RAKUS Co., Ltd. (3923) AI Stock Analysis

• Market Cap: ¥375.27B
• Dividend Yield: 0.22%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.02
• Revenue Growth: 25.00%
• EPS Growth: 62.07%
• Country: JP
• Employees: 2,561
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 360,666,600
• 10 Day Avg. Volume: 1,109,750
• 30 Day Avg. Volume: 1,271,623
• PEG Ratio: 0.50
• Price to Book (P/B): 16.49
• Price to Sales (P/S): 7.41
• P/FCF Ratio: 46.81
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,150.00 ▲(10.58% Upside)

RAKUS Co., Ltd. scores well due to its strong financial performance, characterized by high growth and profitability, and a stable balance sheet. However, the stock's technical analysis presents mixed signals, and its high valuation suggests potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth Trend

Sustained ~27% revenue growth and a five‑year upward trend indicate strong product-market fit in the SME segment. Combined with a subscription-based model, this durable top-line expansion supports predictable recurring revenues, reinvestment in product, and scalable growth.

High Profitability and Margins

Very high gross and healthy operating margins reflect a scalable cloud/software cost structure and pricing power. Margin durability supports reinvestment, protects profitability through growth phases, and signals structural advantage vs. lower‑margin peers in services-heavy segments.

Strong Cash Generation

Robust free cash flow growth and near‑one-to-one conversion of net income to FCF indicate excellent cash conversion. This strengthens self‑funding capacity for R&D, M&A or share returns, and reduces reliance on external financing over the medium term.

Negative Factors

Limited Investor Communication / Guidance

Absence of earnings call data and formal guidance reduces transparency and makes it harder for investors and analysts to assess management's execution and near‑term priorities. This limits visibility on strategic decisions and prolongs uncertainty for forecasting.

Low Dividend Income

A very low dividend yield constrains appeal to income‑oriented investors and means returns are mainly through growth rather than cash distributions. That narrows the investor base and increases reliance on continued high growth to deliver total returns over time.

Room to Improve Asset Utilization

Despite strong capital structure and ROE, management notes scope to optimize asset utilization. Persistent inefficiencies in asset deployment could limit return on invested capital and constrain long‑term profitability and scaling unless addressed.

RAKUS Co., Ltd. Business Overview & Revenue Model

Company Description

Rakus Co., Ltd. provides cloud and IT outsourcing services. It offers cloud products, such as Raku Raku Seisan, Raku Raku Meisai, Mail Dealer, Raku Raku Hambai, Hai Hai Mail, and Blastmail, as well as dispatches IT engineers. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

RAKUS generates revenue through a subscription-based model for its software services, which provides a steady stream of income from customers who pay monthly or annually for access to their cloud applications. Key revenue streams include licensing fees for their software products, maintenance and support services, and additional consulting services for implementation and customization. The company has established significant partnerships with other technology firms and service providers to enhance its offerings and expand its market reach, contributing to its overall earnings.

RAKUS Co., Ltd. Financial Statement Overview

Summary

RAKUS Co., Ltd. demonstrates a strong financial position with high growth and profitability in its income statement, a stable and healthy balance sheet with low leverage, and robust cash flow generation. These metrics indicate a well-managed company with significant growth potential and strong operational performance.

Income Statement

RAKUS Co., Ltd. exhibits strong financial growth with a substantial revenue increase of 27.3% from the previous year, and a consistent upward trend over the past five years. The gross profit margin is robust at 74.3%, reflecting efficient cost management. Net profit margin stands at 16.4% for 2025, showing considerable profitability. EBIT and EBITDA margins at 20.8% and 23.2% respectively indicate solid operational efficiency. The company demonstrates a strong income statement performance with high growth and profitability metrics.

Balance Sheet

The balance sheet of RAKUS Co., Ltd. is strong with a low debt-to-equity ratio of 0.01, suggesting minimal leverage and financial risk. Return on Equity (ROE) is impressive at 36.4%, indicating effective use of equity to generate profits. An equity ratio of 69.4% highlights a solid capital structure with a high proportion of equity financing. The balance sheet reflects stability and financial health, though it could be further enhanced by optimizing asset utilization.

