GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): 70.8
• Beta (1Y): 0.48
• Revenue Growth: 7.94%
• EPS Growth: N/A
• Country: JP
• Employees: 213
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -29.68
• Shares Outstanding: 1,380,130
• 10 Day Avg. Volume: 960
• 30 Day Avg. Volume: 1,673
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,418.00
• Price Target Upside: 7.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,418.00 ▲(7.02% Upside)

GRCS, Inc. demonstrates strong financial performance with robust revenue growth and cash flow management, which are the primary strengths. However, the high P/E ratio indicates a potentially overvalued stock, and technical indicators suggest weak momentum. The absence of a dividend yield also affects the overall attractiveness.

GRCS, Inc. Business Overview & Revenue Model

Company Description

GRCS Inc. engages in the provision of Governance, Risk, and Compliance (GRC) software, as well as security products in Japan and internationally. It offers Enterprise Risk MT, an ERM tool, provides company-wide risk management based on multiple uses; Supplier Risk MT, a cloud application to help centrally manage, visualize, and communicate security risks related to outsourcers; and OneTrust, a data privacy solution, used for centralization, visualization, and automation of personal information data for privacy operations, GRC, and data governance. The company's security products include CSIRT MT.mss, a cloud service for realizing CSIRT incident response, vulnerability response, evaluation, and improvement within companies and organizations; Vulnerability TODAY, an email delivery service to collects, analyze, and organize daily vulnerability information; and Netskope, a visualize cloud service usage from within customer's company and control access. It also provides HENNGE ONE, a SaaS authentication infrastructure, that provides secure access to cloud services, single sign-on functionality, etc.; HP Sure Click Enterprise, an endpoint protection with internet separation and web separation as an app; and SecureCube Access Check, a Gateway-type privileged ID management solution, used for operating servers securely. In addition, the company offers Imperva App Protect, cloud based WAF and DDoS countermeasures/operation service; Internal Risk Intelligence, an internal threat detection solution, that ensures business safety with internal threat detection detect suspicious activity from all internal company logs; and Privilege Management for Windows, an access management solution to manage and control the privileges of devices. Further, it is involved in information technology consulting, design, development, and implementation activities. GRCS Inc. was incorporated in 2005 and is headquartered in Tokyo, Japan.

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 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	3.20B	3.29B	2.78B	2.40B	1.76B	1.43B
Gross Profit	821.03M	1.07B	791.94M	436.46M	476.82M	340.58M
EBITDA	24.04M	142.01M	-118.86M	-169.74M	111.32M	32.59M
Net Income	1.47M	112.51M	-280.16M	-209.02M	143.87M	46.40M
Balance Sheet
Total Assets	1.72B	1.92B	1.43B	1.50B	1.27B	599.44M
Cash, Cash Equivalents and Short-Term Investments	448.47M	740.03M	611.46M	847.45M	875.25M	254.21M
Total Debt	727.39M	650.36M	666.38M	568.33M	211.88M	227.26M
Total Liabilities	1.35B	1.51B	1.22B	1.02B	521.77M	488.57M
Stockholders Equity	378.17M	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: Positive
• Last Price: 1325.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9250, the sentiment is Positive. The current price of 1325 is below the 20-day moving average (MA) of 1325.95, above the 50-day MA of 1319.42, and below the 200-day MA of 1357.22, indicating a neutral trend. The MACD of -2.11 indicates Positive momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	16.14	5.15%	2.07%	-2.87%	4.31%
4016	72 Outperform	¥2.58B	16.81	18.77%	1.56%	5.61%	32.84%
4444	69 Neutral	¥2.35B	90.19	8.47%	―	11.07%	-73.08%
3670	67 Neutral	¥2.53B	10.99	8.11%	2.60%	-17.18%	-11.43%
9250	64 Neutral	¥1.79B	70.80	―	―	7.94%	―
6555	49 Neutral	¥1.87B	-6.76	-9.38%	―	7.71%	-328.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.