Management Solutions Co., Ltd. (7033) AI Stock Analysis

• Market Cap: ¥24.79B
• Dividend Yield: 2.18%
• Average Volume (3M): 107.00K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.06
• Revenue Growth: 17.87%
• EPS Growth: 5.31%
• Country: JP
• Employees: 1,402
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 39.57
• Shares Outstanding: 16,849,900
• 10 Day Avg. Volume: 109,070
• 30 Day Avg. Volume: 107,003
• PEG Ratio: 3.17
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 11.13
• 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): 143.3
• Revenue Forecast (FY): ¥27.00B

• Rating: 71 Outperform
• Price Target: ¥1,364.00 ▼(-0.94% Downside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial performance (growth, operating margins, and improved leverage) and supportive valuation (low P/E and a decent dividend). These positives are partially offset by weak technical momentum, with the stock trading below key moving averages and bearish MACD.

Positive Factors

Revenue Growth

Sustained multi‑year revenue expansion (5.2B→23.1B) with double‑digit growth in the latest year indicates durable demand for consulting services and successful scaling of client engagements. This larger revenue base supports reinvestment in capabilities, diversified contracts, and longer‑term client relationships.

Operating Profitability

Consistently strong gross and operating margins reflect a high‑value, low‑capital consulting model and likely efficient project delivery. Margin levels provide structural cushion to fund R&D, talent, and tools, enhancing sustainable cash generation and competitive positioning over multiple business cycles.

Conservative Leverage

Low leverage and a sizable equity base give the firm financial flexibility to invest in growth, absorb project timing swings, or pursue acquisitions without stressing liquidity. Conservative capital structure reduces refinancing risk and supports durable strategic optionality through economic cycles.

Negative Factors

Net Margin Erosion

A multi‑year trend of falling net margin suggests rising mix or expense pressure that could persist. If lower margins are structural (pricing, competitive mix, higher SG&A), profit retention on incremental revenue will be weaker, limiting long‑term return expansion and free cash flow leverage.

Volatile Cash Conversion

Irregular conversion of earnings to cash across years increases uncertainty around sustainable free cash flow. Variable cash generation complicates planning for dividends, buybacks or investments and raises execution risk if client payment timing or working capital needs reappear in adverse quarters.

Reduced Equity Visibility

A decline in equity and missing ROE for the latest year hinder assessment of capital efficiency and recent returns. Limited visibility on post‑2024 profitability metrics weakens confidence in management's capital allocation and makes it harder to gauge sustainable shareholder value creation.

Management Solutions Co., Ltd. Business Overview & Revenue Model

Company Description

Management Solutions co.,Ltd. provides management consulting, project management execution, and project management training services. It offers PMO ONLINE, a remote project management service, and career management support services; visualization and decision making solutions; practical training programs; and PROEVER, a project management software that supports organizational knowledge sharing. The company was founded in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Management Solutions Co., Ltd. generates revenue through a multi-faceted business model that includes consulting fees, project-based engagements, and retainer agreements with clients. The primary revenue stream comes from providing management consulting services, which are billed based on the scope and duration of each project. Additionally, the company offers specialized training programs and workshops, further diversifying its income sources. Strategic partnerships with technology firms and industry leaders enhance its service offerings and attract new clients, contributing significantly to its overall earnings. The company also invests in research and development to create proprietary tools and methodologies, which can be monetized through licensing agreements.

Management Solutions Co., Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and solid operating profitability, with improved balance-sheet leverage. Offsetting factors include a recent dip in net margin and historically uneven cash conversion despite a rebound in the latest year.

Income Statement

Revenue has grown strongly over time (from ~¥5.2B in 2020 to ~¥23.1B in 2025), with continued double‑digit growth in the latest year (~18%). Profitability has also improved meaningfully versus earlier years, with healthy gross margins (~41%) and solid operating profitability (operating margin ~12–13%). The main weakness is that net margin eased in 2025 (~7.8%) versus 2024 (~8.9%) and 2023 (~9.6%), suggesting some mix/expense pressure despite scale.

