ODK Solutions Company, Ltd. (3839) AI Stock Analysis

• Market Cap: ¥5.02B
• Dividend Yield: 1.62%
• Average Volume (3M): 8.21K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.27
• Revenue Growth: 7.03%
• EPS Growth: 1.01%
• Country: JP
• Employees: 202
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -20.02
• Shares Outstanding: 8,200,000
• 10 Day Avg. Volume: 2,960
• 30 Day Avg. Volume: 8,213
• PEG Ratio: -8.97
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 4.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥694.00 ▲(12.85% Upside)

ODK Solutions' strong financial performance is the primary driver of its overall stock score, supported by its robust growth, profitability, and cash flow metrics. While the technical analysis suggests a neutral trend, the stock's fair valuation and modest dividend yield add to its appeal. Continuous monitoring of operating expenses and liabilities is recommended to maintain its financial health.

ODK Solutions Company, Ltd. Business Overview & Revenue Model

Company Description

ODK Solutions Company, Ltd. provides business process outsourcing services. The company offers educational-related services, such as entrance-examination solutions; and UCARO that helps universities to enhance the efficiency of entrance-examination operation. It also provides securities trading solutions and individual number solutions; operates and develops various systems related to clinical examination; and assists in pottos, a customer success automation tool and Zendesk, a customer service software, as well as HireVue, a digital interviewing platform. The company was incorporated in 1963 and is headquartered in Osaka, Japan.

How the Company Makes Money

ODK Solutions generates revenue through multiple streams, primarily from software licensing, subscription services, and consulting fees. The company offers its proprietary software solutions on a subscription basis, allowing clients to access the latest updates and features while ensuring a steady income flow. Additionally, ODK provides consulting services for organizations seeking to optimize their data processes and implement effective data strategies, further diversifying its revenue. Key partnerships with major cloud service providers and technology firms also contribute to its earnings by enabling bundled service offerings and expanding market reach.

ODK Solutions Company, Ltd. Financial Statement Overview

Summary

ODK Solutions demonstrates strong financial health with consistent revenue growth, robust profitability, and excellent cash flow metrics. The low leverage and high equity ratio further strengthen its financial position, although attention to rising operating expenses and liabilities is advised.

Income Statement

ODK Solutions shows a strong and consistent revenue growth, with a 10.3% increase in 2025 compared to 2024. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, the slight decrease in EBIT margin suggests an increase in operating expenses.

Balance Sheet

The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.18, indicating conservative leverage. High equity ratio of 68.1% suggests strong asset financing through equity. However, a slight increase in total liabilities warrants attention for future leverage management.

Cash Flow

Cash flow analysis reveals excellent free cash flow growth of 97.5% from 2024 to 2025, driven by increased operating cash flow and reduced capital expenditures. Strong operating cash flow to net income ratio signifies efficient cash generation relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.42B	6.47B	5.87B	5.57B	5.50B	5.41B
Gross Profit	1.98B	1.93B	1.85B	1.67B	1.61B	1.68B
EBITDA	1.02B	1.05B	944.33M	830.55M	752.91M	1.14B
Net Income	240.39M	263.37M	266.80M	236.61M	194.19M	474.25M
Balance Sheet
Total Assets	8.45B	9.25B	8.69B	8.54B	8.03B	8.28B
Cash, Cash Equivalents and Short-Term Investments	4.31B	3.27B	2.86B	2.81B	2.63B	2.57B
Total Debt	1.02B	1.14B	877.95M	1.26B	737.05M	975.57M
Total Liabilities	2.35B	2.95B	2.64B	2.74B	2.29B	2.41B
Stockholders Equity	6.10B	6.30B	6.06B	5.80B	5.73B	5.87B
Cash Flow
Free Cash Flow	0.00	978.94M	495.70M	-69.28M	326.15M	114.11M
Operating Cash Flow	0.00	1.00B	1.08B	539.42M	917.19M	715.17M
Investing Cash Flow	0.00	-704.27M	-575.44M	-634.32M	-533.41M	-621.94M
Financing Cash Flow	0.00	121.37M	-458.21M	380.32M	-422.21M	234.77M

ODK Solutions Company, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 615.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3839, the sentiment is Positive. The current price of 615 is below the 20-day moving average (MA) of 617.20, below the 50-day MA of 620.08, and above the 200-day MA of 581.88, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3839.

ODK Solutions Company, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3839	76 Outperform	¥5.02B	23.36	―	1.62%	7.03%	1.01%
2359	74 Outperform	¥29.28B	12.17	―	2.79%	2.11%	5.55%
3918	74 Outperform	¥12.22B	10.37	―	3.54%	-7.36%	35.89%
3676	73 Outperform	¥20.68B	24.17	―	2.28%	-2.68%	-12.83%
3988	68 Neutral	¥5.99B	14.05	―	1.23%	13.34%	-10.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2370	45 Neutral	¥8.47B	―	―	―	-0.97%	1.19%