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Recomm Co., Ltd. (JP:3323)
:3323
Japanese Market
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Recomm Co., Ltd. (3323) AI Stock Analysis

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JP:3323

Recomm Co., Ltd.

(3323)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥68.00
▼(-13.92% Downside)
Action:Reiterated
Date:05/19/26
The score is primarily pressured by weakening financial quality—especially negative TTM operating/free cash flow alongside higher leverage and compressed margins. Technicals further weigh on the score due to a strong downtrend and bearish momentum. Valuation provides only limited support given the high P/E and modest dividend yield.
Positive Factors
Consistent revenue growth
Revenue growth of ~4.8% TTM indicates the company retains demand and can expand topline despite margin pressures. Sustained revenue increases support scale benefits, help cover fixed costs, and provide a foundation for recovery in profitability if cost control or pricing improves.
Negative Factors
Negative operating and free cash flow
The shift to negative OCF and FCF in the TTM is a material deterioration in cash conversion, forcing reliance on external financing or asset sales. Persistent cash burn undermines investment capacity, increases refinancing risk, and constrains strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Revenue growth of ~4.8% TTM indicates the company retains demand and can expand topline despite margin pressures. Sustained revenue increases support scale benefits, help cover fixed costs, and provide a foundation for recovery in profitability if cost control or pricing improves.
Read all positive factors

Recomm Co., Ltd. (3323) vs. iShares MSCI Japan ETF (EWJ)

Recomm Co., Ltd. Business Overview & Revenue Model

Company Description
Established in Tokyo, Japan, in 1994, Recomm Co., Ltd. is an international and domestic provider specializing in the lease and direct sale of information and communication technology (ICT) equipment. Their offerings encompass a wide array of produ...
How the Company Makes Money
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Recomm Co., Ltd. Financial Statement Overview

Summary
Revenue is still growing (TTM up ~4.8%), but profitability has weakened materially with very low net margin (~1.0%) and compressed EBITDA margin (~4.8%). Leverage has risen (debt-to-equity ~1.04), and TTM cash generation has deteriorated sharply with negative operating cash flow (-140M) and negative free cash flow (-382M), increasing funding and execution risk.
Income Statement
54
Neutral
Balance Sheet
56
Neutral
Cash Flow
33
Negative
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue13.44B13.09B11.69B9.51B8.92B6.63B
Gross Profit3.00B2.95B2.70B2.29B2.46B2.31B
EBITDA526.14M695.98M240.64M343.91M545.94M532.65M
Net Income64.38M196.72M83.94M314.85M351.54M-316.52M
Balance Sheet
Total Assets15.30B12.70B12.65B10.84B9.24B8.25B
Cash, Cash Equivalents and Short-Term Investments2.43B2.68B2.98B2.63B2.71B2.99B
Total Debt6.44B4.86B4.83B3.51B2.48B2.13B
Total Liabilities9.32B7.29B7.35B5.89B4.60B4.07B
Stockholders Equity5.49B5.05B4.96B4.69B4.33B3.68B
Cash Flow
Free Cash Flow-382.45M259.31M787.38M-147.06M197.12M373.42M
Operating Cash Flow-140.20M472.01M841.61M-104.76M266.45M391.47M
Investing Cash Flow-900.30M-332.63M-1.35B-843.76M-536.57M-242.43M
Financing Cash Flow907.09M-443.06M816.51M876.37M-262.07M-558.73M

Recomm Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price79.00
Price Trends
50DMA
80.84
Negative
100DMA
89.99
Negative
200DMA
94.64
Negative
Market Momentum
MACD
-3.10
Negative
RSI
37.69
Neutral
STOCH
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3323, the sentiment is Negative. The current price of 79 is above the 20-day moving average (MA) of 72.50, below the 50-day MA of 80.84, and below the 200-day MA of 94.64, indicating a bearish trend. The MACD of -3.10 indicates Negative momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3323.

Recomm Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥17.00B12.163.53%3.36%-23.56%
73
Outperform
¥49.97B11.232.63%8.01%29.66%
65
Neutral
¥8.70B8.823.85%-6.67%34.46%
63
Neutral
¥18.85B24.8025.92%-10.55%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
56
Neutral
¥318.69B18.0617.97%1.36%5.57%31.99%
44
Neutral
¥5.63B86.521.23%4.93%-41.56%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3323
Recomm Co., Ltd.
69.00
-6.03
-8.04%
JP:9449
GMO Internet
3,083.00
-365.80
-10.61%
JP:3834
ASAHI Net, Inc.
608.00
-42.87
-6.59%
JP:9416
Vision, Inc. ( Japan)
1,020.00
-148.14
-12.68%
JP:9424
Japan Communications Inc.
113.00
-43.00
-27.56%
JP:9445
Forval Telecom, Inc.
519.00
25.56
5.18%
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: May 19, 2026