VIS Co., Ltd. (5071) AI Stock Analysis

• Market Cap: ¥14.03B
• Dividend Yield: 3.66%
• Average Volume (3M): 2.89K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.87
• Revenue Growth: -5.11%
• EPS Growth: -13.97%
• Country: JP
• Employees: 252
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 43.98
• Shares Outstanding: 8,435,050
• 10 Day Avg. Volume: 3,600
• 30 Day Avg. Volume: 2,893
• PEG Ratio: 0.21
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 6.81
• 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: 80 Outperform
• Price Target: ¥1,879.00 ▲(36.65% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (improving margins, debt-free balance sheet, and solid ROE) and favorable valuation (low P/E with a healthy dividend). Technicals are supportive but mixed due to slightly negative MACD and elevated stochastic despite the price holding above major moving averages.

Positive Factors

Debt-free balance sheet

Maintaining zero debt gives the company durable financial flexibility: it can fund operations, dividends, or opportunistic investments from internal resources without interest burden. Strong equity growth and mid-teens–~20% ROE indicate capital is being deployed profitably and sustainably.

Improving profit margins

Step-up in gross, EBIT/EBITDA and net margins reflects structural improvements in pricing, cost control, or business mix. Margin expansion enhances resilience to revenue variability, supports cash flow generation, and provides internal funding for growth or shareholder returns over the medium term.

Positive free cash flow profile

Consistent positive free cash flow that tracks earnings signals earnings quality and true cash generation ability. This supports sustainable dividends, reinvestment, and resilience through cycles, and reduces reliance on external financing for routine capital needs.

Negative Factors

Latest-year revenue decline

A recent revenue pullback undermines the durability of growth; with margins improving, future profit expansion depends on stabilizing top-line trends. If revenue weakness persists, margin gains may be insufficient to sustain EPS and cash flow momentum over the next several quarters.

Volatile cash flow and modest coverage

Intermittent cash volatility and relatively low operating cash coverage constrain the firm's ability to consistently fund capex, working capital, or higher dividends without dipping into reserves. This makes financing plans more sensitive to short-term earnings swings.

Limited external growth leverage

Being debt-free limits financial risk but also reduces optionality: the company has less immediate capacity to pursue M&A or large strategic investments funded with low-cost debt. Growth must therefore come organically, raising execution risk if core demand softens.

VIS Co., Ltd. Business Overview & Revenue Model

Company Description

VIS Co., Ltd. designs workplaces in Japan. The company offers office design and renovation, web design, and graphic design services; engages in the workplace and various equipment construction; and sells furniture. It also offers after sales services. The company was incorporated in 1998 and is headquartered in Osaka, Japan.

How the Company Makes Money

VIS Co., Ltd. generates revenue through the sale of its industrial materials and components to a diverse range of industries. The company's key revenue streams include direct sales to manufacturers and distributors who require specialized materials for their production processes. VIS Co., Ltd. also benefits from strategic partnerships with major industrial players, which help in securing consistent orders and expanding its market reach. Additionally, the company's focus on research and development enables it to innovate and introduce new products that meet changing industry demands, thereby maintaining a competitive edge and driving sales growth.

VIS Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: profitability has improved steadily (higher gross, EBIT/EBITDA, and net margins) and the company maintains a conservative, debt-free balance sheet with attractive ROE. Key offsets are the latest-year revenue decline and somewhat volatile cash flow history with only moderate operating cash coverage.

Income Statement

Revenue expanded strongly from FY2022–FY2024 (after a FY2021 decline), with profitability steadily improving: gross margin rose from ~26% (FY2022) to ~29% (FY2025) and net margin increased from ~4% (FY2021) to ~8% (FY2025). EBIT and EBITDA margins also stepped up meaningfully into the low-teens by FY2025. The main weakness is the latest year’s revenue decline (FY2025), suggesting growth has become less consistent despite better margins.

Balance Sheet

The balance sheet is very conservative with zero debt across all periods provided, supporting strong financial flexibility. Equity and total assets have grown steadily over time, and return on equity has been consistently attractive (roughly mid-teens to ~20% recently), indicating the business is generating solid profits relative to shareholder capital. The primary limitation is that, without leverage, growth is more reliant on operating performance (and FY2025 showed a revenue pullback).

Cash Flow

Cash generation is generally healthy: free cash flow is positive in most years and closely tracks earnings in recent periods (free cash flow to net income ~0.79–0.97 from FY2023–FY2025), which supports earnings quality. However, cash flow has been somewhat volatile (notably negative free cash flow in FY2021), and operating cash flow has covered only a modest portion of total obligations as reported (coverage ratio roughly ~0.38–0.53 in FY2022–FY2025, and lower in earlier years), which tempers the score despite improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.72B	16.25B	14.40B	13.22B	10.73B	8.08B
Gross Profit	4.55B	4.73B	3.99B	3.46B	2.85B	2.14B
EBITDA	1.87B	2.04B	1.64B	1.36B	1.06B	551.80M
Net Income	1.24B	1.36B	991.33M	856.03M	687.31M	331.19M
Balance Sheet
Total Assets	9.53B	10.80B	9.87B	7.96B	6.93B	5.27B
Cash, Cash Equivalents and Short-Term Investments	5.25B	6.12B	5.17B	4.32B	3.62B	2.36B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.84B	3.86B	4.03B	2.96B	2.65B	1.62B
Stockholders Equity	6.68B	6.94B	5.85B	5.00B	4.28B	3.65B
Cash Flow
Free Cash Flow	0.00	1.51B	1.15B	1.11B	1.34B	-222.27M
Operating Cash Flow	0.00	1.56B	1.46B	1.21B	1.39B	425.70M
Investing Cash Flow	0.00	-327.18M	-443.07M	-376.76M	-82.81M	-647.82M
Financing Cash Flow	0.00	-282.97M	-161.43M	-134.91M	-54.17M	-133.31M

VIS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1375.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5071, the sentiment is Positive. The current price of 1375 is below the 20-day moving average (MA) of 1566.25, below the 50-day MA of 1489.44, and above the 200-day MA of 1365.72, indicating a bullish trend. The MACD of 41.07 indicates Negative momentum. The RSI at 71.79 is Negative, neither overbought nor oversold. The STOCH value of 67.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5071.

VIS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.84B	8.66	―	3.62%	7.07%	79.18%
5071	80 Outperform	¥14.03B	11.80	―	3.66%	-5.11%	-13.97%
7912	75 Outperform	¥1.60T	18.04	6.97%	1.47%	3.37%	-31.10%
7911	74 Outperform	¥1.46T	20.55	6.28%	1.07%	3.01%	6.48%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4384	62 Neutral	¥115.72B	35.71	19.59%	0.16%	18.08%	136.77%