Delivery Consulting, Inc. (9240) AI Stock Analysis

• Market Cap: ¥2.45B
• Dividend Yield: N/A
• Average Volume (3M): 363.58K
• Price to Earnings (P/E): 137.2
• Beta (1Y): 1.01
• Revenue Growth: -1.14%
• EPS Growth: -88.16%
• Country: JP
• Employees: 176
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 6.45
• Shares Outstanding: 4,845,700
• 10 Day Avg. Volume: 61,710
• 30 Day Avg. Volume: 363,576
• PEG Ratio: -1.64
• Price to Book (P/B): 2.23
• 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: ¥400.00
• Price Target Upside: -20.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥578.00 ▲(14.46%Upside)

The strong financial performance, characterized by substantial revenue and profit growth, is the most significant factor driving the stock score. Technical analysis supports a positive trend, though high valuation poses a risk, suggesting potential overvaluation. The absence of dividend income and lack of additional corporate or earnings call insights moderate the overall score.

Delivery Consulting, Inc. Business Overview & Revenue Model

Company Description

Delivery Consulting Inc. provides technology consulting services. The company offers IoT, project management office, cloud, and robotics process automation consulting services; system integration and IT outsourcing services; and data strategy consulting, digital migration, and intelligent automation services. It also provides ipaS Robo, an robotic process automation solution; Wordsmith, a natural language generation engine; writing agency robot; aimS, an AI merchandizing solution; cloud BI solution; Clarizen, a project management/work collaboration tool; High-speed engine, a memory-type data processing engine; MeeCap, a process mining solution that visualizes and automatically analyzes operations; and AI scan robot. The company was founded in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Delivery Consulting, Inc. makes money primarily through consulting fees charged to clients for their expert advisory services. The company's revenue model is based on project-based engagements where clients are billed for the time and expertise of consultants working on specific projects aimed at improving their logistics and supply chain operations. Additionally, Delivery Consulting, Inc. may generate revenue through long-term retainers with clients who require ongoing support and strategic guidance. Key revenue streams include consultancy services, technology integration projects, and performance optimization solutions. The company may also form strategic partnerships with technology providers and industry experts to enhance its service offerings and expand its market reach, contributing to its overall earnings.

Delivery Consulting, Inc. Financial Statement Overview

Summary

Delivery Consulting, Inc. demonstrates strong revenue growth and improved profitability, with a significant increase in net profit margin and robust cash flow generation. The balance sheet shows financial stability with low leverage.

Income Statement

Delivery Consulting, Inc. shows strong revenue growth with a 23.4% increase from the previous year, supported by a healthy gross profit margin of 30.97%. The net profit margin has improved significantly to 5.75% from 1.31% the previous year, indicating enhanced operational efficiency. EBIT and EBITDA margins have also improved, demonstrating strong profitability and operational performance. Overall, the income statement reflects a robust growth trajectory with increasing profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.73%, reflecting financial stability. The debt-to-equity ratio is low at 0.05, indicating minimal reliance on debt financing. ROE has improved to 14.56%, showcasing efficient use of equity to generate profits. The balance sheet reveals a solid financial structure, though there is room for improvement in asset utilization and further strengthening equity.

Cash Flow

The cash flow statement demonstrates excellent free cash flow growth and a significant turnaround from negative to positive operating cash flow. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. The company's ability to generate free cash flow consistently highlights its strong cash management and operational efficiency. Overall, the cash flow performance is outstanding, with significant improvements in cash generation.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.70B	2.19B	2.13B	1.79B	1.51B
Gross Profit	837.22M	587.73M	695.13M	537.60M	371.88M
EBITDA	232.93M	67.66M	355.22M	278.32M	128.30M
Net Income	155.33M	28.82M	241.17M	184.50M	114.57M
Balance Sheet
Total Assets	1.49B	1.32B	1.38B	1.13B	650.68M
Cash, Cash Equivalents and Short-Term Investments	957.83M	786.38M	1.01B	835.79M	347.94M
Total Debt	52.02M	79.46M	126.80M	194.13M	223.50M
Total Liabilities	420.15M	385.10M	477.63M	571.16M	479.47M
Stockholders Equity	1.07B	933.77M	903.30M	559.83M	171.22M
Cash Flow
Free Cash Flow	226.04M	-179.47M	215.61M	305.80M	166.15M
Operating Cash Flow	257.88M	-113.24M	230.86M	312.41M	173.53M
Investing Cash Flow	-31.84M	-60.34M	-91.85M	9.66M	-7.72M
Financing Cash Flow	-54.25M	-45.78M	29.81M	165.24M	85.13M

Delivery Consulting, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 505.00
• 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:9240, the sentiment is Positive. The current price of 505 is below the 20-day moving average (MA) of 527.35, above the 50-day MA of 431.46, and above the 200-day MA of 415.27, indicating a neutral trend. The MACD of 18.73 indicates Positive momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 55.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9240.

Delivery Consulting, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4016	75 Outperform	¥1.71B	11.18		2.35%	5.61%	32.84%
4444	75 Outperform	¥2.25B	23.29		―	13.74%	-3.38%
3670	74 Outperform	¥2.35B	13.70		2.80%	-18.16%	-33.45%
9240	73 Outperform	¥2.45B	137.16		―	-1.14%	-88.16%
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
9563	51 Neutral	¥2.50B	―		―	-18.11%	-1174.55%
4814	49 Neutral	¥2.10B	―		―	6.72%	34.50%