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

• Market Cap: ¥11.94B
• Dividend Yield: 4.23%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.17
• Revenue Growth: 5.96%
• EPS Growth: -1.58%
• Country: JP
• Employees: 706
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 32.96
• Shares Outstanding: 6,924,400
• 10 Day Avg. Volume: 9,770
• 30 Day Avg. Volume: 5,886
• 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: 67 Neutral
• Price Target: ¥1,902.00 ▲(8.62%Upside)

CDS Co., Ltd. has a strong financial foundation and appealing valuation metrics, which contribute positively to its overall stock score. However, weak technical indicators suggest current market sentiment is bearish, impacting the stock's potential in the short term.

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
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: 1751.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1751 is below the 20-day moving average (MA) of 1760.57, below the 50-day MA of 1771.63, and above the 200-day MA of 1750.42, indicating a bearish trend. The MACD of -4.67 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 5.99 is Positive, 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
3804	84 Outperform	¥15.08B	22.88		1.02%	7.42%	10.13%
4299	79 Outperform	¥13.96B	10.77		3.83%	2.13%	7.67%
5248	78 Outperform	¥14.45B	34.07		―	69.06%	464.48%
3937	69 Neutral	¥11.44B	13.13		4.28%	6.70%	59.13%
3800	68 Neutral	¥13.69B	20.20		3.66%	-2.98%	-31.07%
2169	67 Neutral	¥11.94B	12.35		4.23%	5.96%	-1.58%
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%