PCA Corporation (9629) AI Stock Analysis

• Market Cap: ¥33.73B
• Dividend Yield: 4.92%
• Average Volume (3M): 20.58K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.89
• Revenue Growth: 4.58%
• EPS Growth: -15.00%
• Country: JP
• Employees: 672
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 20.52
• Shares Outstanding: 22,000,000
• 10 Day Avg. Volume: 19,110
• 30 Day Avg. Volume: 20,576
• PEG Ratio: 2.40
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 13.18
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,940.00 ▲(9.67% Upside)

PCA Corporation's strong financial performance is the most significant factor, with robust revenue growth and solid profitability. However, technical indicators suggest bearish momentum, which could pose short-term risks. The valuation is reasonable with an attractive dividend yield, providing a balance between growth and income potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for PCA's products and services, supporting long-term business expansion and market presence.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Cash Flow Generation

Effective cash flow generation ensures PCA can sustain operations, invest in growth opportunities, and return value to shareholders over the long term.

Negative Factors

Decline in Gross Profit Margin

A declining gross profit margin may signal rising costs or increased competition, potentially impacting profitability if not addressed.

EPS Growth Decline

Negative EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and limit future investment capacity.

Industry Classification

Operating in the software application industry may misalign with PCA's core business of packaging solutions, potentially confusing market positioning.

PCA Corporation Business Overview & Revenue Model

Company Description

PCA Corporation develops and sells computer software in Japan. The company offers accounting solutions for bill management option, consolidated settlement option, data linkage option, workflow, payment management, cost management, cost management for construction industry, international trading, and consolidated accounting. It also provides HR management solutions used for time clock, shift management, attendance management workflow, payment statement electronic distribution, social insurance and labor insurance management, payment record, daily payroll, and business form design. In addition, the company offers sales/purchasing software solutions for order entry simultaneous entry option, sales/purchase simultaneous entry option, convenience store receiving agent option, data linkage option, specified slip issuance, POS cash register, sales force automation, customer management, handy terminal, EDI, and business form design. It primarily serves small and medium-sized enterprises. The company was founded in 1980 and is headquartered in Tokyo, Japan.

How the Company Makes Money

PCA Corporation generates revenue through the sale of its diverse range of packaging products, which includes corrugated boxes, paperboard packaging, and specialty containers. The company's revenue model is primarily based on direct sales to businesses across various industries, including retail, logistics, and food service. Key revenue streams include bulk orders for corrugated boxes and custom packaging design services. Additionally, PCA Corporation benefits from long-term contracts and strong partnerships with major retailers and manufacturers, which provide a stable and recurring source of income. The company's focus on sustainability and innovation also positions it favorably in the market, attracting clients who prioritize eco-friendly packaging solutions, thereby enhancing its earnings potential.

PCA Corporation Financial Statement Overview

Summary

PCA Corporation is in a strong financial position with robust revenue growth, solid profitability, and a stable balance sheet. The company effectively manages its cash flows, supporting its growth trajectory. While there are minor concerns regarding the slight decline in gross profit margin, the overall financial health remains strong, positioning PCA Corporation well for future opportunities in the software application industry.

Income Statement

PCA Corporation has demonstrated strong revenue growth, particularly in the most recent year with a 74.6% increase, indicating robust demand for its software applications. The company maintains healthy profitability with a consistent gross profit margin around 63% and a net profit margin over 10%. However, there is a slight decline in gross profit margin compared to previous years, which could indicate rising costs or competitive pressures.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is solid at around 9%, reflecting efficient use of equity capital. The equity ratio is healthy, suggesting a stable financial structure with a significant portion of assets funded by equity.

Cash Flow

PCA Corporation shows strong cash flow generation with a high free cash flow to net income ratio, indicating effective conversion of earnings into cash. The free cash flow growth rate is impressive, although the most recent year shows an infinite growth due to a low base effect. The operating cash flow to net income ratio is stable, supporting the company's ability to sustain operations and invest in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.33B	16.24B	15.02B	12.98B	13.38B	13.31B
Gross Profit	10.12B	10.23B	9.64B	8.05B	8.81B	8.00B
EBITDA	2.79B	2.91B	2.52B	1.46B	2.82B	2.48B
Net Income	1.63B	1.74B	1.61B	883.12M	2.37B	1.67B
Balance Sheet
Total Assets	32.10B	34.97B	33.56B	30.61B	28.38B	25.38B
Cash, Cash Equivalents and Short-Term Investments	19.02B	21.84B	21.03B	18.42B	16.09B	12.05B
Total Debt	15.00M	16.00M	1.46M	3.96M	114.92M	0.00
Total Liabilities	14.37B	15.69B	14.59B	12.82B	11.10B	9.38B
Stockholders Equity	17.68B	19.17B	18.82B	17.57B	17.08B	15.83B
Cash Flow
Free Cash Flow	0.00	2.67B	3.23B	2.53B	3.37B	1.49B
Operating Cash Flow	0.00	2.85B	3.46B	2.64B	3.68B	1.63B
Investing Cash Flow	0.00	-265.00M	112.87M	-308.48M	708.28M	253.26M
Financing Cash Flow	0.00	-1.69B	-457.41M	-606.13M	-254.20M	-355.87M

PCA Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1769.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9629, the sentiment is Negative. The current price of 1769 is below the 20-day moving average (MA) of 1793.90, below the 50-day MA of 1884.18, and below the 200-day MA of 1846.16, indicating a bearish trend. The MACD of -23.18 indicates Negative momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9629.

PCA Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥42.51B	17.05	―	2.11%	20.81%	68.06%
3771	77 Outperform	¥32.72B	13.42	―	2.71%	11.53%	23.23%
3835	74 Outperform	¥19.85B	16.84	―	3.10%	0.50%	-2.92%
4826	70 Outperform	¥35.03B	19.55	―	2.94%	4.51%	75.35%
3800	68 Neutral	¥13.92B	18.80	―	3.65%	0.85%	12.73%
9629	68 Neutral	¥33.73B	22.56	―	4.92%	4.58%	-15.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

PCA Corporation Corporate Events

PCA Corporation Reports Semi-Annual Financial Results with Revised Forecast

PCA Corporation reported its semi-annual financial results for the fiscal year ending March 31, 2026, showing a 4.2% increase in net sales compared to the previous year. However, there was a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite revenue growth. The company also announced revisions to its financial forecast for the full year, reflecting adjustments in expected profits and earnings per share.

The most recent analyst rating on (JP:9629) stock is a Buy with a Yen2271.00 price target. To see the full list of analyst forecasts on PCA Corporation stock, see the JP:9629 Stock Forecast page.

PCA Corporation Revises Financial Forecast but Maintains Dividend Commitment

PCA Corporation has revised its financial forecast for the fiscal year ending March 31, 2026, due to lower-than-expected new subscriptions in its subscription and maintenance businesses. Despite the downward revision, the company is committed to maintaining its dividend forecast, reflecting its focus on shareholder value and long-term business stability.

The most recent analyst rating on (JP:9629) stock is a Buy with a Yen2271.00 price target. To see the full list of analyst forecasts on PCA Corporation stock, see the JP:9629 Stock Forecast page.

PCA Corporation Reports Q1 Financial Results with Mixed Performance

PCA Corporation has announced the completion of an interim review of its consolidated financial statements for the first quarter of the fiscal year ending March 31, 2026. The results show a slight increase in net sales by 2.4% compared to the previous year, but a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating potential challenges in maintaining profitability. The company’s equity ratio remains stable, and there are no changes to the previously announced financial forecasts or dividend plans.