GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.84B
• Dividend Yield: N/A
• Average Volume (3M): 5.80K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.40
• Revenue Growth: 7.48%
• EPS Growth: 99.40%
• Country: JP
• Employees: 213
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): -32.83
• Shares Outstanding: 1,380,130
• 10 Day Avg. Volume: 1,750
• 30 Day Avg. Volume: 5,796
• PEG Ratio: -0.12
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.00
• 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

• Rating: 70 Outperform
• Price Target: ¥1,454.00 ▲(6.91%Upside)

The overall score reflects a strong financial performance with a robust recovery trajectory, although some caution is warranted due to leverage. The technical analysis presents a stable short-term outlook, but valuation concerns arise due to the negative P/E ratio. The absence of dividend yield also affects the valuation score.

GRCS, Inc. Business Overview & Revenue Model

Company Description

GRCS, Inc. (9250) is a company specializing in providing governance, risk management, and compliance services. The company operates primarily in the sectors of corporate compliance and risk management, offering a range of products and services designed to help organizations effectively manage risk and adhere to regulatory requirements. GRCS, Inc. aims to support businesses in maintaining operational integrity and ensuring regulatory compliance through its comprehensive solutions.

How the Company Makes Money

GRCS, Inc. generates revenue through the sale of its governance, risk management, and compliance solutions. The company's key revenue streams include subscription fees for its software platforms, consulting services to help organizations implement compliance programs, and training services to educate clients on best practices in risk management. GRCS, Inc. may also partner with other technology firms to enhance its offerings and expand its customer base, further contributing to its revenue growth.

GRCS, Inc. Financial Statement Overview

Summary

GRCS, Inc. demonstrates strong financial recovery and growth, characterized by significant improvements in revenue and profitability. The balance sheet is stable, although leverage remains a point of caution. Cash flow management is robust, with strong free cash flow generation.

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
	EBIT
11.26M	44.16M	-145.54M	-187.53M	123.16M	26.76M
	EBITDA
2.90M	142.01M	-118.86M	-169.74M	111.32M	32.59M
	Net Income Common Stockholders
-116.76M	112.51M	-280.16M	-209.02M	143.87M	46.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
515.30M	740.03M	611.46M	847.45M	875.25M	254.21M
	Total Assets
1.73B	1.92B	1.43B	1.50B	1.27B	599.44M
	Total Debt
675.25M	650.36M	666.38M	568.33M	211.88M	227.26M
	Net Debt
159.95M	-89.68M	54.92M	-279.12M	-663.37M	-26.95M
	Total Liabilities
1.50B	1.51B	1.22B	1.02B	521.77M	488.57M
	Stockholders Equity
226.02M	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: 1360.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1360 is above the 20-day moving average (MA) of 1305.50, above the 50-day MA of 1312.60, and below the 200-day MA of 1396.15, indicating a neutral trend. The MACD of 9.61 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 81.70 is Negative, 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
4016	79 Outperform	¥1.79B	11.17		2.25%	8.32%	62.04%
3974	76 Outperform	¥1.80B	12.86		3.43%	-7.98%	-43.43%
4444	75 Outperform	¥2.10B	21.82		―	13.74%	-3.35%
9250	70 Outperform	¥1.84B	16.01		―	7.48%	99.40%
3670	67 Neutral	¥1.88B	10.96		3.50%	-18.16%	-33.45%
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
6555	53 Neutral	¥1.79B	11.74		1.14%	6.73%	-334.24%

GRCS, Inc. Corporate Events

GRCS Inc. Reports Decline in Q1 2025 Financial Results

GRCS Inc. reported a decline in its financial performance for the three months ending February 28, 2025, with net sales decreasing by 10.2% compared to the previous year. The company experienced operating and ordinary losses, reflecting challenges in maintaining profitability. Despite this, GRCS Inc. maintains its forecast for the fiscal year ending November 30, 2025, with expectations of a 20.2% increase in net sales, indicating a positive outlook for the remainder of the year.