GDEP ADVANCE,Inc. (5885) AI Stock Analysis

• Market Cap: ¥16.32B
• Dividend Yield: 0.86%
• Average Volume (3M): 75.15K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.44
• Revenue Growth: 27.84%
• EPS Growth: 15.69%
• Country: JP
• Employees: 21
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): N/A
• Shares Outstanding: 5,438,400
• 10 Day Avg. Volume: 123,550
• 30 Day Avg. Volume: 75,146
• PEG Ratio: 1.13
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 28.12
• 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: 71 Outperform
• Price Target: ¥3,028.00 ▲(1.24% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth and a debt-free balance sheet), tempered by weaker cash conversion and margin compression. Technical indicators are mixed-to-soft near term, and valuation is somewhat expensive with a low dividend yield, limiting upside in the overall score.

Positive Factors

Revenue Growth

The company's strong and accelerating revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances the company's flexibility to invest in growth opportunities or weather economic downturns.

Profitability

Solid profitability with healthy margins demonstrates operational efficiency and the ability to generate sustainable earnings over time.

Negative Factors

Margin Compression

The decline in margins suggests rising costs or pricing pressures, which could impact profitability if not managed effectively.

Cash Conversion

Weaker cash conversion indicates potential issues with working capital management, which could affect liquidity and investment capacity.

Return on Equity

A declining return on equity suggests that profitability is not scaling as efficiently, which could impact investor returns and growth potential.

GDEP ADVANCE,Inc. Business Overview & Revenue Model

Company Description

GDEP ADVANCE, Inc. (5885) is a Japanese technology company specializing in providing advanced computing solutions. The company operates in sectors such as high-performance computing (HPC), artificial intelligence (AI), and data analytics, offering hardware, software, and integrated systems to meet the computational needs of various industries. GDEP ADVANCE, Inc. aims to support innovation and efficiency in research, development, and operational processes through its cutting-edge technologies.

How the Company Makes Money

GDEP ADVANCE, Inc. generates revenue by selling high-performance computing equipment and software solutions to businesses and research institutions. The company's key revenue streams include direct sales of hardware systems, such as servers and GPUs, and licensing fees for its proprietary software products. Additionally, GDEP ADVANCE, Inc. may engage in strategic partnerships with technology vendors and service providers to enhance its product offerings and expand its market reach, further contributing to its earnings. The company also provides consulting and support services, which serve as additional sources of income.

GDEP ADVANCE,Inc. Financial Statement Overview

Summary

GDEP ADVANCE, Inc. presents a strong financial position, with high scores across the income statement, balance sheet, and cash flow components. Robust revenue growth, zero debt, and solid cash generation capabilities underscore its financial health and alignment with industry standards.

Income Statement

GDEP ADVANCE, Inc. demonstrates robust growth and profitability, reflected in a strong revenue growth rate of 16.98% and a high gross profit margin of 23.29% for the latest period. The net profit margin of 9.78% and EBIT margin of 14.99% indicate efficient operations. The company shows consistent growth over the last few years, showcasing a solid revenue trajectory.

Balance Sheet

The company maintains a strong balance sheet with zero debt, resulting in a favorable debt-to-equity ratio of 0.00. A solid return on equity of 18.08% highlights effective use of shareholder funds. The equity ratio is 55.15%, indicating a stable financial structure with substantial shareholder equity relative to total assets.

Cash Flow

GDEP ADVANCE, Inc. exhibits a healthy cash flow position with a free cash flow growth rate of 18.58% and a high operating cash flow to net income ratio of 1.75, suggesting strong cash generation capability. The free cash flow to net income ratio of 1.58 further underscores the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.63B	6.63B	4.42B	3.78B	3.49B	3.44B
Gross Profit	1.34B	1.34B	1.03B	901.73M	740.07M	588.47M
EBITDA	840.98M	894.96M	689.46M	585.20M	435.77M	393.15M
Net Income	537.54M	536.80M	432.30M	378.29M	283.18M	233.06M
Balance Sheet
Total Assets	4.61B	4.61B	4.33B	2.73B	2.15B	1.76B
Cash, Cash Equivalents and Short-Term Investments	3.33B	3.33B	3.01B	1.88B	1.35B	929.77M
Total Debt	0.00	0.00	0.00	0.00	3.56M	3.56M
Total Liabilities	1.76B	1.76B	1.94B	1.21B	945.77M	794.79M
Stockholders Equity	2.85B	2.85B	2.39B	1.52B	1.20B	964.48M
Cash Flow
Free Cash Flow	0.00	471.62M	682.43M	575.50M	457.77M	236.52M
Operating Cash Flow	0.00	596.34M	757.57M	581.66M	465.58M	280.03M
Investing Cash Flow	0.00	-126.87M	-94.49M	-6.97M	-7.73M	-45.10M
Financing Cash Flow	0.00	-78.67M	435.58M	-56.63M	-46.61M	0.00

GDEP ADVANCE,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2991.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5885, the sentiment is Positive. The current price of 2991 is above the 20-day moving average (MA) of 2796.80, above the 50-day MA of 2813.94, and above the 200-day MA of 2707.21, indicating a bullish trend. The MACD of 47.10 indicates Negative momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5885.

GDEP ADVANCE,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5885	71 Outperform	¥16.32B	28.89	―	0.86%	27.84%	15.69%
6597	67 Neutral	¥8.29B	16.76	―	1.65%	3.70%	107.81%
6862	67 Neutral	¥12.06B	21.26	―	1.03%	17.06%	30.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥7.39B	-35.64	―	3.12%	13.88%	-155.89%
6918	56 Neutral	¥15.21B	22.05	―	2.91%	-17.73%	-83.81%
6836	55 Neutral	¥4.71B	161.45	―	―	17.29%	―