Paraca Inc. (4809) AI Stock Analysis

• Market Cap: ¥19.80B
• Dividend Yield: 3.43%
• Average Volume (3M): 21.80K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.51
• Revenue Growth: 7.63%
• EPS Growth: 11.87%
• Country: JP
• Employees: 55
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 60.58
• Shares Outstanding: 10,440,600
• 10 Day Avg. Volume: 19,440
• 30 Day Avg. Volume: 21,800
• PEG Ratio: -12.51
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 1.06
• P/FCF Ratio: -7.97
• 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: 81 Outperform
• Price Target: ¥2,309.00 ▲(16.44% Upside)

Paraca Inc. scores highly due to its strong technical indicators and attractive valuation, suggesting potential for price appreciation and income generation. Financial performance is solid, though cash flow issues need addressing. The absence of earnings call and corporate events data did not impact the score.

Paraca Inc. Business Overview & Revenue Model

Company Description

Paraca Inc. (4809) is a dynamic company operating in the technology sector, focusing on innovative solutions in data analytics and machine learning. The company specializes in providing advanced software platforms that enable businesses to harness the power of big data, offering products that streamline operations, enhance decision-making processes, and drive efficiency across various industries.

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 and profit growth with stable margins, indicating robust operational performance. The balance sheet reflects manageable leverage and effective equity utilization, though a lower equity ratio suggests potential risks. Cash flow challenges, particularly negative free cash flow, highlight areas for improvement.

Income Statement

Paraca Inc. has demonstrated strong revenue growth with a 10.85% increase from 2023 to 2024 and a consistent upward trajectory over the years. The gross profit margin has remained stable at around 30%, and the net profit margin is robust at 11.09% for 2024. The EBIT margin improved slightly to 18.44%, indicating efficient cost management. However, the EBITDA margin decreased to 20.67%, suggesting some pressure on operational profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.19, suggesting manageable leverage. The return on equity (ROE) stands strong at 9.37%, reflecting effective use of equity to generate profit. However, the equity ratio is relatively low at 43.60%, indicating a heavy reliance on liabilities. This could pose a risk in volatile markets.

Cash Flow

The cash flow analysis shows a concerning decline in free cash flow, turning negative in 2024. The free cash flow to net income ratio is negative, indicating issues in converting net income to free cash flow. While operating cash flow remains positive, the operating cash flow to net income ratio of 1.20 indicates a healthy conversion rate, showing resilience in core operations despite high capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.64B	16.38B	14.77B	12.97B	11.76B	12.47B
Gross Profit	2.57B	4.93B	4.66B	3.80B	3.28B	2.88B
EBITDA	1.82B	3.39B	3.41B	2.83B	2.26B	2.01B
Net Income	958.00M	1.82B	1.82B	1.40B	977.00M	748.00M
Balance Sheet
Total Assets	47.20B	44.46B	39.82B	37.67B	35.78B	35.61B
Cash, Cash Equivalents and Short-Term Investments	3.58B	3.54B	3.74B	3.96B	4.18B	4.50B
Total Debt	25.01B	23.12B	19.70B	19.11B	18.17B	19.06B
Total Liabilities	27.50B	25.07B	21.72B	20.79B	19.78B	20.11B
Stockholders Equity	19.70B	19.39B	18.11B	16.88B	16.00B	15.50B
Cash Flow
Free Cash Flow	-1.07B	-2.18B	122.00M	-829.00M	1.13B	-2.51B
Operating Cash Flow	1.43B	2.18B	2.67B	1.98B	2.44B	644.00M
Investing Cash Flow	-2.47B	-4.47B	-2.56B	-2.45B	-1.31B	-2.86B
Financing Cash Flow	1.08B	2.09B	-326.00M	255.00M	-1.45B	1.46B

Paraca Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1983.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1983 is above the 20-day moving average (MA) of 1981.60, above the 50-day MA of 1970.05, and above the 200-day MA of 1828.17, indicating a neutral trend. The MACD of -0.91 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 26.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥16.19B	8.88	―	3.77%	7.07%	79.18%
4809	81 Outperform	¥19.80B	9.66	―	3.43%	7.63%	11.87%
9307	76 Outperform	¥15.34B	16.88	―	1.52%	1.23%	0.12%
9322	68 Neutral	¥10.88B	14.38	―	2.03%	3.59%	3.84%
9319	66 Neutral	¥25.04B	14.69	―	2.79%	4.91%	1.63%
9325	65 Neutral	¥11.63B	13.76	―	2.20%	18.27%	-4.07%
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.