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Power Solutions Ltd. (4450) AI Stock Analysis

JP:4450

Power Solutions Ltd.

(TSE/TYO:4450)

Select Model
Rating:62Neutral
Price Target:JPY 2,333.00â–²(8.61% Upside)
Action:downgraded
Date:10/30/26

The score is primarily supported by solid financial performance (steady growth, stable margins, and improving leverage), but is weighed down by weak technical momentum (below key moving averages and very low RSI). Valuation is neutral, with a mid P/E and modest dividend yield providing limited upside support.

Positive Factors
Revenue growthConsistent multi-year revenue expansion, including a stronger 2025, indicates continued business growth rather than reliance on a single isolated period. Sustained top-line progress can support operating scale, fund investment, and strengthen the company’s earnings base over the next several quarters.
Negative Factors
Earnings-per-share declineThe sharp negative EPS growth rate signals that shareholder-level earnings have weakened despite the company’s broader revenue progress. If this persists, it could reduce internally generated capital, limit earnings momentum, and indicate that growth is not translating consistently into per-share value.

Power Solutions Ltd. (4450) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:4450+2.63%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 6.73B
Dividend Yield
1.19%
Average Volume (3M)
4,340
Price to Earnings (P/E)
23.3
Beta (1Y)
0.10
Revenue Growth
13.81%
EPS Growth
-31.77%
Country
Japan
Employees
481
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

Power Solutions Ltd. Business Overview & Revenue Model

Company Description

Established in 2002 and headquartered in Chiyoda, Japan, Power Solutions, Ltd. delivers a comprehensive suite of information technology services to corporate clients across Japan. The company's core offerings encompass strategic business consulting,...

Power Solutions Ltd. Financial Statement Overview

Summary

Financials are solid overall: revenue growth improved in 2025 and margins are generally stable, while leverage is moderate and improving (debt-to-equity down to ~0.17). The main offsets are volatility in net margin/ROE versus 2023 highs and an uneven cash-flow history despite a strong 2025 rebound to positive operating and free cash flow.

Income Statement

74Positive

Balance Sheet

81Very Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.65B8.10B6.75B5.93B5.31B3.80B
Gross Profit2.93B2.78B2.25B2.01B1.78B1.28B
EBITDA713.89M834.10M618.23M541.56M560.33M415.23M
Net Income288.01M388.09M327.49M446.51M318.29M253.56M
Balance Sheet
Total Assets6.89B6.54B5.72B4.94B3.42B2.82B
Cash, Cash Equivalents and Short-Term Investments2.05B2.06B1.53B1.84B1.34B991.96M
Total Debt732.71M602.74M704.91M850.00M00
Total Liabilities2.94B2.74B2.41B2.14B1.13B899.16M
Stockholders Equity3.70B3.57B3.17B2.79B2.29B1.92B
Cash Flow
Free Cash Flow01.08B-136.25M-99.67M427.15M364.76M
Operating Cash Flow01.10B-115.80M-78.91M430.81M372.33M
Investing Cash Flow0-304.26M61.87M-210.44M-78.90M-251.64M
Financing Cash Flow0-266.71M-252.54M782.82M1.03M-6.98M

Power Solutions Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2148.00

Price Trends

50DMA2336.90Negative
100DMA2189.45Negative
200DMA2203.63Negative

Market Momentum

MACD-16.59Positive
RSI23.75Positive
STOCH28.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4450, the sentiment is Negative. The current price of 2148.00 is below the 20-day moving average (MA) of 2357.95, below the 50-day MA of 2336.90, and below the 200-day MA of 2203.63, indicating a bearish trend. The MACD of -16.59 indicates Positive momentum. The RSI at 23.75 is Positive, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4450.

Power Solutions Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4450 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3940JP:394076OutperformJPY 5.98B16.08―2.77%-2.56%-7.81%
JP:7060JP:706070OutperformJPY 6.04B9.76―5.96%4.90%490.62%
JP:5576JP:557664NeutralJPY 7.12B10.29―3.82%20.58%41.21%
JP:4450JP:445062NeutralJPY 6.74B23.27―1.19%13.81%-31.77%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4056JP:405648NeutralJPY 3.13B-7.54――-6.88%-929.79%
JP:5026JP:502646NeutralJPY 4.64B46.12――0.14%―

* Technology Sector Average

Performance Comparison

-60%-40%-20%0%20%JP:4450JP:3940JP:4056JP:5026JP:5576JP:7060Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4450 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4450Power Solutions Ltd.2148.00-15.09-0.70%
JP:3940Nomura System Corporation Co., Ltd.128.00-0.77-0.60%
JP:4056Neural Group Inc.182.00-364.00-66.67%
JP:5026TRIPLEIZE CO. LTD.553.00-203.00-26.85%
JP:5576O.B.System Inc.3010.00345.6812.97%
JP:7060geechs inc.587.0023.134.10%
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.

Date of analysis: Oct 30, 2026