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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)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
¥3,017.00
▲(13.17% Upside)
GRID Inc.'s strong financial performance and positive technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests the stock may be overvalued, which slightly offsets the overall score. The absence of earnings call data and corporate events means these factors did not influence the evaluation.

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

GRID Inc. Business Overview & Revenue Model

Company DescriptionGRID 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 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
Positive
Last Price2666.00
Price Trends
50DMA
2507.74
Positive
100DMA
2515.50
Positive
200DMA
2487.64
Positive
Market Momentum
MACD
53.15
Negative
RSI
58.10
Neutral
STOCH
72.72
Neutral
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 2666 is above the 20-day moving average (MA) of 2528.75, above the 50-day MA of 2507.74, and above the 200-day MA of 2487.64, indicating a bullish trend. The MACD of 53.15 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
74
Outperform
¥12.99B43.3924.90%-26.71%
68
Neutral
¥24.87B9.5114.40%2.10%17.22%10.53%
65
Neutral
¥18.75B32.320.90%22.72%71.04%
61
Neutral
¥9.81B56.488.72%5.15%14.59%-71.29%
61
Neutral
¥154.85B49.849.58%0.13%26.40%129.49%
59
Neutral
¥12.95B-31.09-10.99%6.29%-180.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5582
GRID Inc.
2,666.00
125.00
4.92%
JP:3695
GMO Research & AI,Inc.
2,222.00
-462.20
-17.22%
JP:3741
Systems Engineering Consultants Co., Ltd.
2,445.00
339.03
16.10%
JP:3850
NTT Data Intramart Corporation
3,905.00
1,505.93
62.77%
JP:4180
Appier Group, Inc.
1,500.00
-279.59
-15.71%
JP:4488
AI inside, Inc.
3,305.00
-430.00
-11.51%
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 17, 2025