Cyberlinks Co., Ltd. (3683) AI Stock Analysis

• Market Cap: ¥13.60B
• Dividend Yield: 1.19%
• Average Volume (3M): 70.44K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.46
• Revenue Growth: 13.46%
• EPS Growth: 91.02%
• Country: JP
• Employees: 786
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 36.82
• Shares Outstanding: 11,415,608
• 10 Day Avg. Volume: 130,550
• 30 Day Avg. Volume: 70,440
• PEG Ratio: 0.19
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 14.75
• 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: ¥1,264.00 ▼(-6.37% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving fundamentals (earnings recovery and steady revenue growth, with manageable leverage) and supportive valuation (low P/E and moderate yield). Offsetting this is weak technical positioning, with the stock trading below key moving averages and negative MACD, despite oversold momentum indicators.

Positive Factors

Steady revenue growth

Two consecutive years of revenue growth show durable demand for its IT and cloud services, supporting scale benefits and recurring revenue mix. This trend underpins longer-term capacity to invest in platforms, stabilize margins, and reduce reliance on one-off project swings over coming quarters.

Profitability rebound

The sizable net income recovery indicates improving operating leverage and pricing or cost control gains. Sustained higher earnings strengthen internal funding for R&D, capex and dividends, and provide a buffer for cyclical downturns if management preserves margin disciplines.

Improving cash generation

Rising operating cash flow and consecutive positive free cash flow demonstrate improving cash conversion from operations. Durable cash generation supports debt servicing, selective reinvestment and shareholder returns, increasing financial flexibility if the trend persists beyond short-term projects.

Negative Factors

Uneven cash flow history

Historical free cash flow volatility reflects project timing and operational cyclicality, reducing predictability of funds available for debt reduction or reinvestment. Unless multi-period cash conversion consistency is established, capital allocation decisions remain riskier.

Rising absolute debt in 2025

Although debt-to-equity has trended down, the rise in absolute debt raises interest and refinancing exposure. If cash generation falters, higher gross leverage could limit strategic flexibility and elevate funding costs, pressuring long-term investment and payout capacity.

Earnings volatility

Profitability swings point to sensitivity to project mix, pricing pressure, or cost timing, complicating forecasting and margin durability. Persistent volatility undermines confidence in sustained margin expansion absent clearer recurring revenue or contract stability.

Cyberlinks Co., Ltd. Business Overview & Revenue Model

Company Description

Cyberlinks Co., Ltd. provides various cloud services in Japan. It operates through four segments: Distribution Cloud, Government Cloud, Trust, and Mobile Network. The Distribution Cloud segment offers @rms ERP cloud System for food retailers, EDI-Platform for food wholesale customers, and a product image database. The Government Cloud segment provides installation and maintenance services for disaster prevention radio systems and other communication systems; and school administration support cloud services for elementary and junior high schools and cloud services for the coordination of medical information between medical institutions. The Trust segment offers electronic power of attorney and digital certificate issuance services. The Mobile Network segment operates seven DoCoMo stores that sell mobile phones. It also provides cable TV and rental server services, hardware maintenance, and sales management systems for specialty stores. Cyberlinks Co., Ltd. was incorporated in 1964 and is headquartered in Wakayama, Japan.

How the Company Makes Money

Cyberlinks generates revenue primarily through the sale of its cybersecurity solutions and services. The company has a subscription model for its software products, which provides a steady stream of recurring income as customers renew their licenses annually. Additionally, Cyberlinks earns revenue from consulting services, where its experts assist clients in implementing and optimizing their security infrastructure. The company may also engage in partnerships with other tech firms and government agencies to provide tailored solutions, which can result in significant project-based income. Furthermore, Cyberlinks invests in research and development to stay ahead of the cybersecurity landscape, which enhances its reputation and fosters long-term client relationships, contributing to sustained earnings.

Cyberlinks Co., Ltd. Financial Statement Overview

Summary

Financials are improving but not fully consistent. Income statement strength (revenue up in 2024 and 2025; net income rising to 1.30B in 2025) is tempered by moderate balance-sheet risk (debt-to-equity improving, but total debt rose in 2025) and uneven cash-flow history (FCF positive in 2024–2025, but negative in 2022–2023).

Income Statement

Revenue has grown steadily in the last two years (2024: +5.6%, 2025: +8.1%), and profitability has rebounded meaningfully with net income rising from 445M (2023) to 814M (2024) to 1.30B (2025). Margins (where provided) show solid operating profitability in 2024 (about 7.9% EBIT margin and 14.2% EBITDA margin), but the earnings profile has been somewhat volatile over the cycle (notably weaker net margin in 2023 versus stronger 2022). Overall, the trajectory is positive, but not perfectly consistent year-to-year.

