Improving Profitability MarginsSustained improvement in EBITDA and net margins indicates better operational efficiency and cost management. Over a 2-6 month horizon, higher margins can support resilience through revenue volatility, provide margin headroom for reinvestment, and improve the odds of converting profits into cash if maintained.

Balanced Capital StructureAn equity ratio near 40% suggests the company retains a mix of debt and equity financing that provides flexibility. Structurally, this helps absorb shocks, supports access to additional financing for network investment, and reduces immediate bankruptcy risk compared with highly leveraged peers over the medium term.

Low Market Volatility (Beta)A low beta implies limited sensitivity to broad market swings, aiding predictable financing costs and allowing management to focus on operational initiatives. For long-term planning and capital allocation in telecoms, lower systematic volatility can reduce refinancing stress and support steady strategic execution.

Bears Say

Severe Cash Flow WeaknessDramatically deteriorated free cash flow and almost zero cash conversion from earnings materially weaken the firm's ability to fund capex, service debt, or return capital. This is a structural vulnerability that forces external financing and constrains strategic options until cash generation recovers.

Rising LeverageElevated debt-to-equity raises fixed obligations and increases financial risk, especially if earnings or cash flows soften. Over several months, higher leverage constrains investment flexibility, raises refinancing risk, and amplifies downside for equity holders until deleveraging or earnings improvement occurs.

Negative Revenue TrendA declining top line signals demand loss or competitive pressure that can erode scale economies and make maintaining margins harder. If revenue contraction persists, operational gains may be offset by shrinking scale, impairing long-term profitability and cash flow unless new growth drivers are implemented.

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...

6M 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 ¥9.23B.

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 93 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.