Kyoritsu Computer & Communication Co., Ltd. (3670) AI Stock Analysis

• Market Cap: ¥2.54B
• Dividend Yield: 2.76%
• Average Volume (3M): 2.50K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.54
• Revenue Growth: -9.03%
• EPS Growth: 53.70%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 65.81
• Shares Outstanding: 1,205,600
• 10 Day Avg. Volume: 1,640
• 30 Day Avg. Volume: 2,503
• PEG Ratio: -0.32
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 9.62
• 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: 67 Neutral
• Price Target: ¥2,295.00 ▲(8.51% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

The overall stock score of 67 reflects a stable financial position with strong equity and low leverage risk, complemented by an attractive valuation. However, recent declines in revenue and profitability, along with potential overbought technical indicators, suggest caution. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Strong Equity Position

A strong equity position enhances financial stability and provides a solid foundation for future growth, reducing the risk of financial distress.

Efficient Cost Management

Stable gross margins suggest effective cost control, which can support profitability even during periods of revenue fluctuation.

Low Leverage Risk

Low leverage reduces financial risk, providing the company with greater flexibility to invest in growth opportunities without excessive debt burden.

Negative Factors

Decline in Revenue

A decline in revenue can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Decreased Net Profit Margin

A reduced net profit margin suggests difficulties in maintaining profitability, which could affect the company's ability to reinvest in its business.

Volatility in Operating Cash Flow

Volatile cash flow can hinder the company's ability to fund operations and investments, posing risks to financial stability and growth.

Kyoritsu Computer & Communication Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoritsu Computer & Communication Co.,Ltd. provides management information solutions for sales, construction, education and operation services, etc. in Japan. Its solutions and software related to information and communication are used in promoting management activities for corporate customers. The company offers accounting information installation support, cloud implementation support, information content, information utilization support, infrastructure operation support, infrastructure implementation support, and communications infrastructure installation support services; and software and information utilization education services, as well as ICT courses, such as cloud services and smartphones, and educational curriculum courses. It also sell smart and mobile phones, data cards, etc. to corporate customers, as well as six DoCoMo shops in Tokyo and Saitama prefecture. The company was formerly known as Kyoritsu Densetsu Co., Ltd. and changed its name to Kyoritsu Computer & Communication Co.,Ltd. in November 1988. Kyoritsu Computer & Communication Co.,Ltd. was founded in 1964 and is based in Tokyo, Japan.

How the Company Makes Money

Kyoritsu Computer & Communication Co., Ltd. generates revenue through multiple streams, primarily by offering customized software solutions and system integration services to businesses in the telecommunications and IT sectors. The company earns income from project-based contracts, where clients pay for the development and implementation of tailored IT systems. Additionally, recurring revenue is generated through maintenance and support services for the software and systems deployed. Strategic partnerships with telecommunications providers and other technology firms enhance Kyoritsu's market reach and allow for collaborative projects, further contributing to its revenue. The company may also benefit from government contracts and subsidies in technology development, which can provide additional financial support.

Kyoritsu Computer & Communication Co., Ltd. Financial Statement Overview

Summary

Kyoritsu Computer & Communication Co., Ltd. demonstrates stable financial health with robust equity levels and efficient cost management. However, recent declines in revenue and profitability highlight areas for improvement. The company maintains a low leverage risk, enhancing its resilience in the Information Technology Services industry.

Income Statement

The company has shown a mixed performance in revenue growth, with a recent decline in total revenue from 5.47 billion in 2024 to 4.48 billion in 2025. The gross profit margin has remained stable around 40%, indicating efficient cost management. However, the net profit margin has decreased to approximately 3.8% due to lower net income, reflecting potential challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an increasing stockholders' equity over the years, which accounts for a significant portion of total assets. The debt-to-equity ratio is low, indicating financial stability and lower risk of over-leverage. The equity ratio is also healthy, suggesting a solid capital structure.

Cash Flow

The company has experienced volatility in operating cash flow, with a significant decline in 2025. Despite this, the free cash flow is positive, suggesting the company can manage its capital investments efficiently. The operating cash flow to net income ratio indicates potential challenges in converting income to cash.

Breakdown	TTM	Feb 2025	Mar 2024	Mar 2023	Mar 2022	Feb 2021
Income Statement
Total Revenue	5.49B	4.48B	5.47B	4.91B	4.93B	4.51B
Gross Profit	1.88B	1.80B	1.88B	1.77B	1.76B	1.75B
EBITDA	411.09M	304.75M	416.29M	239.97M	239.07M	259.15M
Net Income	260.62M	171.82M	258.17M	115.42M	106.51M	132.15M
Balance Sheet
Total Assets	3.14B	3.20B	3.28B	2.85B	2.93B	2.81B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.33B	1.22B	616.92M	946.92M	948.84M
Total Debt	8.99M	5.63M	19.49M	33.97M	61.91M	88.98M
Total Liabilities	1.19B	1.08B	1.26B	1.04B	1.12B	1.04B
Stockholders Equity	1.95B	2.12B	2.01B	1.82B	1.82B	1.77B
Cash Flow
Free Cash Flow	123.95M	191.27M	610.50M	-213.05M	90.70M	153.31M
Operating Cash Flow	123.95M	220.97M	644.78M	-192.07M	141.83M	236.04M
Investing Cash Flow	0.00	-30.38M	-46.74M	17.24M	-56.14M	-84.96M
Financing Cash Flow	0.00	-79.79M	-80.12M	-78.87M	-80.27M	-37.30M

Kyoritsu Computer & Communication Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2115.00
• 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:3670, the sentiment is Positive. The current price of 2115 is above the 20-day moving average (MA) of 2103.90, above the 50-day MA of 2092.98, and above the 200-day MA of 2021.07, indicating a bullish trend. The MACD of 4.85 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3670.

Kyoritsu Computer & Communication Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4076	80 Outperform	¥4.97B	9.22	―	4.35%	8.71%	23.46%
4421	79 Outperform	¥2.85B	12.01	―	2.86%	5.74%	5.97%
3940	78 Outperform	¥6.82B	16.54	―	2.43%	2.92%	-0.94%
4396	76 Outperform	¥27.04B	16.07	―	1.70%	22.25%	31.88%
3670	67 Neutral	¥2.54B	7.74	―	2.76%	-9.03%	53.70%
3625	65 Neutral	¥4.70B	9.99	―	1.20%	26.70%	93.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%