GRID Inc. (5582) AI Stock Analysis

• Market Cap: ¥12.73B
• Dividend Yield: N/A
• Average Volume (3M): 49.67K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.37
• Revenue Growth: 18.26%
• EPS Growth: -36.33%
• Country: JP
• Employees: 97
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 16.65
• Shares Outstanding: 4,754,928
• 10 Day Avg. Volume: 52,360
• 30 Day Avg. Volume: 49,670
• PEG Ratio: -1.48
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 5.83
• P/FCF Ratio: 29.86
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥3,528.00 ▲(31.74% Upside)

GRID Inc.'s overall stock score is driven by strong financial performance and positive technical indicators. The high P/E ratio suggests a premium valuation, which could pose a risk if growth expectations are not met. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and reduces risk, supporting sustainable growth.

Negative Factors

Net Income Decline

A decline in net income could signal potential challenges in cost management or revenue generation, impacting profitability.

Earnings Growth Concern

Negative EPS growth suggests declining profitability, which may affect investor confidence and future capital raising capabilities.

High Valuation Risk

A high valuation poses a risk if growth expectations are not met, potentially leading to stock price volatility.

GRID Inc. Business Overview & Revenue Model

Company Description

GRID Inc. engages in the development, sale, maintenance, and operation support services for system using artificial intelligence. It offers consulting, maintenance, and operation support of applications and computer systems, and system development; manufacturing, sales, consulting, maintenance, and operation of urban infrastructure solutions; support business Internet-based application services; and management and consulting services for facilities and operations. The company develops ReNom apps for social infrastructure solutions; and ReNom SIMBASE, a simulator development framework. It serves power & energy, supply chain management, vessels, shipping, and urban transportation & smart cities infrastructure industries. The company was incorporated in 2009 and is based in Minato-ku, Japan.

How the Company Makes Money

GRID Inc. generates revenue primarily through the sale of its proprietary software solutions and hardware products designed for smart grid applications. Key revenue streams include licensing fees for software, direct sales of energy management systems, and consulting services related to energy optimization. Additionally, the company has formed strategic partnerships with utility companies and government agencies, which not only bolster its market presence but also facilitate joint projects that contribute to revenue growth. Grants and incentives for renewable energy projects further enhance its earnings potential.

GRID Inc. Financial Statement Overview

Summary

GRID Inc. exhibits strong financial health with robust revenue growth and profitability, a solid balance sheet with low leverage, and excellent cash flow management. The recent decline in net income warrants monitoring, but overall financial performance remains strong.

Income Statement

GRID Inc. has demonstrated strong revenue growth with an 8.39% increase in the latest year, following a 22.03% growth in the previous year. The company maintains healthy profit margins, with a gross profit margin of approximately 73.41% and a net profit margin of 14.46% in the most recent year. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the net income has decreased compared to the previous year, which could be a concern if the trend continues.

Balance Sheet

The balance sheet of GRID Inc. shows a strong equity position with a low debt-to-equity ratio of 0.015, indicating low leverage and financial stability. The return on equity is solid at 7.57%, reflecting effective use of shareholder funds. The equity ratio stands at 89.17%, suggesting a strong capital structure. However, the decrease in net income impacts the return on equity compared to previous years.

Cash Flow

GRID Inc. has shown impressive cash flow management with a significant increase in free cash flow, resulting in an 'infinity' growth rate due to a negative base in the prior year. The operating cash flow to net income ratio is strong at 1.36, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.35, suggesting good cash flow coverage of earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	2.06B	1.65B	1.35B	910.40M	706.86M
Gross Profit	1.51B	1.52B	1.25B	956.58M	660.65M	458.86M
EBITDA	475.49M	477.32M	387.04M	239.36M	90.79M	-214.97M
Net Income	297.32M	298.30M	403.75M	228.53M	91.97M	-210.75M
Balance Sheet
Total Assets	4.42B	4.42B	4.10B	1.58B	1.30B	1.20B
Cash, Cash Equivalents and Short-Term Investments	3.20B	3.20B	2.90B	671.81M	618.46M	782.97M
Total Debt	5.82M	5.82M	71.63M	134.50M	194.60M	200.00M
Total Liabilities	477.61M	477.61M	463.17M	409.74M	365.09M	353.04M
Stockholders Equity	3.94B	3.94B	3.64B	1.17B	937.85M	845.88M
Cash Flow
Free Cash Flow	0.00	403.14M	248.46M	113.45M	-170.82M	-191.33M
Operating Cash Flow	0.00	405.95M	285.51M	150.32M	-55.73M	-179.47M
Investing Cash Flow	0.00	-46.24M	-37.05M	-36.87M	-103.37M	-8.36M
Financing Cash Flow	0.00	-62.41M	1.98B	-60.10M	-5.40M	75.89M

GRID Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2678.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5582, the sentiment is Neutral. The current price of 2678 is below the 20-day moving average (MA) of 2834.00, below the 50-day MA of 2681.38, and above the 200-day MA of 2523.64, indicating a neutral trend. The MACD of -20.52 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 25.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5582.

GRID Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	76 Outperform	¥31.07B	22.10	―	1.81%	21.97%	15.89%
5582	74 Outperform	¥12.73B	35.99	―	―	18.26%	-36.33%
4180	66 Neutral	¥110.60B	32.85	―	0.19%	25.88%	80.30%
3850	65 Neutral	¥18.60B	27.37	―	0.91%	15.28%	60.07%
3695	65 Neutral	¥9.59B	30.18	―	5.27%	26.41%	-20.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	52 Neutral	¥10.24B	-26.31	―	―	7.00%	-244.58%