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CMC Corporation (JP:2185)
:2185
Japanese Market

CMC Corporation (2185) AI Stock Analysis

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JP

CMC Corporation

(2185)

Rating:73Outperform
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 (2185) vs. iShares MSCI Japan ETF (EWJ)

CMC Corporation Business Overview & Revenue Model

Company DescriptionCMC 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 MoneyCMC 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
88
Very Positive
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
85
Very Positive
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
70
Positive
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue19.56B19.52B18.45B17.92B17.33B17.07B
Gross Profit7.26B7.28B6.86B6.86B6.54B6.00B
EBITDA3.23B3.31B2.89B2.90B2.65B2.22B
Net Income2.33B2.08B1.76B2.00B1.62B1.35B
Balance Sheet
Total Assets24.88B26.41B24.75B22.63B21.07B19.69B
Cash, Cash Equivalents and Short-Term Investments12.44B12.32B13.54B11.50B9.93B9.39B
Total Debt264.00M298.35M389.81M71.22M15.48M96.41M
Total Liabilities4.22B5.48B5.52B5.09B5.11B4.27B
Stockholders Equity20.37B20.63B18.94B17.42B15.88B15.33B
Cash Flow
Free Cash Flow0.00-209.16M2.71B1.65B1.79B1.13B
Operating Cash Flow0.002.10B3.06B1.79B1.92B1.34B
Investing Cash Flow0.00-3.11B-671.30M-158.75M-209.66M-64.51M
Financing Cash Flow0.00-649.30M-474.56M-450.10M-1.28B-703.12M

CMC Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1467.00
Price Trends
50DMA
1453.24
Positive
100DMA
1505.98
Negative
200DMA
1442.43
Positive
Market Momentum
MACD
-1.59
Negative
RSI
52.17
Neutral
STOCH
87.82
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥18.50B8.58
3.57%8.39%36.54%
75
Outperform
¥16.65B13.57
2.70%6.99%11.02%
73
Outperform
¥19.82B9.37
3.27%4.16%36.43%
71
Outperform
¥22.14B49.52
0.88%17.17%160.84%
67
Neutral
¥20.86B17.83
1.49%11.03%14.63%
63
Neutral
¥16.35B147.71
2.38%4.02%-87.61%
57
Neutral
$1.15B27.60-27.06%10.03%10.83%-5.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2185
CMC Corporation
1,490.00
289.82
24.15%
JP:3837
Ad-Sol Nissin Corp.
1,176.00
236.28
25.14%
JP:3968
Segue Group Co., Ltd.
504.00
-107.70
-17.61%
JP:6572
RPA Holdings, Inc.
354.00
93.09
35.68%
JP:9709
NCS&A Co., Ltd.
1,120.00
245.93
28.14%
JP:9799
Asahi Intelligence Service Co., Ltd.
1,031.00
278.61
37.03%

CMC Corporation Corporate Events

CMC Corporation Corrects Financial Results for March 2025
May 19, 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
May 13, 2025

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.

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.Date of analysis: Jul 03, 2025