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

• Market Cap: ¥15.34B
• Dividend Yield: 3.29%
• Average Volume (3M): 17.90K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.14
• Revenue Growth: 8.46%
• EPS Growth: 3.01%
• Country: JP
• Employees: 796
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 25.19
• Shares Outstanding: 17,005,674
• 10 Day Avg. Volume: 15,850
• 30 Day Avg. Volume: 17,896
• PEG Ratio: 0.57
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.11
• 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: 75 Outperform
• Price Target: ¥1,161.00 ▲(12.61%Upside)

Cross Cat Co., Ltd. achieves a solid overall stock score due to its strong financial performance, robust cash flow, and effective cost management, which underline its growth potential in the software application industry. The stock's valuation is appealing with a reasonable P/E ratio and attractive dividend yield, although technical indicators suggest potential caution in the short term.

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

Company Description

Cross Cat Co., Ltd. (2307) is a Japan-based company primarily engaged in the information technology sector. It provides a wide range of IT services including system integration, software development, and IT consulting. The company caters to various industries, offering customized IT solutions to enhance business operations and efficiency.

How the Company Makes Money

Cross Cat Co., Ltd. generates revenue through multiple streams, primarily through system integration and software development services. The company engages in contracts with businesses to develop and implement tailored IT solutions, which often involve long-term service agreements. Additionally, Cross Cat Co., Ltd. offers IT consulting services, providing expert advice and strategies to enhance clients' technological infrastructures. Partnerships with other technology firms and businesses also play a critical role in expanding their service offerings and market reach, contributing to their earnings.

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	15.58B	16.19B	14.93B	13.84B	12.12B	9.63B
Gross Profit	3.64B	3.80B	3.51B	3.20B	2.70B	2.01B
EBITDA	1.95B	2.08B	2.07B	1.68B	1.35B	748.75M
Net Income	1.17B	1.32B	1.31B	1.02B	765.30M	369.60M
Balance Sheet
Total Assets	9.04B	10.53B	9.47B	8.59B	7.37B	6.51B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.68B	2.34B	1.98B	1.35B	1.26B
Total Debt	700.00M	1.50B	1.21B	710.84M	413.94M	817.03M
Total Liabilities	3.38B	4.67B	4.38B	3.52B	3.15B	2.90B
Stockholders Equity	5.66B	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: 1031.00
• 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:2307, the sentiment is Negative. The current price of 1031 is below the 20-day moving average (MA) of 1036.95, below the 50-day MA of 1044.26, and below the 200-day MA of 1057.92, indicating a bearish trend. The MACD of -10.59 indicates Positive momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 4.11 is Positive, 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
9702	78 Outperform	¥15.50B	7.74		3.97%	7.93%	20.67%
3648	76 Outperform	¥17.18B	12.24		1.60%	12.54%	52.37%
2307	75 Outperform	¥15.34B	10.76		3.29%	8.46%	3.01%
3712	72 Outperform	¥16.75B	13.91		2.20%	2.71%	9.95%
3800	68 Neutral	¥13.74B	20.26		3.65%	-2.98%	-31.07%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
3905	53 Neutral	¥33.37B	―		―	32.00%	55.33%

Cross Cat Co., Ltd. Corporate Events

Cross Cat Co., Ltd. Reports Strong Financial Growth for FY 2025

Cross Cat Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing an increase in net sales by 8.5% and operating profit by 20.7% compared to the previous year. The company also announced a dividend increase, reflecting a positive outlook for the upcoming fiscal year, despite a slight decrease in comprehensive income and a forecasted modest growth in profits for 2026.

Cross Cat Co., Ltd. Completes Treasury Stock Acquisition

Cross Cat Co., Ltd. has completed the acquisition of 133,300 shares of its own stock, representing 0.95% of its total shares, for ¥138,365,400 through the Tokyo Stock Exchange’s off-auction trading system. This move, approved by the Board of Directors, is aimed at executing flexible capital policies in response to changes in the business environment.

Cross Cat Co., Ltd. Announces Treasury Stock Acquisition

Cross Cat Co., Ltd. has announced a resolution by its Board of Directors to acquire treasury stock to execute flexible capital policies in response to changes in the business environment. The acquisition will be conducted through the Tokyo Stock Exchange’s off-auction own share repurchase trading system, with a maximum of 140,000 shares to be acquired at ¥1,038 per share, totaling up to ¥145,320,000. This move is intended to adapt to market trends and enhance the company’s capital management strategy.

Cross Cat Co., Ltd. Reports Strong Financial Performance for FY 2025

Cross Cat Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in net sales and operating profit compared to the previous year. The company achieved net sales of ¥16,194 million, an 8.5% increase, and an operating profit of ¥1,836 million, a 20.7% rise. These results reflect the company’s robust performance and strategic positioning in the industry, with implications for continued growth and stakeholder confidence.

Cross Cat Co., Ltd. Increases Dividend Forecast for Fiscal Year 2025

Cross Cat Co., Ltd. announced a revision to its dividend forecast, increasing the year-end dividend for the fiscal year ending March 2025 from 31 yen to 33 yen per share. This decision aligns with the company’s policy of maintaining a consolidated payout ratio of over 35%, reflecting strong performance trends and a commitment to shareholder returns.

Cross Cat Co., Ltd. Selects New Outside Director Candidate with Strong IT and Management Background

Cross Cat Co., Ltd. has announced the tentative selection of Takanori Yukishige as a candidate for the new Outside Director and Audit & Supervisory Committee Member. Yukishige’s extensive experience in digital transformation and management roles, particularly at All Nippon Airways and Nagasaki Airport Building Co., is expected to contribute significantly to the company’s strategic decision-making and governance. His potential appointment reflects the company’s commitment to leveraging seasoned professionals to drive digital and operational advancements.