Fast Accounting Co.,Ltd. (5588) AI Stock Analysis

• Market Cap: ¥12.21B
• Dividend Yield: 0.11%
• Average Volume (3M): 20.36K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.89
• Revenue Growth: 37.21%
• EPS Growth: 129.72%
• Country: JP
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.11
• Shares Outstanding: 11,162,460
• 10 Day Avg. Volume: 39,140
• 30 Day Avg. Volume: 20,363
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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): 2,370.56
• Revenue Forecast (FY): ¥341.86B

• Rating: 70 Outperform
• Price Target: ―

Fast Accounting Co., Ltd. scores well due to its strong financial performance, characterized by high revenue growth and profitability, coupled with a robust, debt-free balance sheet. However, technical indicators show mixed signals, with some suggesting potential weakness. The stock's high P/E ratio and low dividend yield point towards a less attractive valuation. The absence of significant earnings call insights or corporate events leaves these components neutral.

Positive Factors

Revenue Growth

The significant revenue growth reflects the company's ability to expand its market presence and enhance its product offerings, indicating a robust growth trajectory in the competitive software industry.

Balance Sheet Health

A debt-free balance sheet minimizes financial risk and provides financial stability, allowing the company to invest in growth opportunities without the burden of debt servicing.

Cash Flow Management

Strong cash flow management enhances liquidity and financial flexibility, enabling the company to fund operations, invest in growth, and withstand market fluctuations effectively.

Negative Factors

Competitive Market Challenges

In a rapidly evolving software industry, maintaining high growth rates requires continuous innovation and adaptation, posing a challenge to sustaining long-term growth and profitability.

Profit Margin Sustainability

While current profit margins are strong, the competitive landscape may pressure pricing and costs, potentially impacting the sustainability of these margins over time.

Market Valuation Concerns

High valuation metrics may limit future stock price appreciation and attract scrutiny, especially if growth expectations are not met, impacting investor sentiment.

Fast Accounting Co.,Ltd. Business Overview & Revenue Model

Company Description

Fast Accounting Co., Ltd. (5588) is a company operating within the financial services sector, providing advanced accounting solutions to businesses of various sizes. The company specializes in offering comprehensive accounting software and services designed to streamline financial management, enhance compliance, and improve operational efficiency for its clients.

How the Company Makes Money

Fast Accounting Co., Ltd. generates revenue through a diverse range of accounting products and services. The primary revenue streams include subscription fees for their proprietary accounting software, consulting services for financial management, and fees for customized accounting solutions tailored to specific client needs. The company may also have partnerships with other financial services firms to offer integrated solutions, contributing to additional revenue. Additionally, Fast Accounting Co., Ltd. might leverage strategic collaborations and technological advancements to enhance its offerings and expand its customer base, thereby increasing its earnings.

Fast Accounting Co.,Ltd. Financial Statement Overview

Summary

Fast Accounting Co., Ltd. presents a compelling financial profile with robust revenue growth and strong profitability margins. The debt-free balance sheet and efficient cash flow management further strengthen its financial position, although sustaining growth in a competitive market remains a challenge.

Income Statement

Fast Accounting Co., Ltd. demonstrates strong revenue growth with a 38.5% increase from the previous year, indicating a robust growth trajectory. The company has maintained solid profitability with a Gross Profit Margin of 70.3% and a significant improvement in Net Profit Margin to 27.3% from 10.2% last year. EBIT and EBITDA margins have also improved, showcasing operational efficiency. However, maintaining these growth rates may present a challenge in the competitive software industry.

Balance Sheet

The company exhibits a strong balance sheet with zero total debt, resulting in a Debt-to-Equity Ratio of 0, which highlights its financial stability. The Return on Equity (ROE) has surged to 33.4%, reflecting effective use of equity to generate profits. The Equity Ratio of 57.2% underscores a solid capital structure, providing a cushion against potential market volatilities. The lack of debt is a significant strength, minimizing financial risk.

Cash Flow

Fast Accounting Co., Ltd. shows impressive cash flow management with a substantial increase in Free Cash Flow, evidenced by a 134.4% growth rate. The Operating Cash Flow to Net Income ratio of 1.14 indicates effective conversion of income into cash. Free Cash Flow to Net Income is 0.66, demonstrating good cash profitability. Overall, the company maintains strong liquidity and cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.71B	1.23B	785.53M	460.98M
Gross Profit	1.20B	769.67M	487.43M	150.82M
EBITDA	304.16M	167.84M	-38.06M	-330.23M
Net Income	465.19M	125.69M	-78.03M	-360.55M
Balance Sheet
Total Assets	2.43B	1.62B	744.06M	655.76M
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.30B	603.79M	538.44M
Total Debt	0.00	27.88M	38.62M	86.56M
Total Liabilities	1.04B	736.14M	575.27M	408.94M
Stockholders Equity	1.39B	882.70M	168.79M	246.82M
Cash Flow
Free Cash Flow	305.50M	130.32M	113.29M	-228.61M
Operating Cash Flow	530.20M	292.99M	159.81M	-187.45M
Investing Cash Flow	-245.59M	-162.95M	-46.52M	-41.15M
Financing Cash Flow	16.14M	568.67M	-47.94M	388.20M

Fast Accounting Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1059.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5588, the sentiment is Negative. The current price of 1059 is below the 20-day moving average (MA) of 1221.70, below the 50-day MA of 1284.90, and below the 200-day MA of 1518.37, indicating a bearish trend. The MACD of -49.67 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 6.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5588.

Fast Accounting Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3712	72 Outperform	¥18.42B	15.34	―	1.85%	6.39%	6.38%
5588	70 Outperform	¥12.21B	25.09	―	0.11%	37.21%	129.72%
2307	70 Outperform	¥16.54B	10.91	―	3.13%	3.58%	0.23%
4013	66 Neutral	¥24.18B	30.98	―	0.68%	26.89%	151.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	55 Neutral	¥16.55B	-13.42	―	―	14.63%	-760.87%
4192	39 Underperform	¥10.80B	-27.21	―	―	22.18%	28.27%