4Cs HD Co.Ltd. (3726) AI Stock Analysis

• Market Cap: ¥6.78B
• Dividend Yield: N/A
• Average Volume (3M): 506.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 5.11%
• EPS Growth: 15.19%
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Specialty Retail
• EPS (TTM): -5.26
• Shares Outstanding: 10,756,670
• 10 Day Avg. Volume: 484,200
• 30 Day Avg. Volume: 506,356
• PEG Ratio: 9.28
• Price to Book (P/B): 6.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥772.00
• Price Target Upside: 22.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ¥610.00 ▼(-3.33%Downside)

The overall score is primarily driven by the company's financial difficulties, including negative cash flow and leverage risks. Technical analysis adds to the bearish outlook, and weak valuation metrics do not support investment appeal.

4Cs HD Co.Ltd. Business Overview & Revenue Model

Company Description

4Cs HD Co., Ltd. (3726) operates within the technology sector, specializing in the development and distribution of advanced data management solutions. The company offers a range of products and services designed to enhance data processing and storage capabilities for businesses, leveraging cutting-edge technology to improve efficiency and performance.

How the Company Makes Money

4Cs HD Co., Ltd. generates revenue primarily through the sale of its proprietary software solutions and data management services. The company licenses its technology to businesses seeking to optimize their data infrastructure, offering both one-time software sales and subscription-based models for ongoing services and support. Additionally, 4Cs HD Co., Ltd. may engage in strategic partnerships with other technology firms to integrate its solutions into broader enterprise systems, further expanding its market reach and potential revenue streams.

4Cs HD Co.Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, such as consistent net losses and negative cash flow, which could impact its long-term sustainability. Although there is some equity support, high leverage and operational inefficiencies are concerning.

Income Statement

The company demonstrates negative profitability with consistent net losses, as reflected by negative net profit margins across all periods. Despite some gross profit stability, the EBIT and EBITDA margins remain negative, indicating operational challenges. Revenue growth has been inconsistent, with recent TTM data showing a decline in total revenue compared to previous periods, suggesting a need for strategic improvements.

Balance Sheet

The company's balance sheet shows a reasonable equity ratio, indicating a fair level of equity backing its assets. However, the debt-to-equity ratio remains high, suggesting leverage risk. ROE is negative due to net losses, pointing to inefficiencies in generating shareholder value. While there is some equity growth, overall financial stability is a concern due to high leverage and liabilities.

Cash Flow

The cash flow analysis reveals negative free cash flow and operating cash flow, highlighting liquidity challenges. With zero operating cash flow in the latest TTM data, the company's ability to generate cash from operations is questionable. The lack of positive cash flow metrics indicates potential difficulties in sustaining operations and meeting financial obligations without external financing.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.26B	2.14B	2.32B	2.47B	1.96B
Gross Profit	1.49B	1.43B	1.58B	1.78B	1.39B
EBITDA	-200.25M	-206.57M	-96.21M	-122.10M	-399.48M
Net Income	-273.03M	-272.62M	-156.53M	-178.20M	-464.83M
Balance Sheet
Total Assets	2.29B	1.64B	1.45B	1.82B	2.03B
Cash, Cash Equivalents and Short-Term Investments	836.66M	539.51M	649.44M	820.21M	1.12B
Total Debt	544.51M	757.77M	650.65M	793.95M	975.10M
Total Liabilities	1.12B	1.13B	999.97M	1.23B	1.35B
Stockholders Equity	1.17B	518.17M	454.12M	595.50M	673.84M
Cash Flow
Free Cash Flow	-361.36M	-332.50M	-45.12M	-141.96M	-261.11M
Operating Cash Flow	-361.11M	-324.39M	-41.26M	-106.13M	-233.16M
Investing Cash Flow	-50.12M	-102.93M	-4.71M	-8.78M	44.99M
Financing Cash Flow	708.38M	317.39M	-124.80M	-84.08M	-99.79M

4Cs HD Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 631.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3726, the sentiment is Negative. The current price of 631 is below the 20-day moving average (MA) of 703.75, below the 50-day MA of 700.44, and above the 200-day MA of 599.02, indicating a neutral trend. The MACD of -23.18 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 5.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3726.

4Cs HD Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	67 Neutral	¥7.10B	15.93		1.47%	15.16%	4.86%
Sector *	67 Neutral	¥267.20B	13.40	6.45%	2.59%	5.22%	-11.90%
3396	60 Neutral	¥5.43B	36.50		1.83%	0.86%	―
3135	58 Neutral	¥8.31B	18.32		―	35.50%	―
3726	44 Neutral	¥6.78B	―		―	5.11%	15.19%
2769	42 Neutral	¥8.02B	―		―	2.96%	-119.07%

4Cs HD Co.Ltd. Corporate Events

4Cs HD Co., Ltd. Reports Financial Results with Increased Sales but Persistent Losses

4Cs HD Co., Ltd. reported its consolidated financial results for the six months ending March 31, 2025, showing a 6.9% increase in net sales compared to the previous year. Despite the increase in sales, the company experienced an operating loss and a decrease in net assets, indicating challenges in profitability and financial stability. The company’s capital adequacy ratio also declined from 51.0% to 40.3%, reflecting a need for strategic adjustments to improve financial health. The financial forecast for the fiscal year ending September 30, 2025, anticipates a 17.27% increase in net sales, although profitability remains a concern.