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Power Solutions Ltd. (JP:4450)
:4450
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Power Solutions Ltd.
(4450)
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Rating:61Neutral
Price Target:
¥2,312.00
▼(-6.09% Downside)
Power Solutions Ltd. faces significant challenges in technical analysis and cash flow management, which weigh heavily on its overall score. While the company shows strong revenue growth and a solid equity position, the bearish market momentum and liquidity issues are key concerns. The valuation is reasonable, but the low dividend yield limits income potential.
Power Solutions Ltd. (4450) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.57B
Dividend Yield1.11%
Average Volume (3M)18.30K
Price to Earnings (P/E)15.7
Beta (1Y)0.24
Revenue Growth21.32%
EPS Growth6.83%
CountryJP
Employees379
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)36.42
Shares Outstanding3,101,466
10 Day Avg. Volume20,620
30 Day Avg. Volume18,303
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)1.04
Price to Sales (P/S)0.49
P/FCF Ratio-24.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Power Solutions Ltd. Business Overview & Revenue Model
Company DescriptionPower Solutions Ltd. (4450) is a leading provider of energy solutions, specializing in renewable energy technologies, energy storage systems, and smart grid solutions. The company operates primarily in the clean energy sector, focusing on solar, wind, and battery storage solutions designed for commercial, industrial, and residential applications. With a commitment to sustainability and innovation, Power Solutions Ltd. aims to enhance energy efficiency and reduce carbon footprints for its clients.
How the Company Makes MoneyPower Solutions Ltd. generates revenue through multiple streams, including the sale and installation of renewable energy systems such as solar panels and wind turbines. Additionally, the company earns income from energy storage solutions, offering batteries and related technologies to optimize energy usage. Service contracts for maintenance and monitoring of installed systems contribute to recurring revenue. Strategic partnerships with energy providers, government agencies, and other stakeholders enhance its market reach and provide access to funding for large-scale projects. Furthermore, Power Solutions Ltd. benefits from incentives and subsidies related to renewable energy initiatives, which bolster its profit margins.
Power Solutions Ltd. Financial Statement Overview
Summary
Power Solutions Ltd. demonstrates strong revenue growth and a solid equity foundation, supporting long-term stability. However, challenges include a declining net profit margin and negative cash flow, signaling a need for improved cash management.Income Statement
Power Solutions Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin is healthy at 33.4% for 2024, indicating efficient cost management. However, the net profit margin decreased to 4.8% in 2024, suggesting increased expenses or a decline in operational efficiency. The EBIT and EBITDA margins remain stable, reflecting consistent core profitability.85
Very Positive
Balance Sheet
The company's balance sheet shows a strong equity position, with an equity ratio of 55.5% for 2024, indicating financial stability and low reliance on debt. The debt-to-equity ratio remains low at 0.22, reflecting prudent financial management. However, the return on equity declined to 10.3% in 2024, suggesting reduced profitability relative to shareholder equity.78
Positive
Cash Flow
Power Solutions Ltd. faces challenges in cash flow management, with a negative free cash flow of -135 million in 2024. Although the operating cash flow has improved since 2023, it remains negative, indicating potential liquidity issues. The free cash flow to net income ratio is concerning, reflecting a disconnect between profitability and cash generation.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.60B | 6.75B | 5.93B | 5.31B | 3.80B | 2.68B |
| Gross Profit | 2.59B | 2.25B | 2.01B | 1.78B | 1.28B | 823.30M |
| EBITDA | 785.84M | 603.89M | 697.59M | 559.01M | 425.14M | 133.70M |
| Net Income | 402.12M | 327.49M | 446.00M | 318.29M | 253.56M | 69.92M |
Balance Sheet | ||||||
| Total Assets | 5.75B | 5.72B | 4.94B | 3.42B | 2.82B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.53B | 1.84B | 1.34B | 991.96M | 878.24M |
| Total Debt | 595.85M | 704.00M | 850.00M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.21B | 2.41B | 2.14B | 1.13B | 899.16M | 456.00M |
| Stockholders Equity | 3.39B | 3.17B | 2.79B | 2.29B | 1.92B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -136.25M | -99.00M | 427.15M | 320.76M | -70.05M |
| Operating Cash Flow | 0.00 | -115.80M | -78.00M | 430.81M | 372.33M | -33.74M |
| Investing Cash Flow | 0.00 | 61.87M | -210.44M | -78.90M | -251.64M | -225.79M |
| Financing Cash Flow | 0.00 | -252.54M | 782.82M | 1.03M | -6.98M | -44.90M |
Power Solutions Ltd. Technical Analysis
Neutral
2462.00
Price Trends
2270.76
Negative
1973.52
Positive
1640.79
Positive
Market Momentum
5.09
Positive
30.67
Neutral
1.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4450, the sentiment is Neutral. The current price of 2462 is below the 20-day moving average (MA) of 2470.05, above the 50-day MA of 2270.76, and above the 200-day MA of 1640.79, indicating a neutral trend. The MACD of 5.09 indicates Positive momentum. The RSI at 30.67 is Neutral, neither overbought nor oversold. The STOCH value of 1.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4450.
Power Solutions Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥4.51B | 9.71 | ― | 3.99% | 3.21% | 22.41% | |
66 Neutral | ¥3.27B | 32.99 | ― | ― | 17.03% | 644.34% | |
63 Neutral | ¥4.08B | 18.57 | ― | 3.27% | 2.04% | -3.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥6.57B | 15.65 | ― | 1.11% | 21.32% | 6.83% | |
57 Neutral | ¥3.84B | 1,108.32 | ― | ― | -0.93% | -97.16% | |
41 Neutral | ¥10.54B | -1.40 | ― | ― | -34.51% | 52.07% |
* Technology Sector Average
JP:4450
Power Solutions Ltd.
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44.00%
JP:4416
True Data Inc.
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Monstarlab Holdings Inc.
162.00
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47.27%
JP:7120
SHINKO Inc.
810.00
181.20
28.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.