Comture (3844) AI Stock Analysis

• Market Cap: ¥48.93B
• Dividend Yield: 2.88%
• Average Volume (3M): 142.10K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.86
• Revenue Growth: 5.62%
• EPS Growth: 3.81%
• Country: JP
• Employees: 1,712
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.12
• Shares Outstanding: 32,241,600
• 10 Day Avg. Volume: 164,330
• 30 Day Avg. Volume: 142,096
• PEG Ratio: 21.24
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 17.62
• 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): 103.6
• Revenue Forecast (FY): ¥39.17B

• Rating: 73 Outperform
• Price Target: ¥1,671.00 ▲(4.63% Upside)
• Action: Reiterated Date: 08/21/25
• Date: Action: Reiterated 08/21/25

Comture's strong financial performance, characterized by consistent revenue growth and a robust balance sheet, is the primary driver of its stock score. The valuation is reasonable with a decent dividend yield, adding to the attractiveness. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Low leverage / strong capital structure

An extremely low debt-to-equity ratio and solid equity ratio provide durable financial flexibility: lower interest burden, higher resilience in downturns, and capacity to fund strategic investments or M&A without stressing cash flow over the next 2-6 months.

Healthy margins and efficient operations

Sustained healthy EBIT/EBITDA margins reflect operational efficiency and pricing power. Over a multi-month horizon this supports stable profitability, funds reinvestment and dividend capacity, and cushions the business against moderate revenue volatility.

Strong free cash flow conversion

A near-1.0 free cash flow to net income ratio signals durable cash conversion ability. This underpins sustainable capital allocation—supporting capex, dividends, and reserves—and reduces reliance on external funding over the medium term.

Negative Factors

Weaker operating cash conversion

A declining operating cash flow-to-net-income ratio indicates emerging working-capital or receivables conversion issues. Persisting weakness would strain liquidity, limit organic funding for growth or payouts, and increase sensitivity to cyclical revenue swings.

Modest revenue growth rate

Very modest top-line expansion constrains scalability and long-term earnings power. Without stronger demand drivers or new product lines, limited revenue growth may cap profit expansion and make margin maintenance vital to deliver shareholder returns over coming months.

Slight gross margin decline

A gradual erosion of gross margin signals cost or pricing pressure. If structural, this will compress operating leverage and require either pricing power or cost remediation to preserve ROE and cash generation, eroding durable profitability if unaddressed.

Comture Business Overview & Revenue Model

Company Description

Comture (3844) is a Japanese company primarily engaged in providing IT solutions and services, focusing on software development, system integration, and cloud computing. The company operates in the technology sector, offering a range of products designed to enhance business efficiency and digital transformation for its clients. Comture's core offerings include customized software solutions, IT consulting, and support services tailored to various industries, including finance, healthcare, and manufacturing.

How the Company Makes Money

Comture generates revenue through multiple streams, primarily by charging clients for software development projects, system integration services, and ongoing IT support contracts. The company also earns income from licensing its proprietary software solutions and cloud services, which provide additional recurring revenue. Significant partnerships with technology leaders and enterprises enhance their service offerings and expand their market reach, contributing to consistent earnings growth. Additionally, Comture invests in research and development to innovate and improve its services, which helps attract new clients and retain existing ones.

Comture Financial Statement Overview

Summary

Comture exhibits strong financial health with consistent revenue growth, efficient operations, and a robust balance sheet. The company effectively manages its leverage, maintaining low debt levels. While cash flow generation is generally strong, there are signs of potential pressure in converting earnings to cash.

Income Statement

Comture has demonstrated consistent revenue growth with a 1.69% increase in the latest year, supported by stable gross and net profit margins. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is robust at 17.11%, reflecting effective use of shareholder funds. The equity ratio is solid, showcasing a strong capital structure.

