TechMatrix (3762) AI Stock Analysis

• Market Cap: ¥73.05B
• Dividend Yield: 1.83%
• Average Volume (3M): 185.83K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.61
• Revenue Growth: 13.23%
• EPS Growth: 16.07%
• Country: JP
• Employees: 1,502
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 30.95
• Shares Outstanding: 44,518,400
• 10 Day Avg. Volume: 163,900
• 30 Day Avg. Volume: 185,826
• PEG Ratio: 1.35
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 12.88
• 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): 122.75
• Revenue Forecast (FY): ¥70.96B

• Rating: 78 Outperform
• Price Target: ¥2,095.00 ▼(-12.60% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

TechMatrix's strong financial performance is the most significant factor, supported by robust revenue growth, profitability, and efficient cash flow management. Technical analysis indicates a positive trend, while valuation metrics suggest the stock is fairly valued with a reasonable P/E ratio and dividend yield.

Positive Factors

Revenue & margin strength

A 21.7% year‑over‑year revenue gain alongside healthy gross (31.7%), EBIT (10.8%) and EBITDA (14.5%) margins indicates the business scales revenue while preserving operating efficiency. That mix supports durable profitability and reinvestment capacity across business cycles.

Strong cash generation

Consistent free cash flow growth and OCF/NI >1 (1.68) plus FCF/NI 1.51 show earnings reliably convert to cash. This underpins sustainable capex, potential M&A, and shareholder returns while reducing refinancing and liquidity risk over the medium term.

Low leverage and solid capital use

A low D/E (0.23) gives financial flexibility and downside protection while a strong ROE (16.8%) signals effective use of capital. This combination supports durable investment ability and resilience to shocks without over‑relying on debt financing.

Negative Factors

Modest net margin

A net margin around 6.3% leaves limited room to absorb cost inflation or to meaningfully expand operating leverage without impacting returns. For an IT services firm, modest net margins constrain cash available for sustained higher investment or larger shareholder distributions.

Growth deceleration risk

While recent annual growth was strong, the mixed signals across reported metrics (a large year and a lower periodic revenue growth figure) suggest potential variability. Slowing or uneven revenue expansion could pressure future margin expansion and investment planning.

ROE sensitivity to capital structure

A high ROE alongside a relatively low equity ratio implies returns are achieved on a smaller equity base. That amplifies performance volatility: asset or earnings shocks could more quickly impair equity cushions and financial flexibility over medium horizons.

TechMatrix Business Overview & Revenue Model

Company Description

TechMatrix Corporation engages in the information infrastructure and application service business in Japan. It offers information infrastructure solutions in the green information technology (IT), virtualization, next-generation networks, security and storage, and other related fields; and IT services, which include lifecycle of systems comprising the maintenance, operation, and monitoring services. The company also provides various application services, such as systems development, cloud, test, process analysis, design, software development and integration, and operation and maintenance services, as well as application packages to healthcare, CRM, Internet services, finance, and software quality control markets. In addition, it offers network solutions, SDN, storage products, IT security products, and temporary dispatch and employee placement services for IT technicians; and system development and training services for skill-development of IT technicians. The company was formerly known as Nichimen Data Systems Co., Ltd. and changed its name to TechMatrix Corporation in November 2000. TechMatrix Corporation was founded in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TechMatrix generates revenue through multiple streams, primarily by providing software-as-a-service (SaaS) solutions to businesses, which offer subscription-based access to their software products. Additionally, the company earns revenue from consulting services that help clients implement and optimize their technology solutions. Key partnerships with cloud service providers and data analytics platforms enhance their offerings and allow for bundled services, driving further sales. The company also benefits from maintenance and support contracts with existing clients, ensuring a steady income stream from long-term engagements. Overall, TechMatrix's diverse revenue model and strategic partnerships significantly contribute to its financial success.

TechMatrix Financial Statement Overview

Summary

TechMatrix demonstrates impressive financial health with strong revenue growth, profitability, and efficient operational management. The balance sheet is solid with low leverage and high return on equity, while consistent cash flow generation underscores robust financial operations.

Income Statement

TechMatrix has shown strong revenue growth over the years, with a notable increase of 21.73% from 2024 to 2025. The company maintains healthy gross profit and net profit margins, standing at 31.68% and 6.26% respectively for the latest period. EBIT and EBITDA margins are also robust at 10.78% and 14.45%, signaling efficient operational management.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.23 indicating prudent financial leverage. The return on equity is strong at 16.78%, demonstrating effective use of equity capital. An equity ratio of 22.96% suggests a stable financial foundation with an adequate portion of assets financed by equity.

Cash Flow

TechMatrix reports a positive free cash flow growth rate over the years, underscoring its ability to generate cash. The operating cash flow to net income ratio is 1.68, reflecting efficient cash conversion from earnings. Free cash flow to net income ratio is also favorable at 1.51, indicating strong cash flow relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.98B	64.88B	53.30B	45.95B	36.51B	30.93B
Gross Profit	21.19B	20.55B	18.20B	16.37B	12.46B	11.22B
EBITDA	8.85B	9.38B	8.19B	7.50B	5.69B	5.16B
Net Income	4.19B	4.06B	3.54B	2.95B	2.37B	2.30B
Balance Sheet
Total Assets	107.63B	105.44B	85.76B	65.69B	52.50B	40.00B
Cash, Cash Equivalents and Short-Term Investments	29.20B	27.33B	27.27B	20.07B	18.16B	14.63B
Total Debt	6.06B	5.60B	4.17B	4.65B	3.50B	4.62B
Total Liabilities	77.70B	75.44B	58.71B	41.77B	32.30B	23.64B
Stockholders Equity	24.11B	24.21B	21.74B	18.97B	17.02B	14.84B
Cash Flow
Free Cash Flow	0.00	6.15B	7.97B	4.75B	4.73B	2.88B
Operating Cash Flow	0.00	6.84B	8.98B	6.35B	5.28B	3.52B
Investing Cash Flow	0.00	-5.96B	-1.94B	-3.13B	195.69M	-841.31M
Financing Cash Flow	0.00	-799.03M	147.56M	-1.30B	-1.96B	-1.79B

TechMatrix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2397.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3762, the sentiment is Negative. The current price of 2397 is above the 20-day moving average (MA) of 1918.60, above the 50-day MA of 2147.42, and above the 200-day MA of 2132.24, indicating a bearish trend. The MACD of -79.58 indicates Negative momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 59.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3762.

TechMatrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3762	78 Outperform	¥73.05B	17.11	17.96%	1.83%	13.23%	16.07%
3636	77 Outperform	¥77.58B	9.87	―	3.28%	5.28%	28.90%
9889	77 Outperform	¥93.05B	16.73	―	2.32%	5.09%	26.12%
2317	76 Outperform	¥154.02B	14.15	―	2.30%	13.82%	37.07%
9715	75 Outperform	¥151.58B	10.80	11.52%	2.76%	4.00%	38.72%
4725	65 Neutral	¥32.20B	10.11	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%