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Kakakucom (JP:2371)
:2371

Kakaku (2371) AI Stock Analysis

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Kakaku

(OTC:2371)

Rating:77Outperform
Price Target:
¥2,864.00
▲(9.23%Upside)
Kakaku's overall stock score is primarily driven by its strong financial performance, reflecting robust growth and stability. Technical analysis provides a mixed outlook with positive trends but potential overbought conditions. Valuation metrics suggest moderate appeal, limiting significant upside potential. The absence of earnings call and corporate events data concentrates the analysis on these core factors.

Kakaku (2371) vs. iShares MSCI Japan ETF (EWJ)

Kakaku Business Overview & Revenue Model

Company DescriptionKakaku.com, Inc. is a leading Japanese company specializing in providing comprehensive online platforms that cater to a variety of consumer needs. The company operates several businesses, including price comparison services, user-generated reviews, and community-based content on its flagship website, Kakaku.com. It also manages other popular online platforms, such as Tabelog, a restaurant review and reservation service, and other niche services in travel, real estate, and entertainment sectors.
How the Company Makes MoneyKakaku.com, Inc. generates revenue primarily through advertising and affiliate marketing on its various platforms. The company charges fees for listing products and services, as well as for premium placements and advertisements, allowing businesses to reach its large user base. In addition to these advertising revenues, Kakaku.com also earns commission fees from transactions facilitated through its platforms, such as restaurant reservations made via Tabelog. Partnerships with e-commerce sites and other service providers also contribute to Kakaku's earnings, enabling it to offer a broad range of consumer-focused services.

Kakaku Earnings Call Summary

Earnings Call Date:Feb 06, 2025
(Q1-2025)
|
% Change Since: 8.07%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and profit growth, particularly in Tabelog and Kyujin Box, with improvements seen in several segments. However, challenges such as declines in Shopping and Advertising revenue, as well as underperformance in Tabelog's inbound reservation service, presented some concerns. Overall, the positive outcomes were more prominent than the challenges faced.
Q1-2025 Updates
Positive Updates
Significant Revenue and Profit Growth
Revenue for Q1 was JPY 17.713 billion, up 15.3% Y-o-Y, and operating profit was JPY 6.977 billion, up 34.9% Y-o-Y.
Strong Performance in Tabelog
Tabelog reported a Y-o-Y revenue growth of 19.2% and segment income growth of 31.8%.
Kyujin Box User and Revenue Growth
Kyujin Box posted a 36.3% Y-o-Y increase in revenue and a 15.3% increase in segment income, with monthly user numbers exceeding forecasts.
Improvement in Kakaku.com Services Business
The services business grew 21.6% Y-o-Y, contributing to the 8.4% revenue and 11.4% segment income growth for Kakaku.com.
Growth in Incubation Segment Income
Incubation segment income increased by 49.3% Y-o-Y, despite a 1.8% decline in revenue.
Negative Updates
Decline in Shopping and Advertising Revenue
Kakaku.com's Shopping business declined by 3% Y-o-Y, and the Advertising business continues to face challenges.
Underperformance of Tabelog's Inbound Reservation Service
The number of reservations for Tabelog's inbound reservation service was lower than expected at about 1,600 per day.
Weak Revenue Per User in Kyujin Box
Revenue per user for Kyujin Box was slightly weak, just under 17% Y-o-Y, due to a slowdown in job postings.
Company Guidance
During the Q1 2025 earnings call, Kakaku.com reported a revenue of JPY 17.713 billion, reflecting a 15.3% year-over-year increase, while operating profit rose by 34.9% to JPY 6.977 billion. The segment-wise performance showed Kakaku.com achieving an 8.4% increase in revenue and an 11.4% rise in segment income, Tabelog reported a 19.2% increase in revenue and a 31.8% boost in segment income, and Kyujin Box saw a 36.3% growth in revenue with a 15.3% increase in segment income. The Incubation segment experienced a 1.8% decline in revenue but a significant 49.3% surge in segment income. The company maintained stable fixed expenses while controlling variable expenses and made strategic changes in segment classifications, including the integration of the Finance business into the Kakaku.com segment and restructuring Tabelog's restaurant promotion business into three new segments. The call also outlined future growth strategies, such as leveraging partnerships with Digital Garage and KDDI to enhance fintech and data analysis capabilities, and expanding Tabelog's inbound reservation services, which currently averages 1,600 reservations per day, for travelers visiting Japan.

