PCA Corporation (9629) AI Stock Analysis

• Market Cap: ¥36.83B
• Dividend Yield: 4.58%
• Average Volume (3M): 20.58K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.80
• Revenue Growth: 4.58%
• EPS Growth: -15.00%
• Country: JP
• Employees: 672
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 23.23
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,127.00 ▲(8.91% 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

Strong balance sheet

A very low debt-to-equity ratio and healthy equity ratio indicate limited leverage and strong solvency, giving the company durable financial flexibility to fund capex, R&D, or weather downturns. ROE near 9% shows consistent returns on equity capital versus peers.

Robust cash generation

High free cash flow conversion and stable operating cash flow underpin sustainable internal funding for growth, dividends, or buybacks. Strong cash conversion reduces reliance on external financing and supports long-term reinvestment and shareholder distributions.

Recent revenue & margins strength

A 74.6% recent revenue jump combined with ~63% gross margin and >10% net margin suggests durable demand and pricing power in core offerings. Healthy margins provide buffer to absorb cost shocks and support profitable scaling over the medium term.

Negative Factors

Declining EPS trend

Nearly 20% negative EPS growth indicates earnings per share deterioration despite revenue gains, which can stem from dilution, higher operating costs, or nonrecurring items. Persistent EPS decline would impair ability to increase shareholder returns and signal margin pressure.

Slight gross margin decline

A noted decline in gross profit margin implies rising input or production costs or intensifying competitive pricing. If structural, margin erosion can reduce free cash flow and restrict investment capacity, making profitability less resilient over the medium term.

Unclear core industry positioning

Conflicting descriptions—packaging and paper products versus 'software application industry'—create strategic clarity risk. Ambiguity in core business direction hampers benchmarking, capital allocation, and investor understanding, potentially affecting long-term competitive focus.

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 multiple key streams, primarily from the sales of its packaging products, including corrugated boxes and paperboard. The company also earns income from its flexible packaging solutions and other paper products. Additionally, PCA Corporation has established partnerships with major clients in various sectors, which help secure long-term contracts and consistent orders. The company's focus on sustainable practices and eco-friendly products has positioned it favorably in the market, attracting environmentally conscious customers and contributing to its overall earnings.

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: Positive
• Last Price: 1953.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1953 is below the 20-day moving average (MA) of 1957.55, above the 50-day MA of 1897.34, and above the 200-day MA of 1873.15, indicating a neutral trend. The MACD of 9.64 indicates Positive momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 39.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥41.43B	15.38	―	1.92%	20.81%	68.06%
3771	77 Outperform	¥31.75B	13.19	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥19.85B	17.21	―	3.14%	0.50%	-2.92%
3800	71 Outperform	¥14.18B	19.17	―	3.62%	0.85%	12.73%
4826	70 Outperform	¥31.15B	18.04	―	2.83%	4.51%	75.35%
9629	68 Neutral	¥36.83B	25.69	―	4.58%	4.58%	-15.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

PCA Corporation Corporate Events

PCA’s Nine-Month Profit Slips Despite Higher Sales, Dividend Hike on Track

PCA Corporation reported consolidated net sales of ¥12.76 billion for the first nine months of the fiscal year ending March 31, 2026, a 5.8% increase year on year, but saw operating profit fall 9.4% to ¥1.91 billion and profit attributable to owners of parent decline 15.1% to ¥1.23 billion, with earnings per share easing to ¥61.13. Despite the margin pressure and a year-on-year drop in comprehensive income, the company maintained a solid equity ratio of 55.4%, kept its full-year forecast unchanged with net sales expected to rise 8.0% and profits to edge down, and reaffirmed its plan to raise the full-year dividend to ¥95 per share, signaling confidence in its financial resilience while integrating two new consolidated entities into its group structure.

The most recent analyst rating on (JP:9629) stock is a Hold with a Yen2134.00 price target. To see the full list of analyst forecasts on PCA Corporation stock, see the JP:9629 Stock Forecast page.