Cash Flow

Comture's cash flow is stable, with a high free cash flow to net income ratio of 0.93, indicating efficient cash generation relative to profits. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting earnings to cash.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	36.55B	36.34B	34.19B	29.06B	24.98B	20.87B
Gross Profit	8.22B	8.24B	7.85B	6.61B	6.09B	4.89B
EBITDA	5.28B	5.14B	5.05B	4.22B	4.10B	3.33B
Net Income	3.23B	3.16B	3.13B	2.69B	2.52B	2.08B
Balance Sheet
Total Assets	25.06B	25.61B	23.44B	21.74B	18.93B	16.48B
Cash, Cash Equivalents and Short-Term Investments	11.19B	12.88B	12.12B	10.20B	11.27B	8.25B
Total Debt	200.00M	200.00M	200.00M	700.00M	200.00M	570.04M
Total Liabilities	6.40B	7.14B	6.64B	6.64B	5.11B	4.13B
Stockholders Equity	18.66B	18.47B	16.80B	15.10B	13.82B	12.35B
Cash Flow
Free Cash Flow	0.00	2.98B	3.18B	1.83B	4.39B	1.31B
Operating Cash Flow	0.00	3.19B	3.42B	1.95B	4.42B	1.56B
Investing Cash Flow	0.00	-923.00M	449.00M	-1.71B	31.00M	-1.39B
Financing Cash Flow	0.00	-1.51B	-1.95B	-1.30B	-1.44B	-813.61M

Comture Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1597.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1597 is above the 20-day moving average (MA) of 1486.65, below the 50-day MA of 1613.42, and below the 200-day MA of 1645.06, indicating a neutral trend. The MACD of -40.11 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 90.11 is Negative, 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
3762	78 Outperform	¥73.05B	17.11	17.96%	1.83%	13.23%	16.07%
9600	75 Outperform	¥38.27B	19.27	―	2.27%	7.50%	-3.67%
3393	74 Outperform	¥29.93B	13.84	―	4.36%	12.32%	10.42%
3844	73 Outperform	¥48.93B	14.97	17.50%	2.88%	5.62%	3.81%
4072	73 Outperform	¥32.55B	11.50	―	2.22%	9.57%	315.38%
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%

Comture Corporate Events

Comture Highlights AI-Focused Strategy in Q3 FY2026 Update

Comture Corporation reported its financial results for the third quarter of the fiscal year ending March 31, 2026, underlining its strategic focus on AI and digital technologies. The disclosure reinforces the company’s branding around “creating the future with AI and digital,” signaling continued emphasis on technology-driven growth and positioning in the IT services market, though detailed financial metrics were not provided in the materials reviewed.

The most recent analyst rating on (JP:3844) stock is a Buy with a Yen1613.00 price target. To see the full list of analyst forecasts on Comture stock, see the JP:3844 Stock Forecast page.

Comture Posts Higher Sales, Stable Profits and Ups Dividend as It Reshapes Group Structure

Comture Corporation reported consolidated net sales of ¥28.04 billion for the nine months ended December 31, 2025, up 4.4% year on year, while operating profit dipped 2.2% to ¥3.17 billion and ordinary profit fell 1.9%. Profit attributable to owners of parent edged up 1.6% to ¥2.14 billion, earnings per share rose to ¥67.07, and the equity-to-asset ratio improved to 76.0%, supported by higher net assets.

The company maintained its dividend policy, lifting the annual forecast payout to ¥50 per share from ¥48 in the prior year and leaving full-year guidance unchanged at ¥40 billion in net sales and ¥5 billion in operating profit. During the period, Comture reshaped its group structure by acquiring Human Interactive Technology Inc. as a consolidated subsidiary and absorbing former subsidiary TAKT SYSTEMS, Inc., moves that signal ongoing portfolio optimization and may strengthen its operational base.

The most recent analyst rating on (JP:3844) stock is a Buy with a Yen1670.00 price target. To see the full list of analyst forecasts on Comture stock, see the JP:3844 Stock Forecast page.

Comture Posts Modest Profit Growth on Higher Sales and Confirms Full-Year Outlook

For the nine months ended 31 December 2025, Comture reported a 4.4% year-on-year increase in net sales to ¥28.0 billion, while operating profit edged down 2.2% to ¥3.17 billion and profit attributable to owners of parent rose 1.6% to ¥2.14 billion, with earnings per share improving to ¥67.07. The company’s balance sheet remained solid, with total assets of ¥25.6 billion, a higher equity-to-asset ratio of 76.0%, and continued shareholder returns via a planned full-year dividend of ¥50 per share for the fiscal year ending March 2026; management maintained its full-year forecast of ¥40.0 billion in net sales and ¥3.33 billion in net profit, and adjusted its consolidation scope by adding Human Interactive Technology Inc. and absorbing former subsidiary TAKT SYSTEMS, Inc., moves that are expected to streamline operations and support its targeted growth trajectory.

The most recent analyst rating on (JP:3844) stock is a Buy with a Yen1783.00 price target. To see the full list of analyst forecasts on Comture stock, see the JP:3844 Stock Forecast page.