Kakaku Financial Statement Overview

Summary
Kakaku's financial statements present a strong financial position characterized by solid revenue and profit growth, low leverage, and efficient cash flow management. The company is well-positioned in its industry, with impressive profitability metrics and a robust equity base. Potential risks include slight variability in operating margins and modest increases in debt levels, but the overall outlook remains positive.
Income Statement
85
Very Positive
Kakaku demonstrates strong financial performance with consistent revenue growth from 2022 to TTM, reaching a notable 44.9% increase in revenue from 2023 to TTM. Gross profit margin remains robust, especially in TTM at 22%. The net profit margin also improved significantly from 27.1% in 2023 to 27.4% in TTM. EBIT and EBITDA margins are healthy, with TTM figures at 22.0% and 44.9%, respectively. Overall, the company's income statement reflects solid growth and profitability, although some variability in operating profit margins needs monitoring.
Balance Sheet
82
Very Positive
Kakaku maintains a strong balance sheet with a low debt-to-equity ratio of 0.08 in TTM, indicating low leverage. The company has a healthy return on equity of 36.1% in TTM, reflecting efficient use of equity to generate profits. The equity ratio stands at 62.0% in TTM, showing a strong equity base. Overall, the balance sheet is stable, with minimal financial risk, though the slight increase in total debt over time warrants cautious monitoring.
Cash Flow
88
Very Positive
The cash flow statement of Kakaku is robust, with free cash flow growing 53.1% from 2023 to TTM. The operating cash flow to net income ratio is strong at 1.36 in TTM, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable at 1.30 in TTM. The company's cash flow performance reflects strong liquidity and operational efficiency, although capital expenditures remain an area to watch for potential impacts on free cash flow.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
74.94B66.93B60.82B51.72B51.08B60.98B
Gross Profit
16.50B66.93B60.82B51.72B33.58B41.97B
EBIT
16.50B25.82B23.95B19.15B18.30B27.22B
EBITDA
33.63B29.76B26.98B24.30B21.58B29.84B
Net Income Common Stockholders
20.52B18.09B16.15B14.29B11.76B18.35B
Balance SheetCash, Cash Equivalents and Short-Term Investments
42.97B38.14B36.98B34.55B35.57B29.58B
Total Assets
91.75B83.31B78.56B70.48B70.96B63.32B
Total Debt
4.74B5.18B5.96B6.60B8.26B8.37B
Net Debt
-38.23B-32.53B-30.50B-27.70B-26.63B-21.13B
Total Liabilities
34.60B31.62B30.42B22.31B23.82B20.01B
Stockholders Equity
56.87B51.38B47.86B47.96B46.88B42.91B
Cash FlowFree Cash Flow
26.70B17.44B20.40B14.26B15.09B21.29B
Operating Cash Flow
27.88B19.52B22.40B16.03B17.29B24.00B
Investing Cash Flow
-2.93B-2.21B-2.68B-1.31B-2.18B-3.96B
Financing Cash Flow
-11.25B-16.08B-17.57B-15.31B-9.72B-16.95B

Kakaku Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2622.00
Price Trends
50DMA
2427.76
Positive
100DMA
2340.70
Positive
200DMA
2357.37
Positive
Market Momentum
MACD
31.37
Negative
RSI
60.38
Neutral
STOCH
86.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2371, the sentiment is Positive. The current price of 2622 is above the 20-day moving average (MA) of 2524.10, above the 50-day MA of 2427.76, and above the 200-day MA of 2357.37, indicating a bullish trend. The MACD of 31.37 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 86.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2371.

Kakaku Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥84.13B17.17
1.19%4.92%-12.12%
77
Outperform
¥503.94B25.3234.91%1.86%17.19%11.92%
72
Outperform
¥3.86B19.18
1.28%-2.62%
71
Outperform
¥20.43B14.37
1.66%-5.81%1585.94%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
45
Neutral
¥4.83B
0.85%-2.38%-40.23%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2371
Kakaku
2,622.00
715.19
37.51%
JP:2454
All About, Inc.
354.00
-40.72
-10.32%
JP:3662
Ateam Inc.
1,172.00
479.00
69.12%
JP:3770
Zappallas, Inc.
388.00
-46.63
-10.73%
JP:4298
Proto Corp.
2,092.00
738.81
54.60%

Kakaku Corporate Events

Kakaku.com Finalizes Stock Acquisition Rights Issuance
Jun 5, 2025

Kakaku.com, Inc. has finalized the terms for issuing its 19th Stock Acquisition Rights, which are paid stock options for its Directors and Senior Managing Executive Officers. This move, resolved by the Board of Directors, involves a total of 12,884 stock acquisition rights, translating to 1,288,400 common shares, and is aimed at aligning the interests of the management with the company’s performance, potentially impacting its operational dynamics and market positioning.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2320.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Announces Amendments to Strengthen Governance
May 21, 2025

Kakaku.com, Inc. has announced plans to amend its Articles of Incorporation, transitioning to a company with an Audit & Supervisory Committee to strengthen its corporate governance. This change is intended to enhance the supervisory function of the Board of Directors and increase corporate value. Additionally, the company plans to update its business purposes to reflect current operations and future diversification.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2320.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Announces Executive Changes Amid Governance Transition
May 21, 2025

