GDEP ADVANCE,Inc. (5885) AI Stock Analysis

• Market Cap: ¥14.14B
• Dividend Yield: 0.86%
• Average Volume (3M): 75.15K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.19
• Revenue Growth: 27.84%
• EPS Growth: 15.69%
• Country: JP
• Employees: 21
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 57.57
• Shares Outstanding: 5,452,800
• 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: 72 Outperform
• Price Target: ¥2,878.00 ▼(-3.78% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by strong financial fundamentals—rapid revenue growth, healthy profitability, and a zero-debt balance sheet—partly offset by margin compression and weaker cash flow conversion. Technicals are a notable drag with the stock trading below key moving averages and negative MACD, while valuation appears supportive with a modest P/E but a low dividend yield.

Positive Factors

Balance sheet strength

Zero debt and expanding equity give the company durable financial flexibility. A debt-free balance sheet reduces refinancing and interest-rate risk, supports opportunistic investment or M&A, and preserves capacity to fund operations and shareholder returns through downturns.

Accelerating revenue momentum

Sustained acceleration in top-line growth indicates strong product or market traction and expanding market share. Durable revenue momentum supports scale benefits, investment in R&D and sales, and the potential to rebuild margins over time as fixed costs are absorbed.

Organizational restructuring and leadership upgrades

A structural reorganization and new senior appointments target faster decision-making and clearer accountability in core solutions. That durable governance change can improve execution, shorten sales cycles, and boost go-to-market effectiveness over subsequent quarters.

Negative Factors

Margin compression

Observed margin erosion versus prior years suggests rising costs or a less favorable product mix as the company scales. If persistent, compression undermines operating leverage and ROE, reducing the company's ability to reinvest profitably and sustain long-term margin profiles.

Weaker cash conversion

Declining FCF and cash conversion indicate working-capital or capex drains that weaken internal funding capacity. Over time this reduces cushion for investment or dividends and increases reliance on balance-sheet flexibility to finance growth despite strong reported earnings.

Recent non-consolidated sales decline

A sharp interim drop in non-consolidated sales points to demand volatility or segment-specific weakness. Even if margins improved, inconsistent revenue complicates planning, increases execution risk, and could signal client concentration or product-cycle challenges that persist beyond a single quarter.

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.

GDEP ADVANCE,Inc. Financial Statement Overview

Summary

Strong acceleration in revenue growth through 2025 and healthy operating/net margins, supported by a very conservative balance sheet with zero debt and solid ROE. Offsetting factors are margin compression versus 2023–2024 and weaker cash flow conversion (FCF down in 2025 despite higher earnings).

Income Statement

Top-line momentum is strong, with revenue growth accelerating from ~8% (2023) to ~17% (2024) and ~44% (2025). Profitability remains healthy (2025 net margin ~8.1% and operating margin ~12.7%), but margins have compressed versus 2023–2024 levels (gross and net margins both down), suggesting higher costs or a less favorable mix as the company scales.

Balance Sheet

Balance sheet strength is a key positive: the company reports no debt across the period, limiting financial risk and providing flexibility. Equity has expanded meaningfully alongside asset growth, and returns on equity remain strong (roughly high-teens to mid-20s), though the latest year shows a modest step-down versus the peak levels in 2023.

Cash Flow

Cash generation is solid with consistently positive operating cash flow and free cash flow, and free cash flow tracks net income reasonably well (about ~79% in 2025). However, cash conversion is not especially strong—operating cash flow is well below operating profit in recent years—and free cash flow declined in 2025 versus 2024 despite higher earnings, pointing to working-capital or investment-related drag that bears monitoring.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2991.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2991 is above the 20-day moving average (MA) of 2807.60, above the 50-day MA of 2888.20, and above the 200-day MA of 2944.83, indicating a bearish trend. The MACD of -44.66 indicates Positive momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 21.09 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7739	76 Outperform	¥148.33B	22.89	―	1.92%	7.46%	-8.01%
5885	72 Outperform	¥14.14B	10.94	―	0.86%	27.84%	15.69%
6727	72 Outperform	¥97.00B	8.23	22.46%	4.06%	-8.93%	48.98%
6737	67 Neutral	¥85.97B	11.91	―	4.76%	1.81%	9.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥7.16B	-211.99	―	3.12%	13.88%	-155.89%
7709	46 Neutral	¥2.19B	-5.75	―	―	-23.14%	-829.31%

GDEP ADVANCE,Inc. Corporate Events

GDEP ADVANCE Overhauls Solutions Structure and Leadership to Speed Decision‑Making

GDEP ADVANCE, Inc. will reorganize its internal structure on April 1, 2026, abolishing the existing Solutions Headquarters and creating a new Solutions Business Unit that will house three key business lines: Business Development BL, Solutions Sales BL, and a newly formed Sales Promotion BL. The Business Promotion Office and Solutions Sales Department will be renamed and repositioned within this unit, in a move aimed at accelerating decision‑making and strengthening business execution in its solutions operations.

The overhaul is accompanied by a set of senior personnel changes, including the appointment of executive officers to lead each of the new business lines within the Solutions Business Unit. These shifts, including a new general manager for human resources planning, are expected to streamline governance, clarify leadership responsibilities, and support the company’s drive to enhance sales promotion and business development capabilities in its core solutions business.

The most recent analyst rating on (JP:5885) stock is a Buy with a Yen3050.00 price target. To see the full list of analyst forecasts on GDEP ADVANCE,Inc. stock, see the JP:5885 Stock Forecast page.

GDEP ADVANCE Lifts Profit and EPS Despite Lower Sales, Confirms Full-Year Growth Outlook

GDEP ADVANCE reported non-consolidated results for the six months ended November 30, 2025, showing net sales of ¥3.08 billion, down 22.8% year on year, but with operating profit up 23.1% to ¥613 million and profit up 30.3% to ¥448 million, reflecting improved profitability despite lower revenue. Earnings per share rose to ¥82.63, equity increased to ¥3.18 billion with a solid equity ratio of 59.1%, and the company maintained its dividend plan of no interim payout but a higher full-year forecast dividend of ¥29 per share; management also reaffirmed its full-year outlook, projecting FY2025/26 net sales growth of 10.2% and a 15.0% increase in profit, underscoring confidence in sustaining margin gains and shareholder returns.

The most recent analyst rating on (JP:5885) stock is a Buy with a Yen3390.00 price target. To see the full list of analyst forecasts on GDEP ADVANCE,Inc. stock, see the JP:5885 Stock Forecast page.