Cross Cat Co., Ltd. (2307) AI Stock Analysis

• Market Cap: ¥15.30B
• Dividend Yield: 3.14%
• Average Volume (3M): 52.42K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.05
• Revenue Growth: 3.58%
• EPS Growth: 0.23%
• Country: JP
• Employees: 796
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 28.59
• Shares Outstanding: 17,005,674
• 10 Day Avg. Volume: 25,640
• 30 Day Avg. Volume: 52,420
• PEG Ratio: 3.45
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 22.60
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,208.00 ▲(13.32% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Cross Cat Co., Ltd. has a strong financial foundation with consistent growth and solid cash flow, which is the most significant factor supporting its stock score. However, technical indicators suggest weak momentum, which could pose short-term challenges. The stock's valuation appears attractive, with a low P/E ratio and a decent dividend yield, adding to its appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitiveness.

Cash Flow Generation

Strong cash flow generation ensures liquidity for investments and debt obligations, enhancing financial flexibility and supporting strategic growth initiatives.

Balance Sheet Health

A solid balance sheet with manageable leverage reduces financial risk and enhances stability, providing a strong foundation for future growth and resilience.

Negative Factors

Market Competition

While operational efficiency is strong, intense competition in the software application industry may pressure margins and require continuous innovation to maintain market position.

Industry Volatility

Industry volatility, as indicated by recent trading patterns, could impact investor confidence and necessitate strategic adjustments to maintain long-term growth.

Lack of Earnings Call Data

The absence of recent earnings call data limits transparency and insight into management's strategic direction, potentially affecting investor confidence and decision-making.

Cross Cat Co., Ltd. Business Overview & Revenue Model

Company Description

Cross Cat Co., Ltd., an information services company, provides system solutions and staffing services in the financial, credit, public, telecom, manufacturing, retail, and other sectors. The company constructs and integrates systems for financial institutions, including banking and insurance sectors; and credit systems in the areas of international brand management, domestic and member retailer operations, and membership credit management. It also designs, operates, and maintains wide-area disaster-response and security systems for government data centers, as well as develops network control and monitoring solutions for mobile communications. In addition, the company offers business intelligence (BI) systems; and system platform services, as well as builds and operates servers and networks. Further, it provides CCBI Templates that enables BI applications optimized for particular industries. The company was incorporated in 1973 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue through multiple streams, primarily through the sale of its core products such as premium cat food and accessories. Revenue is derived from direct sales to consumers via online platforms, as well as partnerships with pet retail stores and distributors. Additionally, Cross Cat Co., Ltd. benefits from subscription services that provide recurring revenue from loyal customers. Strategic partnerships with veterinary clinics and pet influencers also contribute to brand visibility and sales growth, while ongoing research and development efforts lead to new product lines, further enhancing revenue potential.

Cross Cat Co., Ltd. Financial Statement Overview

Summary

Cross Cat Co., Ltd. demonstrates a robust financial position with consistent revenue and profit growth, solid balance sheet metrics, and strong cash flow generation. The company's financial health is characterized by effective cost management and strong operational efficiency, supporting continued growth in the competitive software application industry.

Income Statement

Cross Cat Co., Ltd. shows strong revenue growth with a consistent upward trend over the past years. The Gross Profit Margin has remained healthy, indicating effective cost management. The Net Profit Margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are robust, suggesting strong operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a favorable debt-to-equity ratio, indicating manageable leverage. Stockholders' Equity has consistently increased, enhancing financial stability. The Equity Ratio is strong, indicating a substantial portion of assets is funded by equity, reducing financial risk.

Cash Flow

Operating cash flow remains strong relative to net income, indicating efficient cash generation from core activities. Free cash flow is positive and growing, suggesting the company has ample liquidity to support investments and debt obligations. The Free Cash Flow to Net Income Ratio is favorable, highlighting strong cash profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.27B	16.19B	14.93B	13.84B	12.12B	9.63B
Gross Profit	3.86B	3.80B	3.51B	3.20B	2.70B	2.01B
EBITDA	2.18B	2.08B	2.07B	1.68B	1.35B	748.75M
Net Income	1.40B	1.32B	1.31B	1.02B	765.30M	369.60M
Balance Sheet
Total Assets	8.32B	10.53B	9.47B	8.59B	7.37B	6.51B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.68B	2.34B	1.98B	1.35B	1.26B
Total Debt	224.98M	1.50B	1.21B	710.84M	413.94M	817.03M
Total Liabilities	2.75B	4.67B	4.38B	3.52B	3.15B	2.90B
Stockholders Equity	5.57B	5.85B	5.08B	5.08B	4.22B	3.61B
Cash Flow
Free Cash Flow	0.00	646.62M	1.06B	600.98M	651.82M	268.27M
Operating Cash Flow	0.00	692.17M	1.22B	737.35M	680.38M	359.55M
Investing Cash Flow	0.00	-28.51M	94.79M	-158.38M	-34.54M	-415.93M
Financing Cash Flow	0.00	-319.99M	-963.28M	59.86M	-565.06M	334.94M

