RAKUS Co., Ltd. (JP:3923)
:3923
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RAKUS Co., Ltd.
(3923)
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Rating:74Outperform
Price Target:
¥872.00
▲(12.00% Upside)
Action:UpgradedDate:02/27/26
The score is driven primarily by very strong financial performance (high growth, strong margins, low leverage, and strong cash flow). This is partially offset by weaker technicals (below key longer-term moving averages and negative MACD), while valuation is reasonable but not compelling due to the low dividend yield.
Positive Factors
Strong revenue growth & margins
Sustained high revenue growth combined with very strong gross and net margins indicates a scalable SaaS model with pricing power and efficient cost structure. This durable profitability supports reinvestment in product, margin resilience, and long-term EBITDA generation even as the company scales.
Negative Factors
Revenue concentration in SaaS
Heavy dependence on subscription fees creates structural exposure to churn, pricing pressure, and competitive displacement. Limited non-recurring revenue reduces near-term flexibility to offset subscription declines, making long-term growth and retention execution critical for durable earnings stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth & margins
Sustained high revenue growth combined with very strong gross and net margins indicates a scalable SaaS model with pricing power and efficient cost structure. This durable profitability supports reinvestment in product, margin resilience, and long-term EBITDA generation even as the company scales.
Read all positive factors
RAKUS Co., Ltd. (3923) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥266.75B
Dividend Yield0.22%
Average Volume (3M)1.27M
Price to Earnings (P/E)28.5
Beta (1Y)1.01
Revenue Growth25.00%
EPS Growth62.07%
CountryJP
Employees2,561
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)9.11
Shares Outstanding354,391,000
10 Day Avg. Volume1,109,750
30 Day Avg. Volume1,271,623
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)16.49
Price to Sales (P/S)7.41
P/FCF Ratio46.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥860.00Price Target Upside10.45% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)65.86
Revenue Forecast (FY)¥63.68B
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 incor...
How the Company Makes Money
RAKUS primarily makes money by selling access to its cloud software products under recurring SaaS subscription arrangements. Revenue is generated from ongoing monthly/annual usage fees paid by client companies for the right to use the company’s ap...
RAKUS Co., Ltd. Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
85
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2021 |
|---|---|---|---|---|---|---|
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 | 12.70B | 11.32B | 6.44B | 2.23B | 2.14B | 4.36B |
| 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 | 7.88B | 4.52B | 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 | 4.47B | 1.54B | -424.00M | 3.95B |
| 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
Neutral
778.60
Price Trends
790.39
Negative
932.07
Negative
1081.64
Negative
Market Momentum
-7.45
Negative
49.78
Neutral
31.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3923, the sentiment is Neutral. The current price of 778.6 is above the 20-day moving average (MA) of 758.75, below the 50-day MA of 790.39, and below the 200-day MA of 1081.64, indicating a neutral trend. The MACD of -7.45 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3923.
RAKUS Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥85.96B | 19.07 | ― | 2.32% | 5.09% | 26.12% | |
74 Outperform | ¥266.75B | 28.54 | ― | 0.22% | 25.00% | 62.07% | |
73 Outperform | ¥181.64B | 9.34 | ― | 2.55% | 10.98% | 8.65% | |
68 Neutral | ¥27.31B | 11.13 | ― | 4.36% | 12.32% | 10.42% | |
66 Neutral | ¥166.58B | 15.99 | 18.89% | 2.78% | 11.90% | 60.66% | |
65 Neutral | ¥31.12B | 10.75 | 10.34% | 4.82% | -3.03% | 38.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3923
RAKUS Co., Ltd.
778.60
-260.94
-25.10%
JP:9682
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RAKUS Co., Ltd. Corporate Events
RAKUS Boosts Cloud Sales and Recurring Revenue as It Prepares to Exit IT Outsourcing Unit
Apr 14, 2026
RAKUS Co., Ltd. reported consolidated monthly sales of 5,470 million yen for March 2026, up 19.8% year on year, driven mainly by its cloud business, which generated 4,675 million yen in sales and continued to expand monthly recurring revenue. Flag...
