Vector HOLDINGS Inc. (2656) AI Stock Analysis

• Market Cap: ¥3.08B
• Dividend Yield: N/A
• Average Volume (3M): 513.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 19.56%
• EPS Growth: 22.64%
• Country: JP
• Employees: 41
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -8.09
• Shares Outstanding: 23,807,000
• 10 Day Avg. Volume: 175,940
• 30 Day Avg. Volume: 513,070
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥125.00
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Neutral
• Price Target: ¥125.00 ▼(-3.85% Downside)

The overall score is primarily driven by significant financial challenges, including declining revenues and persistent losses, which are the most impactful factors. Technical analysis suggests a bearish trend with some potential for reversal, while valuation metrics are unattractive due to negative earnings and lack of dividends.

Vector HOLDINGS Inc. Business Overview & Revenue Model

Company Description

Vector HOLDINGS Inc. engages in the sale of software solutions in Japan. It is also involved in sale of website advertisement; and operation of smartphone-only point mall under the Quickpoint and PayPay Points brand names. The company also operates VectorSign, an electronic signature service. Vector HOLDINGS Inc. was founded in 1989 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Vector HOLDINGS Inc. generates revenue through multiple streams, primarily from its technology and digital solutions offerings. The company earns income by providing software development services, IT consulting, and managed services to a diverse range of clients. Additionally, it engages in the sale of proprietary software products and platforms, often on a subscription basis, contributing to a steady stream of recurring revenue. Strategic partnerships and collaborations with other technology firms and enterprises play a significant role in expanding its market reach and client base. Furthermore, the company benefits from licensing agreements and intellectual property rights, which enhance its revenue potential. Through these varied revenue streams, Vector HOLDINGS Inc. maintains a robust financial standing in the competitive technology sector.

Vector HOLDINGS Inc. Financial Statement Overview

Summary

Vector HOLDINGS Inc. is facing significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the balance sheet shows a strong equity position, the negative profitability and cash flow trends raise concerns about the company's ability to sustain operations without strategic changes or external support.

Income Statement

Vector HOLDINGS Inc. has experienced a significant decline in revenue and profitability over the past few years. The gross profit margin has decreased, and the company has been operating at a net loss for several years, with a worsening net profit margin. Revenue growth has been negative, indicating a challenging business environment or operational inefficiencies. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a relatively strong equity position with a high equity ratio, indicating a low reliance on debt. However, the return on equity is negative due to consistent net losses, which is a concern for investors. The debt-to-equity ratio is low, suggesting limited financial leverage, which can be a positive aspect in volatile markets.

Cash Flow

Vector HOLDINGS Inc. has been experiencing negative operating and free cash flows, indicating cash flow challenges. The operating cash flow to net income ratio is negative, reflecting cash flow inefficiencies. Despite some positive financing cash flows, the overall cash flow position remains weak, posing liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.47M	162.10M	158.78M	246.16M	365.33M	867.40M
Gross Profit	127.59M	128.36M	124.38M	176.10M	130.76M	529.27M
EBITDA	-780.37M	-767.99M	-880.45M	-350.55M	-210.41M	108.71M
Net Income	-780.04M	-779.82M	-894.97M	-435.87M	-345.35M	-59.72M
Balance Sheet
Total Assets	353.42M	353.42M	1.09B	807.18M	976.95M	1.36B
Cash, Cash Equivalents and Short-Term Investments	80.39M	80.39M	19.66M	521.70M	783.61M	862.08M
Total Debt	3.47M	3.47M	4.32M	0.00	0.00	0.00
Total Liabilities	116.23M	116.23M	170.66M	200.48M	283.08M	318.55M
Stockholders Equity	237.18M	237.18M	917.12M	606.70M	693.87M	1.04B
Cash Flow
Free Cash Flow	0.00	-189.51M	-1.27B	-480.48M	-178.47M	83.64M
Operating Cash Flow	0.00	-187.58M	-1.21B	-428.27M	-173.88M	91.26M
Investing Cash Flow	0.00	157.06M	-432.34M	-182.34M	95.41M	-7.75M
Financing Cash Flow	0.00	91.24M	1.14B	348.69M	0.00	0.00

Vector HOLDINGS Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2656, the sentiment is Neutral. The current price of 130 is below the 20-day moving average (MA) of 144.00, below the 50-day MA of 134.48, and above the 200-day MA of 107.27, indicating a neutral trend. The MACD of -1.61 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2656.

Vector HOLDINGS Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4196	73 Outperform	3.63B	49.01	18.20%	―	1.64%	-65.79%
6543	71 Outperform	4.73B	16.98	7.24%	3.39%	3.33%	2.13%
9258	61 Neutral	2.88B	-22.46	-0.41%	―	16.96%	-458.26%
7069	60 Neutral	3.27B	24.97	-554.49%	―	-5.87%	0.00%
6177	44 Neutral	3.79B	-12.74	0.00%	―	180.74%	52.41%
2656	40 Neutral	¥3.08B	―		―	19.56%	22.64%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%