Kakaku.com, Inc. announced a significant change in its executive structure as it transitions to a company with an Audit & Supervisory Committee. This move involves nominating new directors, including Daisuke Tominaga, who brings extensive experience from his previous roles in various companies. This transition aims to strengthen the company’s governance and oversight, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2320.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Issues Stock Options to Boost Growth and Value
May 21, 2025

Kakaku.com, Inc. has announced the issuance of stock acquisition rights to its Directors and Senior Managing Executive Officers to drive medium- to long-term growth and enhance corporate value. This move is intended to motivate leadership and align their interests with shareholders, with the exercise of rights contingent on achieving specific performance targets, thus ensuring reasonable share dilution and alignment with shareholder interests.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2320.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com to Receive Dividends from Subsidiaries, Enhancing Non-Consolidated Income
May 19, 2025

Kakaku.com, Inc. has announced its decision to receive dividends totaling 4,938 million yen from its three consolidated subsidiaries, which will be recorded as non-operating income in its non-consolidated financial statements for the fiscal year ending March 31, 2026. This move will not affect the company’s consolidated financial results, indicating a strategic financial management approach that could reassure stakeholders about the company’s fiscal health and operational stability.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2320.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

Kakaku.com Reports Strong FY2025 Results Amid Future Challenges
May 8, 2025

Kakaku.com, Inc. reported a strong financial performance for the fiscal year ended March 31, 2025, with a 17.2% increase in revenue and a 13.5% rise in operating profit compared to the previous year. The company also announced a significant increase in dividends, reflecting its robust earnings growth and commitment to returning value to shareholders. Despite the positive results, the company forecasts a slight decline in profits for the next fiscal year, indicating potential challenges ahead.

Kakaku.com Appoints New COO to Enhance Operations
May 1, 2025

Kakaku.com, Inc. has announced a significant change in its executive leadership, appointing Takehito Jinde as the new Chief Operating Officer (COO) effective May 1, 2025. This strategic move is expected to enhance the company’s operational efficiency and strengthen its market position, potentially impacting its growth trajectory and stakeholder interests positively.

Kakaku.com Announces Disposal of Treasury Shares for Executive Remuneration
Mar 26, 2025

Kakaku.com, Inc. has announced the disposal of 48,619 treasury shares as restricted share remuneration for its executive officers, with a disposal value set at 2,236.5 yen per share. This move, determined by the board on March 19, 2025, aims to align executive compensation with shareholder interests by using the Tokyo Stock Exchange closing price to avoid arbitrary pricing, reflecting a strategic approach to executive remuneration.

Kakaku.com Announces Disposal of Treasury Shares as Part of Strategic Initiatives
Mar 19, 2025

Kakaku.com, Inc. has announced a resolution to dispose of 48,619 treasury shares as restricted shares remuneration to its executive officers. This move is part of a broader strategy to align the interests of its executives with shareholders and enhance corporate value. The disposal is set to occur on April 24, 2025, with a disposal value of 2,236.5 yen per share, subject to market conditions. The announcement coincides with other strategic initiatives, including the acquisition of LiPLUS Holdings and a transition to a company with an Audit & Supervisory Committee, potentially impacting the company’s stock price and shareholder interests.

Kakaku.com to Enhance Governance with New Supervisory Committee
Mar 19, 2025

Kakaku.com, Inc. announced its decision to transition to a Company with an Audit & Supervisory Committee, pending approval at its upcoming Annual General Meeting in June 2025. This move is intended to strengthen the board’s supervisory function and improve corporate governance, thereby enhancing corporate value.

Kakaku.com Raises Earnings Forecast Amid Strong Business Performance
Mar 19, 2025

Kakaku.com has revised its earnings forecast for the fiscal year ending March 31, 2025, due to stronger-than-expected performance in its Tabelog and Kyujin Box businesses. The company anticipates higher revenue and profits than initially projected, reflecting a positive trend in its operational performance.

Kakaku.com Unveils Medium-Term Management Plan for FY26/3-FY30/3
Mar 19, 2025

Kakaku.com, Inc. has announced the formulation of a Medium-Term Management Plan covering the fiscal years from 2026 to 2030. This strategic plan, approved by the Board of Directors, aims to guide the company’s growth and operational strategies over the next five years, potentially impacting its market positioning and stakeholder interests.

Kakaku.com Expands into Household Services with LiPLUS Acquisition
Mar 19, 2025

Kakaku.com, Inc. has announced the acquisition of shares in LiPLUS Holdings Inc., making it a subsidiary. This strategic move aims to enhance corporate value by integrating LiPLUS’s platform, which connects users with household service professionals, into Kakaku’s offerings. The acquisition is expected to drive business growth in the household services market by leveraging digital marketing expertise and expanding service categories.

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.