RAKUS Says Middle East Unrest Has No Direct Impact but Flags Indirect Risks
Apr 10, 2026
RAKUS Co., Ltd. reported that the current situation in the Middle East is having no direct impact on its business, as the group has no bases, major suppliers, or customers in the region and its overseas development sites in Vietnam and Indonesia a...
RAKUS Completes RAKUS Partners Share Transfer, to Book ¥16.5 Billion Extraordinary Profit
Apr 1, 2026
RAKUS Co., Ltd. has completed the transfer of all shares in its consolidated subsidiary, RAKUS Partners Co., Ltd., to BREXA Technology Co., Ltd., resulting in RAKUS Partners being removed from the company’s scope of consolidation from the fi...
RAKUS Posts Double-Digit February Sales Growth on Expanding Cloud and Recurring Revenue
Mar 13, 2026
RAKUS Co., Ltd. reported consolidated monthly sales of 5,271 million yen for February 2026, up 18.9% year on year, indicating continued strong growth across its operations. Cloud business sales rose to 4,580 million yen, an 18.6% increase, with mo...
RAKUS Completes ¥5 Billion Share Buyback and Sets Cancellation to Cut Float
Mar 2, 2026
RAKUS Co., Ltd. has completed a share buyback program authorized by its board on February 13, 2026, acquiring 6,275,600 common shares through market purchases on the Tokyo Stock Exchange between February 16 and 27 for approximately 5.0 billion yen...
RAKUS Maintains Double-Digit Growth in January FY2026 Sales
Feb 13, 2026
RAKUS reported consolidated monthly sales of ¥5,247 million for January in fiscal 2026, up 20.5% year on year, signaling continued strong top-line growth. Cloud business sales rose 20.4% to ¥4,531 million, with monthly recurring revenue ...
RAKUS Announces Q3 FY2026 Earnings and Updates Full-Year Outlook
Feb 13, 2026
RAKUS Co., Ltd. released its earnings results for the third quarter of the fiscal year ending March 2026, covering performance in its consolidated operations. The disclosure outlines the status of its cloud business, IT outsourcing segment, key bu...
RAKUS Delivers Strong Nine-Month Earnings Surge and Confirms Full-Year Outlook
Feb 13, 2026
RAKUS Co., Ltd. reported strong results for the nine months ended December 31, 2025, with net sales rising 24.6% year on year to ¥44.3 billion and profit attributable to owners of parent jumping 71.7% to ¥9.6 billion. Operating and ordin...
RAKUS to Boost Treasury Stock with Gratuitous Share Acquisition from Former Director
Feb 13, 2026
RAKUS Co., Ltd. will gratuitously acquire 200,000 of its own common shares from former director Yoshifumi Matsushima, representing about 0.06% of its outstanding shares excluding treasury stock. The transaction, scheduled for February 16, 2026, in...
RAKUS Launches ¥5 Billion Share Buyback and Cancellation to Boost Capital Efficiency
Feb 13, 2026
RAKUS Co., Ltd. has announced that its board has approved the acquisition and subsequent cancellation of up to 8.8 million of its own common shares, representing 2.44% of outstanding shares, for a total cost of up to 5.0 billion yen. The buyback w...
RAKUS to Divest IT Outsourcing Subsidiary to BREXA as It Refocuses on Cloud Business
Feb 13, 2026
RAKUS Co., Ltd. has decided to transfer all shares of its wholly owned subsidiary RAKUS Partners Co., Ltd., an IT engineer dispatching business, to BREXA Technology Co., Ltd., a specialist in engineer dispatching and technical services. Following ...
RAKUS Posts Double-Digit December Sales Growth on Strong Cloud and Outsourcing Demand
Jan 19, 2026
RAKUS Co., Ltd. reported strong consolidated monthly sales for December 2025 in its FY2026 disclosure, with revenue reaching 5,239 million yen, up 24.2% year on year, driven mainly by continued expansion in its cloud business. Cloud business sales...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.