Peers Co. Ltd. (7066) AI Stock Analysis

• Market Cap: ¥7.26B
• Dividend Yield: 2.2%
• Average Volume (3M): 83.48K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.75
• Revenue Growth: 4.11%
• EPS Growth: 115.34%
• Country: JP
• Employees: 537
• Sector: Industrials
• Sector Strength: 76
• Industry: Conglomerates
• EPS (TTM): 7.65
• Shares Outstanding: 10,013,600
• 10 Day Avg. Volume: 205,780
• 30 Day Avg. Volume: 83,476
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥885.00
• Price Target Upside: 22.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥885.00 ▲(22.07% Upside)

Peers Co. Ltd. is on a positive trajectory with strong financial performance and bullish technical indicators. The stock appears undervalued with a reasonable P/E ratio and attractive dividend yield. However, attention is needed on cash flow management and potential overbought conditions.

Peers Co. Ltd. Business Overview & Revenue Model

Company Description

Peers Co. Ltd. (7066) is a Japanese company that primarily operates in the information technology and services sector. The company specializes in providing a range of IT solutions, including software development, system integration, and consulting services. Peers Co. Ltd. is known for its expertise in creating customized solutions that cater to the specific needs of businesses, helping them enhance their operational efficiency and technological capabilities.

How the Company Makes Money

Peers Co. Ltd. makes money through a diversified revenue model that includes several key streams. The primary source of revenue is derived from its software development services, where the company creates tailor-made software solutions for businesses across various industries. System integration services also contribute significantly to the company's earnings, as Peers Co. Ltd. helps clients integrate new and existing systems to streamline operations. Consulting services provide another revenue stream, offering strategic advice and IT solutions to improve business processes. Additionally, the company may engage in strategic partnerships and collaborations that enhance its service offerings and expand its market reach, although specific partnerships are not detailed in the available data.

Peers Co. Ltd. Financial Statement Overview

Summary

Peers Co. Ltd. shows strong revenue growth and profitability with a robust balance sheet, indicated by a solid equity position and effective cost management. However, the company faces challenges in cash flow management, with zero operating cash flow in recent periods, which poses potential liquidity risks.

Income Statement

Peers Co. Ltd. has demonstrated strong revenue growth over the years, marked by a consistent increase in total revenue from historical data. Gross profit and net profit margins are robust, with recent improvements indicating operational efficiency. The TTM gross profit margin stands at approximately 26.5%, and the net profit margin is an impressive 9.0%. The company has maintained healthy EBIT and EBITDA margins, reflecting effective cost management and profitability.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of 0.38 in the TTM period, indicating a conservative approach to leveraging. The equity ratio is around 61.8%, signifying a strong capital structure. Return on equity (ROE) is commendable at approximately 21.1%, driven by significant net income growth, demonstrating effective utilization of shareholder funds.

Cash Flow

Peers Co. Ltd. faces challenges in cash flow management. The TTM cash flow data reflects zero operating cash flow, which may indicate issues in converting revenue into cash. Historical cash flows show volatility, with fluctuations in free cash flow growth rates. The lack of positive free cash flow and operating cash flow in recent periods is concerning and may impact liquidity.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	6.21B	5.63B	3.79B	3.13B	3.48B
Gross Profit	1.64B	1.54B	982.38M	918.44M	869.83M
EBITDA	744.03M	392.37M	15.73M	173.96M	383.29M
Net Income	585.17M	319.23M	-98.38M	52.13M	238.92M
Balance Sheet
Total Assets	4.51B	4.75B	4.40B	3.02B	3.14B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.77B	2.35B	1.87B	2.53B
Total Debt	1.08B	1.68B	1.87B	500.00M	700.00M
Total Liabilities	1.64B	2.39B	2.48B	832.26M	1.00B
Stockholders Equity	2.87B	2.36B	1.92B	2.19B	2.13B
Cash Flow
Free Cash Flow	-230.78M	619.82M	-194.22M	-396.42M	294.74M
Operating Cash Flow	472.79M	773.31M	212.54M	-158.21M	330.48M
Investing Cash Flow	-115.45M	-272.99M	-1.28B	-305.03M	-93.13M
Financing Cash Flow	-670.80M	-75.23M	1.03B	-199.46M	731.02M

Peers Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 725.00
• 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:7066, the sentiment is Positive. The current price of 725 is above the 20-day moving average (MA) of 647.00, above the 50-day MA of 642.94, and above the 200-day MA of 653.93, indicating a bullish trend. The MACD of 20.83 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7066.

Peers Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7066	81 Outperform	¥7.26B	11.96		2.20%	4.11%	115.34%
7670	77 Outperform	¥9.85B	5.44		3.67%	-2.82%	18.67%
7490	74 Outperform	¥7.78B	12.48		2.14%	0.55%	95.43%
7509	73 Outperform	¥5.75B	4.76		3.08%	5.13%	-20.24%
8835	72 Outperform	¥6.07B	13.28		5.01%	4.53%	-21.01%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
6838	47 Neutral	¥5.27B	―		0.74%	―	―