TORQ, Inc. (8077) AI Stock Analysis

• Market Cap: ¥6.29B
• Dividend Yield: 2.36%
• Average Volume (3M): 26.89K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.42
• Revenue Growth: 4.59%
• EPS Growth: 39.58%
• Country: JP
• Employees: 223
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Distribution
• EPS (TTM): 12.36
• Shares Outstanding: 28,007,448
• 10 Day Avg. Volume: 12,280
• 30 Day Avg. Volume: 26,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥270.00
• Price Target Upside: 6.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥285.00 ▲(12.20%Upside)

The stock's strong valuation and positive technical indicators are the most significant factors driving its score. While financial performance is solid, the company must address cash flow and leverage concerns to maintain its trajectory.

TORQ, Inc. Business Overview & Revenue Model

Company Description

TORQ, Inc. (8077) is a leading technology company specializing in advanced software solutions for supply chain management and logistics optimization. Operating primarily in the technology sector, TORQ provides a suite of products designed to enhance operational efficiency, reduce costs, and improve transparency in the supply chain processes for businesses across various industries. The company focuses on integrating artificial intelligence and machine learning into its offerings to deliver innovative solutions that meet the evolving needs of its clients.

How the Company Makes Money

TORQ, Inc. generates revenue through a subscription-based model for its software services, providing clients with access to its platform for a recurring fee. Key revenue streams include monthly or annual subscription fees from businesses utilizing its software for supply chain management, consulting services for implementation and optimization, and bespoke development projects tailored to specific client needs. Additionally, TORQ partners with logistics providers and industry leaders to enhance its product offerings and expand its market reach, further contributing to its earnings through collaborative initiatives and joint ventures.

TORQ, Inc. Financial Statement Overview

Summary

TORQ, Inc. demonstrates solid financial health with revenue growth and profitability. The stable balance sheet is offset by concerns over negative free cash flow and leverage ratios.

Income Statement

TORQ, Inc. demonstrates a solid performance in its income statement with consistent revenue growth, achieving a 2.99% increase from 2023 to 2024. The gross profit margin stands at 22.62%, indicating efficient cost management. Moreover, the net profit margin is healthy at 4.00%, showing improved profitability over the years. EBIT and EBITDA margins of 4.04% and 8.33% respectively are satisfactory for the industry, showcasing operational efficiency.

Balance Sheet

The balance sheet of TORQ, Inc. reflects a stable financial position with an equity ratio of 39.39%, indicating a strong equity base. However, a debt-to-equity ratio of 1.00 highlights moderate leverage, which could be a potential risk if not managed carefully. The return on equity (ROE) is robust at 6.75%, indicating effective use of shareholder funds to generate profits.

Cash Flow

The cash flow statement reveals some concerns, particularly with the negative free cash flow of -67.78 million in 2024, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash flow. Despite these issues, the company has shown the ability to manage financing activities effectively.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

TORQ, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 254.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8077, the sentiment is Positive. The current price of 254 is above the 20-day moving average (MA) of 249.65, above the 50-day MA of 243.82, and above the 200-day MA of 234.19, indicating a bullish trend. The MACD of 2.22 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8077.

TORQ, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8077	75 Outperform	¥6.29B	6.11		2.36%	4.59%	39.58%
8147	73 Outperform	¥6.25B	9.92		1.83%	1.70%	12.23%
8089	73 Outperform	¥20.26B	7.07		3.79%	7.61%	-32.07%
7417	73 Outperform	¥17.36B	8.20		4.04%	-3.83%	4.11%
Sector *	65 Neutral	$11.14B	15.76	5.26%	2.01%	3.16%	-25.01%
9986	61 Neutral	¥13.81B	21.24		4.15%	-10.35%	-39.24%
7624	59 Neutral	¥7.28B	19.85		3.01%	0.66%	41.70%