Delivery Consulting, Inc. (9240) AI Stock Analysis

• Market Cap: ¥2.41B
• Dividend Yield: N/A
• Average Volume (3M): 29.87K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.95
• Revenue Growth: 6.61%
• EPS Growth: 12.06%
• Country: JP
• Employees: 176
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 8.70
• Shares Outstanding: 4,859,200
• 10 Day Avg. Volume: 30,170
• 30 Day Avg. Volume: 29,870
• PEG Ratio: -1.03
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -37.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥511.00 ▼(-23.73% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

The stock's overall score is primarily impacted by financial performance concerns, including declining profit margins and negative cash flows. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. These factors collectively contribute to a cautious outlook.

Positive Factors

Strong balance sheet / very low leverage

Very low leverage (debt-to-equity ~0.026) provides durable financial flexibility. It reduces interest burden and allows the company to fund working capital, invest in technology partnerships or hires, and absorb sector cyclicality without immediate refinancing needs.

Consistent revenue and EPS growth

Sustained revenue growth (~6.6%) paired with double-digit EPS growth suggests expanding client adoption and improving per-share profitability. For a consulting business with project and retainer fees, this supports durable earnings capacity and the ability to scale service delivery over the medium term.

Diversified service mix and tech partnerships

Multiple revenue streams—project fees, retainers, training, and technology partnerships—reduce client concentration and create recurring elements. Partnerships expand solution breadth and enable implementation commissions, making the business model more resilient to single-market shocks.

Negative Factors

Negative operating and free cash flows

Persistent negative operating and free cash flows indicate difficulty converting reported profits into cash. That constrains reinvestment in tools and talent, increases reliance on external funding, and raises liquidity risk if client payments or demand soften in coming quarters.

Declining profit margins

Significant margin compression at net, EBIT and EBITDA levels suggests rising operating costs or pricing pressure. Even with revenue growth, persistent margin declines reduce retained earnings and limit the firm's ability to fund strategic initiatives or improve competitive positioning long term.

Decreasing return on equity / capital efficiency

A falling return on equity shows the company is deriving less profit from shareholder capital, signaling lower capital efficiency. This can reflect operational inefficiencies or weaker pricing power and limits internal capacity to finance growth or sustain shareholder returns over the medium term.

Delivery Consulting, Inc. Business Overview & Revenue Model

Company Description

Delivery Consulting, Inc. (9240) specializes in providing logistics and supply chain consulting services to businesses across various sectors, including retail, e-commerce, and manufacturing. The company focuses on optimizing delivery processes, enhancing operational efficiency, and implementing technology solutions to streamline logistics. Its core products and services include supply chain analysis, route optimization, inventory management systems, and strategic planning for last-mile delivery.

How the Company Makes Money

Delivery Consulting, Inc. generates revenue primarily through consulting fees charged for its expert services. This includes project-based fees for specific consulting engagements, as well as ongoing retainer agreements with clients seeking continuous support and advice. Additionally, the company may earn revenue from training programs and workshops designed to educate client teams on best practices in logistics and supply chain management. Strategic partnerships with technology providers also enhance its service offerings, allowing for potential commission-based revenue when implementing third-party software solutions for clients.

Delivery Consulting, Inc. Financial Statement Overview

Summary

The company shows consistent revenue growth and a strong equity position, but declining profit margins and negative cash flows raise concerns about operational efficiency and liquidity.

Income Statement

The company has shown consistent revenue growth over the years, with a recent growth rate of 3.36%. However, the net profit margin has decreased significantly from previous years, indicating pressure on profitability. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs or inefficiencies.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.026. The equity ratio is robust, indicating financial stability. However, the return on equity has decreased, suggesting that the company is generating less profit from its equity base compared to previous years.

Cash Flow

The cash flow statement indicates challenges, with negative operating and free cash flows in the latest period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, highlighting potential liquidity issues and inefficiencies in converting income into cash.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	2.74B	2.70B	2.19B	2.13B	1.79B
Gross Profit	1.05B	837.22M	587.73M	695.13M	537.60M
EBITDA	80.93M	232.93M	67.66M	355.22M	278.32M
Net Income	35.00M	155.33M	28.82M	241.17M	184.50M
Balance Sheet
Total Assets	1.48B	1.49B	1.32B	1.38B	1.13B
Cash, Cash Equivalents and Short-Term Investments	860.00M	957.83M	786.38M	1.01B	835.79M
Total Debt	29.57M	52.02M	79.46M	126.80M	194.13M
Total Liabilities	372.00M	420.15M	385.10M	477.63M	571.16M
Stockholders Equity	1.11B	1.07B	933.77M	903.30M	559.83M
Cash Flow
Free Cash Flow	-74.00M	226.04M	-179.47M	215.61M	305.80M
Operating Cash Flow	-66.00M	257.88M	-113.24M	230.86M	312.41M
Investing Cash Flow	-9.85M	-31.84M	-60.34M	-91.85M	9.66M
Financing Cash Flow	-19.95M	-54.25M	-45.78M	29.81M	165.24M

Delivery Consulting, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 670.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 670 is above the 20-day moving average (MA) of 506.85, above the 50-day MA of 538.22, and above the 200-day MA of 535.87, indicating a bearish trend. The MACD of -3.14 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9240.

Delivery Consulting, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3670	67 Neutral	¥2.52B	7.67	―	2.76%	-9.03%	53.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4016	57 Neutral	¥1.94B	19.12	―	3.07%	2.07%	11.34%
4444	56 Neutral	¥1.91B	-50.38	―	―	5.17%	-148.66%
4814	53 Neutral	¥2.44B	-20.33	―	―	-4.07%	53.47%
9240	51 Neutral	¥2.41B	25.63	―	―	6.61%	12.06%
9563	47 Neutral	¥2.16B	96.37	―	―	4.49%	-158.12%