Cross Cat Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1066.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2307, the sentiment is Negative. The current price of 1066 is above the 20-day moving average (MA) of 1014.45, above the 50-day MA of 1041.84, and below the 200-day MA of 1070.66, indicating a bearish trend. The MACD of -11.28 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2307.

Cross Cat Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥41.93B	14.20	―	1.92%	20.81%	68.06%
3771	77 Outperform	¥30.44B	12.82	―	2.93%	11.53%	23.23%
3648	74 Outperform	¥21.15B	10.37	―	2.40%	21.57%	129.44%
2307	70 Outperform	¥15.30B	10.03	―	3.14%	3.58%	0.23%
4058	69 Neutral	¥20.21B	18.71	―	0.52%	50.92%	46.61%
9629	68 Neutral	¥36.63B	25.92	―	4.58%	4.58%	-15.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cross Cat Co., Ltd. Corporate Events

Cross Cat Maintains Earnings Outlook as Nine-Month Profit Climbs

Cross Cat Co., Ltd. reported consolidated net sales of ¥12.59 billion for the nine months ended December 31, 2025, up 3.8% year on year, with operating profit rising 2.6% to ¥1.45 billion and profit attributable to owners of parent climbing 10.8% to ¥1.07 billion. The company’s equity ratio improved to 63.6% from 55.6%, and it plans a full-year dividend of ¥34 per share while maintaining its earnings forecast, signaling steady growth and a stronger financial base for shareholders.

For the full fiscal year ending March 31, 2026, Cross Cat forecasts net sales of ¥17.1 billion and profit attributable to owners of parent of ¥1.35 billion, implying moderate growth versus the previous year. The unchanged forecast and rising earnings per share, which reached ¥76.06 in the nine-month period, suggest stable demand for the company’s services and disciplined cost control, reinforcing its position in the Japanese IT services market.

The most recent analyst rating on (JP:2307) stock is a Hold with a Yen1197.00 price target. To see the full list of analyst forecasts on Cross Cat Co., Ltd. stock, see the JP:2307 Stock Forecast page.

Cross Cat Posts Steady Nine-Month Growth, Keeps FY2026 Targets Intact

For the nine months ended December 31, 2025, Cross Cat increased net sales 3.8% year on year to ¥12.6 billion, while operating profit edged up 2.6% and profit attributable to owners rose 10.8% to ¥1.07 billion, supported by higher per-share earnings of ¥76.06; the balance sheet showed improved equity-to-asset ratio of 63.6% as net assets climbed to ¥6.42 billion. Management reaffirmed its fiscal 2026 outlook calling for ¥17.1 billion in sales, ¥1.93 billion in operating profit, and ¥1.35 billion in net income alongside a planned ¥34 full-year dividend, signaling steady growth expectations despite moderating momentum.

The most recent analyst rating on (JP:2307) stock is a Hold with a Yen1197.00 price target. To see the full list of analyst forecasts on Cross Cat Co., Ltd. stock, see the JP:2307 Stock Forecast page.

Cross Cat to Absorb Tokyo Solutions Division From Subsidiary to Strengthen IT Operations

Cross Cat Co., Ltd. has decided to acquire the Tokyo Solutions Development division of its wholly owned subsidiary CROSS UIS Co., Ltd., consolidating development and maintenance operations for systems in the Tokyo metropolitan area into the parent company. The transferred business generated net sales of 433 million yen in the fiscal year ended March 31, 2025, and will change hands for an expected 210 million yen in cash on April 1, 2026, in a move aimed at strengthening group synergies, improving the business structure, and concentrating IT human resources amid rising demand for technology and demographic headwinds, with the company expecting only a slight impact on its consolidated financial results due to the intra-group nature of the transaction.

The most recent analyst rating on (JP:2307) stock is a Hold with a Yen1197.00 price target. To see the full list of analyst forecasts on Cross Cat Co., Ltd. stock, see the JP:2307 Stock Forecast page.