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4Cs HD Co.Ltd. (JP:3726)
:3726
Japanese Market
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4Cs HD Co.Ltd. (3726) AI Stock Analysis

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JP:3726

4Cs HD Co.Ltd.

(3726)

Rating:44Neutral
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. (3726) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description4Cs 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 Money4Cs 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
35
Negative
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
50
Neutral
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
40
Negative
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue2.26B2.14B2.32B2.47B1.96B
Gross Profit1.49B1.43B1.58B1.78B1.39B
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 Assets2.29B1.64B1.45B1.82B2.03B
Cash, Cash Equivalents and Short-Term Investments836.66M539.51M649.44M820.21M1.12B
Total Debt544.51M757.77M650.65M793.95M975.10M
Total Liabilities1.12B1.13B999.97M1.23B1.35B
Stockholders Equity1.17B518.17M454.12M595.50M673.84M
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-8.78M44.99M
Financing Cash Flow708.38M317.39M-124.80M-84.08M-99.79M

4Cs HD Co.Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price631.00
Price Trends
50DMA
700.44
Negative
100DMA
698.55
Negative
200DMA
599.02
Positive
Market Momentum
MACD
-23.18
Positive
RSI
40.17
Neutral
STOCH
5.01
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥7.10B15.93
1.47%15.16%4.86%
67
Neutral
¥267.20B13.406.45%2.59%5.22%-11.90%
60
Neutral
¥5.43B36.50
1.83%0.86%
58
Neutral
¥8.31B18.32
35.50%
44
Neutral
¥6.78B
5.11%15.19%
42
Neutral
¥8.02B
2.96%-119.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3726
4Cs HD Co.Ltd.
643.00
135.00
26.57%
JP:2769
Village Vanguard Co., Ltd.
1,021.00
-72.00
-6.59%
JP:3135
MarketEnterprise Co.Ltd
1,590.00
630.00
65.63%
JP:3396
Felissimo Corporation
820.00
-97.74
-10.65%
JP:3560
Hobonichi Co., Ltd.
3,060.00
-350.19
-10.27%

4Cs HD Co.Ltd. Corporate Events

4Cs HD Co., Ltd. Reports Financial Results with Increased Sales but Persistent Losses
May 14, 2025

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.

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: Jul 23, 2025