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

• Market Cap: ¥12.28B
• Dividend Yield: 3.78%
• Average Volume (3M): 5.20K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.18
• Revenue Growth: 5.96%
• EPS Growth: -1.58%
• Country: JP
• Employees: 706
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 32.96
• Shares Outstanding: 6,924,400
• 10 Day Avg. Volume: 4,380
• 30 Day Avg. Volume: 5,196
• PEG Ratio: 0.58
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.04
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥1,962.00 ▲(9.00%Upside)

CDS Co., Ltd. demonstrates strong financial performance with robust financial statements, contributing significantly to its overall score. However, the technical indicators suggest a cautious approach due to potential short-term uncertainties. The valuation remains attractive due to a reasonable P/E ratio and a solid dividend yield, balancing the overall score.

CDS Co., Ltd. Business Overview & Revenue Model

Company Description

CDS Co., Ltd. (2169) is a company that operates primarily in the information technology sector. It specializes in providing software development, engineering services, and IT consulting to a variety of industries, including manufacturing, telecommunications, and finance. The company is known for its expertise in developing customized software solutions and offering comprehensive IT support services to enhance business processes and efficiency for its clients.

How the Company Makes Money

CDS Co., Ltd. generates revenue primarily through its software development services, which involve creating tailored software solutions for businesses across different sectors. Additionally, the company earns money from engineering services, where it assists clients in optimizing their technological infrastructure. IT consulting is another significant revenue stream, as CDS Co., Ltd. provides strategic advice and solutions to help companies improve their IT operations. The company may also have partnerships with technology vendors or other enterprises, contributing to its earnings by expanding its service offerings or entering new markets. However, specific details about such partnerships or additional revenue streams are not available.

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
	EBIT
1.51B	1.47B	1.55B	1.05B	752.95M
	EBITDA
1.67B	1.64B	1.71B	1.47B	1.28B
	Net Income Common Stockholders
1.06B	998.75M	1.01B	828.88M	693.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.18B	3.85B	3.19B	2.54B	1.82B
	Total Assets
11.39B	10.77B	9.73B	9.40B	8.32B
	Total Debt
600.00M	700.00M	270.00M	750.00M	470.00M
	Net Debt
-3.58B	-3.06B	-2.92B	-1.79B	-1.35B
	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: 1800.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1800 is below the 20-day moving average (MA) of 1802.45, below the 50-day MA of 1814.04, and above the 200-day MA of 1785.82, indicating a neutral trend. The MACD of -2.13 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 57.22 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
4299	79 Outperform	¥14.05B	10.75		3.80%	2.13%	7.67%
3804	75 Outperform	¥12.54B	21.48		1.23%	0.64%	-1.00%
5248	73 Outperform	¥13.98B	31.72		―	69.06%	464.48%
3937	71 Outperform	¥12.20B	13.62		4.13%	6.70%	59.07%
3800	68 Neutral	¥13.63B	20.10		3.68%	-2.98%	-31.07%
2169	68 Neutral	¥12.28B	12.69		3.78%	5.96%	-1.58%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%