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

• Market Cap: ¥2.45B
• Dividend Yield: 2.72%
• Average Volume (3M): 2.50K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.65
• Revenue Growth: -17.18%
• EPS Growth: -11.43%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 57.78
• 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: ¥2,236.00
• Price Target Upside: 10.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥2,236.00 ▲(10.42% Upside)

The overall stock score of 65 reflects a balance between stable financial performance and attractive valuation, offset by bearish technical indicators. The company's strong equity position and low leverage enhance its financial stability, while the undervalued P/E ratio and solid dividend yield offer potential upside. However, the negative market momentum and lack of earnings call data limit the score.

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

Company Description

Kyoritsu Computer & Communication Co., Ltd. (3670) is a Japan-based company engaged in the development and provision of information technology solutions, primarily focusing on telecommunications and network systems. The company operates in sectors such as software development, system integration, and IT consulting, offering a range of core products and services that include network management systems, software applications, and IT infrastructure solutions designed for various industries.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	48.88M	69.98M
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: Neutral
• Last Price: 2025.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3670, the sentiment is Neutral. The current price of 2025 is below the 20-day moving average (MA) of 2102.50, below the 50-day MA of 2220.98, and above the 200-day MA of 1817.95, indicating a neutral trend. The MACD of -36.76 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3974	77 Outperform	¥2.78B	15.63	―	2.26%	-2.87%	4.31%
4016	72 Outperform	¥2.53B	15.86	―	1.60%	2.07%	11.34%
4444	70 Outperform	¥2.01B	77.07	―	―	11.07%	-73.08%
3670	65 Neutral	¥2.45B	10.51	―	2.72%	-17.18%	-11.43%
9250	62 Neutral	¥1.54B	25.47	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	49 Neutral	¥1.78B	11.74	―	1.14%	8.27%	-295.89%