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GRID Inc. (JP:5582)
:5582
Japanese Market
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GRID Inc. (5582) AI Stock Analysis

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JP:5582

GRID Inc.

(5582)

Rating:67Neutral
Price Target:
¥2,740.00
▲(11.29% Upside)
GRID Inc.'s strong financial performance is the most significant factor, contributing positively to the overall score. However, the technical analysis indicates potential bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

GRID Inc. (5582) vs. iShares MSCI Japan ETF (EWJ)

GRID Inc. Business Overview & Revenue Model

Company DescriptionGRID Inc. (5582) is a leading technology company specializing in advanced data analytics and artificial intelligence solutions. Operating primarily in the information technology sector, GRID Inc. focuses on delivering innovative software products and services that enable businesses to optimize their operations and make data-driven decisions. The company's core offerings include predictive analytics platforms, machine learning tools, and cloud-based data management solutions, catering to a diverse range of industries including finance, healthcare, and retail.
How the Company Makes MoneyGRID Inc. generates revenue through multiple streams. The primary source of income comes from the sale of software licenses and subscriptions for its analytics platforms and tools. Additionally, the company offers professional services such as consulting, implementation, and training, which contribute significantly to its earnings. GRID Inc. has established strategic partnerships with major cloud service providers, enhancing its product offerings and expanding its customer base. Furthermore, the company benefits from recurring revenue generated through maintenance and support contracts, ensuring a stable income flow from existing clients.

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, the company is well-positioned in the software infrastructure industry.
Income Statement
85
Very Positive
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
78
Positive
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
92
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.12B2.06B1.65B1.35B910.40M706.86M
Gross Profit1.60B1.52B1.25B956.58M660.65M458.86M
EBITDA607.81M477.32M387.04M239.36M90.79M-214.97M
Net Income530.01M298.30M403.75M228.53M91.97M-210.75M
Balance Sheet
Total Assets4.14B4.42B4.10B1.58B1.30B1.20B
Cash, Cash Equivalents and Short-Term Investments2.97B3.20B2.90B671.81M618.46M782.97M
Total Debt19.63M5.82M71.63M134.50M194.60M200.00M
Total Liabilities306.42M477.61M463.17M409.74M365.09M353.04M
Stockholders Equity3.83B3.94B3.64B1.17B937.85M845.88M
Cash Flow
Free Cash Flow0.00403.14M248.46M113.45M-170.82M-191.33M
Operating Cash Flow0.00405.95M285.51M150.32M-55.73M-179.47M
Investing Cash Flow0.00-46.24M-37.05M-36.87M-103.37M-8.36M
Financing Cash Flow0.00-62.41M1.98B-60.10M-5.40M75.89M

GRID Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2462.00
Price Trends
50DMA
2489.50
Negative
100DMA
2465.65
Negative
200DMA
2499.00
Negative
Market Momentum
MACD
-28.92
Positive
RSI
44.87
Neutral
STOCH
13.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5582, the sentiment is Negative. The current price of 2462 is below the 20-day moving average (MA) of 2478.40, below the 50-day MA of 2489.50, and below the 200-day MA of 2499.00, indicating a bearish trend. The MACD of -28.92 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5582.

GRID Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥11.41B39.10
24.90%-26.71%
67
Neutral
¥22.46B17.19
2.28%17.22%10.53%
65
Neutral
¥18.05B31.11
0.94%22.72%71.04%
63
Neutral
¥156.89B50.50
0.12%26.40%129.49%
61
Neutral
$35.56B9.00-10.49%1.86%8.45%-8.32%
61
Neutral
¥9.73B56.02
5.19%14.59%-71.29%
57
Neutral
¥12.09B77.06
6.29%-180.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5582
GRID Inc.
2,462.00
-364.00
-12.88%
JP:3695
GMO Research & AI,Inc.
2,199.00
-471.78
-17.66%
JP:3741
Systems Engineering Consultants Co., Ltd.
4,470.00
404.64
9.95%
JP:3850
NTT Data Intramart Corporation
3,740.00
1,326.12
54.94%
JP:4180
Appier Group, Inc.
1,617.00
-74.71
-4.42%
JP:4488
AI inside, Inc.
3,120.00
-685.00
-18.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025