ktk Inc. (3035) AI Stock Analysis

• Market Cap: ¥3.50B
• Dividend Yield: 2.73%
• Average Volume (3M): 2.64K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.36
• Revenue Growth: 4.52%
• EPS Growth: -4.08%
• Country: JP
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 15.26
• Shares Outstanding: 5,725,000
• 10 Day Avg. Volume: 3,370
• 30 Day Avg. Volume: 2,640
• PEG Ratio: -2.59
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 14.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥692.00 ▲(11.61% Upside)

ktk Inc. demonstrates strong financial performance with robust revenue growth and a stable balance sheet. The stock's valuation is attractive, with a low P/E ratio and a solid dividend yield. Technical indicators suggest a neutral trend, limiting immediate upside potential. Overall, the stock is a solid investment with room for profitability improvement.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for ktk Inc.'s products, supporting long-term expansion and market penetration.

Stable Financial Position

A stable financial position with low leverage enhances ktk Inc.'s ability to invest in growth opportunities and withstand economic downturns.

Cash Flow Management

Positive free cash flow growth indicates effective cash generation, providing ktk Inc. with the flexibility to fund operations and strategic initiatives.

Negative Factors

Profitability Margins

Low net profit margins may limit ktk Inc.'s ability to reinvest in the business, potentially affecting long-term competitiveness and shareholder returns.

Volatile Cash Flow

Volatility in cash flow growth could challenge ktk Inc.'s ability to consistently fund operations and investments, impacting financial stability.

Earnings Growth

Negative EPS growth indicates declining profitability, which could hinder ktk Inc.'s capacity to generate shareholder value and invest in future growth.

ktk Inc. Business Overview & Revenue Model

Company Description

ktk Inc. (3035) is a dynamic company operating primarily in the technology sector, specializing in innovative software solutions and digital services. With a focus on enhancing business operations, ktk Inc. develops a range of products including cloud-based applications, data analytics tools, and cybersecurity services. The company caters to various industries, aiming to streamline processes and improve efficiency for its clients.

How the Company Makes Money

ktk Inc. generates revenue through multiple streams, primarily from software licensing, subscription services, and consulting fees. The company offers its software products on a subscription basis, allowing businesses to access their tools on a recurring revenue model. Additionally, ktk Inc. provides custom consulting services to help organizations implement and optimize their software solutions, generating further income. Strategic partnerships with other technology firms and enterprises also enhance its market reach and provide co-development opportunities, contributing significantly to its earnings.

ktk Inc. Financial Statement Overview

Summary

ktk Inc. exhibits strong revenue growth and a stable financial position with low leverage. While profitability margins could improve, the company maintains a healthy balance sheet and adequate cash flow management. The overall financial health is robust, with opportunities for enhancing profitability and cash flow consistency.

Income Statement

ktk Inc. has demonstrated strong revenue growth with a 67.1% increase in the latest year, indicating robust demand for its products. The gross profit margin is healthy, reflecting efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. Overall, the company shows a positive growth trajectory with stable EBIT and EBITDA margins.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The return on equity is satisfactory, showing effective use of shareholder funds. The equity ratio is strong, reflecting a stable financial position. However, there is potential to enhance return on equity further.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth, although it has been volatile in previous years. The operating cash flow to net income ratio is moderate, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio is strong, indicating good cash conversion. Overall, cash flow management is adequate but could benefit from more consistent growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.64B	18.93B	18.11B	17.61B	17.20B	17.29B
Gross Profit	5.55B	4.45B	4.24B	3.98B	3.73B	3.67B
EBITDA	849.76M	712.86M	670.65M	638.67M	605.97M	589.85M
Net Income	395.84M	332.00M	345.33M	310.19M	315.33M	333.02M
Balance Sheet
Total Assets	9.34B	9.34B	8.87B	8.45B	8.38B	8.45B
Cash, Cash Equivalents and Short-Term Investments	2.52B	2.52B	2.26B	2.24B	2.22B	2.65B
Total Debt	993.00M	993.00M	897.09M	908.40M	1.14B	968.94M
Total Liabilities	4.86B	4.86B	4.66B	4.58B	4.76B	5.04B
Stockholders Equity	4.48B	4.48B	4.21B	3.88B	3.62B	3.41B
Cash Flow
Free Cash Flow	0.00	242.00M	222.00M	310.67M	-226.87M	315.52M
Operating Cash Flow	0.00	264.00M	282.79M	405.50M	-188.60M	400.04M
Investing Cash Flow	0.00	37.95M	-143.75M	-46.35M	-291.69M	-52.86M
Financing Cash Flow	0.00	6.32M	-132.30M	-345.40M	63.47M	-412.27M

ktk Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3035, the sentiment is Neutral. The current price of 620 is below the 20-day moving average (MA) of 655.75, below the 50-day MA of 638.36, and below the 200-day MA of 632.16, indicating a neutral trend. The MACD of 4.53 indicates Positive momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3035.

ktk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7999	75 Outperform	¥13.57B	25.21	―	4.37%	0.33%	-65.09%
3035	74 Outperform	¥3.50B	9.93	―	2.73%	4.52%	-4.08%
7975	70 Neutral	¥4.29B	20.52	―	2.03%	3.24%	―
7314	66 Neutral	¥3.72B	-39.96	―	2.15%	23.24%	-111.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7957	61 Neutral	¥2.21B	3.92	―	5.27%	0.34%	―
7992	51 Neutral	¥3.38B	-3.19	―	―	4.11%	33.06%