PORT INC. (7047) AI Stock Analysis

• Market Cap: ¥32.95B
• Dividend Yield: 0.11%
• Average Volume (3M): 175.21K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.45
• Revenue Growth: 31.33%
• EPS Growth: 34.22%
• Country: JP
• Employees: 521
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 68.77
• Shares Outstanding: 14,146,790
• 10 Day Avg. Volume: 207,810
• 30 Day Avg. Volume: 175,206
• PEG Ratio: 0.63
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 17.26
• 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): 174.05
• Revenue Forecast (FY): ¥26.80B

• Rating: 79 Outperform
• Price Target: ¥2,668.00 ▲(29.58% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by attractive valuation (low P/E and very high dividend yield) and supportive technical trend (price above major moving averages). Financial performance is solid with strong margins and positive free cash flow, but the overall score is tempered by increased leverage and less consistent cash conversion.

Positive Factors

High profitability margins

Sustained high gross and healthy operating margins indicate durable unit economics and pricing power in the core business. These margins support reinvestment, buffer against cyclical revenue hits, and help sustain free cash flow generation over the next 2–6 months and beyond.

Consistent cash generation

Positive operating cash flow and materially growing free cash flow provide financial flexibility for capex, strategic investments, or returns to shareholders. Strong FCF growth supports durability of operations and reduces reliance on external funding in the medium term.

Revenue scale and growth

Mid-single-digit-plus TTM revenue growth at ¥27.0B reflects continued market traction and scaling of the business. Combined with efficient margins and high ROE, this scale supports competitive positioning and the ability to absorb investments while expanding core offerings over coming quarters.

Negative Factors

Rising leverage

Leverage has increased meaningfully versus prior years, reducing financial flexibility and raising sensitivity to interest-rate moves or earnings volatility. Higher debt loads limit capacity for opportunistic investments and increase refinancing risk over the next 2–6 months.

Inconsistent cash conversion

While FCF is positive, conversion has been inconsistent and a prior negative FCF year highlights working-capital or investment timing volatility. This inconsistency can pressure liquidity planning and makes sustaining payouts or rapid reinvestment less predictable.

Margin moderation from peak levels

A decline from previously very high margins suggests rising competitive intensity or deliberate reinvestment into growth. If structural, this can compress long-run profitability and limit earnings upside unless the company regains mix advantages or operational efficiencies.

PORT INC. Business Overview & Revenue Model

Company Description

PORT INC. (7047) is a leading technology company specializing in innovative solutions for the logistics and transportation sectors. The company focuses on developing advanced software platforms and hardware systems that enhance supply chain efficiency, inventory management, and real-time tracking capabilities. By leveraging cutting-edge technologies such as IoT, AI, and big data analytics, PORT INC. empowers businesses to streamline operations and reduce costs across various industries, including retail, manufacturing, and e-commerce.

How the Company Makes Money

PORT INC. generates revenue through multiple streams, primarily from the sale of its proprietary software solutions and hardware products. The company operates on a subscription-based model for its software services, allowing clients to access regular updates and support. Additionally, PORT INC. earns revenue from licensing its technology to third-party companies and offering consultation services to help businesses implement its solutions effectively. Strategic partnerships with logistics firms and e-commerce platforms further enhance its market reach and contribute to increased sales. The company also explores opportunities in government contracts and grants aimed at improving infrastructure within the logistics sector, adding another layer to its revenue generation strategy.

PORT INC. Financial Statement Overview

Summary

Strong TTM growth (+8.1%) and healthy profitability (gross margin ~78%, EBIT margin ~12.9%, net margin ~8.8%) support a solid score. Offsetting factors are rising leverage (debt-to-equity ~1.20) and mixed cash conversion (FCF ~64% of net income, with a prior negative FCF year), which increase financial risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue is ¥27.0B with solid growth (+8.1%) and strong profitability (gross margin ~78%, EBIT margin ~12.9%, net margin ~8.8%). Over the past several annual periods, the company has scaled meaningfully (revenue up sharply vs. earlier years) while maintaining healthy operating margins. The main watch-out is that margins have moderated from the very high levels seen in FY2024–FY2025 (annual gross margin ~86–89% and EBITDA margin ~16–19%), suggesting some mix/competition or reinvestment pressure even as earnings rise.

