GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.44K
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.49
• Revenue Growth: 7.94%
• EPS Growth: N/A
• Country: JP
• Employees: 213
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): -29.68
• Shares Outstanding: 1,380,130
• 10 Day Avg. Volume: 1,800
• 30 Day Avg. Volume: 2,436
• PEG Ratio: -12.15
• Price to Book (P/B): 4.75
• 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: ¥1,461.00
• Price Target Upside: 11.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,407.00 ▲(7.49%Upside)

The overall stock score of 65 reflects strong financial performance, which is the most significant factor, supported by robust revenue growth and cash flow management. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, which weighs down the overall score.

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. shows strong financial recovery with significant revenue growth and a return to profitability. The balance sheet is stable, but leverage is moderately high. Cash flow management is robust, indicating strong operational efficiency.

Income Statement

GRCS, Inc. has shown robust revenue growth with a 18.1% increase from 2023 to 2024. The gross profit margin improved to 32.6%, reflecting better cost management. The company turned profitable with a net profit margin of 3.4% compared to a significant loss in the previous year. EBIT and EBITDA margins also reflect positive operational improvements, indicating strong recovery and growth prospects.

Balance Sheet

The debt-to-equity ratio stands at 1.57, indicating moderate leverage. Return on Equity improved significantly to 27.1% as the company returned to profitability. However, the equity ratio is relatively low at 21.6%, suggesting the company relies more on debt financing. Overall, while the balance sheet shows recovery, leverage remains a concern.

Cash Flow

There was a significant turnaround in free cash flow, from a negative position to a positive ¥291.8 million in 2024, indicating improved operational efficiency. The operating cash flow to net income ratio is healthy at 2.78, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 2.59, highlighting effective cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.03B	3.29B	2.78B	2.40B	1.76B	1.43B
Gross Profit	1.00B	1.07B	791.94M	436.46M	476.82M	340.58M
EBITDA	2.90M	142.01M	-118.86M	-169.74M	111.32M	32.59M
Net Income	-116.76M	112.51M	-280.16M	-209.02M	143.87M	46.40M
Balance Sheet
Total Assets	1.70B	1.92B	1.43B	1.50B	1.27B	599.44M
Cash, Cash Equivalents and Short-Term Investments	608.03M	740.03M	611.46M	847.45M	875.25M	254.21M
Total Debt	620.79M	650.36M	666.38M	568.33M	211.88M	227.26M
Total Liabilities	1.41B	1.51B	1.22B	1.02B	521.77M	488.57M
Stockholders Equity	291.58M	415.36M	172.91M	444.72M	751.85M	110.86M
Cash Flow
Free Cash Flow	0.00	291.78M	-156.97M	-282.18M	158.17M	-37.97M
Operating Cash Flow	0.00	312.70M	-121.69M	-251.89M	162.29M	-37.31M
Investing Cash Flow	0.00	-224.47M	-214.25M	19.80M	-8.79M	-655.00K
Financing Cash Flow	0.00	41.59M	104.27M	204.23M	467.51M	14.57M

GRCS, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1309.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1309 is below the 20-day moving average (MA) of 1316.10, below the 50-day MA of 1321.78, and below the 200-day MA of 1382.15, indicating a bearish trend. The MACD of -5.85 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, 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
4444	82 Outperform	¥2.31B	23.89		―	13.74%	-3.38%
3974	78 Outperform	¥2.10B	18.25		2.74%	-8.67%	-51.24%
3670	74 Outperform	¥2.34B	13.61		2.75%	-18.16%	-33.45%
4016	73 Outperform	¥1.74B	11.35		2.32%	5.61%	32.84%
9250	65 Neutral	¥1.77B	69.94		―	7.94%	―
6555	56 Neutral	¥1.83B	11.74		1.14%	7.71%	-328.34%
Sector *	50 Neutral	C$3.11B	2.54	-63.57%	2.26%	4.49%	-6.15%

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.