GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.65K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.39
• 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: 1,300
• 30 Day Avg. Volume: 1,650
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6,199.38
• Revenue Forecast (FY): ¥649.84B

• Rating: 63 Neutral
• Price Target: ¥1,095.00 ▼(-6.73% Downside)

GRCS, Inc. has a strong financial foundation with notable improvements in revenue and profitability, which is the most significant factor in its overall score. However, the technical analysis indicates bearish momentum, and the valuation is moderate, which together weigh down the overall score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The consistent revenue growth highlights the company's ability to expand its market presence and effectively monetize its services, ensuring sustained business development.

Cash Flow Management

Robust cash flow management and significant free cash flow growth indicate strong operational efficiency and financial health, supporting future investments and debt management.

Operational Efficiency

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning in the long term.

Negative Factors

High Debt Levels

While the company shows strong returns, the moderate leverage suggests potential financial risk if debt levels are not managed effectively, impacting long-term stability.

Equity Ratio

A relatively low equity ratio could limit financial flexibility and increase vulnerability to economic downturns, affecting long-term resilience.

Net Profit Margin

Although improved, the net profit margin remains low, which may challenge the company's ability to generate sufficient profits for reinvestment and growth.

GRCS, Inc. Business Overview & Revenue Model

Company Description

GRCS, Inc. (9250) is a dynamic company specializing in providing innovative solutions in the field of risk management and compliance services. Operating primarily within the financial services and corporate governance sectors, GRCS offers a suite of products that include risk assessment tools, compliance software, and advisory services aimed at helping organizations navigate complex regulatory environments. The company's commitment to leveraging technology and data analytics positions it as a leader in enhancing operational efficiencies and ensuring robust compliance frameworks for its clients.

How the Company Makes Money

GRCS, Inc. generates revenue through multiple streams, primarily by selling subscription-based software services and consulting packages. The company's core revenue comes from licensing its risk management and compliance software to businesses across various industries, which provides a steady income flow. Additionally, GRCS earns money through consulting services that help clients implement and optimize their risk management strategies. Strategic partnerships with regulatory bodies and industry organizations enhance its credibility and client acquisition, further contributing to its earnings. The company's focus on recurring revenue through software subscriptions fosters long-term relationships with clients, ensuring consistent revenue growth.

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: Negative
• RSI: Positive
• 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 1174 is above the 20-day moving average (MA) of 1003.15, above the 50-day MA of 1118.16, and below the 200-day MA of 1278.14, indicating a bearish trend. The MACD of -39.02 indicates Negative momentum. The RSI at 26.04 is Positive, neither overbought nor oversold. The STOCH value of 8.71 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
3670	65 Neutral	¥2.31B	8.09	―	2.85%	-9.03%	53.70%
9250	63 Neutral	¥1.31B	21.62	―	―	5.17%	―
4016	63 Neutral	¥2.06B	12.95	―	3.09%	2.07%	11.34%
3974	62 Neutral	¥2.68B	13.63	―	2.47%	0.40%	21.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4444	56 Neutral	¥1.79B	-33.83	―	―	5.17%	-148.66%
6555	46 Neutral	¥1.92B	-8.34	―	―	8.27%	-295.89%

GRCS, Inc. Corporate Events

GRCS Inc. Reports Financial Challenges Amid Slight Sales Growth

GRCS Inc. reported its consolidated financial results for the nine months ending August 31, 2025, showing a slight increase in net sales by 1.6% compared to the previous year. However, the company faced challenges with operating and ordinary profits, both of which were negative, indicating financial difficulties. The equity-to-asset ratio decreased from 20.4% to 15.7%, reflecting a weaker financial position. The company has revised its earnings forecasts for the fiscal year ending November 30, 2025, suggesting ongoing adjustments to its financial strategy.