Gmo Prime Strategy Co Ltd

Gmo Prime Strategy Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥135.31 billion, significantly exceeding its total liabilities of ¥23.05 billion, resulting in a current ratio of 9.24. The company's price-to-book ratio of 3.31 and price-to-tangible-book ratio of 3.31 suggest that the market is valuing the company's equity at a premium relative to its book value. The enterprise value to EBITDA ratio of 59.05 and enterprise value to revenue ratio of 14.68 indicate a relatively high valuation compared to its earnings and revenue.

In terms of profitability, the company's return on equity (ROE) of 2.94% and return on assets (ROA) of 2.5% are below the industry median for IT Services & Consulting, suggesting that the company is not generating returns as efficiently as its peers. The operating margin of 24.8% (calculated from operating income of ¥52.53 billion on revenue of ¥211.298 billion) is also below the industry median, indicating that the company's cost structure may be less efficient compared to its competitors.

The company's revenue is concentrated in a single business segment, IT Services, with no disclosed geographic diversification in the provided data. This lack of diversification may expose the company to higher operational and market risks if demand for IT services declines in its primary markets. The company's capital expenditures of -¥7.61 million suggest that it is not investing in new physical assets, which may indicate a focus on maintaining existing operations rather than expanding.

Looking ahead, the company's revenue is expected to remain stable, with no significant growth or decline projected in the current or next fiscal year. The company's operating cash flow of ¥65.59 billion supports its liquidity position and provides flexibility for future investments or dividends. The company's risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's debt-to-equity ratio of 0.08 suggests a conservative capital structure with minimal reliance on debt financing.

Recent financial filings and transcripts do not indicate any material changes in the company's operations or strategic direction. The company's last actual EPS of ¥30.68 and revenue of ¥887.04 million align with its reported financial performance, suggesting consistency in its earnings and revenue generation. The company's market price of ¥1,236 and market cap of ¥43.49 billion reflect investor sentiment and expectations for future performance.

Cash conversion ratio of 1.7 is above the cohort median of 1.0, demonstrating strong cash generation efficiency.

Debt-to-equity ratio of 0.08 is lower than the cohort median of 0.12, reflecting a conservative capital structure.

The company faces low dilution, liquidity, and credit risks according to the provided risk flag assessments.

Capex to revenue ratio of -3.6% is below the cohort median of -2.2%, potentially indicating underinvestment.

Revenue ¥232.9M, +4,1% YoY; Operating income −9,9% YoY.

• ▍Revenue ¥232.9M, +4,1% YoY
• ▍Operating income −9,9% YoY
• ▍Net income −3,4% YoY
• ▍Net margin 11.9%

Revenue ¥245.3M, +9,3% YoY; Operating income −27,7% YoY.

• ▍Revenue ¥245.3M, +9,3% YoY
• ▍Operating income −27,7% YoY
• ▍Net income −13,5% YoY
• ▍Net margin 14.3%

Revenue ¥209.1M, −2,8% YoY; Operating income −42,2% YoY.

• ▍Revenue ¥209.1M, −2,8% YoY
• ▍Operating income −42,2% YoY
• ▍Net income −41,8% YoY
• ▍Net margin 11.5%

Revenue ¥208.9M, −1,1% YoY; Operating income −46,4% YoY.

• ▍Revenue ¥208.9M, −1,1% YoY
• ▍Operating income −46,4% YoY
• ▍Net income −48,6% YoY
• ▍Net margin 9.5%

Revenue ¥223.7M; Operating income ¥40.7M.

• ▍Revenue ¥223.7M
• ▍Operating income ¥40.7M
• ▍Net margin 12.8%

Revenue ¥224.4M; Operating income ¥56.8M.

• ▍Revenue ¥224.4M
• ▍Operating income ¥56.8M
• ▍Net margin 18.1%

Revenue ¥215.0M; Operating income ¥58.2M.

• ▍Revenue ¥215.0M
• ▍Operating income ¥58.2M
• ▍Net margin 19.2%

Revenue ¥211.3M; Operating income ¥52.5M.

• ▍Revenue ¥211.3M
• ▍Operating income ¥52.5M
• ▍Net margin 18.3%

Revenue ¥887.0M, +3,5% YoY; Operating income −32,4% YoY.

• ▍Revenue ¥887.0M, +3,5% YoY
• ▍Operating income −32,4% YoY
• ▍Net income −29,1% YoY
• ▍Free cash flow −69,2% YoY
• ▍Net margin 12.1%

Revenue ¥857.2M, −2,3% YoY; Operating income −26,9% YoY.

• ▍Revenue ¥857.2M, −2,3% YoY
• ▍Operating income −26,9% YoY
• ▍Net income −18,1% YoY
• ▍Free cash flow −57,0% YoY
• ▍Net margin 17.7%

Revenue ¥877.2M, +13,8% YoY; Operating income −2,0% YoY.

• ▍Revenue ¥877.2M, +13,8% YoY
• ▍Operating income −2,0% YoY
• ▍Net income −6,2% YoY
• ▍Free cash flow −3,1% YoY
• ▍Net margin 21.1%