BIPROGY Inc. (8056) AI Stock Analysis

• Market Cap: ¥496.28B
• Dividend Yield: 2.21%
• Average Volume (3M): 277.82K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.55
• Revenue Growth: 10.42%
• EPS Growth: 28.75%
• Country: JP
• Employees: 8,218
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 96.54
• Shares Outstanding: 100,663,520
• 10 Day Avg. Volume: 382,550
• 30 Day Avg. Volume: 277,820
• PEG Ratio: 1.96
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 10.84
• 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: ¥7,300.00
• Price Target Upside: 33.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥5,921.00 ▲(8.28% Upside)

BIPROGY Inc. has a strong financial foundation with robust revenue growth and profitability, which is the most significant factor in the score. However, technical analysis indicates bearish momentum, which negatively impacts the stock score. The valuation is fair, providing a balance between growth and income, but the lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for BIPROGY's IT solutions, enhancing its market position and long-term business prospects.

Margin Sustainability

Stable margins reflect effective cost management and pricing power, supporting sustainable profitability in the competitive IT services sector.

Balance Sheet Health

A solid balance sheet with prudent leverage and a strong equity ratio provides financial stability and flexibility for future growth initiatives.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow, though minor, could impact the company's ability to invest in growth opportunities and return capital to shareholders.

Technical Analysis

Bearish technical indicators may reflect underlying market concerns, potentially affecting investor confidence and future capital raising efforts.

Lack of Earnings Call Data

The absence of recent earnings call data limits transparency and investor insight into management's strategic direction and business outlook.

BIPROGY Inc. Business Overview & Revenue Model

Company Description

Biprogy Inc. provides information technology (IT) solutions in Japan. The company operates through five segments: System Services, Support Services, Outsourcing, Software, and Hardware. It offers contracted software development; technology support and ICT strategy consulting services; and support services, such as software and hardware maintenance, and installation support. The company also engages in the sale and rental of computer and network systems; and cloud computing and outsourcing businesses. In addition, it provides CRM/customer channel, business intelligence, SRM/electronic purchasing, SCM/logistics, energy management/environment, office communication, enterprise education, ERP/enterprise resource management, and regional revitalization solutions. Further, the company offers ICT infrastructure solutions and services; hardware, middleware, and related services; and business process restructuring, ICT visualization, construction, implementation, maintenance, operation, and training services. It provides solutions for various industries, including financial services, engineering, distribution, transportation, central and local governments, healthcare, leasing, telecommunications, media, education, and social insurance. The company was formerly known as Nihon Unisys, Ltd. and changed its name to Biprogy Inc. in April 2022. Biprogy Inc. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

BIPROGY generates revenue primarily through its IT services and solutions, which include system integration and software development projects for corporate clients. The company follows a project-based revenue model, where it charges clients for specific IT projects, including consulting and implementation of technology solutions. Additionally, BIPROGY earns recurring revenue from ongoing maintenance and support contracts, as well as subscription fees for software-as-a-service (SaaS) offerings. Significant partnerships with major technology vendors enhance their service capabilities and contribute to its earnings by enabling access to advanced technologies and tools necessary for service delivery.

BIPROGY Inc. Financial Statement Overview

Summary

BIPROGY Inc. exhibits strong financial health across all verticals. The income statement reflects solid growth and profitability, the balance sheet shows a stable capital structure with prudent leverage, and cash flow metrics indicate strong cash generation and financial flexibility.

Income Statement

BIPROGY Inc. demonstrates strong revenue growth with a TTM increase of 2.1%. The gross profit margin is stable at approximately 26.2%, and the net profit margin is healthy at 6.7%. EBIT and EBITDA margins are robust at 9.5% and 14.5%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects solid profitability and growth.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.25, suggesting prudent leverage management. Return on equity is strong at 16.4%, indicating effective use of equity to generate profits. The equity ratio stands at 53.3%, reflecting a solid capital structure. The balance sheet is stable, with a good balance between debt and equity.

Cash Flow

Free cash flow growth is impressive at 21.3% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.94, indicating efficient conversion of income to cash. The free cash flow to net income ratio is high at 93.1%, underscoring strong cash flow relative to earnings. Overall, cash flow metrics are robust, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	423.11B	404.01B	370.14B	339.90B	317.60B	309.69B
Gross Profit	110.87B	105.83B	97.17B	89.35B	83.14B	81.08B
EBITDA	59.64B	56.67B	52.03B	45.72B	44.89B	42.95B
Net Income	30.52B	26.97B	25.25B	20.20B	20.49B	16.64B
Balance Sheet
Total Assets	326.32B	330.88B	314.22B	280.40B	268.65B	231.98B
Cash, Cash Equivalents and Short-Term Investments	57.03B	64.80B	60.48B	44.23B	49.37B	46.88B
Total Debt	38.43B	42.60B	35.54B	38.00B	41.85B	21.33B
Total Liabilities	150.00B	159.57B	145.91B	138.80B	137.97B	95.09B
Stockholders Equity	174.28B	169.05B	166.42B	139.89B	128.92B	112.27B
Cash Flow
Free Cash Flow	49.80B	41.83B	28.92B	13.81B	20.37B	21.53B
Operating Cash Flow	53.82B	44.92B	41.69B	28.42B	29.43B	31.93B
Investing Cash Flow	-15.09B	-8.93B	-8.55B	-15.54B	-10.96B	-11.21B
Financing Cash Flow	-25.64B	-30.61B	-17.62B	-18.04B	-16.12B	-8.18B

BIPROGY Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5468.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8056, the sentiment is Negative. The current price of 5468 is below the 20-day moving average (MA) of 5708.20, below the 50-day MA of 5853.08, and below the 200-day MA of 5597.10, indicating a bearish trend. The MACD of -135.43 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8056.

BIPROGY Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	76 Outperform	¥188.44B	18.12	―	2.31%	13.82%	37.07%
2327	74 Outperform	¥798.22B	29.70	10.07%	1.78%	11.66%	-0.21%
4674	72 Outperform	¥68.81B	15.42	14.67%	3.03%	10.02%	16.48%
3636	71 Outperform	¥76.94B	11.98	―	3.40%	5.28%	28.90%
3923	71 Outperform	¥362.47B	34.01	―	0.22%	25.00%	62.07%
8056	66 Neutral	¥496.28B	17.42	―	2.21%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

BIPROGY Inc. Corporate Events

BIPROGY Inc. Acquires Yosemite 1 K.K. to Boost Retail Media Market Presence

BIPROGY Inc. has announced its decision to acquire all shares of Yosemite 1 K.K., making it a subsidiary, to enhance its presence in the retail media market. This acquisition is expected to accelerate BIPROGY’s consumer and purchase-oriented solutions, leveraging CMJ’s extensive retail media network and BIPROGY’s technological assets to develop new services and expand globally, particularly in Asia.