Vertex Corp. (5290) AI Stock Analysis

• Market Cap: ¥72.55B
• Dividend Yield: 2.32%
• Average Volume (3M): 58.25K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.42
• 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: 67 Neutral
• Price Target: ¥1,340.00 ▲(4.20% Upside)

Vertex Corp.'s overall stock score is driven by strong financial performance and fair valuation. However, technical analysis indicates bearish momentum, which weighs down the overall score. The company's solid financial foundation and attractive dividend yield are significant strengths, but current market sentiment is negative.

Positive Factors

Strong Financial Performance

Vertex Corp.'s strong financial performance, highlighted by consistent gross profit and net income growth, indicates a solid foundation for sustainable business operations and future growth.

Cash Flow Management

Effective cash flow management ensures Vertex Corp. can support future investments and debt servicing, enhancing its long-term financial stability and growth potential.

Low Debt Levels

Low debt levels provide Vertex Corp. with financial flexibility and reduce risk, allowing it to invest in growth opportunities without significant financial strain.

Negative Factors

Revenue Growth Challenges

While revenue growth is positive, the modest increase suggests potential challenges in rapidly expanding market share, which could impact long-term competitive positioning.

Market Sentiment

Negative market sentiment, as indicated by bearish momentum, could affect investor confidence and impact Vertex Corp.'s stock performance over the medium term.

Industry Position

Operating in a competitive industry like construction materials may limit Vertex Corp.'s ability to differentiate and achieve significant pricing power, affecting long-term 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 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

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: Positive
• Last Price: 1286.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1286 is above the 20-day moving average (MA) of 1262.90, below the 50-day MA of 1342.64, and above the 200-day MA of 1227.40, indicating a neutral trend. The MACD of -10.67 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, 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
5288	80 Outperform	¥54.89B	10.49	―	3.23%	9.50%	77.72%
5283	79 Outperform	¥5.68B	10.66	―	1.48%	3.10%	-31.38%
5290	67 Neutral	¥72.55B	13.47	―	2.32%	-0.22%	25.09%
5285	67 Neutral	¥19.79B	8.50	―	3.10%	18.19%	27.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5271	54 Neutral	¥3.07B	12.63	―	3.80%	0.29%	-45.50%
5269	49 Neutral	¥18.12B	-141.46	―	3.25%	-3.73%	-143.19%