GDEP ADVANCE,Inc. (5885) AI Stock Analysis

• Market Cap: ¥16.74B
• Dividend Yield: 0.74%
• Average Volume (3M): 82.78K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.31
• Revenue Growth: 49.97%
• EPS Growth: 23.17%
• Country: JP
• Employees: 21
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 12.49
• Shares Outstanding: 5,425,600
• 10 Day Avg. Volume: 59,530
• 30 Day Avg. Volume: 82,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 78 Outperform
• Price Target: ―

GDEP ADVANCE, Inc. demonstrates strong financial performance with consistent growth, no debt, and solid cash flow generation. However, technical analysis indicates potential downward pressure, and valuation metrics suggest the stock is fairly priced. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The significant increase in net sales demonstrates strong market demand and effective sales strategies, supporting long-term revenue growth.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing for strategic investments and weathering economic downturns.

Cash Generation Ability

Strong cash generation capabilities ensure the company can fund operations, invest in growth opportunities, and return value to shareholders.

Negative Factors

Organizational Changes

While aimed at improving governance, significant organizational changes can disrupt operations and create uncertainty in the short to medium term.

Market Volatility

Trading below key moving averages may indicate market skepticism, potentially affecting investor confidence and stock performance.

Absence of Earnings Call

Lack of earnings call data limits transparency and investor insight into management's strategic vision and operational performance.

GDEP ADVANCE,Inc. Business Overview & Revenue Model

Company Description

GDEP ADVANCE,Inc. engages in the system incubation business in Japan. The company offers accelerator products, including NVIDIA graphics and computing boards, and XILINX FPGA boards; Quadro RTX notebooks; AI and Accelerate workstation products; Infiniband network products; servers, such as Accelerated Server PCI-Express, GPU server HGX based, and NVIDIA DGX series; and file server, and NAS QNAP and Synology storage products. It also provides software tools comprising Bright Cluster Manager, a cluster management tool; Weights and Biases, an experiment management tool for model research; NVIDIA HPC SDK for programming accelerated computing systems; Altair Grid Engine, a distributed resource management system and software solutions for utilizing computing resources through job scheduling, resource management, and other functions; and Altair PBS Professional, a workload management and job scheduling software. In addition, the company offers NVIDIA AI Enterprise and NVIDIA Omniverse solutions; cloud rental services; and various services and solutions from installation to operation support for customers. Further, it provides AI solutions; visualization solutions for XR and metaverse; storage solutions for big data; and construction and operation system based on customer requests. GDEP ADVANCE,Inc. was founded in 1978 and is headquartered in Tokyo, Japan.

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	6.60B	6.63B	4.42B	3.78B	3.49B	3.44B
Gross Profit	1.35B	1.34B	1.03B	901.73M	740.07M	588.47M
EBITDA	916.60M	894.96M	689.46M	585.20M	435.77M	393.15M
Net Income	588.76M	536.80M	432.30M	378.29M	283.18M	233.06M
Balance Sheet
Total Assets	4.83B	4.61B	4.33B	2.73B	2.15B	1.76B
Cash, Cash Equivalents and Short-Term Investments	2.84B	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	2.05B	1.76B	1.94B	1.21B	945.77M	794.79M
Stockholders Equity	2.78B	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: 3085.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3085 is below the 20-day moving average (MA) of 3161.80, below the 50-day MA of 3189.80, and above the 200-day MA of 2406.42, indicating a neutral trend. The MACD of -43.85 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 is Neutral, 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	78 Outperform	¥16.74B	30.86		0.74%	49.97%	23.17%
6597	74 Outperform	¥8.00B	18.80		1.47%	1.71%	46.50%
6862	70 Outperform	¥6.44B	16.52		1.67%	33.14%	-37.77%
6918	67 Neutral	¥13.81B	15.40		3.04%	-18.21%	-81.79%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
5871	61 Neutral	¥8.81B	56.07		2.75%	―	―
6836	42 Neutral	¥6.26B	1,055.47		―	17.90%	―

GDEP ADVANCE,Inc. Corporate Events

GDEP ADVANCE, Inc. Revises Financial and Dividend Forecasts Upward

GDEP ADVANCE, Inc. has revised its financial and dividend forecasts for the fiscal year ending May 31, 2025, due to a significant increase in demand for AI-related capital expenditures. The company has increased its net sales and profit forecasts, and in response to improved business performance, it has also raised its year-end dividend per share from ¥17.50 to ¥23.00.

GDEP ADVANCE, Inc. Reports Strong Financial Growth and Revises Forecasts

GDEP ADVANCE, Inc. reported significant growth in its non-consolidated financial results for the nine months ending February 28, 2025, with net sales increasing by 66.9% year-on-year. The company also revised its financial forecasts and dividend forecasts, reflecting a positive outlook for the fiscal year ending May 31, 2025, despite the absence of a financial results briefing.

GDEP ADVANCE, Inc. Announces Organizational Overhaul and New Executive Structure

GDEP ADVANCE, Inc. announced significant organizational changes, including the introduction of a CxO system and a new executive officer system, effective April 1, 2025. These changes aim to enhance corporate governance, improve decision-making speed, and increase operational efficiency, positioning the company to better adapt to the evolving business environment.