PORTERS CORPORATION (5126) AI Stock Analysis

• Market Cap: ¥2.53B
• Dividend Yield: N/A
• Average Volume (3M): 926.00
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.25
• Revenue Growth: 12.74%
• EPS Growth: 5.89%
• Country: JP
• Employees: 110
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -23.36
• Shares Outstanding: 1,631,700
• 10 Day Avg. Volume: 820
• 30 Day Avg. Volume: 926
• PEG Ratio: -0.42
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 19.40
• 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: 61 Neutral
• Price Target: ¥1,619.00 ▼(-12.06% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is supported by strong underlying financial resilience (minimal debt and solid profitability), but is materially pressured by weak technicals (price below all key moving averages, negative MACD, oversold RSI) and only moderate valuation support (P/E ~19, no dividend yield provided).

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for PORTERS CORPORATION's software solutions, enhancing its market position and long-term growth prospects.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and investment in strategic initiatives.

Profitability

High profitability margins reflect efficient operations and strong pricing power, which are critical for long-term financial health and competitive advantage.

Negative Factors

Cash Flow Deterioration

Negative cash flow raises concerns about liquidity and the ability to fund operations or investments without external financing, potentially impacting growth.

Margin Compression

Margin compression suggests rising costs or competitive pressures, which could erode profitability if not managed effectively over time.

Cash Generation Concerns

Weak cash generation despite profitability indicates potential issues with working capital management or increased capital expenditure needs, affecting financial stability.

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

Strong profitability and a conservative balance sheet (debt effectively eliminated in 2023–2025; rising equity) support a solid score. Offsetting this is uneven earnings quality: cash-flow volatility (FCF negative in 2024, then positive in 2025) and a notable 2025 net income decline despite higher revenue.

Income Statement

Revenue has expanded steadily from 2020 to 2025, with particularly strong growth in 2022–2024 and a more moderate pace in 2025. Profitability is a clear strength: gross profit has remained high relative to revenue and operating profitability has been consistently solid across the period. The main weakness is earnings volatility—net income fell materially in 2025 versus 2024 despite higher revenue, signaling either higher costs, lower non-operating gains, or other headwinds impacting the bottom line.

Balance Sheet

The balance sheet is conservatively positioned. Total debt is effectively eliminated in recent years (zero in 2023–2025), and equity has grown meaningfully over time, supporting a rising asset base. Historical leverage also improved sharply (from higher debt levels in 2020–2021 to minimal/none thereafter). The primary limitation is that the dataset does not provide liquidity detail (e.g., cash vs. current liabilities), so near-term flexibility cannot be fully assessed from the provided figures.

Cash Flow

Cash generation is mixed. Free cash flow was strong and positive in 2021–2023, then turned negative in 2024 before recovering to positive territory in 2025. A notable concern is 2024, when operating cash flow was negative despite strong reported profits, suggesting working-capital drag or timing effects; this creates questions about earnings-to-cash conversion consistency. The 2025 rebound is a positive sign, but the year-to-year volatility keeps the score moderate.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.02B	2.14B	1.92B	1.59B	1.29B	1.10B
Gross Profit	1.52B	1.60B	1.48B	1.27B	1.02B	840.43M
EBITDA	378.50M	390.00M	418.00M	386.00M	333.23M	234.76M
Net Income	244.00M	128.00M	268.00M	267.00M	222.64M	152.65M
Balance Sheet
Total Assets	1.66B	1.88B	1.65B	1.47B	1.11B	807.26M
Cash, Cash Equivalents and Short-Term Investments	714.00M	928.00M	821.00M	1.11B	937.04M	682.94M
Total Debt	0.00	0.00	0.00	0.00	41.70M	91.69M
Total Liabilities	259.00M	288.00M	308.00M	383.00M	334.17M	332.33M
Stockholders Equity	1.38B	1.38B	1.34B	1.04B	771.56M	474.93M
Cash Flow
Free Cash Flow	0.00	144.00M	-93.00M	298.00M	261.86M	193.11M
Operating Cash Flow	0.00	146.00M	-88.00M	298.00M	285.66M	193.11M
Investing Cash Flow	0.00	-21.00M	-244.00M	-83.00M	-41.78M	-14.85M
Financing Cash Flow	0.00	-40.00M	1.00M	-41.00M	9.91M	-49.99M

PORTERS CORPORATION Technical Analysis

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

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 above the 20-day moving average (MA) of 1607.05, above the 50-day MA of 1672.10, and below the 200-day MA of 1855.70, indicating a bearish trend. The MACD of -42.60 indicates Negative momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, 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
4811	73 Outperform	¥10.17B	13.03	―	1.01%	15.34%	67.96%
3915	68 Neutral	¥22.02B	15.13	―	―	17.93%	91.21%
4414	68 Neutral	¥7.91B	10.74	―	―	1.01%	32.52%
4475	68 Neutral	¥32.40B	24.33	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5126	61 Neutral	¥2.53B	19.26	―	―	12.74%	5.89%
4434	61 Neutral	¥16.24B	-46.23	―	―	―	―