PORTERS CORPORATION (5126) AI Stock Analysis

• Market Cap: ¥2.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.19
• Revenue Growth: 14.11%
• EPS Growth: -1.49%
• Country: JP
• Employees: 110
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 31.90
• Shares Outstanding: 1,613,700
• 10 Day Avg. Volume: 1,030
• 30 Day Avg. Volume: 1,323
• PEG Ratio: -12.19
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 1.69
• P/FCF Ratio: -34.93
• 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

• Rating: 77 Outperform
• Price Target: ―

PORTERS CORPORATION demonstrates significant strengths in financial performance, particularly in revenue growth and debt-free balance sheet. Technical indicators show moderate market momentum, while valuation suggests the stock is attractively priced. The primary concern is the cash flow situation, which could impact liquidity if not addressed.

PORTERS CORPORATION Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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PORTERS CORPORATION Financial Statement Overview

Summary

PORTERS CORPORATION exhibits strong revenue growth and profitability, supported by a robust balance sheet with no debt. However, recent cash flow challenges could indicate potential liquidity risks if the trend continues. Overall, the company is financially stable with a solid operational foundation, but monitoring cash flow dynamics is crucial.

Income Statement

PORTERS CORPORATION has demonstrated a robust revenue growth trajectory with a revenue increase from $1.58 billion in 2023 to $1.92 billion in 2024, indicating a 21.2% growth rate. The gross profit margin is healthy at 76.8% for 2024, reflecting strong pricing power and cost management. The net profit margin remains stable at 13.9%, and EBIT margin is solid at 20.3%, showcasing efficient operations. However, EBITDA margin is slightly compressed at 21.7%, suggesting some operational cost pressures.

Balance Sheet

The company boasts a stellar balance sheet with zero total debt and substantial stockholders' equity of $1.34 billion, leading to a debt-to-equity ratio of 0.0. The equity ratio is strong at 80.9%, indicating a solid financial foundation. Return on equity (ROE) is commendable at 20.0%, reflecting effective management in generating returns on shareholder investments.

Cash Flow

Cash flow analysis reveals a challenging year in 2024, with operating cash flow turning negative at -$88 million from a positive $298 million in 2023. Free cash flow also declined to -$93 million. This cash flow deterioration poses potential liquidity concerns. However, the free cash flow to net income ratio in previous years suggests a generally efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.02B	1.92B	1.59B	1.29B	1.10B	1.02B
Gross Profit	1.52B	1.48B	1.27B	1.02B	840.43M	693.78M
EBITDA	378.50M	418.00M	386.00M	333.23M	234.76M	154.34M
Net Income	244.00M	268.00M	267.00M	222.64M	152.65M	100.44M
Balance Sheet
Total Assets	1.66B	1.65B	1.47B	1.11B	807.26M	654.71M
Cash, Cash Equivalents and Short-Term Investments	714.00M	821.00M	1.11B	937.04M	682.94M	545.60M
Total Debt	0.00	0.00	0.00	41.70M	91.69M	141.68M
Total Liabilities	259.00M	308.00M	383.00M	334.17M	332.33M	332.43M
Stockholders Equity	1.38B	1.34B	1.04B	771.56M	474.93M	322.28M
Cash Flow
Free Cash Flow	0.00	-93.00M	298.00M	261.86M	193.11M	73.15M
Operating Cash Flow	0.00	-88.00M	298.00M	285.66M	193.11M	84.25M
Investing Cash Flow	0.00	-244.00M	-83.00M	-41.78M	-14.85M	-13.78M
Financing Cash Flow	0.00	1.00M	-41.00M	9.91M	-49.99M	-49.99M

PORTERS CORPORATION Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1841.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5126, the sentiment is Negative. The current price of 1841 is below the 20-day moving average (MA) of 1891.00, below the 50-day MA of 1933.98, and below the 200-day MA of 1960.40, indicating a bearish trend. The MACD of -27.87 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5126.

PORTERS CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5126	77 Outperform	¥2.97B	12.02	―	―	14.11%	-1.49%
4494	75 Outperform	¥3.70B	9.89	―	―	1.62%	9.93%
4178	67 Neutral	¥2.66B	39.44	―	―	-3.54%	-41.26%
3042	62 Neutral	¥2.52B	24.16	―	0.61%	13.74%	-55.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4288	54 Neutral	¥1.95B	―	―	―	30.27%	29.21%
6662	45 Neutral	¥3.68B	―	―	―	21.60%	-43.47%