Vertex Corp. (5290) AI Stock Analysis

• Market Cap: ¥77.88B
• Dividend Yield: 4.78%
• Average Volume (3M): 58.25K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.40
• Revenue Growth: -0.22%
• EPS Growth: 25.09%
• Country: JP
• Employees: 1,077
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 15.79
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,508.00 ▲(20.16% Upside)

The overall stock score for Vertex Corp. is driven primarily by its strong financial performance, which is a significant strength. However, the technical analysis indicates bearish momentum, which is a notable risk. The valuation is attractive, particularly for income investors, due to the strong dividend yield.

Positive Factors

Strong Financial Performance

Vertex Corp.'s robust profitability, solid balance sheet, and effective cash flow management indicate a strong financial foundation, supporting long-term growth and stability.

Solid Balance Sheet

A low debt-to-equity ratio and strong equity base highlight Vertex Corp.'s financial stability, reducing risk and enhancing its ability to invest in growth opportunities.

Strong Cash Flow Management

Significant free cash flow growth and efficient profit-to-cash conversion enable Vertex Corp. to support future investments and manage debt effectively, ensuring long-term sustainability.

Negative Factors

Modest Revenue Growth

While positive, the modest revenue growth rate may indicate challenges in rapidly expanding market share, potentially affecting long-term competitive positioning.

Industry Position

Despite strong financials, Vertex Corp.'s focus on the construction materials industry may limit its growth potential compared to more dynamic tech sectors.

Earnings Decline

A decline in earnings since the last filing may indicate underlying operational challenges or market pressures, potentially impacting future profitability.

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 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	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: Negative
• Last Price: 1255.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5290, the sentiment is Negative. The current price of 1255 is below the 20-day moving average (MA) of 1326.00, below the 50-day MA of 1414.94, and above the 200-day MA of 1200.52, indicating a neutral trend. The MACD of -48.90 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 9.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥46.85B	11.83	―	3.70%	9.50%	77.72%
5283	79 Outperform	¥5.77B	10.82	―	1.46%	3.10%	-31.38%
5290	70 Outperform	¥77.88B	13.27	―	4.78%	-0.22%	25.09%
5285	67 Neutral	¥21.07B	9.42	―	3.06%	18.19%	27.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5271	54 Neutral	¥2.95B	12.15	―	3.89%	0.29%	-45.50%
5269	49 Neutral	¥18.40B	-65.80	―	3.24%	-3.73%	-143.19%