GDEP ADVANCE,Inc. (JP:5885)
:5885
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GDEP ADVANCE,Inc.
(5885)
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Rating:77Outperform
Price Target:
¥2,771.00
▼(-7.36% Downside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by strong financial performance—rapid growth, healthy margins, and an unusually conservative zero-debt balance sheet—offset by signs of margin compression and softer cash flow conversion. Technicals are constructive on trend (price above major moving averages) but mixed on momentum (negative MACD), while valuation is supportive with a relatively low P/E and a modest dividend yield.
Positive Factors
Zero-debt balance sheet
The company reports no debt across the period, removing interest burden and lowering default risk. This durable capital structure increases strategic optionality for capex, R&D, or opportunistic M&A, and preserves flexibility to withstand cyclical pressures over months.
Negative Factors
Margin compression trend
Margins have trended down versus prior years, implying rising input costs or a shift to lower-margin products. If structural, this erosion can persist and offset revenue gains, reducing incremental profitability and forcing tougher pricing or cost-control choices over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero-debt balance sheet
The company reports no debt across the period, removing interest burden and lowering default risk. This durable capital structure increases strategic optionality for capex, R&D, or opportunistic M&A, and preserves flexibility to withstand cyclical pressures over months.
Read all positive factors
GDEP ADVANCE,Inc. (5885) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥13.35B
Dividend Yield0.86%
Average Volume (3M)75.15K
Price to Earnings (P/E)20.2
Beta (1Y)1.06
Revenue Growth-11.37%
EPS Growth10.31%
CountryJP
Employees21
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)99.92
Shares Outstanding5,468,800
10 Day Avg. Volume123,550
30 Day Avg. Volume75,146
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)4.65
Price to Sales (P/S)2.00
P/FCF Ratio28.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GDEP ADVANCE,Inc. Business Overview & Revenue Model
Company Description
GDEP ADVANCE,Inc., established in Tokyo, Japan, in 1978, is primarily engaged in the system incubation business, providing advanced computing solutions and infrastructure. The company offers a broad portfolio of cutting-edge hardware, including hi...
How the Company Makes Money
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GDEP ADVANCE,Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
74
Positive
| Breakdown | May 2024 | May 2023 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.63B | 4.42B | 3.78B | 3.49B | 3.44B |
| Gross Profit | 1.34B | 1.03B | 901.73M | 740.07M | 588.47M |
| EBITDA | 894.96M | 689.46M | 585.20M | 435.77M | 393.15M |
| Net Income | 536.80M | 432.30M | 378.29M | 283.18M | 233.06M |
Balance Sheet | |||||
| Total Assets | 4.61B | 4.34B | 2.73B | 2.15B | 1.76B |
| Cash, Cash Equivalents and Short-Term Investments | 3.33B | 3.01B | 1.88B | 1.35B | 929.77M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.76B | 1.95B | 1.21B | 945.77M | 794.79M |
| Stockholders Equity | 2.85B | 2.39B | 1.52B | 1.20B | 964.48M |
Cash Flow | |||||
| Free Cash Flow | 471.62M | 682.43M | 575.50M | 457.77M | 236.52M |
| Operating Cash Flow | 596.34M | 757.57M | 581.66M | 465.58M | 280.03M |
| Investing Cash Flow | -126.87M | -94.49M | -6.97M | -7.73M | -45.10M |
| Financing Cash Flow | -78.67M | 435.58M | -56.63M | -46.61M | 0.00 |
GDEP ADVANCE,Inc. Technical Analysis
Negative
2991.00
Price Trends
2895.47
Negative
2874.56
Negative
2888.60
Negative
Market Momentum
-110.68
Positive
28.68
Positive
7.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5885, the sentiment is Negative. The current price of 2991 is above the 20-day moving average (MA) of 2862.37, above the 50-day MA of 2895.47, and above the 200-day MA of 2888.60, indicating a bearish trend. The MACD of -110.68 indicates Positive momentum. The RSI at 28.68 is Positive, neither overbought nor oversold. The STOCH value of 7.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5885.
GDEP ADVANCE,Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥102.14B | 13.75 | ― | 4.76% | 1.01% | 79.22% | |
78 Outperform | ¥114.32B | 12.09 | 22.46% | 4.06% | -4.92% | 94.42% | |
77 Outperform | ¥13.35B | 20.24 | ― | 0.86% | -11.37% | 10.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥7.25B | 76.95 | ― | 3.12% | 12.68% | -47.54% | |
41 Neutral | ¥894.91M | -5.73 | ― | ― | 26.47% | 22.31% |
* Technology Sector Average
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GDEP ADVANCE,Inc. Corporate Events
GDEP ADVANCE Shares Gain Loan Margin Trading Status on TSE Standard Market
May 27, 2026
GDEP ADVANCE, Inc., listed on the Tokyo Stock Exchange Standard Market under code 5885, has expanded its capital-market profile as its shares shift from being solely a standardized margin trading issue to also being designated a loan margin tradin...
GDEP ADVANCE Wins ¥1.6 Billion AI Server Order for FY2027 Delivery
Apr 27, 2026
GDEP ADVANCE, Inc. announced it has secured a large-scale order for AI servers, related products, and solution services valued at 1.6 billion yen from a customer. The revenue from this contract is scheduled to be recognized in the fiscal year endi...
GDEP ADVANCE to Launch Employee Stock Ownership Plan to Boost Alignment and Liquidity
Apr 14, 2026
GDEP ADVANCE, Inc. has approved the launch of an employee stock ownership plan that will begin purchasing company shares on a continuous basis from June 2026, exclusively for its employees. The program is structured around monthly contributions st...
GDEP ADVANCE Lifts Profit Outlook and Dividend Despite Lower Sales Forecast
Apr 14, 2026
GDEP ADVANCE has revised its full-year forecast for the fiscal year ending May 2026, projecting lower net sales of ¥6.8 billion versus the previous ¥7.3 billion due mainly to changes in its sales mix. Despite this, operating profit, ordi...
GDEP ADVANCE Lifts Profit, Forecasts and Dividend Despite Slower Sales
Apr 14, 2026
GDEP ADVANCE, Inc. reported non-consolidated net sales of ¥4,659 million for the nine months ended February 28, 2026, down 14.3% year on year, but operating profit rose 16.0% to ¥811 million and profit increased 25.7% to ¥589 millio...
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.