Cash Flow

RAKUS Co., Ltd. shows robust cash flow performance with a significant free cash flow growth rate of 74.6% year-over-year, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.13, indicating that the company's operations are generating healthy cash flows relative to its net income. The free cash flow to net income ratio is 0.97, further reflecting efficient cash conversion. Overall, the cash flow statement exhibits strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.77B	48.90B	38.41B	27.40B	20.63B	15.39B
Gross Profit	38.60B	36.31B	27.62B	18.78B	14.03B	10.36B
EBITDA	14.18B	11.35B	6.48B	2.23B	2.14B	4.55B
Net Income	9.47B	8.00B	4.18B	1.27B	1.08B	2.94B
Balance Sheet
Total Assets	28.42B	31.65B	21.23B	14.07B	11.70B	11.47B
Cash, Cash Equivalents and Short-Term Investments	10.26B	11.37B	7.01B	5.99B	4.86B	6.04B
Total Debt	0.00	216.00M	970.00M	36.00M	40.00M	0.00
Total Liabilities	6.77B	9.68B	7.89B	4.53B	3.08B	3.63B
Stockholders Equity	21.64B	21.98B	13.35B	9.55B	8.62B	7.84B
Cash Flow
Free Cash Flow	1.35B	7.74B	4.43B	1.54B	-436.00M	3.94B
Operating Cash Flow	1.69B	9.01B	5.29B	2.17B	-11.00M	4.27B
Investing Cash Flow	-674.00M	-3.46B	-4.86B	-699.00M	-877.00M	-432.52M
Financing Cash Flow	-401.50M	-1.18B	579.00M	-348.00M	-295.00M	-303.85M

RAKUS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1040.00
• 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:3923, the sentiment is Negative. The current price of 1040 is below the 20-day moving average (MA) of 1047.55, below the 50-day MA of 1122.33, and below the 200-day MA of 1163.06, indicating a bearish trend. The MACD of -18.96 indicates Negative momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 35.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3923.

RAKUS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4722	76 Outperform	¥175.90B	17.21	―	2.22%	9.29%	1.18%
9746	73 Outperform	¥216.21B	18.10	―	2.55%	10.98%	8.65%
3923	71 Outperform	¥375.27B	35.21	―	0.22%	25.00%	62.07%
4812	70 Outperform	¥499.34B	29.76	―	1.48%	8.02%	20.57%
8056	66 Neutral	¥499.66B	17.54	―	2.17%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	55 Neutral	¥122.94B	37.59	4.18%	1.97%	19.61%	―

RAKUS Co., Ltd. Corporate Events

RAKUS Co., Ltd. Reports Strong November Sales Growth in FY2026

RAKUS Co., Ltd. reported its monthly sales figures for November in FY2026, showing consistent growth across its cloud business and IT outsourcing services. The cloud business, a significant revenue driver, demonstrated a year-on-year increase in sales and recurring revenue, indicating strong market demand and robust operational performance.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Reports Strong October Sales Growth in FY2026

RAKUS Co., Ltd. reported its monthly sales figures for October in FY2026, showing a consistent year-on-year growth across its cloud business and IT outsourcing services. The company’s cloud business, including Raku Raku Seisan and Raku Raku Meisai, continues to demonstrate robust sales performance, indicating a strong market position and potential positive implications for stakeholders.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen1398.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Reports Robust Financial Growth in H1 2025

RAKUS Co., Ltd. reported significant growth in its financial results for the six months ending September 30, 2025, with net sales increasing by 25.1% and operating profit surging by 65.4% compared to the previous year. The company has revised its forecast for the fiscal year ending March 31, 2026, anticipating continued strong performance, which suggests a positive outlook for stakeholders and potential market expansion.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen1398.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Revises FY2026 Guidance Amid Strong Business Performance

RAKUS Co., Ltd. announced revisions to its consolidated and dividend guidance for the fiscal year ending March 2026, reflecting positive business trends. The company expects increased sales and profits due to robust performance in its Cloud and IT Outsourcing businesses, alongside a strategic focus on cost-effectiveness. Additionally, RAKUS revised its year-end dividend guidance, aligning with its policy of annual dividend increases and a commitment to maintaining a dividend payout ratio above 10%, signaling a strong commitment to shareholder returns.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen1398.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Forms Strategic Alliance with Plus Alpha Consulting

RAKUS Co., Ltd. has announced a strategic capital and business alliance with Plus Alpha Consulting Co., Ltd. to enhance corporate value through the development and sale of a talent management system, ‘Talent Palette.’ This partnership aims to maximize sales opportunities and improve customer satisfaction by combining RAKUS’s SaaS market presence with Plus Alpha’s expertise in human resource data platforms. The alliance includes OEM development, mutual sales support, and technical collaboration, with RAKUS acquiring a 4.09% stake in Plus Alpha to solidify the partnership.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen1398.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.