PA Co., Ltd. (4766) AI Stock Analysis

• Market Cap: ¥3.09B
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.27
• Revenue Growth: 8.11%
• EPS Growth: 255.15%
• Country: JP
• Employees: 153
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 2.22
• Shares Outstanding: 11,229,800
• 10 Day Avg. Volume: 16,790
• 30 Day Avg. Volume: 14,770
• PEG Ratio: 0.61
• Price to Book (P/B): 6.10
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 255.38
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥301.00 ▲(4.51% Upside)

The overall stock score of 66 reflects PA Co., Ltd.'s strong financial performance, characterized by revenue growth and improved profitability. The technical analysis indicates a neutral trend with some bullish signals, while the valuation suggests the stock is moderately priced. The absence of earnings call insights and corporate events does not impact the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a robust demand for PA Co., Ltd.'s products and services, suggesting a strong market position and effective business strategy.

Cash Flow Improvement

Improved cash generation from core operations enhances financial flexibility, allowing for strategic investments and better debt management.

Operational Efficiency

Enhanced operational efficiency supports sustained profitability and competitiveness, enabling PA Co., Ltd. to better manage costs and improve margins.

Negative Factors

Debt Levels

High debt levels can limit financial flexibility and increase risk, necessitating careful management to avoid potential liquidity issues.

Net Profit Margin

A modest net profit margin suggests that while revenue is growing, there is still potential to enhance profitability through cost control and pricing strategies.

Cash Flow Volatility

Volatile cash flows can impact the company's ability to plan and invest effectively, potentially affecting long-term growth and stability.

PA Co., Ltd. Business Overview & Revenue Model

Company Description

PA Co., Ltd. (4766) is a leading technology company based in Japan, specializing in software development, IT services, and digital solutions. The company primarily operates in the information technology sector, providing a range of products including cloud computing services, data analytics tools, and enterprise software applications aimed at enhancing business efficiency and performance. With a commitment to innovation, PA Co., Ltd. caters to various industries, delivering tailored solutions that meet the evolving needs of its clients.

How the Company Makes Money

PA Co., Ltd. generates revenue through multiple streams, primarily from the sale of software licenses, subscription services for its cloud-based platforms, and consulting services related to IT infrastructure and digital transformation. The company also benefits from partnerships with major technology firms, allowing it to integrate its solutions with widely used platforms and expand its market reach. Additionally, PA Co., Ltd. engages in long-term contracts with enterprises, providing ongoing support and maintenance services, which contribute to stable, recurring revenue. The company's focus on innovation and adapting to market trends further enhances its ability to attract new clients and retain existing ones, thereby driving growth and profitability.

PA Co., Ltd. Financial Statement Overview

Summary

PA Co., Ltd. is on a positive trajectory with improving revenue, profitability, and cash flow generation. The company has effectively managed to reduce its debt levels and enhance its equity position. However, the substantial debt load and fluctuating cash flows necessitate continued financial discipline.

Income Statement

PA Co., Ltd. demonstrated strong revenue growth with a consistent increase in total revenue over the years, reaching 1,877 million in 2024 from 1,586 million in 2021. The company recovered well from previous losses, achieving a positive net income in recent years. Gross profit margin remained healthy, and both EBIT and EBITDA margins showed improvement, reflecting operational efficiency gains. However, the net profit margin is still modest, indicating room for further profitability improvement.

Balance Sheet

The company's balance sheet is stable with a reasonable debt-to-equity ratio. The equity ratio improved over time, suggesting a stronger capital structure. Return on equity has shown a positive trend, indicating efficient use of equity in generating profits. However, the total debt remains significant, which could pose risks if not managed carefully.

Cash Flow

PA Co., Ltd. exhibited a significant turnaround in operating cash flow, transitioning from negative to positive values, indicating improved cash generation from core operations. The free cash flow growth is positive, which supports future investment and debt servicing. However, the fluctuations in cash flow components suggest some volatility, which should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	1.88B	1.79B	1.67B	1.58B	1.60B
Gross Profit	802.19M	772.42M	783.88M	744.24M	684.72M	637.85M
EBITDA	132.51M	94.68M	87.78M	107.36M	-208.07M	-16.89M
Net Income	102.32M	73.42M	44.96M	49.24M	-280.54M	-103.76M
Balance Sheet
Total Assets	1.31B	1.34B	1.36B	1.33B	1.40B	1.73B
Cash, Cash Equivalents and Short-Term Investments	823.50M	824.30M	878.86M	822.28M	853.15M	1.01B
Total Debt	567.39M	595.48M	650.49M	705.50M	755.00M	800.00M
Total Liabilities	828.96M	871.69M	957.67M	978.71M	1.05B	1.10B
Stockholders Equity	477.19M	465.27M	395.37M	350.53M	351.20M	630.75M
Cash Flow
Free Cash Flow	0.00	11.12M	105.01M	11.60M	-120.78M	-249.96M
Operating Cash Flow	0.00	21.83M	111.27M	58.30M	-92.68M	-71.13M
Investing Cash Flow	0.00	-19.87M	-1.41M	-40.07M	225.08M	-12.40M
Financing Cash Flow	0.00	-55.44M	-55.01M	-49.50M	-45.07M	184.88M

PA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 288.00
• 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:4766, the sentiment is Positive. The current price of 288 is above the 20-day moving average (MA) of 284.10, above the 50-day MA of 282.20, and above the 200-day MA of 269.56, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4766.

PA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6538	76 Outperform	¥6.22B	21.79	―	1.53%	12.73%	―
7361	72 Outperform	¥3.83B	9.85	―	2.04%	24.84%	2.29%
6563	67 Neutral	¥3.33B	35.83	―	―	5.06%	37.14%
4766	66 Neutral	¥3.09B	26.94	―	―	8.11%	255.15%
7043	65 Neutral	¥2.51B	42.61	―	0.69%	14.27%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6198	56 Neutral	¥2.19B	―	―	2.43%	-10.61%	-160.10%