ULS Group (3798) AI Stock Analysis

• Market Cap: ¥47.11B
• Dividend Yield: 7.86%
• Average Volume (3M): 152.41K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.81
• Revenue Growth: 30.41%
• EPS Growth: 41.74%
• Country: JP
• Employees: 672
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 10.59
• Shares Outstanding: 63,804,000
• 10 Day Avg. Volume: 121,410
• 30 Day Avg. Volume: 152,413
• PEG Ratio: 0.38
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 18.59
• 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: 79 Outperform
• Price Target: ―

ULS Group's solid financial performance is a key strength, driven by growth in revenue and profitability, complemented by a debt-free balance sheet. The technical analysis indicates positive momentum, though the stock is close to a resistance level. Valuation is fair, with a reasonable P/E ratio and modest dividend yield. The absence of recent cash flow data and earnings call information limits the assessment but doesn't detract significantly from the company's overall robust position.

ULS Group Business Overview & Revenue Model

Company Description

ULS Group (3798) is a Japanese company that operates in the IT services sector, providing a range of technology solutions, including system integration, consulting, and software development services. The company primarily focuses on delivering cutting-edge IT solutions to businesses across various industries, leveraging advanced technologies to enhance operational efficiency and drive digital transformation.

How the Company Makes Money

ULS Group generates revenue through multiple streams, primarily from its IT services and solutions offerings. The company earns money by providing system integration services, which involve designing and implementing complex IT systems tailored to client needs. Consulting services also contribute to revenue, where ULS Group offers strategic advice and expertise to assist businesses in optimizing their IT infrastructure. Additionally, the company develops custom software applications for clients, further contributing to its income. Significant partnerships with technology providers and enterprise clients bolster its revenue, enabling ULS Group to access a broader market and offer comprehensive solutions.

ULS Group Financial Statement Overview

Summary

ULS Group demonstrates strong financial health and growth, particularly in revenue and profitability margins. The company benefits from a debt-free balance sheet and high equity ratio, providing stability and flexibility. While the income statement and balance sheet are robust, the lack of recent cash flow data could pose a risk for cash management evaluation.

Income Statement

The company has shown robust revenue growth, with a 19% increase from the previous year. The Gross Profit Margin stands at 39% and Net Profit Margin at 12.8% for TTM, indicating efficient cost management. The EBIT and EBITDA margins are healthy at 20.1% and 20.8%, respectively, showcasing strong operational performance. However, there is a slight decline in Net Income as a percentage of revenue compared to previous years.

Balance Sheet

The Balance Sheet is strong with no debt, resulting in a Debt-to-Equity Ratio of 0. The company has a high Equity Ratio of 81% for TTM, indicating a solid financial structure. Return on Equity is impressive at 16.1%, underscoring a high return on shareholder investment. The significant cash reserves further enhance financial stability.

Cash Flow

Cash Flow analysis is limited due to unavailable data for the TTM period. Historically, the company has maintained a positive Free Cash Flow, but the growth rate cannot be assessed. The Operating Cash Flow to Net Income Ratio has been strong in prior years, suggesting efficient cash management. However, the lack of recent data presents a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.16B	13.20B	10.38B	8.52B	7.37B	7.19B
Gross Profit	5.68B	5.32B	3.86B	3.36B	2.93B	2.56B
EBITDA	2.89B	2.73B	1.85B	1.99B	1.66B	1.47B
Net Income	1.75B	1.64B	1.13B	1.23B	998.56M	891.98M
Balance Sheet
Total Assets	12.84B	13.57B	11.01B	9.56B	8.78B	8.00B
Cash, Cash Equivalents and Short-Term Investments	8.02B	7.14B	6.02B	5.60B	5.47B	5.16B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.07B	3.09B	2.17B	1.79B	1.58B	1.67B
Stockholders Equity	10.47B	10.18B	8.60B	7.57B	7.02B	6.18B
Cash Flow
Free Cash Flow	0.00	1.50B	692.00M	684.67M	508.33M	1.01B
Operating Cash Flow	0.00	1.59B	756.00M	837.24M	568.39M	1.06B
Investing Cash Flow	0.00	-222.00M	-98.00M	45.11M	-85.85M	942.00K
Financing Cash Flow	0.00	-249.00M	-239.00M	-752.42M	-169.67M	-321.10M

ULS Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 780.00
• 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:3798, the sentiment is Negative. The current price of 780 is above the 20-day moving average (MA) of 778.20, above the 50-day MA of 768.58, and above the 200-day MA of 613.77, indicating a neutral trend. The MACD of -6.53 indicates Positive momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 10.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3798.

ULS Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3798	―	¥47.11B	23.45	18.45%	7.86%	30.41%	41.74%
4725	―	¥35.68B	10.86	10.08%	4.73%	-3.66%	31.12%
9600	―	¥38.40B	16.01	―	2.26%	6.33%	37.17%
4709	―	¥34.39B	14.52	―	2.93%	12.33%	48.96%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	―	¥33.46B	31.40	―	2.69%	-2.93%	-30.16%
4813	―	¥22.20B	―	―	―	0.37%	-414.70%