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RAKUS Co., Ltd. (JP:3923)
:3923
Japanese Market

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

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JP

RAKUS Co., Ltd.

(3923)

Rating:76Outperform
Price Target:
¥2,456.00
▲(6.11%Upside)
RAKUS Co., Ltd. is positioned strongly due to its robust financial performance, characterized by high growth, profitability, and financial stability. However, the technical analysis suggests mixed market sentiment, and the high P/E ratio indicates a premium valuation that may limit attractiveness for value investors. The absence of earnings call insights and corporate events reduces the breadth of the analysis.

RAKUS Co., Ltd. (3923) vs. iShares MSCI Japan ETF (EWJ)

RAKUS Co., Ltd. Business Overview & Revenue Model

Company DescriptionRAKUS Co., Ltd. is a Japanese company specializing in IT solutions with a focus on cloud-based software services. The company provides a range of products aimed at improving business efficiency, including cloud services for expense management, email marketing, and IT outsourcing. RAKUS primarily serves small to medium-sized enterprises in Japan, helping them streamline operations and reduce costs through innovative technology solutions.
How the Company Makes MoneyRAKUS Co., Ltd. generates revenue primarily through subscription fees for its cloud-based software services. The company's key revenue streams include its flagship products such as 'Rakurasu Expense,' a cloud-based expense management system, and 'Mail Dealer,' an email management service. These services are offered on a subscription basis, providing ongoing revenue. Additionally, RAKUS offers IT outsourcing services, where it earns money by providing technical support and maintenance services to its clients. The company's growth is supported by its strategic focus on expanding its customer base among small and medium-sized enterprises in Japan, leveraging its expertise in cloud technology to offer scalable and efficient solutions. Partnerships with other technology providers and continuous investment in product development also play a crucial role in enhancing its service offerings and maintaining a competitive edge in the market.

RAKUS Co., Ltd. Financial Statement Overview

Summary
RAKUS Co., Ltd. demonstrates a strong financial position across all areas. The income statement indicates high growth and profitability with a 27.3% revenue increase and robust margins. The balance sheet is stable with a low debt-to-equity ratio of 0.01 and a high ROE of 36.4%. Cash flow metrics show efficient cash management and liquidity. Overall, the company's financials position it favorably in the industry.
Income Statement
92
Very Positive
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
85
Very Positive
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
88
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue46.12B48.90B38.41B27.40B20.63B15.39B
Gross Profit34.04B36.31B27.62B18.78B14.03B10.36B
EBITDA10.58B11.35B6.48B2.23B2.14B4.55B
Net Income7.30B8.00B4.18B1.27B1.08B2.94B
Balance Sheet
Total Assets26.28B31.65B21.23B14.07B11.70B11.47B
Cash, Cash Equivalents and Short-Term Investments8.17B11.37B7.01B5.99B4.86B6.04B
Total Debt404.00M216.00M970.00M36.00M40.00M0.00
Total Liabilities7.59B9.68B7.89B4.53B3.08B3.63B
Stockholders Equity18.69B21.98B13.35B9.55B8.62B7.84B
Cash Flow
Free Cash Flow1.35B7.74B4.43B1.54B-436.00M3.94B
Operating Cash Flow1.69B9.01B5.29B2.17B-11.00M4.27B
Investing Cash Flow-674.00M-3.46B-4.86B-699.00M-877.00M-432.52M
Financing Cash Flow-401.50M-1.18B579.00M-348.00M-295.00M-303.85M

RAKUS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2314.50
Price Trends
50DMA
2230.63
Positive
100DMA
2104.00
Positive
200DMA
2072.29
Positive
Market Momentum
MACD
28.33
Positive
RSI
56.70
Neutral
STOCH
50.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3923, the sentiment is Positive. The current price of 2314.5 is above the 20-day moving average (MA) of 2299.60, above the 50-day MA of 2230.63, and above the 200-day MA of 2072.29, indicating a bullish trend. The MACD of 28.33 indicates Positive momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3923.

RAKUS Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥216.52B19.43
2.38%6.15%2.06%
76
Outperform
¥547.26B21.93
1.67%9.15%8.68%
76
Outperform
¥419.42B52.40
0.19%27.33%91.27%
75
Outperform
¥445.08B29.46
1.70%7.49%1.09%
73
Outperform
¥194.23B19.19
2.10%19.53%9.84%
63
Neutral
$33.22B5.99-11.76%1.91%5.54%-19.87%
60
Neutral
$222.06B-9.01%<0.01%20.96%-222.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3923
RAKUS Co., Ltd.
2,314.50
294.57
14.58%
JP:4722
Future Corporation
2,194.00
698.93
46.75%
JP:4812
DENTSU SOKEN INC.
6,840.00
1,849.38
37.06%
JP:8056
BIPROGY Inc.
5,979.00
1,568.02
35.55%
JP:9746
TKC Corporation
4,200.00
852.14
25.45%
JP:4819
Digital Garage
4,795.00
2,326.82
94.27%

