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Kakakucom (JP:2371)
:2371
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Kakaku (2371) AI Stock Analysis

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JP:2371

Kakaku

(OTC:2371)

Rating:77Outperform
Price Target:
¥2,864.00
▲(6.67% Upside)
Kakaku's strong financial performance is the primary driver of its stock score, supported by solid revenue growth, profitability, and financial stability. Technical analysis suggests bullish momentum, though caution is advised due to overbought signals. Valuation is less attractive due to a high P/E ratio, but the company's financial health and growth prospects remain compelling.

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

Kakaku Business Overview & Revenue Model

Company DescriptionKakaku.com, Inc. is a Tokyo-based company that operates primarily in the internet services sector. It is renowned for its price comparison platform, Kakaku.com, which allows consumers to compare prices on a wide range of products including electronics, home appliances, fashion, and food. In addition to its price comparison services, the company owns and operates other digital platforms such as Tabelog, a restaurant review and reservation site, and other niche websites focused on travel, real estate, and personal finance.
How the Company Makes MoneyKakaku.com, Inc. generates revenue primarily through advertising and affiliate marketing. The company's price comparison platform earns money by charging merchants a fee for listing their products, and it receives a commission for sales generated through its site. Similarly, Tabelog earns income through premium memberships and advertising fees from restaurants that wish to promote their services. Additionally, the company benefits from partnerships with various e-commerce and service providers, which further enhance its revenue through referral fees. Kakaku.com also monetizes its other digital media platforms through a combination of advertising, subscription services, and affiliate partnerships.

Kakaku Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong revenue and profit growth, particularly in Tabelog and Kyujin Box segments, alongside improvements in service performance and user growth. However, it also addresses challenges in the advertising business, lower-than-expected performance in the Tabelog inbound reservation service, and ongoing declines in the Shopping business.
Q1-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Revenue for the first quarter was ¥17.713 billion, up 15.3% year-over-year, and operating profit was ¥6.977 billion, up 34.9% year-over-year.
Segment Performance: Tabelog and Kyujin Box
Tabelog posted a year-over-year revenue growth of 19.2% and segment income growth of 31.8%. Kyujin Box saw a 36.3% year-over-year increase in revenue and a 15.3% increase in segment income.
Improvement in Kakaku.com Services
Services business within Kakaku.com grew by 21.6% year-over-year, driven by strong performance in personal finance and telecommunications.
Successful User Growth in Kyujin Box
Kyujin Box's monthly users in June exceeded 11 million, surpassing the initial forecast for the end of the fiscal year and reaching a new record high.
Incubation Segment Growth
Despite a 1.8% decrease in revenue year-over-year, the Incubation segment's income increased by 49.3%, showing growth in real estate, travel, and transportation.
Negative Updates
Challenges in Advertising Business
The Advertising business segment continues to face difficulties with a steady decline in revenue.
Weakness in Tabelog Inbound Reservation Service
The number of reservations after the release of the inbound reservation service is lower than expected, with about 1,600 reservations per day.
Shopping Business Revenue Decline
The Shopping business within Kakaku.com experienced an overall decline of 3% year-over-year, although the decline is narrowing.
Impact of Divestiture in Incubation
Revenue in the Incubation segment decreased by 1.8% year-over-year, partially due to the divestiture of gaie, Inc., a subsidiary, in the previous fiscal year.
Company Guidance
During the first quarter of the fiscal year ending March 31, 2025, Kakaku.com reported a revenue of ¥17.713 billion, marking a 15.3% year-over-year increase, and an operating profit of ¥6.977 billion, up 34.9% year-over-year. The company's revenue and operating profit growth rates align with their planned objectives, resulting in no change to the full-year earnings forecast. Kakaku.com experienced an 8.4% year-over-year revenue growth and an 11.4% increase in segment income, driven by strong performance in the services business, which grew 21.6% year-over-year. Tabelog reported a 19.2% growth in revenue and a 31.8% rise in segment income, supported by the expansion of restaurant advertising and reservation services. Kyujin Box saw a 36.3% increase in revenue, although its segment margins declined due to higher commission expenses. Meanwhile, the Incubation segment experienced a 1.8% decrease in revenue but a 49.3% increase in segment income, with a strategic focus on new businesses and M&A activities to foster growth.

