioning. The gross profit margin for 2024 is robust at 46.47%, indicating effective cost management. The net profit margin stands at 12.95%, showcasing profitability. EBIT and EBITDA margins are healthy at 13.32% and 18.73% respectively, pointing to efficient operations. Overall, the company demonstrates solid growth and profitability metrics.

Balance Sheet

The balance sheet of Unite & Grow Inc. is strong with a low debt-to-equity ratio of 0.002, indicating minimal leverage and financial risk. The return on equity is impressive at 18.83%, suggesting effective use of equity to generate profits. The equity ratio is solid at 66.31%, showing a strong capital structure. Overall, the company maintains a stable and low-risk financial position.

Cash Flow

The company shows significant improvement in cash flow with a 148.56% increase in free cash flow year-over-year, reflecting robust cash generation. The operating cash flow to net income ratio is 1.47, indicating strong cash conversion from profits. With a free cash flow to net income ratio of 1.47, the company efficiently translates net income into free cash flow. These metrics highlight strong cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	2.97B	2.67B	2.34B	2.08B	1.73B
Gross Profit	1.37B	1.38B	1.31B	1.12B	1.01B	804.93M
EBITDA	468.24M	555.79M	395.11M	338.29M	308.62M	240.69M
Net Income	321.39M	384.34M	305.71M	238.37M	198.34M	159.27M
Balance Sheet
Total Assets	2.57B	3.08B	2.61B	2.37B	2.11B	1.77B
Cash, Cash Equivalents and Short-Term Investments	2.23B	2.70B	2.27B	2.14B	1.91B	1.57B
Total Debt	3.08M	3.36M	5.95M	50.00M	10.54M	7.32M
Total Liabilities	747.41M	1.04B	765.75M	767.06M	730.00M	580.95M
Stockholders Equity	1.82B	2.04B	1.85B	1.60B	1.38B	1.19B
Cash Flow
Free Cash Flow	30.60M	563.40M	226.61M	173.40M	366.50M	225.31M
Operating Cash Flow	30.60M	566.25M	374.32M	213.25M	432.75M	235.54M
Investing Cash Flow	0.00	-12.15M	-118.92M	-489.95M	-66.25M	-38.40M
Financing Cash Flow	0.00	-86.11M	-111.26M	29.52M	-18.08M	-24.72M

Unite & Grow Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 724.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4486, the sentiment is Positive. The current price of 724 is above the 20-day moving average (MA) of 672.00, above the 50-day MA of 645.78, and above the 200-day MA of 580.71, indicating a bullish trend. The MACD of 27.19 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 65.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4486.

Unite & Grow Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4486	78 Outperform	¥5.90B	16.47		7.28%	11.92%	-16.48%
3920	74 Outperform	¥5.05B	12.36		1.12%	7.38%	515.19%
4076	72 Outperform	¥4.29B	10.04		5.08%	5.23%	-7.37%
6942	65 Neutral	¥5.57B	52.24		―	-5.20%	133.74%
9219	65 Neutral	¥5.22B	―		5.72%	12.06%	-197.91%
Sector *	50 Neutral	AU$1.66B	0.92	3.91%	3.36%	15.75%	-4.41%
2375	50 Neutral	¥4.98B	―		0.39%	-9.76%	3.53%

Unite & Grow Inc. Corporate Events

Unite & Grow Inc. Reports Q2 FY2025 Financial Results

Unite & Grow Inc. has announced its Q2 FY2025 financial results, highlighting its unique business model that increases profitability by aggregating knowledge and experience. The company’s approach of involving all employees in indirect operations, such as recruitment and training, enhances organizational strength and nurtures proactive individuals, setting it apart in the industry.