TORQ, Inc. (8077) AI Stock Analysis

• Market Cap: ¥6.66B
• Dividend Yield: 2.21%
• Average Volume (3M): 29.06K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.39
• Revenue Growth: 4.59%
• EPS Growth: 39.58%
• Country: JP
• Employees: 223
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Distribution
• EPS (TTM): 12.36
• Shares Outstanding: 28,007,448
• 10 Day Avg. Volume: 37,550
• 30 Day Avg. Volume: 29,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥285.00
• Price Target Upside: 4.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥285.00 ▲(4.78% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for TORQ's software solutions, suggesting effective market penetration and client retention.

Business Model

The subscription-based model provides predictable and recurring revenue streams, enhancing financial stability and allowing for long-term planning.

Partnerships

Strategic partnerships expand TORQ's market reach and product capabilities, strengthening its competitive position and fostering innovation.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates difficulties in converting profits into cash, which could impact liquidity and limit investment in growth opportunities.

High Debt Levels

High debt levels pose a risk to financial stability, potentially increasing interest expenses and limiting flexibility in adverse market conditions.

Operational Efficiency

Low EBIT margins indicate potential inefficiencies in operations, which could hinder profitability and competitiveness if not addressed.

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 strong revenue growth and stable profitability, with room for operational improvements. However, high debt levels and cash flow challenges, particularly in generating positive free cash flow, need attention to ensure long-term financial health.

Income Statement

TORQ, Inc. has shown consistent revenue growth over the years, with a revenue growth rate of 3.0% from 2023 to 2024. The gross profit margin is stable at approximately 22.6% for 2024, indicating efficient cost management. The net profit margin improved slightly to 4.0% in 2024, reflecting better profitability. However, the EBIT margin remains relatively low at 4.0%, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 1.00, indicating a balanced approach to leveraging. The return on equity (ROE) is 6.8%, which is moderate and shows potential for improvement. The equity ratio is 39.4%, reflecting a solid equity base. Overall, the balance sheet is stable, but high debt levels could pose a risk if not managed carefully.

Cash Flow

TORQ, Inc. experienced a significant decline in operating cash flow, turning negative in 2024. The free cash flow also decreased, indicating challenges in cash generation. The free cash flow to net income ratio is negative, highlighting issues in converting profits into cash. These factors suggest potential liquidity concerns that need to be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.70B	22.41B	21.76B	20.48B	19.25B	18.95B
Gross Profit	4.95B	5.07B	4.91B	4.57B	4.02B	3.93B
EBITDA	1.73B	1.87B	1.84B	1.18B	582.16M	117.99M
Net Income	931.39M	895.48M	845.38M	532.24M	258.95M	-132.25M
Balance Sheet
Total Assets	32.73B	33.68B	32.69B	31.12B	28.44B	24.30B
Cash, Cash Equivalents and Short-Term Investments	2.99B	2.77B	3.24B	1.78B	2.37B	1.96B
Total Debt	13.16B	13.28B	13.27B	13.76B	11.55B	8.20B
Total Liabilities	20.05B	20.41B	20.35B	20.08B	17.82B	13.69B
Stockholders Equity	12.68B	13.27B	12.34B	11.04B	10.62B	10.61B
Cash Flow
Free Cash Flow	0.00	-67.78M	1.77B	-2.03B	-2.65B	-491.25M
Operating Cash Flow	0.00	-20.03M	1.87B	-869.95M	-28.65M	601.37M
Investing Cash Flow	0.00	78.05M	-61.15M	-1.70B	-3.17B	-1.12B
Financing Cash Flow	0.00	-508.98M	-634.42M	2.06B	3.20B	221.11M

TORQ, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 272.00
• 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:8077, the sentiment is Positive. The current price of 272 is above the 20-day moving average (MA) of 264.55, above the 50-day MA of 256.90, and above the 200-day MA of 240.11, indicating a bullish trend. The MACD of 3.91 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.75 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	¥6.66B	6.48		2.21%	4.59%	39.58%
8089	73 Outperform	¥22.85B	7.21		3.36%	10.01%	47.35%
7417	73 Outperform	¥17.47B	8.24		3.96%	-1.64%	6.18%
9986	69 Neutral	¥14.11B	19.62		4.06%	-7.01%	-30.15%
8147	66 Neutral	¥6.08B	11.87		1.87%	5.28%	-13.61%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
7624	59 Neutral	¥7.67B	20.89		2.86%	0.66%	41.70%