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Prodelight Co.,Ltd. (5580) AI Stock Analysis

JP:5580

Prodelight Co.,Ltd.

(TSE/TYO:5580)

Select Model
Rating:57Neutral
Price Target:JPY 1,686.00▲(0.78% Upside)
Action:reiterated
Date:10/16/26

The overall score of 57 reflects a high-growth company with significant profitability challenges. The primary strength is the company's exceptional revenue growth, which is supported by a healthy, low-debt balance sheet. However, this is heavily offset by the core weakness of deteriorating margins and a recent net loss, which makes the high P/E valuation difficult to justify. Technicals are neutral-to-positive but do not outweigh the fundamental concerns.

Positive Factors
Accelerating Revenue GrowthRevenue growth accelerated materially across 2024–2026, indicating strong demand momentum and expanding commercial traction. If sustained, this top-line scale can support greater operating leverage, broaden the company’s market position, and provide a foundation for rebuilding profitability over the next several quarters.
Negative Factors
2026 Profitability SetbackThe sharp deterioration in 2026 profitability shows that rapid sales growth is not yet translating reliably into earnings. Lower operating margins and a net loss could limit internally funded investment, weaken financial resilience, and indicate that operating costs remain difficult to scale.

Prodelight Co.,Ltd. (5580) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:5580+11.91%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.82B
Dividend Yield
―
Average Volume (3M)
2,000
Price to Earnings (P/E)
-49.7
Beta (1Y)
0.76
Revenue Growth
11.59%
EPS Growth
-147.44%
Country
Japan
Employees
140
Sector
General
Sector Strength
55
Industry
Software - Application

Prodelight Co.,Ltd. Business Overview & Revenue Model

Company Description

Prodelight Co.,Ltd. provides cloud PBX systems and voice transmission services in Japan. The company engages in the planning, development, and sale of cloud voice systems; and sale of offline services and audio devices. It offers INNOVERA, a cloud ph...

Prodelight Co.,Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth is exceptional, accelerating to 83.5% in FY2026, but profitability is a major concern. Operating margins have nearly halved to 3.9%, and the company swung to a net loss of ¥57 million. The balance sheet is a relative strength with low debt, but declining ROE is a weakness. Cash flow has turned positive, which is encouraging, but overall cash conversion efficiency remains weak.

Income Statement

45Neutral

Balance Sheet

72Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue3.16B3.16B2.83B2.20B2.01B1.78B
Gross Profit1.46B1.46B1.37B1.04B951.44M842.40M
EBITDA191.29M191.29M225.66M221.47M157.10M136.36M
Net Income-56.61M-56.61M118.92M148.20M90.58M81.85M
Balance Sheet
Total Assets1.62B1.62B1.72B1.21B1.17B868.40M
Cash, Cash Equivalents and Short-Term Investments872.34M872.34M793.56M664.09M673.57M384.33M
Total Debt248.10M248.10M248.40M71.80M213.01M275.21M
Total Liabilities720.63M720.63M761.73M409.85M513.76M599.27M
Stockholders Equity898.02M898.02M954.91M802.88M652.75M269.12M
Cash Flow
Free Cash Flow0112.75M-77.88M162.57M140.21M88.76M
Operating Cash Flow0118.33M-76.12M165.59M148.34M89.20M
Investing Cash Flow0-92.87M-39.85M-47.64M-60.86M-66.09M
Financing Cash Flow0-841.00K203.43M-140.33M153.75M-89.13M

Prodelight Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1673.00

Price Trends

50DMA1626.90Positive
100DMA1605.87Positive
200DMA1593.66Positive

Market Momentum

MACD13.28Negative
RSI61.78Neutral
STOCH99.54Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5580, the sentiment is Positive. The current price of 1673.00 is above the 20-day moving average (MA) of 1635.10, above the 50-day MA of 1626.90, and above the 200-day MA of 1593.66, indicating a bullish trend. The MACD of 13.28 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 99.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5580.

Prodelight Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5580 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4075JP:407576OutperformJPY 6.76B33.06――14.12%37.10%
JP:4060JP:406072OutperformJPY 6.63B23.91―0.81%37.13%-7.58%
JP:5256JP:525668NeutralJPY 3.89B72.19――23.30%-70.98%
JP:3976JP:397662NeutralJPY 2.51B5.07――-13.15%―
JP:4397JP:439761NeutralJPY 6.01B15.80――23.50%2.72%
JP:5580JP:558057NeutralJPY 2.82B-49.75――11.59%-147.44%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:5580JP:3976JP:4060JP:4075JP:4397JP:5256Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5580 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5580Prodelight Co.,Ltd.1673.00168.0011.16%
JP:3976Shanon, Inc.416.0014.003.48%
JP:4060rakumo Inc.1106.000.04<0.01%
JP:4075Brains Technology, Inc.1091.00243.0028.66%
JP:4397TeamSpirit, Inc.357.00-150.00-29.59%
JP:5256Fusic Co.,Ltd.3045.00472.0018.34%
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 16, 2026