Kakaku (2371) AI Stock Analysis

• Market Cap: ¥338.15B
• Dividend Yield: 3.62%
• Average Volume (3M): 757.46K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.55
• Revenue Growth: 20.98%
• EPS Growth: 0.48%
• Country: JP
• Employees: 1,381
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 25.28
• Shares Outstanding: 198,218,300
• 10 Day Avg. Volume: 840,230
• 30 Day Avg. Volume: 757,463
• PEG Ratio: 1.75
• Price to Book (P/B): 6.82
• Price to Sales (P/S): 5.38
• P/FCF Ratio: 15.74
• 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: ¥2,156.10
• Price Target Upside: 25.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 99.8
• Revenue Forecast (FY): ¥94.63B

• Rating: 73 Outperform
• Price Target: ¥1,753.00 ▲(1.83% Upside)
• Action: Upgraded Date: 02/06/26
• Date: Action: Upgraded 02/06/26

The score is driven primarily by strong financial performance (profitability, low leverage, and solid cash conversion). Valuation is also supportive with a high dividend yield and a moderate P/E. These positives are meaningfully offset by weak technicals, with the stock trading well below key moving averages and showing strongly negative momentum indicators.

Positive Factors

High Profitability

Sustained ~21% net margins indicate durable pricing power and efficient cost structure across core platforms. This level of profitability supports internal reinvestment, shareholder distributions and buffer against cyclical ad-market swings, underpinning earnings quality over months.

Conservative Balance Sheet

Very low leverage gives the company financial flexibility to fund growth, product development or M&A without stressing liquidity. A strong equity base and manageable debt reduce refinancing and interest-rate risks, improving resilience over the medium term.

Strong Cash Conversion

Near-100% conversion of net income to free cash flow signals high earnings quality and reliable cash generation from operations. This supports stable dividends, buybacks or targeted investments and makes core services self-funding absent large strategic shifts.

Negative Factors

Recent FCF Decline

A ~9% YoY drop in free cash flow, despite strong conversion, points to cash volatility or one-off pressures. If sustained, it could constrain discretionary spending on product development, marketing, or payouts and weaken the cushion provided by prior cash strength.

Margin Normalization

Earnings appear to be reverting from peak margins, suggesting competitive pressure, pricing erosion, or mix shifts. A sustained margin pullback would limit free cash flow growth and make beating low-growth top-line harder without efficiency gains or new revenue streams.

Modest Revenue Growth

Low single-digit TTM revenue growth indicates limited organic expansion of user monetization or market share. Over months, modest top-line trends require margin expansion or new products/offerings to materially lift cash flow and earnings growth.

Kakaku Business Overview & Revenue Model

Company Description

Kakaku.com, Inc. provides purchase support, restaurant review, and other services in Japan. The company operates kakaku.com, a purchasing support site that compare prices of products and services, such as computers, home appliances, fashion, interiors, cars, telecommunications, and insurances. It also operates tabelog.com, a restaurant search and reservation site. In addition, the company operates travel review and comparison site; online residential real estate portal; online database for movies and showtimes; photo sharing site; lifestyle media; information site for car lovers; men's fashion online media; FX related information, commentary, and forecast on foreign exchange market; job classifieds box; animation and Akihabara culture information media; highway busses and bus tours comparison site; lowest price comparison site for the cheapest bus, airline, and bullet train tickets; and an online media for bus trips, travel, and sightseeing. Further, it engages in the finance business. Kakaku.com, Inc. was incorporated in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kakaku generates revenue through multiple streams, primarily from advertising and affiliate marketing. The company earns money by allowing retailers and manufacturers to advertise their products on its platforms, charging fees based on impressions or clicks. Furthermore, Kakaku receives commissions from sales generated through its affiliate links, where users are directed to partner sites to complete their purchases. The company also benefits from partnerships with various retailers and service providers, enhancing its offerings and increasing traffic to its platforms, which in turn boosts its advertising revenues. Additionally, Kakaku has expanded into subscription services and premium listings, further diversifying its revenue model.

Kakaku Financial Statement Overview

Summary

Strong overall financial profile: steady TTM revenue growth (4.3%), robust profitability (about 21% net margin), low leverage (debt/equity about 0.10), and solid cash conversion (FCF about 98% of net income). Offsets are margin normalization versus prior peak periods and a TTM free cash flow decline (~9% YoY).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 4.3%, showing steady top-line momentum. Profitability is a key strength, with strong net margins (about 21% in TTM) and solid operating profitability, although margins are notably lower than the unusually high levels shown in several prior annual periods. Overall, earnings power looks strong, but the margin trajectory suggests some normalization/pressure versus the peak years.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity (about 0.10 in TTM) and a large equity base. Returns on shareholder capital are consistently strong (roughly low-30% range in both TTM and recent annual results), indicating efficient capital use. The main watch item is that debt rose versus the latest annual figure, though leverage remains very manageable.

