Paraca Inc. (4809) AI Stock Analysis

• Market Cap: ¥20.59B
• Dividend Yield: 3.27%
• Average Volume (3M): 25.99K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.49
• Revenue Growth: 7.63%
• EPS Growth: 11.84%
• Country: JP
• Employees: 55
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 60.59
• Shares Outstanding: 10,440,600
• 10 Day Avg. Volume: 35,600
• 30 Day Avg. Volume: 25,986
• PEG Ratio: 0.81
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -12.98
• 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: 72 Outperform
• Price Target: ¥2,213.00 ▲(8.91% Upside)

Paraca Inc. scores well due to strong financial performance and attractive valuation, despite technical indicators showing mixed signals. The company's robust revenue growth and profitability are significant strengths, but the reliance on debt and negative free cash flow require careful management.

Positive Factors

Revenue Growth

The strong revenue growth indicates Paraca's successful market expansion and increasing demand for its data analytics solutions, supporting long-term business sustainability.

Profitability

Robust profit margins reflect efficient operational management and competitive pricing power, contributing to Paraca's financial health and ability to reinvest in growth.

Cash Flow Improvement

Improved cash flow growth enhances Paraca's ability to fund operations and strategic initiatives, reducing reliance on external financing and supporting long-term financial stability.

Negative Factors

Reliance on Debt

High reliance on debt could pose risks if market conditions change, potentially impacting Paraca's financial flexibility and increasing vulnerability to interest rate fluctuations.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could limit Paraca's ability to invest in growth opportunities and meet financial obligations without additional financing.

Debt-to-Equity Ratio

While moderate, the debt-to-equity ratio suggests a need for careful debt management to ensure that leverage does not become burdensome, impacting long-term financial health.

Paraca Inc. Business Overview & Revenue Model

Company Description

Paraca Inc. operates and manages parking lots in Japan. The company offers consulting services for operation and management of parking lot, as well as asset management and finance consulting services. It also supplies renewable energy, such as solar power, wind power, geothermal, and other related business. The company was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

Paraca Inc. generates revenue primarily through a subscription-based model for its software platforms, allowing clients to access ongoing updates and support. Key revenue streams include license fees from enterprise clients, professional services for implementation and customization, and recurring maintenance and support contracts. The company has established significant partnerships with leading technology providers and industry leaders, which enhance its product offerings and expand its market reach. Additionally, Paraca benefits from a growing demand for data-driven solutions, positioning it to leverage new opportunities in the evolving digital landscape.

Paraca Inc. Financial Statement Overview

Summary

Paraca Inc. shows strong revenue growth and profitability with efficient operational management. However, the reliance on debt and negative free cash flow pose potential risks that need strategic attention.

Income Statement

Paraca Inc. has demonstrated strong revenue growth with a 37.81% increase in the latest year, supported by healthy gross and net profit margins of 29.94% and 11.59%, respectively. The EBIT and EBITDA margins are also robust at 18.61% and 22.19%, indicating efficient operational management. The consistent growth trajectory over the years highlights the company's ability to expand its market presence effectively.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.25, reflecting a balanced approach to leveraging. The return on equity stands at 9.77%, showing decent profitability relative to shareholder investments. However, the equity ratio of 42.32% suggests a significant reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Paraca Inc. faces challenges with negative free cash flow, although there has been a notable improvement in free cash flow growth by 44.50%. The operating cash flow to net income ratio of 0.61 indicates adequate cash generation from operations. However, the negative free cash flow to net income ratio highlights potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.06B	17.63B	16.38B	14.77B	12.97B	11.76B
Gross Profit	3.90B	5.28B	4.93B	4.66B	3.80B	3.28B
EBITDA	2.77B	3.91B	3.39B	3.41B	2.83B	2.26B
Net Income	1.43B	2.04B	1.82B	1.82B	1.40B	977.00M
Balance Sheet
Total Assets	48.91B	49.44B	44.46B	39.82B	37.67B	35.78B
Cash, Cash Equivalents and Short-Term Investments	3.57B	3.67B	3.54B	3.74B	3.96B	4.18B
Total Debt	26.22B	26.08B	23.12B	19.70B	19.11B	18.17B
Total Liabilities	28.61B	28.52B	25.07B	21.72B	20.79B	19.78B
Stockholders Equity	20.29B	20.91B	19.39B	18.11B	16.88B	16.00B
Cash Flow
Free Cash Flow	-1.07B	-1.55B	-2.18B	122.00M	-829.00M	1.13B
Operating Cash Flow	1.43B	3.02B	2.18B	2.67B	1.98B	2.44B
Investing Cash Flow	-2.47B	-4.34B	-4.47B	-2.56B	-2.45B	-1.31B
Financing Cash Flow	1.08B	1.45B	2.09B	-326.00M	255.00M	-1.45B

Paraca Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2032.00
• 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:4809, the sentiment is Positive. The current price of 2032 is above the 20-day moving average (MA) of 2004.05, above the 50-day MA of 1996.44, and above the 200-day MA of 1864.24, indicating a bullish trend. The MACD of 12.09 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4809.

Paraca Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥16.80B	9.21	―	3.62%	7.07%	79.18%
9319	75 Outperform	¥26.75B	14.15	―	2.59%	4.02%	18.12%
4809	72 Outperform	¥20.59B	10.05	―	3.27%	7.63%	11.84%
9307	65 Neutral	¥16.43B	18.09	―	1.49%	1.23%	0.12%
9325	65 Neutral	¥11.48B	13.58	―	2.63%	18.27%	-4.07%
9322	65 Neutral	¥19.72B	26.75	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Paraca Inc. Corporate Events

Paraca Inc. Reports Strong Financial Growth and Dividend Forecast Revision

Paraca Inc. reported an 8.6% increase in net sales and a 14.2% rise in profit for the nine months ending June 30, 2025, compared to the same period last year. The company has revised its forecast for cash dividends and expects continued growth in financial performance for the fiscal year ending September 30, 2025.

Paraca Inc. Increases Dividend Forecast Amid Strong Performance

Paraca Inc. announced a revision to its dividend forecast for the fiscal year ending September 30, 2025, increasing the per-share dividend from 65 yen to 67 yen due to steady performance. This decision reflects the company’s commitment to balancing shareholder returns with reinvestment for long-term growth.