GRID Inc. (5582) AI Stock Analysis

• Market Cap: ¥14.12B
• Dividend Yield: N/A
• Average Volume (3M): 18.05K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.10
• Revenue Growth: 52.86%
• EPS Growth: 1255.76%
• Country: JP
• Employees: 97
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 32.79
• Shares Outstanding: 4,747,260
• 10 Day Avg. Volume: 37,170
• 30 Day Avg. Volume: 18,046
• PEG Ratio: 0.58
• Price to Book (P/B): 16.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 174.35
• 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

• Rating: 73 Outperform
• Price Target: ¥3,343.00 ▲(11.25%Upside)

GRID Inc.'s strong financial performance is the primary driver of its score, supported by robust profitability and a solid balance sheet. While technical analysis indicates potential overbought conditions, the company's valuation remains reasonable. The lack of earnings call and corporate events information did not affect the score.

GRID Inc. Business Overview & Revenue Model

Company Description

GRID Inc. (5582) is a technology company specializing in the development and distribution of digital solutions aimed at enhancing productivity and efficiency across various industries. The company's core products and services include software platforms, cloud-based applications, and IT consulting services designed to help businesses optimize their operations and achieve digital transformation.

How the Company Makes Money

GRID Inc. generates revenue primarily through the sale of software licenses and subscriptions for its cloud-based applications. The company also earns income from providing IT consulting services, which include system integration, technical support, and customized software development. Additionally, GRID Inc. partners with other technology firms to offer bundled solutions, expanding its market reach and creating additional revenue streams. Key factors contributing to its earnings include ongoing digital transformation trends and the increasing demand for cloud-based solutions.

GRID Inc. Financial Statement Overview

Summary

GRID Inc. showcases strong financial health with significant revenue and profit growth, robust cost management, and a solid balance sheet. However, there are slight concerns around cash conversion efficiency.

Income Statement

GRID Inc. has demonstrated significant revenue growth with a year-over-year increase of over 22% from 2023 to 2024, following a strong trajectory from previous years. Gross profit margin remains robust at approximately 75%, indicating efficient cost management. The net profit margin improved to 24% in 2024, highlighting enhanced profitability. The company's EBIT and EBITDA margins have also improved, showcasing strong operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio of 88.69%, indicating strong financial stability. The debt-to-equity ratio is low at 0.02, suggesting minimal leverage and financial risk. Return on equity has improved significantly, reaching 11.1% in 2024, indicating effective use of shareholder funds.

Cash Flow

Operating cash flow has shown a positive trend, with a significant increase in recent years. The free cash flow to net income ratio is healthy, and the free cash flow growth rate is strong at 119%. However, the operating cash flow to net income ratio is lower, which may suggest some concerns over cash conversion efficiency.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement		Total Revenue
1.90B	1.65B	1.35B	910.40M	706.86M
	Gross Profit
1.42B	1.25B	956.58M	660.65M	458.86M
	EBIT
424.07M	365.65M	208.64M	71.11M	-222.39M
	EBITDA
458.17M	387.04M	239.36M	90.79M	-214.97M
	Net Income Common Stockholders
456.35M	403.75M	228.53M	91.97M	-210.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.06B	2.90B	671.81M	618.46M	782.97M
	Total Assets
4.03B	4.10B	1.58B	1.30B	1.20B
	Total Debt
38.00M	71.63M	134.50M	194.60M	200.00M
	Net Debt
-3.03B	-2.83B	-537.31M	-423.86M	-582.97M
	Total Liabilities
351.00M	463.17M	409.74M	365.09M	353.04M
	Stockholders Equity
3.68B	3.64B	1.17B	937.85M	845.88M
Cash Flow		Free Cash Flow
0.00	248.46M	113.45M	-170.82M	-191.33M
	Operating Cash Flow
0.00	285.51M	150.32M	-55.73M	-179.47M
	Investing Cash Flow
0.00	-37.05M	-36.87M	-103.37M	-8.36M
	Financing Cash Flow
0.00	1.98B	-60.10M	-5.40M	75.89M

GRID Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3005.00
• 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:5582, the sentiment is Positive. The current price of 3005 is above the 20-day moving average (MA) of 2552.25, above the 50-day MA of 2357.48, and above the 200-day MA of 2543.09, indicating a bullish trend. The MACD of 150.12 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 85.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5582.

GRID Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4180	75 Outperform	¥157.36B	54.00		0.13%	27.60%	165.28%
5582	73 Outperform	¥14.12B	25.12		―	52.86%	1255.76%
3741	71 Outperform	¥26.61B	19.73		1.96%	20.63%	21.52%
3850	65 Neutral	¥18.87B	55.49		0.90%	32.25%	87.20%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
3695	60 Neutral	¥10.96B	171.37		4.61%	-1.38%	-91.00%
4488	58 Neutral	¥12.19B	77.06		―	4.98%	-192.43%