Vertex Corp. (5290) AI Stock Analysis

• Market Cap: ¥100.50B
• Dividend Yield: 2.3%
• Average Volume (3M): 58.25K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.55
• Revenue Growth: -0.22%
• EPS Growth: 25.09%
• Country: JP
• Employees: 1,077
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 152.28
• Shares Outstanding: 57,706,700
• 10 Day Avg. Volume: 29,590
• 30 Day Avg. Volume: 58,250
• PEG Ratio: 0.15
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.35
• 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): 89.2
• Revenue Forecast (FY): ¥44.60B

• Rating: 82 Outperform
• Price Target: ¥2,078.00 ▲(58.38% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

The score is driven primarily by strong financial performance (high profitability, conservative leverage, and solid cash flow generation) and supported by compelling valuation (low P/E with a dividend). Technicals are positive given the uptrend, but elevated RSI tempers the outlook due to overbought risk.

Positive Factors

High profitability margins

Sustained gross, EBITDA and net margins indicate durable cost management and pricing power across product lines. High margins support reinvestment, R&D and shareholder returns, and create buffer against demand swings, underpinning long-term cash generation.

Conservative balance sheet

Very low leverage and a strong equity base give the company financial flexibility to fund growth, weather downturns, and pursue strategic initiatives without heavy refinancing. This reduces default risk and supports steady capital allocation.

Strong cash flow conversion

High conversion of profits into cash and near-20% FCF growth provide reliable internal funding for capex, product investment, and returns to shareholders. Durable cash generation lowers dependence on external capital for expansion.

Negative Factors

Moderate revenue growth

Low-to-mid single-digit top-line growth constrains long-term earnings leverage and the company's ability to scale rapidly. With growth driven more by margin gains than expanding revenue, sustainable EPS upside depends on continued margin expansion and efficiency gains.

Exposure to cyclical sector

Operating in construction materials ties demand to housing, infrastructure and macro cycles. That structural sensitivity can amplify revenue and margin volatility over multi-quarter horizons, reducing predictability of cash flows during economic slowdowns.

Revenue mix includes consulting

Dependence on professional services alongside subscriptions limits operating leverage because consulting is labor-intensive and less recurring. This structural mix can cap margins and increase revenue volatility versus a pure recurring-software model.

Vertex Corp. Business Overview & Revenue Model

Company Description

Vertex Corporation manufactures and sells concrete secondary products in Japan. The company offers concrete related products, such as manholes, hume pipes, and box culverts. It serves the flood control and sewerage, road construction, maintenance service, railways, and housing development industries. The company was incorporated in 2018 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Vertex Corp. generates revenue primarily through a subscription-based model for its software solutions, which allows clients to access its applications and services on a recurring basis. Additionally, the company earns income from consulting services, providing tailored solutions and support to help clients effectively implement and utilize its products. Key revenue streams include licensing fees from proprietary software, cloud service subscriptions, and professional services. Significant partnerships with major technology firms enhance Vertex's market reach and ability to deliver integrated solutions, further contributing to its earnings.

Vertex Corp. Financial Statement Overview

Summary

Strong overall fundamentals: solid profitability (gross margin ~34%, net margin ~12.4%) and healthy operating efficiency (EBITDA margin ~20.1%). Balance sheet is conservative with low leverage (debt-to-equity ~0.11) and a strong equity ratio (~70.4%). Cash flow quality is good with strong conversion (operating cash flow to net income ~1.32) and free cash flow growth (~19.9%), though revenue growth is moderate (~5.7%).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.38B	38.92B	36.83B	39.10B	37.51B	37.76B
Gross Profit	13.48B	13.24B	12.17B	11.82B	11.91B	11.25B
EBITDA	8.15B	7.83B	7.25B	6.97B	7.24B	6.64B
Net Income	5.28B	4.83B	3.73B	3.74B	4.24B	3.76B
Balance Sheet
Total Assets	49.71B	51.87B	52.02B	49.84B	47.42B	46.27B
Cash, Cash Equivalents and Short-Term Investments	16.77B	17.32B	13.92B	11.02B	12.91B	11.76B
Total Debt	3.81B	3.91B	4.76B	5.31B	4.06B	5.33B
Total Liabilities	14.52B	15.33B	18.17B	18.26B	18.22B	20.02B
Stockholders Equity	35.19B	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: Positive
• Last Price: 1312.00
• 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:5290, the sentiment is Positive. The current price of 1312 is below the 20-day moving average (MA) of 1507.80, below the 50-day MA of 1407.96, and below the 200-day MA of 1349.13, indicating a bullish trend. The MACD of 107.03 indicates Negative momentum. The RSI at 81.53 is Negative, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5290.

Vertex Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5290	82 Outperform	¥100.50B	8.24	―	2.30%	-0.22%	25.09%
5352	76 Outperform	¥150.22B	8.33	―	2.77%	1.43%	91.97%
5357	73 Outperform	¥29.79B	15.65	―	5.04%	-2.29%	-41.92%
5233	67 Neutral	¥506.95B	21.99	7.93%	2.32%	-2.26%	-10.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	¥148.53B	17.58	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥20.20B	-134.06	―	3.24%	-3.73%	-143.19%