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

• Market Cap: ¥3.56B
• Dividend Yield: 2%
• Average Volume (3M): 3.46K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 25
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 5.67
• Shares Outstanding: 3,544,600
• 10 Day Avg. Volume: 2,250
• 30 Day Avg. Volume: 3,456
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,343.00
• Price Target Upside: 34.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,343.00 ▲(34.30% Upside)

Prime Strategy Co., Ltd. benefits from robust financial performance marked by strong profitability and balance sheet metrics. However, the stock's valuation suggests it may be overvalued, and technical indicators provide mixed signals. Monitoring revenue trends and cash flow will be key to future performance.

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

Company Description

Prime Strategy Co., Ltd. (5250) is a technology company specializing in providing IT consulting services, with a focus on web application development, server management, and performance optimization. The company primarily serves businesses looking to enhance their online presence and operational efficiency through customized IT solutions.

How the Company Makes Money

Prime Strategy Co., Ltd. generates revenue through a combination of service fees for IT consulting, project-based work in web application development, and ongoing maintenance and support contracts. The company leverages its expertise in server management and performance optimization to offer value-added services, which can include subscription-based models for continuous support. Partnerships with technology vendors and collaborations with other IT firms may also contribute to its revenue streams by enabling bundled service offerings or reselling opportunities.

Prime Strategy Co., Ltd. Financial Statement Overview

Summary

The company has strong profitability margins and a healthy balance sheet with low leverage. Despite a slight decline in revenue and a decrease in free cash flow, overall financial stability remains solid.

Income Statement

The company's gross profit margin and net profit margin are healthy, with the most recent gross profit margin at 60.63% and net profit margin at 17.72%. However, there was a slight decline in total revenue by 2.28% from the previous year, indicating a potential concern for growth. EBIT and EBITDA margins are strong at 24.77% and 25.95%, respectively.

Balance Sheet

The company shows a strong balance sheet with a low debt-to-equity ratio of 0.07, indicating low leverage and financial stability. The equity ratio is robust at 86.32%, reflecting the company's strong equity position relative to its total assets. Return on equity (ROE) is impressive at 10.75%, showing effective management of shareholder funds.

Cash Flow

The firm has a solid free cash flow to net income ratio of 0.77, demonstrating efficient cash generation relative to net income. Operating cash flow to net income ratio of 0.85 indicates reliable cash flow generation from operations. However, free cash flow decreased by 22.46%, which could be a potential area of concern if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	874.46M	857.21M	877.19M	770.99M	559.85M	567.00M
Gross Profit	514.89M	519.77M	577.21M	550.91M	373.49M	314.29M
EBITDA	219.96M	222.48M	278.15M	303.52M	158.24M	39.51M
Net Income	149.26M	151.90M	185.38M	197.57M	95.52M	27.62M
Balance Sheet
Total Assets	1.56B	1.64B	1.50B	729.11M	415.94M	362.25M
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.40B	1.33B	558.68M	286.76M	182.12M
Total Debt	91.98M	103.54M	83.12M	211.29M	175.47M	256.41M
Total Liabilities	211.00M	224.05M	203.20M	395.13M	284.41M	327.11M
Stockholders Equity	1.35B	1.41B	1.30B	333.98M	131.52M	35.14M
Cash Flow
Free Cash Flow	0.00	117.40M	151.56M	233.67M	138.39M	38.25M
Operating Cash Flow	0.00	128.48M	155.89M	246.63M	145.58M	64.34M
Investing Cash Flow	0.00	-38.39M	-20.71M	-12.96M	38.86M	-30.65M
Financing Cash Flow	0.00	-17.55M	630.18M	32.82M	-80.94M	49.75M

Prime Strategy Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1000.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1000 is below the 20-day moving average (MA) of 1006.05, below the 50-day MA of 1037.66, and below the 200-day MA of 1080.67, indicating a bearish trend. The MACD of -7.11 indicates Negative momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 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
5250	74 Outperform	¥3.56B	26.98		2.00%	―	―
4736	72 Outperform	¥3.79B	9.82		1.37%	9.35%	28.40%
4450	69 Neutral	¥6.34B	15.12		1.16%	21.32%	6.83%
3682	63 Neutral	¥4.04B	18.42		3.27%	2.04%	-3.43%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
4416	55 Neutral	¥4.33B	1,207.43		―	-0.93%	-97.16%
5255	45 Neutral	¥14.16B	―		―	-34.51%	52.07%