GRID Inc. (5582) AI Stock Analysis

• Market Cap: ¥11.43B
• Dividend Yield: N/A
• Average Volume (3M): 49.67K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.17
• Revenue Growth: 18.26%
• EPS Growth: -36.33%
• Country: JP
• Employees: 97
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 4,781,823
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,678.00 ▲(2.68% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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 Trend

GRID has shown durable top-line expansion, with a multi-year pattern of double-digit growth followed by continued single-digit growth. Sustained revenue increases indicate product-market fit and expanding customer adoption in software infrastructure, supporting reinvestment and scale.

High and Stable Margins

Very high gross margins and robust operating margins point to a defensible, asset-light software business with pricing power. Margin durability supports internal R&D, cash generation, and resilience to competitive pricing, underpinning long-term profitability even as the company scales.

Very Low Leverage / Strong Capital Structure

Extremely low leverage and a high equity ratio provide financial flexibility and low interest burden, enabling sustained investment in product and go-to-market. A strong balance sheet reduces solvency risk and preserves optionality for M&A or cyclical downturns over the medium term.

Negative Factors

Declining Net Income

Although revenue is growing, a decline in net income signals rising costs, investments, or margin pressure that could persist. If net income erosion continues it would impair free cash flow conversion and ROE, constraining reinvestment and shareholder returns over several quarters.

Negative EPS Growth

A contraction in EPS despite revenue expansion suggests dilution, one-off charges, or margin compression. Persistent negative EPS growth weakens per-share economics, may limit dividend or buyback capacity, and reduces the company’s ability to signal consistent earnings power to investors.

Limited Investor Communication / Event Disclosure

Lack of available earnings call detail and corporate event disclosures reduces visibility into guidance and strategic execution. Over the medium term, limited transparency can increase perceived execution risk, hinder investor oversight, and make it harder to assess management’s long-term plans.

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.

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	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.06B	1.65B	1.35B	910.40M	706.86M
Gross Profit	1.52B	1.25B	954.41M	660.65M	458.86M
EBITDA	479.38M	407.98M	245.82M	83.43M	-208.64M
Net Income	298.30M	403.75M	228.53M	91.97M	-210.75M
Balance Sheet
Total Assets	4.42B	4.11B	1.58B	1.30B	1.20B
Cash, Cash Equivalents and Short-Term Investments	3.20B	2.90B	671.81M	618.46M	782.97M
Total Debt	5.82M	71.63M	134.50M	194.60M	200.00M
Total Liabilities	478.24M	467.74M	409.74M	365.09M	353.04M
Stockholders Equity	3.94B	3.64B	1.17B	937.84M	845.88M
Cash Flow
Free Cash Flow	403.14M	283.41M	113.45M	-170.82M	-182.55M
Operating Cash Flow	405.95M	285.51M	150.32M	-55.73M	-179.47M
Investing Cash Flow	-46.24M	-37.05M	-36.87M	-103.37M	-8.36M
Financing Cash Flow	-62.41M	1.98B	-60.10M	-5.40M	75.89M

GRID Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2608.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 2608 is above the 20-day moving average (MA) of 2395.90, above the 50-day MA of 2477.18, and above the 200-day MA of 2578.56, indicating a bearish trend. The MACD of -7.47 indicates Negative momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5582.

GRID Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5582	74 Outperform	¥11.43B	28.94	―	―	18.26%	-36.33%
3993	68 Neutral	¥89.81B	29.14	6.41%	―	28.88%	27.51%
4475	68 Neutral	¥31.27B	27.58	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥14.44B	25.11	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.79B	8.71	―	―	―	―
3778	52 Neutral	¥111.14B	367.27	―	0.14%	36.42%	28.23%