Balance Sheet

Leverage is conservative in recent years, with low debt relative to equity in 2025 (~0.14) and a sizable equity base (~¥5.3B) against ~¥7.9B of assets. This is a clear improvement versus 2022, when leverage was much higher (~0.79). A watch-out is equity declined modestly in 2025 versus 2024, and returns on equity are not available for 2025 (while they were strong in 2023–2024), limiting visibility on the latest year’s balance-sheet efficiency.

Cash Flow

Cash generation is generally solid: 2025 operating cash flow (~¥2.26B) and free cash flow (~¥2.13B) closely track earnings (both just under net income), indicating decent earnings quality. However, cash flow has been volatile across years—2024 saw weak conversion (operating cash flow well below earnings) and free cash flow declined sharply, and 2022 included negative free cash flow. The latest year is a rebound, but the variability keeps the score below the income statement.

Breakdown	TTM	Dec 2025	Sep 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	19.53B	23.07B	19.95B	16.93B	12.00B	7.36B
Gross Profit	8.08B	9.49B	8.21B	6.34B	4.23B	2.88B
EBITDA	2.68B	3.11B	2.71B	2.58B	961.73M	1.05B
Net Income	1.71B	1.80B	1.77B	1.62B	517.32M	678.14M
Balance Sheet
Total Assets	8.19B	7.93B	7.82B	7.03B	6.06B	3.81B
Cash, Cash Equivalents and Short-Term Investments	3.67B	2.59B	2.81B	2.64B	2.31B	1.92B
Total Debt	1.01B	729.56M	500.54M	650.75M	2.05B	495.20M
Total Liabilities	2.95B	2.52B	2.20B	2.73B	3.38B	1.50B
Stockholders Equity	5.13B	5.28B	5.50B	4.21B	2.58B	2.28B
Cash Flow
Free Cash Flow	0.00	2.13B	996.61M	1.83B	-130.68M	787.50M
Operating Cash Flow	0.00	2.26B	1.14B	2.33B	150.80M	878.25M
Investing Cash Flow	0.00	-395.01M	-286.70M	-444.08M	-612.42M	-80.88M
Financing Cash Flow	0.00	-1.61B	-963.75M	-1.44B	807.10M	-188.89M

Management Solutions Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1377.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7033, the sentiment is Positive. The current price of 1377 is above the 20-day moving average (MA) of 1346.50, above the 50-day MA of 1350.48, and below the 200-day MA of 1516.30, indicating a neutral trend. The MACD of 35.22 indicates Negative momentum. The RSI at 66.18 is Neutral, neither overbought nor oversold. The STOCH value of 88.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7033.

Management Solutions Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9644	72 Outperform	¥25.24B	23.09	―	3.50%	15.91%	36.39%
7033	71 Outperform	¥24.79B	13.23	―	2.18%	17.87%	5.31%
9168	68 Neutral	¥12.86B	8.54	―	1.04%	23.25%	14.29%
4763	66 Neutral	¥33.08B	9.46	―	2.71%	4.27%	27.62%
4792	64 Neutral	¥32.76B	14.32	―	4.39%	2.46%	-31.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9556	63 Neutral	¥29.04B	19.22	―	―	16.77%	39.98%

Management Solutions Co., Ltd. Corporate Events

Management Solutions Weighs Shift to Holding Company Structure by 2027

Management Solutions Co., Ltd. has resolved to begin examining a transition to a holding company structure, targeting fiscal 2027, in order to separate group-wide strategy functions from the execution roles of each business. By converting business units into independent legal entities under a holding company, it aims to speed decision-making, clarify profit responsibility, enhance capital and M&A planning, and cultivate next-generation management.

A cross-functional project team will study the detailed schedule, method, and post-transition organization, with formal shareholder and board approvals still required before implementation. The company characterizes the potential move as an internal reorganization with minimal impact on consolidated financial results, positioning it instead as a medium- to long-term initiative to strengthen governance and enhance corporate value.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.

