Prored Partners Co., Ltd. (7034) AI Stock Analysis

• Market Cap: ¥6.30B
• Dividend Yield: N/A
• Average Volume (3M): 78.23K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.20
• Revenue Growth: 181.64%
• EPS Growth: -139.55%
• Country: JP
• Employees: 249
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -13.27
• Shares Outstanding: 11,195,600
• 10 Day Avg. Volume: 51,180
• 30 Day Avg. Volume: 78,233
• PEG Ratio: -0.26
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.61
• P/FCF Ratio: -21.77
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ¥563.00 ▼(-0.53% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative cash flows and profitability issues. Technical analysis indicates bearish momentum, further weighing down the score. Valuation concerns, such as a negative P/E ratio and lack of dividend yield, also contribute to the lower score.

Prored Partners Co., Ltd. Business Overview & Revenue Model

Company Description

Prored Partners CO.,LTD. provides management consulting services to companies. It offers sales growth consulting strategies, corporate transformation, performance-based cost reduction consulting, turn around, low-cost strategy, and AI × BPR LAB related consulting services, as well as Pro Sign application for cost optimization, analysis of current payment data, data conversion and management monitoring of invoices, quotation acquisition, and purchasing functions on the cloud. The company was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Prored Partners generates revenue through a diversified model that includes consulting fees, asset management fees, and performance-based incentives. The company charges clients for its advisory services, which may include strategic financial planning, investment consulting, and risk assessment. In addition, Prored Partners earns recurring income from managing client assets, typically calculated as a percentage of assets under management (AUM). Performance-based incentives further augment revenue, as the company may receive bonuses tied to the investment returns it achieves for clients. Strategic partnerships with financial institutions and technology firms also play a crucial role in expanding its service offerings and enhancing operational efficiency, thereby contributing to its overall earnings.

Prored Partners Co., Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth but faces challenges with profitability and cash flow. The balance sheet is robust, indicating financial stability, but operational efficiency needs improvement.

Income Statement

The income statement shows mixed results with a recent year-over-year revenue growth rate of 18.04%, indicating a positive trend. However, profitability margins such as the Gross Profit Margin at 34.43% and a negative EBIT Margin of -2.83% highlight operational challenges. The Net Profit Margin stands at 9.98%, showing profitability but also reflecting volatility in earnings.

Balance Sheet

The balance sheet is strong with a low Debt-to-Equity Ratio of 0.16, indicating low leverage, and a high Equity Ratio of 48.79%, suggesting financial stability. The Return on Equity (ROE) at 5.00% is moderate, reflecting some degree of profitability but also room for improvement in generating returns from equity.

Cash Flow

Cash flow analysis reveals concerns with negative operating and free cash flows, leading to an Operating Cash Flow to Net Income Ratio of -0.73 and a Free Cash Flow to Net Income Ratio of -0.74. These figures suggest cash flow challenges despite reported net income, requiring attention to cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.11B	3.21B	2.72B	2.72B	3.65B	3.27B
Gross Profit	4.07B	1.10B	763.07M	1.36B	2.18B	2.35B
EBITDA	2.15B	1.35B	4.66B	-912.39M	631.37M	968.75M
Net Income	-38.73M	319.68M	818.41M	-871.19M	533.05M	869.21M
Balance Sheet
Total Assets	14.72B	13.11B	11.98B	9.32B	8.89B	7.52B
Cash, Cash Equivalents and Short-Term Investments	12.76B	5.52B	5.40B	4.73B	4.57B	5.95B
Total Debt	886.60M	996.20M	1.10B	887.60M	390.80M	496.00M
Total Liabilities	1.99B	1.79B	1.91B	1.80B	1.03B	1.26B
Stockholders Equity	6.82B	6.40B	6.05B	5.17B	6.04B	6.27B
Cash Flow
Free Cash Flow	1.92B	-236.71M	-583.15M	-812.33M	2.40M	556.79M
Operating Cash Flow	1.92B	-231.90M	-579.00M	-186.91M	307.98M	596.94M
Investing Cash Flow	-212.00M	424.58M	3.25B	-1.11B	-2.68B	-760.79M
Financing Cash Flow	-697.54M	-77.75M	-2.00B	1.46B	985.38M	1.86B

