Robust Free Cash Flow GenerationVery strong free cash flow growth and operating cash conversion indicate durable internal funding for capex, dividends, debt repayment and strategic investments. High cash conversion reduces refinancing risk and supports operational resilience across 2-6 month horizons and longer.

Conservative Balance Sheet And Solid ReturnsExtremely low leverage and a high equity ratio provide financial flexibility and low solvency risk. Combined with a near-15% ROE, this balance of capital conservatism and healthy returns supports sustainable shareholder value and capacity to withstand industry shocks.

Improving Revenue And Margin ProfileDouble-digit year growth and rising gross and operating margins indicate structural improvement in business efficiency and cost management. Sustained margin expansion supports durable profitability and reinvestment capacity, strengthening competitive position over months ahead.

Bears Say

Thin Net Profit MarginA net margin under 4% leaves limited buffer to absorb input cost inflation, pricing pressure or unexpected expenses. Even with improving margins, low absolute net profitability constrains retained earnings and reduces the firm's resilience to prolonged industry stress.

Moderate Overall Revenue Growth RateMid-single-digit revenue growth suggests the company is expanding more slowly than fast-growing technology peers. Over 2-6 months this pace may limit scale economies and market-share gains, making competitive differentiation and margin improvement more challenging.

Relatively Small Organizational ScaleA workforce of ~425 indicates modest operational scale for a technology distributor. Limited scale can constrain negotiating leverage with suppliers, geographic reach, and ability to absorb fixed costs, placing durable pressure on margins versus larger competitors.

3020 FAQ

What was Applied Co., Ltd.’s price range in the past 12 months?

Applied Co., Ltd. lowest stock price was ¥2340.00 and its highest was ¥4765.00 in the past 12 months.

What is Applied Co., Ltd.’s market cap?

Applied Co., Ltd.’s market cap is ¥10.66B.

When is Applied Co., Ltd.’s upcoming earnings report date?

Applied Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 63 days.

How were Applied Co., Ltd.’s earnings last quarter?

Applied Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥210.519 earnings per share for the quarter, beating the consensus estimate of N/A by ¥210.519.

Is Applied Co., Ltd. overvalued?

According to Wall Street analysts Applied Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Applied Co., Ltd. pay dividends?

Applied Co., Ltd. pays a Annually dividend of ¥70 which represents an annual dividend yield of 2.48%. See more information on Applied Co., Ltd. dividends here

What is Applied Co., Ltd.’s EPS estimate?

Applied Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Applied Co., Ltd. have?

Applied Co., Ltd. has 2,703,200 shares outstanding.

What happened to Applied Co., Ltd.’s price movement after its last earnings report?

Applied Co., Ltd. reported an EPS of ¥210.519 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.34%.

Which hedge fund is a major shareholder of Applied Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3020

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Applied Co., Ltd.

Applied Co.,Ltd. sells personal computers, peripheral equipment, and digital products in Japan. It is also involved in the planning, development, manufacture, sale, and wholesale of private brand PCs and digital products. The company also engages in the procurement, advertising, and sale of products of other manufacturers. In addition, it provides network system construction and maintenance, and remote services. The company was founded in 1977 and is headquartered in Fukuoka City, Japan.