RAKUS Co., Ltd. Corporate Events

RAKUS Co., Ltd. Announces Disposal of Treasury Stock for Executive Incentives
Jun 20, 2025

RAKUS Co., Ltd. has announced a decision by its Board of Directors to dispose of 1,510 shares of treasury stock as restricted stock to an executive officer. This move is part of a new compensation plan aimed at incentivizing the sustained enhancement of corporate value and promoting value sharing with shareholders. The disposal includes specific conditions regarding the transfer and management of the allocated shares, ensuring alignment with the company’s strategic goals.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2280.00 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 Growth in Cloud Business for May FY2026
Jun 13, 2025

RAKUS Co., Ltd. reported its monthly sales for May in FY2026, showing a year-on-year increase in its cloud business and IT outsourcing sales. The company’s cloud business, including Raku Raku Seisan and Raku Raku Meisai, demonstrated significant growth, indicating a strong market demand and positive impact on its operations and industry positioning.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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. Completes Treasury Share Acquisition
May 21, 2025

RAKUS Co., Ltd. has completed the acquisition of 205,900 treasury shares, with plans to cancel them by June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 1.2 million shares, aiming to optimize capital structure and enhance shareholder value.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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. Completes Treasury Share Acquisition
May 15, 2025

RAKUS Co., Ltd. has completed the acquisition of 676,800 common shares through the ToSTNeT-3 off-auction trading system, aiming to enhance shareholder returns and improve capital efficiency. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1.2 million shares, with the acquisition period extending until June 13, 2025, through both off-auction trading and market purchases.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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. Announces Treasury Share Repurchase Plan
May 14, 2025

RAKUS Co., Ltd. announced its decision to repurchase up to 876,800 of its own shares through the Tokyo Stock Exchange’s ToSTNeT-3 system at a price of 2,281 yen per share. This strategic move, approved by the Board of Directors, aims to optimize the company’s capital structure and potentially enhance shareholder value. The acquisition is part of a broader plan to repurchase up to 1.2 million shares by June 13, 2025, with a total acquisition cost capped at 2 billion yen. The initiative reflects RAKUS’s commitment to efficient capital management and may influence its market positioning by signaling confidence in its financial health.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen3000.00 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 Financial Growth for FY2025
May 14, 2025

RAKUS Co., Ltd. reported significant financial growth for the year ended March 31, 2025, with a 27.3% increase in net sales and an 83.3% rise in operating profit compared to the previous year. The company’s strong performance is reflected in its improved equity ratio and increased cash dividends, indicating a robust financial position and potential positive implications for stakeholders.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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 April Sales Growth in FY2026
May 14, 2025

RAKUS Co., Ltd. reported significant growth in its monthly sales for April FY2026, with a year-on-year increase of 126.4% in consolidated sales. The cloud business segment, a major contributor, saw a 127.3% rise, indicating strong demand for its services. The company’s IT outsourcing business also experienced growth, reflecting a robust market position and potential positive implications for stakeholders.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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. to Acquire and Cancel Treasury Shares for Capital Efficiency
May 14, 2025

RAKUS Co., Ltd. announced its decision to acquire and subsequently cancel its own shares to enhance shareholder returns and improve capital efficiency. This strategic move, funded by the proceeds from a previous sale of shares in Kaonavi, Inc., reflects the company’s commitment to optimizing its capital structure and delivering value to its stakeholders.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2050.00 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 FY2025 Guidance and Increases Dividend
Apr 25, 2025

RAKUS Co., Ltd. has revised its consolidated and dividend guidance for the fiscal year ending March 2025, reflecting positive business trends. The company expects sales and profits to exceed previous forecasts due to strong performance in its cloud and IT outsourcing segments, alongside a strategic focus on cost-effectiveness. Additionally, RAKUS has increased its dividend guidance, underscoring its commitment to shareholder returns and maintaining a dividend payout ratio above 10%.

RAKUS Co., Ltd. Reports Strong Sales Growth in FY2025
Apr 14, 2025

RAKUS Co., Ltd. reported a steady increase in monthly sales for FY2025, with notable growth in its cloud business and recurring revenue streams. The company’s Raku Raku Seisan and Raku Raku Meisai services also showed significant year-on-year growth, indicating strong market demand and positioning RAKUS favorably in the competitive cloud services industry.

RAKUS Co., Ltd. Reports Successful Sale of Kaonavi Shares
Apr 1, 2025

RAKUS Co., Ltd. announced the successful completion of its tender offer for Kaonavi, Inc. shares, resulting in a total sale of JPY 2,542 million. This transaction will lead to an extraordinary profit of JPY 1,491 million, which will be reflected in the company’s financial results for the first quarter of the fiscal year ending March 2026, highlighting a positive impact on its financial standing.

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.Date of analysis: May 27, 2025