GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.17K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.53
• Revenue Growth: 5.17%
• EPS Growth: N/A
• Country: JP
• Employees: 213
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.06
• Shares Outstanding: 1,380,130
• 10 Day Avg. Volume: 4,390
• 30 Day Avg. Volume: 2,166
• PEG Ratio: -0.12
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 6.31
• 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: ¥1,272.00
• Price Target Upside: 8.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥1,272.00 ▲(8.35% Upside)

The overall stock score of 62 reflects strong financial performance, which is the most significant factor, offset by bearish technical indicators and moderate valuation. The company's robust revenue growth and cash flow management are positive, but the current market momentum and valuation suggest caution.

GRCS, Inc. Business Overview & Revenue Model

Company Description

GRCS, Inc. (9250) is a Japanese company specializing in providing governance, risk management, and compliance solutions. The company operates within the information technology and services sector, offering a range of software products and professional services that help businesses manage their regulatory requirements, mitigate risks, and ensure compliance with industry standards.

How the Company Makes Money

GRCS, Inc. generates revenue primarily through the sale of its software solutions and professional services. These services include consulting, implementation, and support related to governance, risk management, and compliance systems. The company may also have subscription-based models for its software offerings, providing recurring revenue streams. Additionally, GRCS, Inc. could engage in partnerships with other technology firms or service providers to enhance its offerings and reach a broader customer base, further contributing to its earnings.

GRCS, Inc. Financial Statement Overview

Summary

GRCS, Inc. exhibits strong financial performance with significant improvements in revenue growth, profitability, and cash flow generation. The company has effectively managed its costs and improved operational efficiency. However, moderate leverage on the balance sheet requires careful debt management.

Income Statement

GRCS, Inc. has shown strong revenue growth with a 18.1% increase from the previous year. The gross profit margin stands at 32.6%, indicating efficient cost management. The net profit margin improved significantly to 3.4% from a negative margin last year, reflecting a turnaround in profitability. EBIT and EBITDA margins also improved, indicating operational efficiency gains.

Balance Sheet

The company maintains a solid equity ratio of 21.6%, suggesting a stable financial structure. The debt-to-equity ratio is 1.57, indicating moderate leverage. Return on equity is at 27.1%, showcasing strong returns for shareholders. However, the high debt level could pose a risk if not managed carefully.

Cash Flow

GRCS, Inc. has demonstrated robust cash flow management with a significant improvement in free cash flow, which grew by 286.0% year-over-year. The operating cash flow to net income ratio is 2.78, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 2.59, further highlighting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.27B	3.29B	2.78B	2.40B	1.76B	1.43B
Gross Profit	838.79M	1.07B	791.94M	436.46M	476.82M	340.58M
EBITDA	65.07M	142.01M	-118.86M	-169.74M	111.32M	32.59M
Net Income	25.27M	112.51M	-280.16M	-209.02M	143.87M	46.40M
Balance Sheet
Total Assets	2.08B	1.92B	1.43B	1.50B	1.27B	599.44M
Cash, Cash Equivalents and Short-Term Investments	625.27M	740.03M	611.46M	847.45M	875.25M	254.21M
Total Debt	925.55M	650.36M	666.38M	568.33M	211.88M	227.26M
Total Liabilities	1.73B	1.51B	1.22B	1.02B	521.77M	488.57M
Stockholders Equity	343.82M	415.36M	172.91M	444.72M	751.85M	110.86M
Cash Flow
Free Cash Flow	-126.00M	291.78M	-156.97M	-282.18M	158.17M	-37.97M
Operating Cash Flow	-119.00M	312.70M	-121.69M	-251.89M	162.29M	-37.31M
Investing Cash Flow	-264.00M	-224.47M	-214.25M	19.80M	-8.79M	-655.00K
Financing Cash Flow	135.33M	41.59M	104.27M	204.23M	467.51M	14.57M

GRCS, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1174.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9250, the sentiment is Negative. The current price of 1174 is below the 20-day moving average (MA) of 1295.55, below the 50-day MA of 1312.26, and below the 200-day MA of 1348.86, indicating a bearish trend. The MACD of -29.85 indicates Positive momentum. The RSI at 21.85 is Positive, neither overbought nor oversold. The STOCH value of 22.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9250.

GRCS, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	77 Outperform	¥2.78B	15.63	―	2.28%	-2.87%	4.31%
4016	72 Outperform	¥2.53B	15.86	―	1.60%	2.07%	11.34%
4444	70 Outperform	¥2.01B	77.07	―	―	11.07%	-73.08%
3670	65 Neutral	¥2.45B	10.51	―	2.72%	-17.18%	-11.43%
9250	62 Neutral	¥1.54B	25.47	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	49 Neutral	¥1.78B	11.74	―	―	8.27%	-295.89%

GRCS, Inc. Corporate Events

GRCS, Inc. Reports Mid-Year Financial Decline, Projects Year-End Recovery

GRCS, Inc. reported a slight decline in net sales for the first half of 2025, with a notable decrease in profits compared to the previous year. Despite the current downturn, the company forecasts a significant recovery by the end of the fiscal year, with expected increases in net sales and profits, indicating a strategic focus on improving financial performance.