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GRID Inc. (JP:5582)
:5582
Japanese Market

GRID Inc. (5582) AI Stock Analysis

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JP

GRID Inc.

(5582)

Rating:73Outperform
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. (5582) vs. iShares MSCI Japan ETF (EWJ)

GRID Inc. Business Overview & Revenue Model

Company DescriptionGRID 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 MoneyGRID 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
85
Very Positive
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
90
Very Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021
Income StatementTotal Revenue
1.90B1.65B1.35B910.40M706.86M
Gross Profit
1.42B1.25B956.58M660.65M458.86M
EBIT
424.07M365.65M208.64M71.11M-222.39M
EBITDA
458.17M387.04M239.36M90.79M-214.97M
Net Income Common Stockholders
456.35M403.75M228.53M91.97M-210.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.06B2.90B671.81M618.46M782.97M
Total Assets
4.03B4.10B1.58B1.30B1.20B
Total Debt
38.00M71.63M134.50M194.60M200.00M
Net Debt
-3.03B-2.83B-537.31M-423.86M-582.97M
Total Liabilities
351.00M463.17M409.74M365.09M353.04M
Stockholders Equity
3.68B3.64B1.17B937.85M845.88M
Cash FlowFree Cash Flow
0.00248.46M113.45M-170.82M-191.33M
Operating Cash Flow
0.00285.51M150.32M-55.73M-179.47M
Investing Cash Flow
0.00-37.05M-36.87M-103.37M-8.36M
Financing Cash Flow
0.001.98B-60.10M-5.40M75.89M

GRID Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3005.00
Price Trends
50DMA
2344.50
Positive
100DMA
2460.08
Positive
200DMA
2538.48
Positive
Market Momentum
MACD
134.59
Negative
RSI
73.14
Negative
STOCH
90.36
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 2523.55, above the 50-day MA of 2344.50, and above the 200-day MA of 2538.48, indicating a bullish trend. The MACD of 134.59 indicates Negative momentum. The RSI at 73.14 is Negative, neither overbought nor oversold. The STOCH value of 90.36 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥153.88B52.81
0.13%27.60%165.28%
73
Outperform
¥13.20B26.68
52.86%1255.76%
71
Outperform
¥26.40B19.58
1.98%20.63%21.52%
65
Neutral
¥18.89B55.57
0.90%32.25%87.20%
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
60
Neutral
¥11.20B175.02
4.51%-1.38%-91.00%
58
Neutral
¥11.70B77.06
4.98%-192.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5582
GRID Inc.
3,005.00
422.00
16.34%
JP:3695
GMO Research & AI,Inc.
2,528.00
-205.11
-7.50%
JP:3741
Systems Engineering Consultants Co., Ltd.
5,200.00
1,044.55
25.14%
JP:3850
NTT Data Intramart Corporation
3,895.00
1,994.50
104.95%
JP:4180
Appier Group, Inc.
1,537.00
228.77
17.49%
JP:4488
AI inside, Inc.
3,130.00
-1,640.00
-34.38%
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.