Kakaku Financial Statement Overview

Summary
Kakaku exhibits a strong financial performance with robust growth in revenue and profitability. The balance sheet is solid with low debt and high equity, and cash flow management is efficient, indicating financial stability and resilience.
Income Statement
82
Very Positive
Kakaku has demonstrated strong financial performance in its income statement. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has shown consistent improvement, reflecting enhanced profitability. Revenue growth is strong, with a notable increase over the past year. Margins such as EBIT and EBITDA are healthy, showcasing operational efficiency. These factors combined suggest a positive growth trajectory and profitability stability.
Balance Sheet
88
Very Positive
The balance sheet of Kakaku is solid, with a low debt-to-equity ratio, indicating prudent financial leverage. Return on Equity (ROE) is impressive, demonstrating effective use of shareholder funds to generate profits. The equity ratio is strong, reflecting financial stability. These metrics highlight a well-managed balance sheet with low risk and high financial resilience.
Cash Flow
85
Very Positive
Kakaku's cash flow statement reveals strong free cash flow growth, suggesting efficient cash generation from operations. The operating cash flow to net income ratio is healthy, indicating that earnings are well-backed by cash flow. Free cash flow to net income ratio also supports this view, emphasizing strong cash flow management. This strong cash position enhances the company's ability to invest in growth and cover liabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.44B78.44B66.93B60.82B51.72B51.08B
Gross Profit29.78B29.78B66.93B60.82B34.82B33.58B
EBITDA33.18B33.23B29.76B26.98B22.65B21.58B
Net Income20.03B20.03B18.09B16.15B14.29B11.76B
Balance Sheet
Total Assets93.50B93.50B83.31B78.56B70.48B70.96B
Cash, Cash Equivalents and Short-Term Investments50.86B50.86B38.14B36.98B34.55B35.57B
Total Debt4.25B4.25B5.18B5.96B6.60B8.26B
Total Liabilities31.37B31.37B31.62B30.42B22.31B23.82B
Stockholders Equity61.81B61.81B51.38B47.88B47.96B46.88B
Cash Flow
Free Cash Flow26.79B26.79B17.44B20.40B14.26B15.09B
Operating Cash Flow27.49B27.49B19.52B22.40B16.03B17.29B
Investing Cash Flow-3.02B-3.02B-2.21B-2.68B-1.31B-2.18B
Financing Cash Flow-11.30B-11.30B-16.08B-17.57B-15.31B-9.72B

Kakaku Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2685.00
Price Trends
50DMA
2708.39
Negative
100DMA
2625.04
Positive
200DMA
2455.21
Positive
Market Momentum
MACD
-7.69
Positive
RSI
42.38
Neutral
STOCH
17.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2371, the sentiment is Neutral. The current price of 2685 is below the 20-day moving average (MA) of 2809.57, below the 50-day MA of 2708.39, and above the 200-day MA of 2455.21, indicating a neutral trend. The MACD of -7.69 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 17.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2371.

Kakaku Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
4.92%-12.12%
77
Outperform
¥527.41B26.2438.20%1.74%19.34%5.71%
72
Outperform
¥3.96B29.49
1.23%-1.29%-4.45%
71
Outperform
¥22.69B22.82
1.75%8.55%
60
Neutral
$46.60B4.09-13.11%4.12%1.85%-42.71%
45
Neutral
¥5.65B79.73
0.74%6.36%
¥13.77B9.84
1.99%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2371
Kakaku
2,685.00
273.02
11.32%
JP:2454
All About, Inc.
408.00
42.04
11.49%
JP:3662
Ateam Inc.
1,255.00
612.12
95.22%
JP:3675
Cross Marketing Group, Inc.
703.00
36.83
5.53%
JP:3770
Zappallas, Inc.
405.00
51.37
14.53%
JP:4298
Proto Corp.
2,090.00
702.39
50.62%

Kakaku Corporate Events

Kakaku.com Reports Strong Q1 Growth Amid Strategic Investments
Aug 6, 2025

Kakaku.com reported a strong start to FY26/3 with a 24% increase in revenue and a 4.9% rise in operating profit year-on-year. Key contributors to this growth include Tabelog’s robust online reservation performance and Kyujin Box’s unexpected revenue surge despite anticipated lower profits due to investments. The company also saw gains in its Incubation segment with the addition of LiPLUS, while divesting Eiga.com to streamline its operations. Looking ahead, Kakaku.com plans to focus on expanding investments in Kyujin Box, aiming for overall revenue growth despite an expected decline in profit.

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 Revenue Growth Amid Profit Challenges
Aug 6, 2025

Kakaku.com reported a significant increase in revenue for the three months ended June 30, 2025, with a 24% year-on-year growth. However, the company experienced marginal growth in operating profit and profit before income taxes, indicating potential challenges in cost management or market conditions. The company also announced a forecasted decline in profits for the fiscal year ending March 31, 2026, despite an expected increase in revenue, suggesting strategic adjustments may be necessary.

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 Strengthens Ties with Digital Garage and KDDI
Jun 30, 2025

Kakaku.com, Inc. has announced its affiliations with Digital Garage, Inc. and KDDI Corporation, highlighting their roles as significant shareholders and partners. Digital Garage holds 20.70% of voting rights and collaborates with Kakaku.com in payment solutions, while KDDI, holding 17.71% of voting rights, is engaged in a business alliance to enhance online advertising and digital marketing. These partnerships aim to leverage synergies without compromising Kakaku.com’s operational independence.

The most recent analyst rating on (JP:2371) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on Kakaku stock, see the JP:2371 Stock Forecast page.

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.

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: Aug 07, 2025