Revenue GrowthSustained multi-year revenue expansion more than doubled top line from 2020–2025, indicating durable demand and successful commercial execution. This scale gain supports operational leverage, expands addressable market penetration, and underpins medium-term cash generation and reinvestment capacity.

Improving Cash GenerationA meaningful positive free cash flow outturn in 2025, after prior volatility, signals improving ability to convert revenue into cash. Stronger cash generation reduces reliance on external funding, supports debt servicing and capex, and provides a firmer base for strategic investment over coming quarters.

Return To ProfitabilityRecovery to profitability in 2025 after two years of losses shows operational resilience and management execution on cost or revenue initiatives. While margins remain thin, consistent positive earnings are a necessary step toward durable margin expansion and sustainable free cash flow.

Bears Say

Thin Net MarginsCompressed net margins (~1% in 2025) materially reduce earnings power and leave the business exposed to modest revenue or cost shocks. Low margin structure limits retained earnings for reinvestment, weakens resilience to competition, and makes sustainable profitability improvements harder to rely on.

Rising LeverageMaterial increase in leverage since 2022 raises financial risk and reduces flexibility. Higher debt burdens amplify interest and refinancing exposure, constrain strategic optionality, and could force tighter cash management during downturns, making capital allocation and investment pacing more constrained.

Volatile Earnings & Cash FlowHistoric swings between profit and loss and inconsistent cash flow generation undermine predictability for investors and management planning. This volatility complicates forecasting, raises execution risk for growth initiatives, and increases the probability of reactive financing or cost cutting in adverse periods.

3997 FAQ

What was TRADE WORKS Co.,Ltd’s price range in the past 12 months?

TRADE WORKS Co.,Ltd lowest stock price was ¥105.00 and its highest was ¥650.00 in the past 12 months.

What is TRADE WORKS Co.,Ltd’s market cap?

TRADE WORKS Co.,Ltd’s market cap is ¥21.82B.

When is TRADE WORKS Co.,Ltd’s upcoming earnings report date?

TRADE WORKS Co.,Ltd’s upcoming earnings report date is Apr 30, 2026 which is in 69 days.

How were TRADE WORKS Co.,Ltd’s earnings last quarter?

TRADE WORKS Co.,Ltd released its earnings results on Feb 12, 2026. The company reported ¥0.09 earnings per share for the quarter, beating the consensus estimate of N/A by ¥0.09.

Is TRADE WORKS Co.,Ltd overvalued?

According to Wall Street analysts TRADE WORKS Co.,Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does TRADE WORKS Co.,Ltd pay dividends?

TRADE WORKS Co.,Ltd pays a Annually dividend of ¥2 which represents an annual dividend yield of 0.49%. See more information on TRADE WORKS Co.,Ltd dividends here

What is TRADE WORKS Co.,Ltd’s EPS estimate?

TRADE WORKS Co.,Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does TRADE WORKS Co.,Ltd have?

TRADE WORKS Co.,Ltd has 39,042,000 shares outstanding.

What happened to TRADE WORKS Co.,Ltd’s price movement after its last earnings report?

TRADE WORKS Co.,Ltd reported an EPS of ¥0.09 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.21%.

Which hedge fund is a major shareholder of TRADE WORKS Co.,Ltd?

Currently, no hedge funds are holding shares in JP:3997

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

TRADE WORKS Co.,Ltd

TRADE WORKS Co., Ltd. provides solutions for front system exchange connection system and unfair transaction monitoring system for securities, forex margin trading (FX), and commodity futures industry. It offers TradeAgent, an Internet stock exchange system that supports various trading tools for online trading of various financial products in the securities, FX, and commodity futures fields; Dealing Athena, a solution that supports transactions and revenue management by persons in charge of self-sales department, as well as provides functions for administrators who manage transactions of each person in charge; Mars, an exchange trading terminal solution that supports securities trading; and MarsWeb, an exchange and information provider connection gateway. The company also provides MTS, an unfair trade monitoring system; and security diagnostic services. TRADE WORKS Co., Ltd. was founded in 1999 and is based in Tokyo, Japan.