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

• Market Cap: $7.50B
• Dividend Yield: N/A
• Average Volume (3M): 34.48K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.20
• Revenue Growth: 125.74%
• EPS Growth: -109.66%
• Country: JP
• Employees: 249
• Sector: Industrials
• Sector Strength: 84
• Industry: Consulting Services
• EPS (TTM): 28.93
• Shares Outstanding: 11,195,600
• 10 Day Avg. Volume: 34,470
• 30 Day Avg. Volume: 34,476
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.21
• Enterprise Value/Revenue: -0.49
• Enterprise Value/Gross Profit: -1.38
• Enterprise Value/Ebitda: -1.07
• 1Y Price Target: $691.00
• Price Target Upside: 0.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $739.00 ▲(7.57% Upside)

The stock score is primarily driven by strong technical indicators, which reflect positive market momentum. However, financial performance is hampered by operational inefficiencies and cash flow issues. The negative P/E ratio further constrains the valuation outlook.

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

Company Description

Prored Partners Co., Ltd. (7034) is a Japan-based company specializing in management consulting services. The company provides a range of consulting solutions focusing on cost optimization, business process improvement, and strategic planning. Prored Partners serves various industries, including manufacturing, retail, and healthcare, helping clients enhance their operational efficiency and financial performance.

How the Company Makes Money

Prored Partners Co., Ltd. generates revenue primarily through its consulting services. The company charges fees for its professional advisory services, which include cost reduction strategies, process optimization, and strategic management consulting. Revenue is earned based on project contracts with clients, where the scope of work, duration, and specific deliverables determine the consulting fees. Additionally, Prored Partners may engage in performance-based contracts, sharing in the savings or additional revenue generated from their consultancy efforts. Key factors contributing to Prored Partners' earnings include their expertise in cost management, a strong client base across diverse sectors, and their ability to deliver measurable improvements in client business performance.

Prored Partners Co., Ltd. Financial Statement Overview

Summary

The company shows a strong balance sheet with low leverage and financial stability, as indicated by a low Debt-to-Equity Ratio and high Equity Ratio. However, it faces profitability and cash flow challenges, with negative EBIT margin and operating cash flow issues, necessitating improved operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21B	2.72B	2.72B	3.65B	3.27B
Gross Profit	1.10B	763.07M	1.36B	2.18B	2.35B
EBITDA	1.35B	4.66B	-912.39M	640.71M	968.75M
Net Income	319.68M	818.41M	-1.11B	346.20M	869.21M
Balance Sheet
Total Assets	13.11B	11.98B	9.32B	8.89B	7.52B
Cash, Cash Equivalents and Short-Term Investments	5.52B	5.40B	4.73B	4.57B	5.95B
Total Debt	996.20M	1.10B	887.60M	390.80M	496.00M
Total Liabilities	1.79B	1.91B	1.80B	1.03B	1.26B
Stockholders Equity	6.40B	6.05B	5.17B	6.04B	6.27B
Cash Flow
Free Cash Flow	-236.71M	-583.15M	-812.33M	2.40M	556.79M
Operating Cash Flow	-231.90M	-579.00M	-186.91M	307.98M	596.94M
Investing Cash Flow	424.58M	3.25B	-1.11B	-2.68B	-760.79M
Financing Cash Flow	-77.75M	-2.00B	1.46B	985.38M	1.86B

Prored Partners Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 687.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7034, the sentiment is Positive. The current price of 687 is above the 20-day moving average (MA) of 626.05, above the 50-day MA of 569.56, and above the 200-day MA of 469.44, indicating a bullish trend. The MACD of 27.79 indicates Negative momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9644	80 Outperform	¥27.00B	25.97		2.94%	14.16%	61.59%
6560	79 Outperform	¥10.55B	10.45		1.31%	25.65%	84.06%
6578	74 Outperform	¥2.30B	12.79		2.55%	61.37%	101.49%
Sector *	71 Outperform	¥257.47B	14.37	8.45%	2.83%	6.40%	12.21%
7379	71 Outperform	$7.62B	30.72		―	0.66%	14.40%
7033	67 Neutral	¥28.54B	13.52		1.76%	16.97%	26.12%
7034	65 Neutral	$7.50B	35.49		―	125.74%	-109.66%

Prored Partners Co., Ltd. Corporate Events

Prored Partners Projects Significant Net Sales from Investment Securities Sale

Prored Partners Co., Ltd. anticipates recording net sales of 1,490 million yen in the third quarter of the fiscal year ending October 31, 2025, due to the partial sale of operational investment securities. The company is assessing the impact on its full-year financial results and will update if a forecast revision is necessary.

Prored Partners Reports Strong Sales Growth Despite Profit Decline

Prored Partners Co., Ltd. reported a significant increase in net sales and operating profit for the first six months of the fiscal year ending October 31, 2025, with net sales rising by 75.6% and operating profit by 76.6% compared to the same period last year. Despite these gains, the profit attributable to owners of the parent decreased by 74.4%, highlighting a potential area of concern for stakeholders. The company has adjusted its presentation policy to include gains on investments in net sales, impacting the comparability of financial results. The equity ratio decreased slightly, indicating a shift in financial structure, which stakeholders should monitor moving forward.

Prored Partners Revises Full-Year Forecasts Amid New Segment Disclosure

Prored Partners Co., Ltd. has revised its full-year business results forecasts for the fiscal year ending October 31, 2025, due to the commencement of segment results disclosure. The revision reflects a significant increase in net sales and operating profit, primarily due to gains from exits of investees managed by its subsidiary Bluepass Capital Inc. This change in accounting presentation has resulted in a forecasted increase in net sales by 94.8% compared to previous forecasts. The revision indicates a strategic shift in how the company reports its financial performance, potentially impacting stakeholders by providing more transparency and insight into the company’s operations and financial health.