ProjectHoldings.Inc. (9246) AI Stock Analysis

• Market Cap: ¥7.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -1.71%
• EPS Growth: -303.36%
• Country: JP
• Employees: 255
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 7.43
• Shares Outstanding: 5,872,450
• 10 Day Avg. Volume: 2,020
• 30 Day Avg. Volume: 1,653
• PEG Ratio: 0.08
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -7.40
• 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): 8,607.83
• Revenue Forecast (FY): ¥1.09T

• Rating: 42 Neutral
• Price Target: ¥1,116.00 ▼(-8.60% Downside)

The overall stock score of 42 reflects significant financial challenges, including declining revenues and negative cash flow. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio. The absence of earnings call insights and corporate events further limits positive factors.

Positive Factors

Diversified Business Model

A diversified business model across various sectors can mitigate risks and provide stability, allowing the company to capitalize on growth opportunities in different markets.

Strategic Partnerships

Strategic partnerships enhance market access and technology adoption, strengthening the company's competitive position and driving long-term growth.

Stable Balance Sheet

A stable balance sheet with a manageable debt-to-equity ratio provides financial flexibility and resilience, supporting long-term operational stability.

Negative Factors

Declining Revenue and Profitability

Declining revenue and profitability indicate operational challenges, which can hinder growth and affect the company's ability to invest in future opportunities.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in sustaining business activities and may limit the company's capacity to fund new projects or service debt.

Negative Profit Margins

Negative profit margins reflect inefficiencies and financial strain, potentially impacting the company's ability to maintain competitive pricing and invest in growth initiatives.

ProjectHoldings.Inc. Business Overview & Revenue Model

Company Description

ProjectHoldings, Inc. engages in the provision of digital transformation services in Japan. The company provides consulting services for new business launch and development, existing business transformation, and business improvement through digital transformation. It also provides marketing services through operational support for SNS such as Twitter and Instagram, website improvement, and marketing consulting services, as well as UI/UX services. In addition, the company is involved in the provision of technology services that support system development, operation and maintenance, and software testing; and human resources solutions that support in human resources and labor, such as considering and implementing measures to reduce employee turnover rates. Further, it operates digireka! HR, an online media platform for corporate managers and human resources personnel. The company was formerly known as ProjectCompany, Inc. and changed its name to ProjectHoldings, Inc. in December 2023. The company was incorporated in 2016 and is headquartered in Minato, Japan.

How the Company Makes Money

ProjectHoldings.Inc. generates revenue through a combination of strategic investments and management fees. The company earns income by acquiring equity stakes in promising technology startups, which may provide high returns as these companies grow and succeed. Additionally, ProjectHoldings generates revenue from its real estate operations, including rental income from properties it owns and manages. The renewable energy sector contributes to revenue through the sale of energy solutions and potential government incentives for sustainable projects. Partnerships with other firms and collaborations in joint ventures also play a crucial role in enhancing revenue streams, allowing the company to tap into new markets and innovative business models.

ProjectHoldings.Inc. Financial Statement Overview

Summary

The company is experiencing financial difficulties with declining revenues and profitability, leading to negative net income and cash flow. The balance sheet remains relatively stable, but the recent performance raises concerns about sustainability.

Income Statement

The company has experienced a significant decline in revenue and profitability over the past year. The gross profit margin decreased from 38.4% in 2023 to 33.3% in 2024, and the net profit margin turned negative, indicating a loss. The EBIT and EBITDA margins also declined, reflecting operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.99, which is manageable. However, the return on equity has turned negative due to the net loss, and the equity ratio is stable at 40.5%, indicating a balanced capital structure but with potential risks due to recent losses.

Cash Flow

The cash flow statement reveals a concerning trend with negative operating and free cash flow in 2024, indicating cash flow challenges. The free cash flow to net income ratio is negative, highlighting the company's inability to generate positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.24B	5.28B	6.28B	4.35B	2.14B	1.10B
Gross Profit	1.75B	1.76B	2.41B	1.84B	1.01B	530.08M
EBITDA	83.64M	46.00M	1.02B	1.01B	523.88M	183.53M
Net Income	-317.28M	-393.00M	587.85M	676.81M	359.74M	114.00M
Balance Sheet
Total Assets	4.96B	5.54B	5.71B	4.29B	2.78B	1.06B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.62B	2.77B	2.22B	2.25B	710.41M
Total Debt	1.86B	2.23B	2.24B	668.42M	280.07M	384.16M
Total Liabilities	2.82B	3.30B	3.06B	1.48B	696.37M	582.56M
Stockholders Equity	2.14B	2.24B	2.65B	2.81B	2.09B	479.11M
Cash Flow
Free Cash Flow	0.00	-732.07M	427.11M	756.92M	402.43M	143.17M
Operating Cash Flow	0.00	-131.97M	452.53M	782.66M	427.35M	155.62M
Investing Cash Flow	0.00	6.04M	-706.68M	-1.22B	-25.22M	-83.17M
Financing Cash Flow	0.00	-21.83M	730.53M	407.81M	1.14B	307.26M

ProjectHoldings.Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1221.00
• 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:9246, the sentiment is Positive. The current price of 1221 is above the 20-day moving average (MA) of 1205.40, below the 50-day MA of 1231.58, and below the 200-day MA of 1255.53, indicating a neutral trend. The MACD of -3.66 indicates Negative momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 52.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9246.

ProjectHoldings.Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7039	76 Outperform	¥7.44B	10.63	―	3.03%	8.00%	3.22%
6560	73 Outperform	¥10.59B	13.94	―	1.30%	5.97%	-5.60%
7379	71 Outperform	―	―	―	―	14.88%	48.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4490	61 Neutral	¥4.19B	7.58	―	―	0.36%	―
7034	49 Neutral	¥5.91B	-51.49	―	―	181.64%	-139.55%
9246	42 Neutral	¥7.16B	―	―	―	-1.71%	-303.36%

ProjectHoldings.Inc. Corporate Events

ProjectHoldings, Inc. Reports Turnaround in Profitability for First Half of 2025

ProjectHoldings, Inc. reported its financial results for the first two quarters of 2025, showing a slight decrease in net sales by 1.4% compared to the previous year. However, the company achieved a turnaround in profitability, reporting an operating profit of 11 million yen and a profit attributable to owners of the parent of 11 million yen, compared to losses in the same period last year. The equity ratio improved to 43.0%, indicating a stronger financial position. The company has revised its earnings forecast for the fiscal year ending December 31, 2025, expecting a 2.3% increase in net sales and a profit attributable to owners of the parent of 20 million yen.