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

• Market Cap: ¥4.06B
• Dividend Yield: 1.75%
• Average Volume (3M): 6.11K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 42.63
• Shares Outstanding: 3,544,600
• 10 Day Avg. Volume: 8,610
• 30 Day Avg. Volume: 6,106
• PEG Ratio: 0.00
• Price to Book (P/B): 310.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 285.37
• 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: 74 Outperform
• Price Target: ¥1,266.00 ▲(11.05%Upside)

The overall stock score of 74 is primarily driven by the company's strong financial performance, characterized by high profitability and a robust balance sheet. Technical indicators show moderate bullish momentum, while valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Company Description

Prime Strategy Co., Ltd. (5250) is a technology-focused company specializing in providing digital solutions and services. The company operates primarily in the information technology sector, offering a range of products such as web hosting services, cloud infrastructure, and digital transformation consulting. Prime Strategy is known for its expertise in WordPress optimization and is dedicated to delivering high-performance solutions to its clients.

How the Company Makes Money

Prime Strategy Co., Ltd. generates revenue through a variety of channels. The primary revenue streams include the sale of web hosting services, which provide clients with the necessary infrastructure to host their websites and applications. The company also earns money through cloud services, offering scalable and efficient solutions for businesses looking to leverage cloud technology. Additionally, consulting services for digital transformation projects contribute to its earnings, as businesses seek guidance on optimizing their digital presence and infrastructure. Significant partnerships with technology providers and a strong reputation in WordPress optimization further enhance its revenue potential, allowing the company to attract a diverse client base.

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.

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	854.47M	857.21M	877.19M	770.99M	559.85M	567.00M
Gross Profit	534.14M	519.77M	577.21M	550.91M	373.49M	314.29M
EBITDA	233.62M	222.48M	278.15M	303.52M	158.24M	39.51M
Net Income	159.34M	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	1.35B	1.40B	1.33B	558.68M	286.76M	182.12M
Total Debt	106.39M	103.54M	83.12M	211.29M	175.47M	256.41M
Total Liabilities	230.48M	224.05M	203.20M	395.13M	284.41M	327.11M
Stockholders Equity	1.31B	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: 1140.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1140 is above the 20-day moving average (MA) of 1103.05, above the 50-day MA of 1088.70, and above the 200-day MA of 1104.38, indicating a bullish trend. The MACD of 13.17 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 82.18 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	75 Outperform	¥4.03B	9.65		1.34%	9.32%	25.46%
5250	74 Outperform	¥4.06B	26.88		1.75%	―	―
4450	69 Neutral	¥4.24B	11.77		1.82%	17.68%	-31.19%
4416	64 Neutral	¥4.42B	331.25		―	-2.43%	-78.05%
3682	63 Neutral	¥4.07B	18.48		3.28%	9.26%	1.71%
Sector *	50 Neutral	AU$1.52B	1.82	-28.25%	3.28%	16.21%	-7.40%
5255	48 Neutral	¥10.86B	―		―	-32.31%	-226.05%