Comture (3844) AI Stock Analysis

• Market Cap: ¥46.70B
• Dividend Yield: 2.88%
• Average Volume (3M): 142.10K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.80
• 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): 99.7
• Revenue Forecast (FY): ¥38.57B

• Rating: 73 Outperform
• Price Target: ¥1,633.00 ▲(2.25% 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

Very low leverage

Minimal leverage provides durable financial flexibility: with a debt-to-equity of 0.01, Comture can absorb shocks, fund investments from internal resources, and avoid refinancing risks. This strengthens long-term resilience and allows strategic optionality across economic cycles.

High return on equity

A sustained ROE of ~17% signals that management efficiently converts equity into profits, supporting compounding shareholder value. Over 2-6 months this suggests competitive operating efficiency and disciplined capital allocation that underpins durable profitability.

Strong free cash flow conversion

A FCF-to-net-income ratio near 0.93 indicates most accounting profits convert to cash, supporting dividends, reinvestment, or debt reduction. This sustained cash conversion underpins financial stability and funds growth initiatives without heavy external financing.

Negative Factors

Weaker operating cash conversion

A declining operating-cash-to-net-income trend is structural risk: it can signal working capital strain, timing mismatches, or lower quality of earnings. If persistent, it reduces available internal funding, pressures liquidity and constrains reinvestment over the medium term.

Modest top-line growth

Revenue growth around low single digits indicates mature or slow-growing end markets. Persistently modest top-line expansion limits scalability of margins and earnings growth, making future returns more reliant on efficiency gains rather than strong market share gains.

Margin pressure signs

A gradual decline in gross margin points to rising input costs, pricing pressure, or mix shifts. If structural, margin compression can erode operating profitability and ROE, forcing trade-offs between investment, pricing strategy, and cost controls to preserve long-term returns.

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

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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	25.71B	23.50B	21.74B	18.99B	16.55B
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	571.45M
Total Liabilities	6.40B	7.24B	6.69B	6.64B	5.17B	4.19B
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: Negative
• Last Price: 1597.00
• 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:3844, the sentiment is Negative. The current price of 1597 is above the 20-day moving average (MA) of 1488.75, above the 50-day MA of 1561.10, and below the 200-day MA of 1634.17, indicating a bearish trend. The MACD of -18.17 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥65.89B	18.88	17.96%	1.83%	13.23%	16.07%
3393	74 Outperform	¥26.98B	11.13	―	4.36%	12.32%	10.42%
3844	73 Outperform	¥46.70B	18.47	17.50%	2.88%	5.62%	3.81%
4072	73 Outperform	¥30.58B	13.32	―	2.22%	9.57%	315.38%
4725	65 Neutral	¥30.97B	10.75	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 Modernizes Shareholder Perks With Flexible Digital Gifts

Comture Corporation will revise its shareholder benefit program by replacing the current QUO Card with a more flexible Digital Gift worth 1,000 yen for shareholders holding at least 300 shares as of March 31 and September 30. The Digital Gift can be exchanged for options such as Amazon gift cards, PayPay money lite, d POINT, au PAY gift cards, QUO Card Pay, and other items, reflecting the company’s bid to align benefits with increasingly digital lifestyles and to enhance the attractiveness of long-term investment.

The revised benefit structure will take effect for shareholders of record on March 31, 2026, with detailed information to be mailed in early June alongside the shareholders meeting notice. Eligible investors will need to redeem their Digital Gift via a designated website within 90 days of receiving instructions, a move that may strengthen shareholder engagement while modernizing Comture’s rewards framework in line with broader digital consumption trends.

The most recent analyst rating on (JP:3844) stock is a Buy with a Yen1629.00 price target. To see the full list of analyst forecasts on Comture stock, see the JP:3844 Stock Forecast page.

Comture to Absorb AI-Focused Subsidiary to Bolster Microsoft Cloud and Infrastructure Business

Comture Corporation will merge with and absorb its wholly owned subsidiary Human Interactive Technology in an absorption-type merger effective October 1, 2026, with Comture as the surviving entity and no new shares, capital increase or cash consideration involved. By fully integrating HIT’s Microsoft-focused infrastructure, security and AI capabilities, Comture aims to accelerate decision-making, streamline operations and build a more powerful platform for total Microsoft solutions and AI-driven growth, though the transaction is expected to have only a negligible impact on its consolidated financial results.

The merger is structured as a simplified and short-form procedure under Japan’s Companies Act, eliminating the need for shareholder approvals at either company. Post-merger, Comture’s name, headquarters, business lines, capital and fiscal year-end will remain unchanged, while management expects the tighter integration of strategies, human resources and technical know-how across the group to enhance competitiveness and profitability in its core cloud and digital solution markets.

The most recent analyst rating on (JP:3844) stock is a Buy with a Yen1629.00 price target. To see the full list of analyst forecasts on Comture stock, see the JP:3844 Stock Forecast page.

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.