Improved ROE And Equity BaseEquity growth and a mid-single-digit ROE that improved versus FY2024 indicate the company has strengthened its capital base and is extracting better returns on that equity. This durable improvement suggests management has improved asset allocation and provides a modest buffer for reinvestment and solvency over months.

Margin Recovery Vs Prior YearGross margin near 22% and recent improvement in operating and net profitability versus FY2024 suggest better pricing or cost control. If sustained, this enhances long-term margin sustainability and provides some earnings cushion against revenue softness, supporting operational durability over the medium term.

Low Earnings Volatility (low Beta)A low beta (~0.36) points to lower equity volatility and typically reflects steadier underlying cash flows or defensive demand. For a telecom business, lower market sensitivity supports predictable operating performance and planning, reducing the likelihood of large short-term swings in results over several months.

Bears Say

Elevated LeverageDebt near parity with equity and rising leverage materially reduces financial flexibility. Over a multi-month horizon this raises refinancing, interest-cost, and covenant risks, constraining the firm's ability to invest, absorb shocks, or pursue strategic opportunities without altering capital structure or operational cash generation.

Weak And Volatile Cash GenerationA ~58% drop in FCF and historically volatile operating cash (including a year of negative cash flow) signal unreliable internal funding. Over 2–6 months this limits the company's ability to pay down debt, fund capex, or absorb earnings volatility without external financing, increasing execution and funding risk.

Flat-to-declining Revenue And Slim Net MarginTTM revenue roughly flat to down and a thin ~2% net margin leave limited earnings cushion. With modest top-line momentum and low net profitability, the company is more exposed to demand shocks or cost inflation, making sustainable earnings and reinvestment capacity fragile over the medium term.

Recomm Co., Ltd. News

Recomm Co., Ltd. Reports Strong Q3 2025 Financial Performance Amidst Comprehensive Income Decline

Recomm Co., Ltd. ( ($JP:3323) ) has issued an announcement. Recomm Co., Ltd. reported a significant increase in...

7M ago

3323

3323 FAQ

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

Recomm Co., Ltd. lowest stock price was ¥56.00 and its highest was ¥192.00 in the past 12 months.

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

Recomm Co., Ltd.’s market cap is ¥7.59B.

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

Recomm Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 64 days.

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

Recomm Co., Ltd. released its earnings results on Feb 13, 2026. The company reported -¥0.46 earnings per share for the quarter, missing the consensus estimate of N/A by -¥0.46.

Is Recomm Co., Ltd. overvalued?

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

Does Recomm Co., Ltd. pay dividends?

Recomm Co., Ltd. pays a Annually dividend of ¥1 which represents an annual dividend yield of 1.23%. See more information on Recomm Co., Ltd. dividends here

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

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

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

Recomm Co., Ltd. has 82,670,260 shares outstanding.

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

Recomm Co., Ltd. reported an EPS of -¥0.46 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -5.833%.

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

Currently, no hedge funds are holding shares in JP:3323

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

Recomm Co., Ltd.

Recomm Co., Ltd. (3323) is a Japanese company primarily engaged in the development and provision of recommendation systems and data analytics services. The company operates in the technology sector, focusing on enhancing user experiences through personalized content delivery and product recommendations. Recomm's core offerings include software solutions that leverage artificial intelligence and machine learning to analyze consumer behavior and preferences, helping businesses optimize their marketing strategies and improve customer engagement.