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CDS Co., Ltd.
(2169)
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Rating:67Neutral
Price Target:
¥1,856.00
▲(3.28% Upside)
Action:Downgraded
Date:08/04/26
The score is primarily supported by a strong, low-leverage balance sheet and generally supportive cash generation (including improved cash flow in 2025). Offsetting this, recent financial performance weakened meaningfully in 2025 with lower revenue and earnings, while technical indicators show neutral-to-soft momentum and valuation remains demanding due to a high P/E despite a strong dividend yield.
Positive Factors
Low leverage / strong balance sheet
Very low debt and a sizable equity base give CDS durable financial flexibility. This reduces insolvency risk, lowers fixed financial costs and preserves capacity to fund dividends, capex or M&A during downturns. Over 2–6 months this supports operational stability and strategic optionality.
Negative Factors
2025 revenue and earnings decline
A pronounced revenue drop and sharp net income contraction in 2025 signal weaker demand, client losses or reduced pricing. This erodes operating leverage, pressures margins and limits reinvestment ability. If persistent, it undermines dividend coverage and the balance sheet's ability to absorb future shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low debt and a sizable equity base give CDS durable financial flexibility. This reduces insolvency risk, lowers fixed financial costs and preserves capacity to fund dividends, capex or M&A during downturns. Over 2–6 months this supports operational stability and strategic optionality.
Read all positive factors
CDS Co., Ltd. (2169) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.66B
Dividend Yield4.33%
Average Volume (3M)2.59K
Price to Earnings (P/E)38.3
Beta (1Y)0.11
Revenue Growth-18.38%
EPS Growth-66.70%
CountryJP
Employees714
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)51.31
Shares Outstanding6,924,400
10 Day Avg. Volume2,530
30 Day Avg. Volume2,586
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.39
Price to Sales (P/S)1.40
P/FCF Ratio8.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CDS Co., Ltd. Business Overview & Revenue Model
Company Description
Established in 1980 and based in Okazaki, Japan, CDS Co., Ltd. provides a comprehensive suite of services encompassing technical documentation, advanced engineering solutions, and IT support tailored for engineering firms across Japan. The company...
How the Company Makes Money
null...
CDS Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
85
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.31B | 8.83B | 10.49B | 9.72B | 9.66B | 8.37B |
| Gross Profit | 2.32B | 2.49B | 3.32B | 3.20B | 3.20B | 2.63B |
| EBITDA | 700.97M | 845.82M | 1.66B | 1.64B | 1.71B | 1.47B |
| Net Income | 349.87M | 456.43M | 1.06B | 998.75M | 1.01B | 828.88M |
Balance Sheet | ||||||
| Total Assets | 10.97B | 10.60B | 11.40B | 10.78B | 9.73B | 9.40B |
| Cash, Cash Equivalents and Short-Term Investments | 4.74B | 4.62B | 4.18B | 3.85B | 3.19B | 2.54B |
| Total Debt | 500.00M | 270.00M | 600.00M | 700.00M | 270.00M | 750.00M |
| Total Liabilities | 2.15B | 1.71B | 2.50B | 2.49B | 2.04B | 2.32B |
| Stockholders Equity | 8.82B | 8.89B | 8.90B | 8.29B | 7.69B | 7.08B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.39B | 893.78M | 651.36M | 1.54B | 527.47M |
| Operating Cash Flow | 0.00 | 1.58B | 990.70M | 716.13M | 1.63B | 568.30M |
| Investing Cash Flow | 0.00 | -313.04M | -116.18M | -68.90M | -106.18M | 211.82M |
| Financing Cash Flow | 0.00 | -881.61M | -564.32M | 7.50M | -895.81M | -61.16M |
CDS Co., Ltd. Technical Analysis
Negative
1797.00
Price Trends
1715.23
Negative
1746.37
Negative
1754.02
Negative
Market Momentum
-0.41
Negative
45.87
Neutral
31.82
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 1797 is above the 20-day moving average (MA) of 1712.25, above the 50-day MA of 1715.23, and above the 200-day MA of 1754.02, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.82 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥10.00B | 8.87 | ― | 0.70% | 12.61% | 49.49% | |
77 Outperform | ¥34.20B | 15.21 | ― | 1.64% | 34.68% | 552.65% | |
68 Neutral | ¥6.99B | 15.60 | ― | ― | 23.42% | 457.78% | |
67 Neutral | ¥11.66B | 38.31 | ― | 3.91% | -18.38% | -66.70% | |
64 Neutral | ¥9.15B | 38.50 | ― | 0.12% | 25.25% | -49.25% | |
63 Neutral | ¥13.90B | 30.99 | ― | ― | 12.68% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:2169
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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.