Comture (3844) AI Stock Analysis

• Market Cap: $55.63B
• Dividend Yield: 2.81%
• Average Volume (3M): 113.43K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.02
• Revenue Growth: 8.29%
• EPS Growth: 9.19%
• Country: JP
• Employees: 1,712
• Sector: Technology
• Sector Strength: 95
• Industry: Information Technology Services
• EPS (TTM): 33.10
• Shares Outstanding: 32,241,600
• 10 Day Avg. Volume: 113,380
• 30 Day Avg. Volume: 113,426
• PEG Ratio: 6.37
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 162.31
• 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

• Rating: 75 Outperform
• Price Target: ―

Comture's overall stock score of 75 reflects its strong financial performance, with solid revenue and profit growth, a stable balance sheet, and effective cash flow management. While the technical analysis suggests caution due to potential resistance and overbought conditions, the valuation is balanced with a reasonable P/E ratio and attractive dividend yield. The absence of recent earnings call data and corporate events simplifies the evaluation, focusing primarily on the company's robust financial health and reasonable market positioning.

Comture Business Overview & Revenue Model

Company Description

Comture Corporation (3844) is a Japanese company specializing in the provision of information technology services. It operates primarily in the IT solutions sector, offering a wide range of services that include cloud computing, IT infrastructure management, business applications, and digital transformation solutions. The company caters to various industries, providing tailored IT solutions to enhance operational efficiency and innovation.

How the Company Makes Money

Comture makes money through a diversified revenue model centered around its IT service offerings. Key revenue streams include consulting fees for IT infrastructure management, subscription and licensing fees for cloud computing services, and project-based revenue from business application development and digital transformation projects. The company also generates income through strategic partnerships with technology vendors, providing integrated solutions that enhance its value proposition. By leveraging its expertise in IT services, Comture effectively capitalizes on the growing demand for digital transformation across industries.

Comture Financial Statement Overview

Summary

Comture's financial statements reflect a well-managed and growing company with strong revenue and profit growth, stable financial structure, and efficient cash flow management. The company demonstrates low leverage risk, robust profitability, and effective use of equity to generate returns. These factors contribute to its high scores across income, balance sheet, and cash flow evaluations, positioning it favorably in the Information Technology Services industry.

Income Statement

Comture has demonstrated impressive revenue growth of 17.65% year-over-year, indicating strong market demand and effective business strategies. The gross profit margin stands at 22.97%, reflecting efficient production or service delivery relative to revenue. The net profit margin of 9.17% is healthy, showcasing good profitability. The EBIT margin of 13.46% and EBITDA margin of 14.79% further underscore robust operational efficiency and profit generation capabilities.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.70%, indicating a solid financial structure with low reliance on debt. The debt-to-equity ratio is minimal at 0.01, highlighting financial stability and low leverage risk. Return on Equity (ROE) is robust at 18.66%, demonstrating effective utilization of shareholders' equity to generate profits.

Cash Flow

Comture shows strong cash flow performance with a free cash flow growth rate of 73.77%, reflecting excellent cash generation capabilities. The operating cash flow to net income ratio is 1.09, indicating sufficient cash from operations relative to net income. The free cash flow to net income ratio of 1.01 further confirms the company's efficient cash management and ability to support operations and growth initiatives.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	34.19B	29.06B	24.98B	20.87B	20.93B
Gross Profit	7.85B	6.61B	6.09B	4.89B	4.71B
EBITDA	5.05B	4.42B	4.31B	3.33B	3.14B
Net Income	3.13B	2.69B	2.52B	2.08B	1.97B
Balance Sheet
Total Assets	23.44B	21.74B	18.93B	16.48B	14.77B
Cash, Cash Equivalents and Short-Term Investments	12.12B	10.20B	11.27B	8.25B	8.89B
Total Debt	200.00M	700.00M	200.00M	570.04M	410.03M
Total Liabilities	6.64B	6.64B	5.11B	4.13B	3.58B
Stockholders Equity	16.80B	15.10B	13.82B	12.35B	11.20B
Cash Flow
Free Cash Flow	3.18B	1.83B	4.39B	1.31B	1.39B
Operating Cash Flow	3.42B	1.95B	4.42B	1.56B	1.74B
Investing Cash Flow	449.00M	-1.71B	31.00M	-1.39B	-701.69M
Financing Cash Flow	-1.95B	-1.30B	-1.44B	-813.61M	50.64M

Comture Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1736.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3844, the sentiment is Neutral. The current price of 1736 is above the 20-day moving average (MA) of 1725.65, above the 50-day MA of 1724.75, and below the 200-day MA of 1879.09, indicating a neutral trend. The MACD of 6.96 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3844.

Comture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3844	75 Outperform	$55.63B	17.61	17.71%	2.81%	8.29%	9.19%
9719	74 Outperform	¥1.36T	27.62		1.63%	33.00%	21.00%
9749	72 Outperform	$637.47B	33.20	13.64%	0.43%	6.92%	25.38%
9613	71 Outperform	$5.55T	38.99	7.94%	0.63%	6.21%	6.41%
4768	70 Outperform	$1.09T	19.27	16.17%	4.20%	15.49%	18.42%
Sector *	69 Neutral	¥230.15B	14.83	7.55%	2.61%	9.28%	5.74%
3632	65 Neutral	¥85.97B	35.30	2.39%	3.02%	-14.96%	-72.07%

Comture Corporate Events

Comture Corporation Announces Leadership Change

Comture Corporation has announced a change in its management structure, with the appointment of Koji Tarutani as the new Representative Director, effective after the 41st Ordinary General Meeting of Shareholders in June 2025. This strategic move is aimed at enhancing the company’s leadership and aligning with its future growth objectives, potentially impacting its market positioning and stakeholder relations.

COMTURE Acquires HIT to Boost Microsoft and AI Solutions

COMTURE Corporation has announced its acquisition of Human Interactive Technology Inc. (HIT) to enhance its Microsoft business and strengthen its position in the AI solutions market. This strategic move is expected to accelerate COMTURE’s growth by providing comprehensive solutions in infrastructure construction, system development, and AI services, thereby increasing corporate value.

Comture Corporation Reports Nine-Month Financial Results for 2024

Comture Corporation reported its consolidated financial results for the nine months ending December 31, 2024. The company achieved net sales of ¥26,863 million, marking a 6.1% increase year-on-year, though there was a slight decline in operating and ordinary profits. Despite the sales growth, comprehensive income experienced a minor decrease, and no significant revisions were made to the dividend or financial results forecast. The company also underwent a reorganization, with the absorption merger of its subsidiary, Software Creation Co., Ltd., which may influence its operational dynamics.