CDS Co., Ltd. (2169) AI Stock Analysis

• Market Cap: ¥11.91B
• Dividend Yield: 4.06%
• Average Volume (3M): 7.44K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.16
• Revenue Growth: 5.96%
• EPS Growth: -1.58%
• Country: JP
• Employees: 706
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 32.96
• Shares Outstanding: 6,924,400
• 10 Day Avg. Volume: 6,860
• 30 Day Avg. Volume: 7,440
• PEG Ratio: -1.46
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,962.00
• Price Target Upside: 12.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,934.00 ▲(10.70%Upside)

CDS Co., Ltd. scores highly in financial performance due to its strong revenue growth, healthy margins, and robust balance sheet. The valuation is also favorable, suggesting the stock may be undervalued with a solid dividend yield. However, technical analysis indicates potential bearish momentum, which may pose short-term risks. Overall, the stock is fundamentally strong but requires monitoring for market momentum.

CDS Co., Ltd. Business Overview & Revenue Model

Company Description

CDS Co., Ltd. (2169) is a Japan-based company primarily engaged in the provision of technical documentation and engineering solutions. The company operates in sectors such as information technology, engineering services, and documentation services, offering comprehensive solutions to businesses in need of technical expertise and documentation support.

How the Company Makes Money

CDS Co., Ltd. generates revenue through its diverse service offerings in technical documentation and engineering solutions. The company earns income by providing services such as creating and managing technical manuals, product documentation, and engineering design support. Key revenue streams include contracts with various industries, including automotive, manufacturing, and technology companies that require precise technical documentation and engineering services. The company also benefits from partnerships with other firms to enhance its service capabilities and expand its market reach. These collaborations allow CDS Co., Ltd. to tap into new client bases and increase its service offerings, contributing significantly to its overall earnings.

CDS Co., Ltd. Financial Statement Overview

Summary

CDS Co., Ltd. presents a well-rounded financial profile with strong income statement performance, a robust balance sheet, and solid cash flow generation. The company has demonstrated consistent revenue growth and profitability, supported by a healthy capital structure and effective cash management. While the financial outlook is positive, the company should remain vigilant regarding potential market challenges and ensure strategic investments to sustain its growth trajectory.

Income Statement

CDS Co., Ltd. shows strong financial performance in the income statement with a solid gross profit margin of approximately 31.7% and a net profit margin of about 10.0% for the most recent year. The company has demonstrated consistent revenue growth, with a notable 7.9% increase from the previous year, indicating a positive growth trajectory. EBIT and EBITDA margins are also healthy, reflecting operational efficiency. However, future growth could face challenges due to market saturation or increased competition.

Balance Sheet

The balance sheet of CDS Co., Ltd. is robust, with a low debt-to-equity ratio of 0.07, indicating conservative leverage and strong financial health. Return on equity is impressive at approximately 11.8%, reflecting effective use of equity capital. The equity ratio of 78.1% underscores a solid capital structure with a strong equity base. The company's balance sheet shows resilience and stability, providing a buffer against market volatility.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth rate of 37.2%, highlighting effective cash management and operational efficiency. The operating cash flow to net income ratio is 0.94, indicating that the company generates substantial cash relative to its net income. The free cash flow to net income ratio is 0.85, reflecting effective conversion of income to cash. Despite strong cash flow metrics, careful capital allocation is vital to sustain long-term growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.49B	9.72B	9.66B	8.37B	7.90B
Gross Profit	3.32B	3.20B	3.20B	2.63B	2.40B
EBITDA	1.67B	1.64B	1.71B	1.47B	1.28B
Net Income	1.06B	998.75M	1.01B	828.88M	693.09M
Balance Sheet
Total Assets	11.39B	10.77B	9.73B	9.40B	8.32B
Cash, Cash Equivalents and Short-Term Investments	4.18B	3.85B	3.19B	2.54B	1.82B
Total Debt	600.00M	700.00M	270.00M	750.00M	470.00M
Total Liabilities	2.49B	2.48B	2.04B	2.32B	1.74B
Stockholders Equity	8.90B	8.29B	7.69B	7.08B	6.59B
Cash Flow
Free Cash Flow	893.78M	651.36M	1.54B	527.47M	597.73M
Operating Cash Flow	990.70M	716.13M	1.63B	568.30M	1.04B
Investing Cash Flow	-116.18M	-68.90M	-106.18M	211.82M	-515.75M
Financing Cash Flow	-564.32M	7.50M	-895.81M	-61.16M	-561.09M

CDS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1747.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2169, the sentiment is Negative. The current price of 1747 is below the 20-day moving average (MA) of 1753.75, below the 50-day MA of 1759.42, and below the 200-day MA of 1751.45, indicating a bearish trend. The MACD of -3.98 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2169.

CDS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3937	84 Outperform	¥12.35B	14.17		3.97%	6.70%	59.13%
4299	79 Outperform	¥13.92B	10.74		3.75%	2.13%	7.67%
3804	78 Outperform	¥15.37B	23.32		1.00%	7.42%	10.13%
2169	70 Outperform	¥11.91B	12.32		4.06%	5.96%	-1.58%
3800	68 Neutral	¥13.69B	20.19		3.67%	-2.98%	-31.07%
5248	62 Neutral	¥13.08B	29.69		―	69.06%	464.48%
Sector *	57 Neutral	$844.78M	10.65	-16.83%	2.34%	10.19%	-40.75%