CMC Corporation (2185) AI Stock Analysis

• Market Cap: ¥19.82B
• Dividend Yield: 3.27%
• Average Volume (3M): 6.10K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.31
• Revenue Growth: 4.16%
• EPS Growth: 36.43%
• Country: JP
• Employees: 862
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 48.17
• Shares Outstanding: 14,364,000
• 10 Day Avg. Volume: 4,360
• 30 Day Avg. Volume: 6,103
• PEG Ratio: -0.94
• Price to Book (P/B): 0.91
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,639.00 ▲(11.72%Upside)

CMC Corporation's strong financial performance is the most significant factor, demonstrating robust profitability and low financial risk. The valuation is reasonable, supported by a fair P/E ratio and an attractive dividend yield. However, mixed technical indicators suggest caution, as there is no clear market momentum.

CMC Corporation Business Overview & Revenue Model

Company Description

CMC Corporation (2185) is a diversified technology company that operates in various sectors including software development, IT services, and telecommunications. The company provides a wide range of services such as digital transformation solutions, IT infrastructure management, and enterprise software applications to businesses across different industries.

How the Company Makes Money

CMC Corporation makes money primarily through its IT services and solutions offered to corporate clients. The company's revenue streams include fees for software development, IT consulting, and managed services. Additionally, CMC Corporation generates income from licensing its software products and providing telecommunication services. Strategic partnerships with leading technology providers and a strong client base contribute significantly to its earnings by enabling expansion into new markets and enhancing service offerings.

CMC Corporation Financial Statement Overview

Summary

CMC Corporation demonstrates robust financial health with strong profitability and operational efficiency. The balance sheet shows low leverage and effective use of equity. However, there is a need to monitor cash flow management due to limited data and a decrease in free cash flow.

Income Statement

CMC Corporation demonstrates robust financial health with a solid gross profit margin of 37.1% and a net profit margin of 11.9% for TTM (Trailing-Twelve-Months). The company shows a steady revenue growth rate of 6.1% compared to the previous year. EBIT and EBITDA margins remain strong at 14.8% and 16.5% respectively, underscoring the company's operational efficiency.

Balance Sheet

The balance sheet of CMC Corporation is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. A high equity ratio of 81.9% and a return on equity of 11.4% reflect the company's financial stability and effective use of shareholder funds to generate profits.

Cash Flow

Cash flow assessment is limited due to missing TTM data, but historical data shows a decrease in free cash flow, though operating cash flow remains positive. The company needs to monitor cash flow management to ensure sustained liquidity.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	19.56B	19.52B	18.45B	17.92B	17.33B	17.07B
Gross Profit	7.26B	7.28B	6.86B	6.86B	6.54B	6.00B
EBITDA	3.23B	3.31B	2.89B	2.90B	2.65B	2.22B
Net Income	2.33B	2.08B	1.76B	2.00B	1.62B	1.35B
Balance Sheet
Total Assets	24.88B	26.41B	24.75B	22.63B	21.07B	19.69B
Cash, Cash Equivalents and Short-Term Investments	12.44B	12.32B	13.54B	11.50B	9.93B	9.39B
Total Debt	264.00M	298.35M	389.81M	71.22M	15.48M	96.41M
Total Liabilities	4.22B	5.48B	5.52B	5.09B	5.11B	4.27B
Stockholders Equity	20.37B	20.63B	18.94B	17.42B	15.88B	15.33B
Cash Flow
Free Cash Flow	0.00	-209.16M	2.71B	1.65B	1.79B	1.13B
Operating Cash Flow	0.00	2.10B	3.06B	1.79B	1.92B	1.34B
Investing Cash Flow	0.00	-3.11B	-671.30M	-158.75M	-209.66M	-64.51M
Financing Cash Flow	0.00	-649.30M	-474.56M	-450.10M	-1.28B	-703.12M

CMC Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1467.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2185, the sentiment is Positive. The current price of 1467 is below the 20-day moving average (MA) of 1468.30, above the 50-day MA of 1453.24, and above the 200-day MA of 1442.43, indicating a neutral trend. The MACD of -1.59 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2185.

CMC Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9709	80 Outperform	¥18.50B	8.58		3.57%	8.39%	36.54%
9799	75 Outperform	¥16.65B	13.57		2.70%	6.99%	11.02%
2185	73 Outperform	¥19.82B	9.37		3.27%	4.16%	36.43%
6572	71 Outperform	¥22.14B	49.52		0.88%	17.17%	160.84%
3837	67 Neutral	¥20.86B	17.83		1.49%	11.03%	14.63%
3968	63 Neutral	¥16.35B	147.71		2.38%	4.02%	-87.61%
Sector *	57 Neutral	$1.15B	27.60	-27.06%	10.03%	10.83%	-5.57%

CMC Corporation Corporate Events

CMC Corporation Corrects Financial Results for March 2025

CMC Corporation announced a correction to its previously released consolidated financial results for the six months ended March 31, 2025. The correction involved the misplacement of reference notes, which were initially entered incorrectly, affecting the comprehensive income information. This correction is crucial for stakeholders as it ensures accurate financial reporting and maintains transparency in the company’s financial operations.

CMC Corporation Reports Decline in Six-Month Financial Results

CMC Corporation reported a decline in revenue and operating profit for the six months ended March 31, 2025, compared to the previous year. Despite the decrease in revenue by 7.3% and operating profit by 24.1%, the company saw a slight increase in ordinary profit and profit attributable to owners, indicating some resilience in its financial performance. The company has revised its earnings forecast for the fiscal year ending September 30, 2025, anticipating further declines in revenue and profits. The announcement highlights the company’s strategic adjustments in response to market conditions, aiming to sustain shareholder returns with a forecasted increase in annual dividends.