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Quantum Solutions Co.,Ltd. (JP:2338)
:2338
Japanese Market

Quantum Solutions Co.,Ltd. (2338) AI Stock Analysis

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JP:2338

Quantum Solutions Co.,Ltd.

(2338)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥151.00
▼(-79.29% Downside)
Action:ReiteratedDate:03/24/26
The score is primarily held back by persistent operating losses and consistent negative operating/free cash flow (ongoing cash burn), despite strong recent revenue rebound and high gross margins. Technicals suggest only a modest short-term recovery within a broader downtrend, and valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Revenue rebound and high gross margin
A marked top-line rebound combined with very high gross margins indicates the company retains pricing power or favorable unit economics at the core product/service level. Over 2–6 months this supports sustainable contribution margins and gives management room to invest in scaling or margin improvement initiatives.
Negative Factors
Consistent negative operating and free cash flow
Persistent negative operating and free cash flow means the business cannot self-fund operations or growth, creating an ongoing reliance on external financing or equity dilution. Over months this constrains strategic flexibility and raises execution and refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound and high gross margin
A marked top-line rebound combined with very high gross margins indicates the company retains pricing power or favorable unit economics at the core product/service level. Over 2–6 months this supports sustainable contribution margins and gives management room to invest in scaling or margin improvement initiatives.
Read all positive factors

Quantum Solutions Co.,Ltd. (2338) vs. iShares MSCI Japan ETF (EWJ)

Quantum Solutions Co.,Ltd. Business Overview & Revenue Model

Company Description
Quantum Solutions Co.,Ltd. engages in the system solutions, contents development and distribution, software outsourced development, and eyelash care businesses worldwide. The company engages in system consulting, system integration, software devel...

Quantum Solutions Co.,Ltd. Financial Statement Overview

Summary
Revenue rebounded strongly and gross margin is very high, but the company remains deeply unprofitable with large operating losses and negative net margins. Cash flow is a major concern: operating and free cash flow are negative every year, indicating persistent cash burn despite a low-debt balance sheet.
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue272.38M698.09M205.24M264.29M256.51M245.50M
Gross Profit211.02M640.86M139.31M177.15M192.17M186.39M
EBITDA-536.68M-477.02M-941.46M-384.59M-360.26M-378.27M
Net Income-531.08M-317.24M-902.42M-954.36M-280.88M-392.12M
Balance Sheet
Total Assets1.66B324.49M1.15B468.70M1.08B1.01B
Cash, Cash Equivalents and Short-Term Investments1.55B136.13M137.11M236.34M507.85M792.82M
Total Debt1.48B0.000.000.000.00300.00M
Total Liabilities1.59B86.99M1.13B72.04M72.68M337.99M
Stockholders Equity67.47M238.00M16.68M396.00M1.01B673.11M
Cash Flow
Free Cash Flow0.00-520.99M-659.43M-379.05M-471.50M-272.47M
Operating Cash Flow0.00-520.78M-657.39M-379.05M-277.75M-272.47M
Investing Cash Flow0.00-11.81M-128.74M-477.41M-218.75M-107.77M
Financing Cash Flow0.00531.51M681.45M583.37M195.15M301.32M

Quantum Solutions Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥8.18B9.803.16%14.02%2.74%
80
Outperform
¥6.96B10.463.37%5.25%23.64%
78
Outperform
¥6.12B14.842.43%2.92%-0.94%
68
Neutral
¥9.19B15.164.16%4.52%51.81%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
44
Neutral
¥7.43B-5.25
43
Neutral
¥6.07B-57.57-0.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2338
Quantum Solutions Co.,Ltd.
151.00
-345.00
-69.56%
JP:2332
Quest Co., Ltd.
1,576.00
261.21
19.87%
JP:3799
Keyware Solutions Inc.
1,144.00
422.23
58.50%
JP:3940
Nomura System Corporation Co., Ltd.
132.00
12.01
10.01%
JP:4056
Neural Group Inc.
353.00
-431.00
-54.97%
JP:4752
Showa System Engineering Corporation
1,574.00
213.39
15.68%
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: Mar 24, 2026