Vertex Corp. (5290) AI Stock Analysis

• Market Cap: ¥114.19B
• Dividend Yield: 2.3%
• Average Volume (3M): 58.25K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.53
• 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: 0.29
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 8.69
• 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): 153.05
• Revenue Forecast (FY): ¥46.60B

• Rating: 82 Outperform
• Price Target: ¥2,387.00 ▲(81.94% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

Score is driven primarily by strong financial performance (healthy margins, conservative leverage, and solid cash conversion) and very attractive valuation (low P/E). Technicals support the uptrend, but overbought indicators (RSI and Stoch) temper the overall score due to near-term pullback risk.

Positive Factors

Profitability

Sustained gross (~34%) and net (~12.4%) margins indicate durable cost control and pricing power in core products. Healthy margins support reinvestment and cash generation through cycles, allowing the company to fund operations and maintain returns even if top-line growth remains moderate.

Conservative Balance Sheet

Very low leverage and a high equity ratio provide long-term financial flexibility. This conservative capital structure reduces refinancing and interest-rate risk, enabling the firm to invest in capex, pursue bolt-on opportunities, and absorb cyclical downturns without stressing liquidity or credit profiles.

Cash Generation

Strong cash conversion and near-20% FCF growth indicate robust cash generation capacity. Reliable FCF supports sustainable capital expenditures, dividends, or deleveraging, and provides a durable cushion to fund strategic initiatives or weather sector slowdowns without immediate external financing.

Negative Factors

Modest Revenue Growth

Top-line expansion is modest, which limits scalability and long-term upside driven by volume. With limited organic revenue momentum, future shareholder returns may rely heavily on margin improvement or share buybacks rather than sustained market share gains or new market penetration.

Cyclical Industry Exposure

Operating in construction materials exposes results to long commodity and construction cycles, government infrastructure spending swings, and housing demand. These structural cyclicality risks can produce periodic revenue and margin volatility over multi-quarter horizons despite solid fundamentals.

Earnings Volatility Signal

Very high reported EPS growth suggests potential base effects or one-off items that can make future earnings harder to project. Elevated EPS variability complicates forecasting and may indicate that earnings improvements are not yet proven as a stable, repeatable trend.

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.

Vertex Corp. Financial Statement Overview

Summary

Strong profitability (gross margin ~34.0%, net margin ~12.4%) with modest but positive revenue growth (~5.7%). Balance sheet is conservative (debt-to-equity ~0.11; equity ratio ~70.4%) and cash generation is solid (operating cash flow to net income ~1.32; free cash flow growth ~19.9%).

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	11.26B
EBITDA	8.05B	7.75B	7.09B	6.61B	6.99B	6.40B
Net Income	5.27B	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	4.49B	2.45B	3.43B	3.29B
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 1766.70, below the 50-day MA of 1539.32, and below the 200-day MA of 1402.85, indicating a bullish trend. The MACD of 121.22 indicates Negative momentum. The RSI at 73.81 is Negative, neither overbought nor oversold. The STOCH value of 95.91 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	¥114.19B	2.15	―	2.30%	-0.22%	25.09%
5352	76 Outperform	¥149.50B	11.95	―	2.77%	1.43%	91.97%
5357	73 Outperform	¥27.39B	9.01	―	5.04%	-2.29%	-41.92%
5233	67 Neutral	¥388.03B	-16.12	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	¥121.66B	45.55	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%