Balance Sheet

The company maintains a moderate leverage profile, with debt-to-equity around 0.35 in 2024 (down from ~0.40 in 2023 and ~0.44 in 2022), indicating improving balance sheet risk. Equity has also grown over time (from ~5.05B in 2020 to ~9.14B in 2025), supporting a stronger capital base. A key watch-out is that total debt increased in 2025 versus 2024 (2.83B to 3.58B), so the recent expansion appears to be using more leverage, even if still within reasonable levels.

Cash Flow

Cash generation improved recently, with operating cash flow rising from 1.15B (2024) to 1.58B (2025) and free cash flow positive in both years (824M in 2024; 1.02B in 2025). However, cash flow quality has been uneven over the period: free cash flow was negative in 2022 and 2023, and in 2024 operating cash flow covered only about one-third of total debt, implying limited near-term debt paydown capacity without continued improvement. The current trend is constructive, but the historical volatility keeps the score below the income statement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.78B	18.14B	15.87B	15.02B	12.22B	13.24B
Gross Profit	5.41B	5.73B	4.91B	4.77B	4.00B	3.77B
EBITDA	2.71B	3.06B	2.25B	1.65B	1.77B	1.61B
Net Income	1.15B	1.30B	814.00M	445.00M	909.00M	645.00M
Balance Sheet
Total Assets	13.72B	15.79B	13.55B	13.05B	12.71B	9.68B
Cash, Cash Equivalents and Short-Term Investments	879.00M	2.14B	1.53B	1.93B	2.26B	2.55B
Total Debt	2.80B	3.58B	2.83B	2.97B	3.15B	2.09B
Total Liabilities	5.22B	6.65B	5.41B	5.63B	5.61B	4.26B
Stockholders Equity	8.50B	9.14B	8.14B	7.43B	7.10B	5.42B
Cash Flow
Free Cash Flow	0.00	1.02B	824.00M	-56.00M	-271.00M	1.10B
Operating Cash Flow	0.00	1.58B	1.15B	1.16B	1.05B	1.96B
Investing Cash Flow	0.00	-1.21B	-1.26B	-1.16B	-2.27B	-685.18M
Financing Cash Flow	0.00	244.00M	-299.00M	-315.00M	534.00M	-591.16M

Cyberlinks Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3683, the sentiment is Negative. The current price of 1350 is above the 20-day moving average (MA) of 1245.15, above the 50-day MA of 1296.80, and above the 200-day MA of 1328.48, indicating a bearish trend. The MACD of -30.95 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 65.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3683.

Cyberlinks Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4498	75 Outperform	¥20.97B	21.48	―	0.90%	17.75%	44.95%
3683	67 Neutral	¥13.60B	10.36	―	1.19%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3788	60 Neutral	¥24.24B	24.03	―	1.50%	7.83%	49.73%
4398	60 Neutral	¥6.03B	31.61	―	1.04%	-3.46%	-59.98%
4761	60 Neutral	¥14.41B	14.80	―	2.98%	5.14%	16.05%
4418	59 Neutral	¥14.43B	26.78	―	―	6.24%	―

Cyberlinks Co., Ltd. Corporate Events

Cyberlinks Posts Strong 2025 Earnings and Lifts Dividend, Signals Moderate Growth for 2026

Cyberlinks Co., Ltd. reported strong consolidated results for the fiscal year ended December 31, 2025, with net sales rising 14.3% to ¥18.1 billion and operating profit surging 47.0% to ¥1.85 billion. Profit attributable to owners of parent jumped 60.1% to ¥1.30 billion, lifting basic earnings per share to ¥117.24 and supporting a higher year-end dividend of ¥30 per share, up from ¥17.

The company’s financial position improved as total assets increased to ¥15.8 billion and cash and cash equivalents climbed to ¥2.14 billion, while maintaining a solid equity ratio of 57.1%. For fiscal 2026, Cyberlinks forecasts continued but moderating growth, with full-year net sales projected to rise 6.1% and profit attributable to owners of parent expected to edge up 0.3%, signaling a phase of earnings consolidation after rapid gains and a continued commitment to shareholder returns via a planned dividend increase to ¥35 per share.

The most recent analyst rating on (JP:3683) stock is a Hold with a Yen1395.00 price target. To see the full list of analyst forecasts on Cyberlinks Co., Ltd. stock, see the JP:3683 Stock Forecast page.