Strong Balance SheetA very high equity ratio and minimal debt materially lower financial risk and increase strategic flexibility. Over the next 2–6 months this capital structure supports discretionary investment, weathering cyclical weakness, and financing options without needing external leverage.

Robust Cash GenerationVery strong free cash flow growth and above‑one operating cash conversion indicate durable cash generation. This underpins reinvestment, working capital funding, and shareholder returns while reducing financing dependence, strengthening the company’s long‑term operational resilience.

Improving Margins And RevenueSimultaneous revenue growth and expanding gross and net margins point to improving operational efficiency and pricing or product mix gains. If sustained, these trends should enhance cash flow durability and competitive positioning over the medium term.

Bears Say

Modest ROEROE of ~6% remains modest relative to the company’s strong equity base, indicating limited profit generation per shareholder capital. Without improved asset productivity or margin expansion, shareholder returns may stay constrained over the coming quarters.

Weak Asset UtilizationHigh equity and low leverage combined with notes about asset utilization suggest capital is under‑employed. Persistent low turnover reduces return on capital and limits scalable growth unless management materially improves asset productivity or reallocates capital.

Margin Sustainability RiskRecent margin gains depend on operational efficiency and cost control. If input costs rise or efficiencies fade, margins and cash flow could reverse. Sustained margin improvement requires ongoing cost discipline and structural efficiency gains.

Cluster Technology Co., Ltd. News

Cluster Technology Delivers Strong Q3 Profit Growth Amid Conservative Dividend Policy

Cluster Technology Co., Ltd. ( ($JP:4240) ) just unveiled an update. Cluster Technology Co., Ltd. reported strong results...

4d ago

4240

Cluster Technology Reports Strong Financial Growth in June 2025

Cluster Technology Co., Ltd. ( ($JP:4240) ) just unveiled an announcement. Cluster Technology Co., Ltd. reported a significant...

6M ago

4240

Cluster Technology Co., Ltd. Reports Robust Financial Growth in FY2025

Cluster Technology Co., Ltd. ( ($JP:4240) ) has shared an update. Cluster Technology Co., Ltd. reported a significant...

9M ago

4240

Cluster Technology Reports Growth in Sales but Decline in Profits

Cluster Technology Co., Ltd. ( ($JP:4240) ) has issued an announcement. Cluster Technology Co., Ltd. reported a 6.2%...

1y ago

4240

4240 FAQ

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

Cluster Technology Co., Ltd. lowest stock price was ¥178.00 and its highest was ¥465.00 in the past 12 months.

What is Cluster Technology Co., Ltd.’s market cap?

Cluster Technology Co., Ltd.’s market cap is ¥2.32B.

When is Cluster Technology Co., Ltd.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Cluster Technology Co., Ltd.’s earnings last quarter?

Currently, no data Available

Is Cluster Technology Co., Ltd. overvalued?

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

Does Cluster Technology Co., Ltd. pay dividends?

Cluster Technology Co., Ltd. pays a Notavailable dividend of ¥4 which represents an annual dividend yield of 1.33%. See more information on Cluster Technology Co., Ltd. dividends here

What is Cluster Technology Co., Ltd.’s EPS estimate?

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

How many shares outstanding does Cluster Technology Co., Ltd. have?

Cluster Technology Co., Ltd. has 5,692,800 shares outstanding.

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

Currently, no data Available

Which hedge fund is a major shareholder of Cluster Technology Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4240

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

Cluster Technology Co., Ltd.

Cluster Technology Co.,Ltd. manufactures and sells various resin composite materials in Japan. The company offers Epohard, a resin composite material that contains inorganic fillers, reinforcing materials, coloring materials, etc.; Epocluster, a functional resin composite material; and Pulseinjector, a single nozzle inkjet device. It also engages in assembly and processing of plastic molded products; manufacture and sale of molding dies; and sale of plastic molding materials. Cluster Technology Co.,Ltd. was incorporated in 1991 and is headquartered in Osaka, Japan.