Management Solutions Updates Medium-Term Plan and Enhances Global Disclosure

Management Solutions Co., Ltd. has updated its Medium-Term Management Plan “Beyond1000” covering fiscal years from December 2026 through December 2030. The revision aims to offer more detailed and supplementary explanations of the company’s strategic roadmap, improving stakeholders’ understanding of its long-term growth trajectory.

The company is also enhancing disclosure for overseas investors by preparing English versions of this announcement and supporting materials. These English materials are scheduled to be published on its website around February 20, 2026, underscoring a commitment to fair and transparent information access for global shareholders.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.

Management Solutions Outlines FY2025 Results and FY2026 Outlook

Management Solutions Co., Ltd. reported on its financial results for the fiscal year ended December 31, 2025, outlining an executive summary and performance highlights for FY2025. The company also presented full-year forecasts and its shareholder returns policy for FY2026, while noting that the prior fiscal year covered 14 months due to a change in year-end, which affects the comparability of year-on-year figures.

The materials emphasize that all amounts are rounded down and that reference figures may use the same period of the previous fiscal year to address the calendar change. This adjustment is important for investors and analysts when assessing operational performance trends and evaluating the company’s forward-looking guidance and capital return stance.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.

Management Solutions Raises Year-End Dividend, Reaffirms Medium-Term Payout Target

Management Solutions Co., Ltd. has announced that its board approved a year-end dividend of 32 yen per share for the fiscal year ended December 31, 2025, with total dividends reaching about 503.1 million yen, up from 30 yen per share and roughly 488.9 million yen in the previous fiscal year. While the current consolidated dividend payout ratio stands at 28.6 percent, the company reiterated its medium-term goal of lifting the payout ratio to 50 percent, signaling a commitment to progressively increase shareholder returns as its earnings base grows.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.

Management Solutions Uncovers Executive Kickbacks, Moves to Tighten Governance

Management Solutions Co., Ltd. disclosed that an internal probe uncovered misconduct by two former executives, who received kickbacks totaling about 43 million yen from specific external subcontractors over several years. A Special Investigation Committee with outside lawyers and an accountant found no inflated billing, no direct financial damage to the company, and no impact on its financial statements, while also concluding there was no broader organizational involvement.

The investigation highlighted individual financial motives and excessive discretionary power in subcontractor selection, as well as organizational issues such as diluted compliance awareness and concentrated authority. In response, the company plans mindset-reform initiatives, a revision of subcontractor selection processes to improve transparency and decentralize authority, and stronger internal controls and whistleblowing systems to prevent recurrence and reassure stakeholders about governance standards.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.

Management Solutions Lifts Dividend and Targets Profit Growth for 2026 on Solid Cash Flows

Management Solutions reported consolidated net sales of ¥23.07 billion for the year ended December 31, 2025, with operating profit of ¥2.74 billion and profit attributable to owners of parent of ¥1.80 billion, while total assets rose to ¥8.74 billion and the equity ratio remained robust at 67.7%. Although earnings per share declined to ¥111.86 and margins slipped slightly, the company increased its year-end dividend to ¥32 per share for 2025 and plans a further hike to ¥50 in 2026, signaling confidence as it forecasts 2026 sales of ¥26.0 billion and a 15.6% rise in profit attributable to owners of parent to ¥2.04 billion, supported by stable cash generation and no major changes in its consolidation scope.

The company’s operating cash flow strengthened to ¥2.26 billion in 2025, enabling higher shareholder returns despite increased treasury stock and modestly lower non-consolidated earnings. With a solid capital base and improved cash position, Management Solutions is positioning itself for growth in 2026 under Japanese GAAP, targeting higher revenue and profit while maintaining a conservative balance sheet, a stance likely to be welcomed by investors focused on dividend growth and financial stability.

The most recent analyst rating on (JP:7033) stock is a Hold with a Yen1515.00 price target. To see the full list of analyst forecasts on Management Solutions Co., Ltd. stock, see the JP:7033 Stock Forecast page.