Orchestra Holdings Inc. (6533) AI Stock Analysis

• Market Cap: ¥7.64B
• Dividend Yield: 1.45%
• Average Volume (3M): 17.77K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.93
• Revenue Growth: 15.68%
• EPS Growth: -64.57%
• Country: JP
• Employees: 1,111
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -4.43
• Shares Outstanding: 10,034,200
• 10 Day Avg. Volume: 10,780
• 30 Day Avg. Volume: 17,773
• 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: ¥825.00
• Price Target Upside: 8.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥825.00 ▲(8.98% Upside)

The overall stock score of 68 reflects strong financial performance with robust revenue growth and cash flow generation. However, the high P/E ratio and moderate technical indicators suggest caution. The stock's valuation appears stretched, and while technicals show potential, they are not overwhelmingly positive.

Orchestra Holdings Inc. Business Overview & Revenue Model

Company Description

Orchestra Holdings Inc. engages in the digital transformation, digital marketing, and other businesses in Japan. Its solutions include IT engineer services, artificial and business intelligence support, cloud integration, system development, and other services. The company is also involved in the provision of digital marketing support; venture capital services to entrepreneurs; internet and digital advertising; web design; content marketing; SEO services; and merger and acquisition advisory services. In addition, it develops Urala, an app for fortune telling chat consultations; Skill Navi, a SaaS talent management system; and TechReach, a job information site for freelance engineers. The company was formerly known as Digital Identity Inc. and changed its name to Orchestra Holdings Inc. in July 2017. Orchestra Holdings Inc. was incorporated in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Orchestra Holdings Inc. generates revenue through a combination of service fees for digital marketing solutions, commissions from performance-based advertising, and subscription fees for access to its data analytics platforms. The company partners with a range of businesses, helping them to design and execute effective digital marketing strategies. Key revenue streams include consulting fees for marketing strategy development, sales from advertising placements, and ongoing revenue from managed marketing services. The company leverages its expertise in data analytics to provide tailored marketing solutions that drive customer engagement and conversion rates.

Orchestra Holdings Inc. Financial Statement Overview

Summary

Orchestra Holdings Inc. demonstrates robust financial health with strong revenue growth of 15.9% and effective cash generation. The balance sheet is strong with moderate leverage and substantial equity. However, profitability margins, particularly net income, show room for improvement.

Income Statement

Orchestra Holdings Inc. has shown a solid revenue growth rate of approximately 15.9% year-over-year from 2023 to 2024, indicating strong business expansion. The gross profit margin stands at 46.2%, suggesting effective cost management. However, net profit margin decreased from 3.9% in 2023 to 2.4% in 2024, which might signal rising operational costs or competitive pressures. The EBIT margin is stable at 5.7%, while the EBITDA margin is higher at 9.4%, reflecting strong earnings before depreciation and amortization.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio of 0.51, indicating moderate leverage. The equity ratio is 44.3%, showing substantial equity funding. Return on equity (ROE) decreased to 5.8% in 2024, highlighting a need for more efficient profit generation relative to shareholder equity. The company's asset base has grown steadily, supporting its operational expansion.

Cash Flow

Strong cash flow performance is evident with a free cash flow growth rate of 12.5% from 2023 to 2024. The operating cash flow to net income ratio is 3.38, indicating excellent cash generation capability from operations. Furthermore, the free cash flow to net income ratio is 3.29, reflecting efficient conversion of net income into free cash flow, despite higher capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.73B	14.04B	12.11B	10.38B	16.64B	11.83B
Gross Profit	6.64B	6.49B	5.87B	5.10B	3.88B	2.51B
EBITDA	1.26B	1.36B	1.21B	1.72B	1.45B	806.14M
Net Income	239.90M	331.75M	474.00M	853.71M	757.23M	435.60M
Balance Sheet
Total Assets	14.11B	12.82B	12.71B	11.41B	10.56B	4.69B
Cash, Cash Equivalents and Short-Term Investments	3.09B	3.28B	3.59B	3.02B	4.96B	1.41B
Total Debt	4.24B	2.88B	3.01B	1.71B	1.53B	791.16M
Total Liabilities	7.97B	6.70B	6.68B	5.67B	5.62B	2.80B
Stockholders Equity	5.69B	5.68B	5.63B	5.33B	4.47B	1.85B
Cash Flow
Free Cash Flow	0.00	1.09B	972.00M	-533.72M	1.11B	586.65M
Operating Cash Flow	0.00	1.12B	1.00B	-484.54M	1.11B	660.49M
Investing Cash Flow	0.00	-380.87M	-2.00B	-993.87M	-32.18M	-62.88M
Financing Cash Flow	0.00	-716.78M	1.21B	-413.55M	2.46B	127.37M

Orchestra Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 757.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6533, the sentiment is Positive. The current price of 757 is below the 20-day moving average (MA) of 759.50, above the 50-day MA of 735.22, and below the 200-day MA of 761.16, indicating a neutral trend. The MACD of 4.09 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 31.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6533.

Orchestra Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	81 Outperform	11.07B	9.45	29.79%	3.05%	-5.34%	-21.28%
7050	80 Outperform	10.46B	10.55	9.79%	4.28%	24.33%	117.29%
6045	75 Outperform	13.15B	16.90	18.68%	1.38%	13.59%	43.49%
6533	68 Neutral	¥7.64B	40.26		1.45%	15.68%	-64.57%
6094	47 Neutral	9.46B	-51.92	-24.18%	―	13.70%	94.10%
9235	39 Underperform	9.01B	-19.13	0.00%	―	107.15%	-30.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Orchestra Holdings Inc. Corporate Events

Orchestra Holdings Inc. Reports Mixed Financial Results for First Half of 2025

Orchestra Holdings Inc. reported a 15.8% increase in net sales for the first half of 2025, but faced declines in EBITDA and profits compared to the previous year. The company added JTPRO Corporation to its consolidation scope, indicating strategic expansion efforts. Despite the challenges, the company maintains its full-year forecast, suggesting confidence in its operational strategies.