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

• Market Cap: ¥5.34B
• Dividend Yield: 1.39%
• Average Volume (3M): 16.15K
• Price to Earnings (P/E): 46.7
• Beta (1Y): 1.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 6.88
• Shares Outstanding: 3,552,000
• 10 Day Avg. Volume: 34,910
• 30 Day Avg. Volume: 16,146
• PEG Ratio: -1.13
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 4.46
• P/FCF Ratio: 32.53
• 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: 67 Neutral
• Price Target: ¥1,433.00 ▲(58.87% Upside)

The overall stock score of 67 reflects strong financial performance and bullish technical indicators. However, the high P/E ratio and overbought technical signals suggest caution due to potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient cost management and pricing power, supporting long-term financial health and competitive positioning.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, enabling strategic investments and resilience in downturns.

Cash Flow Generation

Reliable cash flow generation from operations supports ongoing business activities and investments, ensuring sustainable growth and shareholder returns.

Negative Factors

Revenue Decline

A decline in revenue could signal challenges in market demand or competitive pressures, potentially impacting future growth and market share.

Free Cash Flow Decrease

A significant drop in free cash flow may limit the company's ability to fund new projects or return capital to shareholders, affecting long-term growth prospects.

Revenue Growth Concerns

While profitability remains strong, declining revenue may indicate underlying issues in market positioning or product demand, requiring strategic adjustments.

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

Company Description

Prime Strategy Co., Ltd. (5250) is a dynamic company specializing in strategic consulting and innovative solutions across various sectors, including technology, finance, and healthcare. The company focuses on providing data-driven insights, operational efficiency strategies, and tailored business solutions that enhance organizational performance and drive growth for its clients.

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

Prime Strategy Co., Ltd. displays overall financial solidity with strong profitability margins and a healthy balance sheet characterized by low leverage and high equity ratios. While revenue has declined slightly, consistent profitability and cash flow metrics suggest resilience. Continued monitoring of revenue trends and cash flow stability will be crucial to maintain its strong financial position.

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	872.16M	857.21M	877.19M	770.99M	559.85M	567.00M
Gross Profit	506.52M	519.77M	577.21M	550.91M	373.49M	314.29M
EBITDA	195.82M	222.48M	278.15M	303.52M	158.24M	39.51M
Net Income	130.62M	151.90M	185.38M	197.57M	95.52M	27.62M
Balance Sheet
Total Assets	1.54B	1.64B	1.50B	729.11M	415.94M	362.25M
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.40B	1.33B	558.68M	286.76M	182.12M
Total Debt	81.51M	103.54M	83.12M	211.29M	175.47M	256.41M
Total Liabilities	198.14M	224.05M	203.20M	395.13M	284.41M	327.11M
Stockholders Equity	1.34B	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: Positive
• Last Price: 902.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5250, the sentiment is Positive. The current price of 902 is below the 20-day moving average (MA) of 1116.77, below the 50-day MA of 994.01, and below the 200-day MA of 1022.41, indicating a bullish trend. The MACD of 161.24 indicates Negative momentum. The RSI at 84.43 is Negative, neither overbought nor oversold. The STOCH value of 92.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4736	70 Outperform	¥3.66B	10.13	―	1.52%	7.59%	16.93%
5250	67 Neutral	¥5.34B	46.65	―	1.39%	―	―
3682	63 Neutral	¥4.32B	17.48	―	3.11%	1.14%	23.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4450	61 Neutral	¥6.51B	13.97	―	1.12%	22.22%	28.14%
4416	57 Neutral	¥3.86B	87.61	―	―	5.05%	-50.80%
5255	46 Neutral	¥10.86B	-3.16	―	―	-29.41%	79.74%