Prored Partners Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 566.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7034, the sentiment is Negative. The current price of 566 is below the 20-day moving average (MA) of 585.10, below the 50-day MA of 670.68, and above the 200-day MA of 521.57, indicating a neutral trend. The MACD of -26.71 indicates Negative momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 65.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7034.

Prored Partners Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6560	73 Outperform	¥11.17B	12.80	―	1.26%	16.18%	68.41%
9644	72 Outperform	¥22.91B	23.45	―	3.74%	14.45%	42.64%
7379	71 Outperform	―	―	―	―	14.88%	48.97%
6578	70 Outperform	¥2.05B	306.65	―	2.81%	49.99%	142.46%
7033	66 Neutral	¥22.95B	12.00	―	2.13%	17.86%	16.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7034	49 Neutral	¥6.30B	35.49	―	―	181.64%	-139.55%

Prored Partners Co., Ltd. Corporate Events

Prored Partners Projects Significant Net Sales from Investment Securities Sale

Prored Partners Co., Ltd. anticipates recording consolidated net sales of 2,792 million yen in the fourth quarter of the fiscal year ending October 31, 2025, due to the partial sale of operational investment securities. The proceeds from this sale, which include interests of other limited partnership investors, will be reflected in the company’s net sales, with profits attributable to non-controlling interests deducted. The company is evaluating the impact on its full-year financial results and will announce any necessary forecast revisions.

The most recent analyst rating on (JP:7034) stock is a Hold with a Yen660.00 price target. To see the full list of analyst forecasts on Prored Partners Co., Ltd. stock, see the JP:7034 Stock Forecast page.

Prored Partners Reports Strong Growth Amidst Fiscal Challenges

Prored Partners Co., Ltd. reported significant growth in its consolidated financial results for the first nine months of the fiscal year ending October 31, 2025, with net sales and operating profit showing substantial increases compared to the previous year. Despite the positive growth in sales and profit, the company anticipates a loss for the full fiscal year, reflecting challenges in maintaining profitability amidst changing market conditions.

The most recent analyst rating on (JP:7034) stock is a Hold with a Yen739.00 price target. To see the full list of analyst forecasts on Prored Partners Co., Ltd. stock, see the JP:7034 Stock Forecast page.

Prored Partners Reports Gains from Investment Securities Sale

Prored Partners Co., Ltd. has announced the financial outcomes from the sale of operational investment securities managed by its subsidiary, Bluepass Capital Inc. The sale resulted in a non-consolidated gain of 153 million yen and a consolidated net sales of 1,490 million yen, with an operating profit of 914 million yen and a profit attributable to owners of the parent amounting to 216 million yen.

The most recent analyst rating on (JP:7034) stock is a Hold with a Yen739.00 price target. To see the full list of analyst forecasts on Prored Partners Co., Ltd. stock, see the JP:7034 Stock Forecast page.

Prored Partners Revises Financial Forecasts Amid Strong Sales and Personnel Costs

Prored Partners Co., Ltd. announced a revision to its full-year financial forecasts for the fiscal year ending October 31, 2025, reflecting stronger-than-expected sales and increased personnel expenses. The company anticipates higher net sales and operating profit due to gains from fund exits managed by Bluepass, despite recording a loss attributable to owners of the parent company. This revision indicates a strategic adjustment in response to market conditions and operational changes, impacting stakeholders by highlighting potential growth in the fund business while addressing challenges in the consulting segment.

The most recent analyst rating on (JP:7034) stock is a Hold with a Yen739.00 price target. To see the full list of analyst forecasts on Prored Partners Co., Ltd. stock, see the JP:7034 Stock Forecast page.