Prime Strategy Co., Ltd. (5250) AI Stock Analysis

• Market Cap: ¥3.77B
• Dividend Yield: 1.74%
• Average Volume (3M): 22.82K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.29
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 10.00
• Shares Outstanding: 3,552,000
• 10 Day Avg. Volume: 24,110
• 30 Day Avg. Volume: 22,816
• PEG Ratio: -1.68
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 46.20
• 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: 60 Neutral
• Price Target: ¥1,210.00 ▲(34.15% Upside)

The score is primarily supported by strong balance-sheet quality and continued profitability/cash generation, but is held back by recent margin compression. Technical signals are bearish (below key moving averages with negative MACD and low RSI), and valuation is a notable headwind due to the high P/E with only a modest dividend yield.

Positive Factors

Conservative balance sheet

A conservative balance sheet with very low debt and a sizeable equity base provides durable financial flexibility. This supports investment in growth, cushions downturns, and reduces refinancing risk, enabling the firm to sustain strategy execution over the medium term.

Positive cash generation

Free cash flow converting roughly one-for-one with net income indicates earnings quality and durable cash generation. This underpins the company’s ability to fund operations, reinvest in services, or return capital, supporting long-term operational stability.

Multi-year revenue growth

Sustained top-line growth over multiple years signals continued client demand and successful service commercialization. Persistent revenue expansion provides a base for scaling margins and investments in capabilities, strengthening competitive position over the next several months.

Negative Factors

Margin compression

Recent meaningful margin deterioration reduces profitability and return on capital. If structural (pricing pressure or rising SG&A) it can erode reinvestment capacity and make the business more sensitive to revenue shocks, weakening long‑term resilience.

Weaker cash conversion momentum

Declining free cash flow momentum and inconsistent operating cash conversion signal weakening cash quality. Over time this can constrain investments, increase reliance on external financing for growth, and reduce the margin for error during market stress.

Small organizational scale

A very small headcount increases key-person and execution risk, limits capacity to scale simultaneous large engagements, and may constrain geographic or service expansion. Such scale limitations can slow durable growth and make client concentration more likely.

Prime Strategy Co., Ltd. Business Overview & Revenue Model

Company Description

Prime Strategy Co., Ltd. provides cloud integration services in Japan. It offers KUSANAGI Managed Services, an integrated system for website maintenance and management from applications, middleware, and servers; CMS Platform integration services; WEXAL Mobile Display Acceleration Service; and Hyper Automation Implementation Services. Prime Strategy Co., Ltd. was incorporated in 2002 and is based in Tokyo, Japan. Prime Strategy Co., Ltd. is a subsidiary of FinTech Global Incorporated.

How the Company Makes Money

Prime Strategy Co., Ltd. generates revenue primarily through consulting fees charged for its strategic advisory services. The company offers various service packages that include market analysis, business strategy development, and implementation support. Additionally, Prime Strategy Co., Ltd. may earn income from training programs and workshops designed to upskill client teams. Key revenue streams include long-term contracts with corporate clients, project-based consulting engagements, and potential licensing of proprietary tools and methodologies developed in-house. Strategic partnerships with technology firms and industry leaders also contribute to its earnings by enabling collaborative projects and expanding the company's service offerings.

Prime Strategy Co., Ltd. Financial Statement Overview

Summary

Strong financial foundation with very low leverage and a sizeable equity base (Balance Sheet score 86). However, recent profitability has compressed (Income Statement score 72) and free cash flow momentum has weakened from prior highs despite remaining positive (Cash Flow score 68).

Income Statement

Revenue has grown materially over the multi-year period (2025 annual revenue up strongly vs. 2024), but the latest year shows clear profitability compression: gross margin and net margin declined versus 2024, and EBIT/EBITDA margins stepped down meaningfully. Even with the 2025 pullback, margins remain healthy for the business and net income is solid, but the recent downward trajectory is the key watch item.

Balance Sheet

The balance sheet is conservative in the latest periods, with very low leverage (debt is a small fraction of equity in 2023–2025) and a sizeable equity base relative to assets. Returns on equity are positive but have moderated from earlier peaks, reflecting slower earnings momentum. Overall strength is high given the low debt burden, with the main weakness being the decline in profitability that is feeding into lower returns.

Cash Flow

Cash generation is generally good: free cash flow closely tracks net income (near 1x in 2023–2025), indicating earnings are translating into cash. However, operating cash flow is less consistent as a share of EBITDA (below 1x in 2024–2025), and free cash flow has trended down from 2022–2023 highs. The business remains cash-flow positive, but recent cash conversion and momentum are weaker than prior years.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	872.16M	887.04M	857.21M	877.19M	770.99M	559.85M
Gross Profit	506.52M	495.83M	519.77M	577.21M	550.91M	373.49M
EBITDA	195.82M	157.75M	222.48M	278.15M	303.52M	158.24M
Net Income	130.62M	107.75M	151.90M	185.38M	197.57M	95.52M
Balance Sheet
Total Assets	1.54B	1.61B	1.64B	1.50B	729.11M	415.94M
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.28B	1.40B	1.33B	558.68M	286.76M
Total Debt	81.51M	62.32M	103.54M	83.12M	211.29M	175.47M
Total Liabilities	198.14M	184.16M	224.05M	203.20M	395.13M	284.41M
Stockholders Equity	1.34B	1.42B	1.41B	1.30B	333.98M	131.52M
Cash Flow
Free Cash Flow	0.00	115.49M	117.40M	151.56M	233.67M	138.39M
Operating Cash Flow	0.00	116.80M	128.48M	155.89M	246.63M	145.58M
Investing Cash Flow	0.00	-70.67M	-38.39M	-20.71M	-12.96M	38.86M
Financing Cash Flow	0.00	-162.98M	-17.55M	630.18M	32.82M	-80.94M

Prime Strategy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 902.00
• 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:5250, the sentiment is Negative. The current price of 902 is below the 20-day moving average (MA) of 1145.25, below the 50-day MA of 1257.47, and below the 200-day MA of 1062.35, indicating a bearish trend. The MACD of -51.57 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5250.

Prime Strategy Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3682	72 Outperform	¥4.80B	19.42	―	2.99%	1.14%	23.89%
4736	66 Neutral	¥3.32B	9.18	―	1.54%	7.59%	16.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4450	61 Neutral	¥7.21B	15.59	―	1.13%	22.22%	28.14%
5250	60 Neutral	¥3.77B	34.62	―	1.74%	―	―
4416	57 Neutral	¥3.28B	74.44	―	―	5.05%	-50.80%
5255	39 Underperform	¥10.99B	-3.20	―	―	-29.41%	79.74%