Balance Sheet

The balance sheet shows good profitability on equity (TTM return on equity ~25%), but leverage has increased: TTM debt-to-equity is ~1.20, up from ~0.92–0.99 in the prior two annual reports. Total debt is ¥14.8B against equity of ¥10.2B, indicating a more debt-funded posture. While assets have grown alongside the business, the higher leverage reduces flexibility and raises sensitivity to downturns or higher funding costs.

Cash Flow

Cash generation is positive with TTM operating cash flow of ¥4.0B and free cash flow of ¥2.7B, and free cash flow growth is strong (+32.8%). However, cash conversion is mixed: TTM free cash flow is about 64% of net income, and prior periods include a year with negative free cash flow (FY2024), highlighting potential volatility in working capital and/or investment needs. Overall, cash flow supports earnings quality, but consistency is not yet best-in-class.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.00B	21.96B	15.58B	11.36B	6.99B	4.69B
Gross Profit	20.44B	18.83B	13.84B	9.34B	5.66B	3.74B
EBITDA	4.50B	3.65B	2.95B	2.01B	812.00M	335.00M
Net Income	2.74B	1.89B	1.46B	1.07B	332.00M	160.00M
Balance Sheet
Total Assets	31.07B	22.73B	16.23B	11.44B	10.32B	6.75B
Cash, Cash Equivalents and Short-Term Investments	4.99B	2.54B	3.80B	3.87B	3.96B	2.41B
Total Debt	14.80B	8.44B	6.18B	5.42B	5.28B	2.89B
Total Liabilities	20.67B	14.22B	9.48B	7.42B	7.34B	4.73B
Stockholders Equity	10.17B	8.51B	6.75B	3.24B	2.37B	2.02B
Cash Flow
Free Cash Flow	2.72B	1.40B	-256.00M	870.00M	542.00M	162.00M
Operating Cash Flow	3.95B	2.07B	1.03B	1.34B	614.00M	187.00M
Investing Cash Flow	-4.32B	-5.05B	-2.14B	-507.00M	-469.00M	-1.23B
Financing Cash Flow	1.61B	1.73B	1.04B	-921.00M	1.41B	1.19B

PORT INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2059.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7047, the sentiment is Positive. The current price of 2059 is below the 20-day moving average (MA) of 2289.50, below the 50-day MA of 2219.10, and above the 200-day MA of 2009.69, indicating a bullish trend. The MACD of 63.26 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 42.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7047.

PORT INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7047	79 Outperform	¥32.95B	11.63	―	0.11%	31.33%	34.22%
2477	78 Outperform	¥19.25B	17.00	―	1.21%	8.09%	8.53%
3989	73 Outperform	¥29.88B	20.18	―	3.37%	14.35%	-6.62%
3662	70 Outperform	¥18.55B	16.07	―	1.85%	0.63%	-1.84%
5139	62 Neutral	¥20.67B	24.20	―	―	28.90%	29.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

PORT INC. Corporate Events

PORT INC. Lifts Full-Year Outlook After Strong Nine-Month Earnings Surge

PORT INC. reported strong results for the first three quarters ended December 31, 2025, with revenue climbing 33.2% year on year to ¥20.19 billion and EBITDA rising 51.8%. Profit attributable to owners of the parent surged 63.8%, while basic earnings per share advanced to ¥164.17, underscoring robust operational leverage and margin expansion.

Total assets increased to ¥31.08 billion and equity attributable to owners of the parent reached ¥10.17 billion, reflecting a solidified financial base despite a lower equity ratio due to balance-sheet expansion. The company maintained an interim dividend of zero but forecasts a full-year dividend of ¥12.00 per share, and it has upgraded its full-year outlook, now projecting 32.0% revenue growth and a 41.4% rise in profit attributable to owners, signaling growing confidence in sustained earnings momentum.

The most recent analyst rating on (JP:7047) stock is a Buy with a Yen2604.00 price target. To see the full list of analyst forecasts on PORT INC. stock, see the JP:7047 Stock Forecast page.

PORT INC. Reports Q2 FY2026 Results, Emphasizes Social Impact

PORT INC. has announced its financial results for Q2 of the fiscal year ending March 31, 2026, emphasizing its commitment to addressing social debts and expanding the potential of future generations. The company aims to tackle complex societal issues by leveraging people and technology, focusing on necessary societal implementations rather than superficial solutions.

The most recent analyst rating on (JP:7047) stock is a Buy with a Yen2401.00 price target. To see the full list of analyst forecasts on PORT INC. stock, see the JP:7047 Stock Forecast page.