Cash Flow

Cash generation is strong, with TTM operating cash flow and free cash flow both substantial, and free cash flow running close to net income (about 98% in TTM), which supports earnings quality. However, TTM free cash flow declined about 9% year over year, pointing to some recent cash flow softness/volatility despite otherwise healthy conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	90.64B	78.44B	66.93B	60.82B	51.72B	51.08B
Gross Profit	28.17B	29.78B	66.93B	60.82B	51.72B	51.08B
EBITDA	32.77B	33.23B	29.76B	26.98B	22.65B	21.58B
Net Income	19.30B	20.03B	18.09B	16.15B	14.29B	11.76B
Balance Sheet
Total Assets	84.26B	93.50B	83.31B	78.56B	70.48B	70.96B
Cash, Cash Equivalents and Short-Term Investments	36.79B	50.86B	38.14B	36.98B	34.55B	35.57B
Total Debt	6.10B	4.25B	5.18B	5.96B	6.60B	8.26B
Total Liabilities	23.65B	31.37B	31.62B	30.42B	22.31B	23.82B
Stockholders Equity	60.41B	61.81B	51.38B	47.88B	47.96B	46.88B
Cash Flow
Free Cash Flow	22.79B	26.79B	17.44B	20.40B	14.26B	15.09B
Operating Cash Flow	23.33B	27.49B	19.52B	22.40B	16.03B	17.29B
Investing Cash Flow	-11.36B	-3.02B	-2.21B	-2.68B	-1.31B	-2.18B
Financing Cash Flow	-18.16B	-11.30B	-16.08B	-17.57B	-15.31B	-9.72B

Kakaku Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1721.50
• 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:2371, the sentiment is Negative. The current price of 1721.5 is below the 20-day moving average (MA) of 1790.65, below the 50-day MA of 2080.51, and below the 200-day MA of 2451.25, indicating a bearish trend. The MACD of -140.39 indicates Negative momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2371.

Kakaku Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2371	73 Outperform	¥338.15B	17.64	33.08%	3.62%	20.98%	0.48%
2120	72 Outperform	¥28.50B	4.87	9.76%	5.66%	-18.39%	―
7082	65 Neutral	¥6.86B	15.32	―	―	3.38%	47.24%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
5243	54 Neutral	¥40.45B	83.80	―	―	22.37%	655.34%
3674	46 Neutral	¥3.60B	-8.57	―	―	-3.79%	-272.95%
7356	45 Neutral	¥2.13B	93.68	―	―	4.36%	―

Kakaku Corporate Events

Kakaku.com Reshapes Organization and Leadership to Boost AI and Governance

Kakaku.com will reorganize its structure from April 1, 2026, renaming Kyujin Box Company as HR Company after integrating the engage recruitment business, and creating a dedicated AI Product Development Department to drive AI use across its operations, alongside a new Group Governance Department to strengthen group-wide oversight. The company is also reshuffling its leadership, promoting Takehito Jinde to Senior Managing Executive Officer and COO of Kakaku.com Company, reappointing key senior executives including CEO Atsuhiro Murakami, and elevating several managers at Tabelog, HR and corporate divisions to executive officer roles, signaling a push to reinforce governance, AI capabilities and leadership depth across its core businesses.

The most recent analyst rating on (JP:2371) stock is a Buy with a Yen1834.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku balances FY26 growth drive with targeted profit pullback

Kakaku.com reported FY26/3 Q3 revenue of ¥24 billion and operating profit of ¥7.3 billion, with double-digit gains at Tabelog offsetting weaker personal finance performance and investment-driven margin pressure at Kyujin Box. Management reaffirmed its full-year outlook for ¥92 billion in revenue and ¥28 billion in operating profit, signaling a deliberate profit dip this year to fund Kyujin Box expansion and sustain company-wide growth momentum.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2418.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Grows Sales but Faces Margin Pressure Ahead of FY2026 Close

Kakaku.com’s nine-month revenue rose 21.5% to ¥68.9 billion on continuing expansion of its comparison and media platforms, but operating profit slid 4.2% as the mix shift toward newer services and consolidated changes weighed on margins, leaving earnings per share at ¥72.64. Management kept its full-year guidance for ¥92 billion in revenue and ¥28 billion in operating profit despite softer profitability, signaling confidence in demand while stakeholders monitor the integration of LiPLUS Holdings, the divestiture of eiga.com, and the reduced dividend outlook versus the prior year’s special payout.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2418.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Director Passes Away; Board Structure Remains Compliant

Kakaku.com, Inc. announced that board director Daisuke Tominaga passed away on January 25, 2026, resulting in his resignation from the board effective the same day, with the company expressing gratitude for his contributions and offering condolences. The company emphasized that, despite the loss of a director, the size and composition of its board remain in compliance with legal requirements and its Articles of Incorporation, indicating no immediate governance or regulatory disruption for stakeholders.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2418.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Finalizes Deal to Acquire en Inc.’s Engage Recruitment Business

Kakaku.com has signed a definitive Share Purchase Agreement to acquire a majority stake in engage Inc., a newly established company that will take over en Inc.’s “engage” job posting site and recruitment support tool business via an absorption-type company split effective April 1, 2026. The target business generated revenue of ¥7.9 billion in the year ended March 31, 2025, and while the acquisition’s impact on Kakaku.com’s consolidated results for the year ending March 2026 is expected to be minor, the move reinforces the group’s footprint in online recruitment services, with more detailed earnings implications to be disclosed alongside results for the year ending March 2026.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2418.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com to Acquire Majority Stake in New Recruitment Business

Kakaku.com, Inc. has announced its decision to acquire a majority stake in a new company formed from en Inc.’s engage business, which includes the job posting website en-gage and the recruitment support tool engage. This acquisition is expected to enhance Kakaku.com’s corporate value by leveraging synergies with the Target Business, expanding touchpoints with job seekers and recruiting companies, and strengthening its competitiveness in the recruitment sector. The acquisition aligns with Kakaku.com’s medium-term management plan, positioning Kyujin Box as a core growth driver.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2783.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.