Vertex Corp. (5290) AI Stock Analysis

• Market Cap: ¥83.61B
• Dividend Yield: 3.66%
• Average Volume (3M): 93.59K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.47
• Revenue Growth: 5.12%
• EPS Growth: 54.71%
• Country: JP
• Employees: 1,077
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): 13.15
• Shares Outstanding: 57,706,700
• 10 Day Avg. Volume: 137,520
• 30 Day Avg. Volume: 93,586
• 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: ¥3,027.00
• Price Target Upside: 103.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥3,027.00 ▲(103.15% Upside)

Vertex Corp.'s overall stock score is driven by its strong financial performance and solid technical indicators. The company's robust profitability, efficient cost management, and prudent leverage provide a strong foundation. While the stock shows strong upward momentum, overbought technical indicators suggest caution. The valuation is reasonable, with a P/E ratio and dividend yield that offer moderate appeal.

Positive Factors

Cash Flow Management

Strong cash flow management ensures Vertex Corp. has the liquidity to invest in growth opportunities and manage debt, supporting long-term stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility, allowing Vertex Corp. to withstand economic fluctuations and invest in strategic initiatives.

Profitability

Consistent profitability growth reflects Vertex Corp.'s effective cost management and market demand, supporting sustainable long-term earnings.

Negative Factors

Modest Revenue Growth

While positive, modest revenue growth may indicate challenges in expanding market share or product adoption, potentially limiting future earnings acceleration.

Industry Position

Operating in a competitive industry like construction materials may limit Vertex Corp.'s pricing power and margin expansion, affecting long-term profitability.

Sector Diversification

While diversified in tech solutions, reliance on specific sectors like finance and healthcare could expose Vertex Corp. to sector-specific downturns, impacting revenue stability.

Vertex Corp. Business Overview & Revenue Model

Company Description

Vertex Corp. (5290) is a leading technology company specializing in innovative software solutions and data analytics across various sectors, including finance, healthcare, and telecommunications. The company focuses on developing advanced platforms that enhance operational efficiency and decision-making processes for businesses, leveraging artificial intelligence and machine learning. Vertex Corp. is known for its flagship products, which include data management systems, predictive analytics tools, and cloud-based applications that cater to a diverse clientele ranging from small enterprises to large multinational corporations.

How the Company Makes Money

Vertex Corp. generates revenue primarily through the sale of its software products and subscription-based services. The company operates on a SaaS (Software as a Service) model, charging clients recurring fees for access to its platforms, which provide ongoing updates and support. Key revenue streams include licensing fees from enterprise clients, maintenance and support contracts, and professional services such as consulting and implementation. Additionally, Vertex Corp. has established strategic partnerships with major technology firms and industry leaders, allowing it to expand its market reach and create bundled offerings that enhance its value proposition. These collaborations often lead to joint ventures and co-development projects, further contributing to the company's financial success.

Vertex Corp. Financial Statement Overview

Summary

Vertex Corp. demonstrates strong financial performance with robust profitability, a solid balance sheet, and effective cash flow management. The company shows consistent revenue and profit growth, efficient cost control, and prudent leverage, positioning it well within the construction materials industry.

Income Statement

Vertex Corp. demonstrates strong profitability with a consistent increase in gross profit and net income over the years. The gross profit margin for the latest year is approximately 34.0%, indicating efficient cost management. The net profit margin has improved to 12.4%, reflecting strong bottom-line performance. Revenue growth is modest but positive, with a 5.7% increase from the previous year, suggesting stable demand in the construction materials sector. EBIT and EBITDA margins are healthy, at 16.2% and 20.1% respectively, showcasing robust operational efficiency.

Balance Sheet

Vertex Corp. maintains a solid balance sheet with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The equity ratio stands at 70.4%, highlighting a strong equity base relative to total assets. Return on equity is impressive at 13.2%, demonstrating effective use of shareholder funds to generate profits. The company has increased its stockholders' equity consistently, reflecting financial stability and growth potential.

Cash Flow

Vertex Corp. exhibits strong cash flow management with a significant free cash flow growth of 19.9% over the previous year. The operating cash flow to net income ratio is 1.32, indicating efficient conversion of profits into cash. The free cash flow to net income ratio is 1.10, suggesting that the company generates ample cash relative to its net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.92B	38.92B	36.83B	39.10B	37.51B	37.76B
Gross Profit	13.24B	13.24B	12.17B	11.82B	11.91B	11.25B
EBITDA	7.83B	7.83B	7.25B	6.97B	7.24B	6.64B
Net Income	4.83B	4.83B	3.73B	3.74B	4.24B	3.76B
Balance Sheet
Total Assets	51.87B	51.87B	52.02B	49.84B	47.42B	46.27B
Cash, Cash Equivalents and Short-Term Investments	17.32B	17.32B	13.92B	11.02B	12.91B	11.76B
Total Debt	3.91B	3.91B	4.76B	5.31B	4.06B	5.33B
Total Liabilities	15.33B	15.33B	18.17B	18.26B	18.22B	20.02B
Stockholders Equity	36.53B	36.53B	33.86B	31.58B	29.20B	26.25B
Cash Flow
Free Cash Flow	0.00	5.32B	4.44B	2.44B	3.30B	3.16B
Operating Cash Flow	0.00	6.38B	5.59B	3.86B	5.00B	4.22B
Investing Cash Flow	0.00	215.16M	-526.25M	-2.94B	-1.14B	-397.28M
Financing Cash Flow	0.00	-3.19B	-2.15B	-2.07B	-2.62B	-638.78M

Vertex Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5290, the sentiment is Neutral. The current price of 1490 is below the 20-day moving average (MA) of 1588.58, above the 50-day MA of 1422.55, and above the 200-day MA of 1063.41, indicating a neutral trend. The MACD of 62.13 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 24.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5290.

Vertex Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	81 Outperform	¥50.24B	12.69		3.44%	7.10%	35.43%
5285	80 Outperform	¥23.16B	10.35		2.72%	15.39%	27.17%
5283	76 Outperform	¥5.64B	8.35		1.50%	3.08%	-11.20%
5290	75 Outperform	¥83.61B	14.24		3.66%	5.12%	54.71%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5271	60 Neutral	¥3.09B	12.20		3.82%	-12.84%	-57.15%
5269	55 Neutral	¥20.26B	98.19		3.65%	-6.24%	-146.29%