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

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JP:3923

RAKUS Co., Ltd.

(3923)

Rating:76Outperform
Price Target:
¥2,456.00
▼(-6.65% Downside)
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. 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 MoneyRAKUS Co., Ltd. generates revenue through its subscription-based SaaS model. Customers pay recurring fees for access to its suite of cloud-based software solutions, which include tools for expense management, email marketing, and business communication. The company benefits from a diverse customer base, ranging from small to large enterprises, ensuring a steady stream of income. Additionally, RAKUS may engage in strategic partnerships and collaborations that expand its market reach and enhance its service offerings, further contributing to its revenue growth.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue48.90B48.90B38.41B27.40B20.63B15.39B
Gross Profit36.31B36.31B27.62B18.78B14.03B10.36B
EBITDA11.30B11.35B6.48B2.23B2.14B4.55B
Net Income8.00B8.00B4.18B1.27B1.08B2.94B
Balance Sheet
Total Assets31.65B31.65B21.23B14.07B11.70B11.47B
Cash, Cash Equivalents and Short-Term Investments11.37B11.37B7.01B5.99B4.86B6.04B
Total Debt216.00M216.00M970.00M36.00M40.00M0.00
Total Liabilities9.68B9.68B7.89B4.53B3.08B3.63B
Stockholders Equity21.98B21.98B13.35B9.55B8.62B7.84B
Cash Flow
Free Cash Flow2.71B7.74B4.43B1.54B-436.00M3.94B
Operating Cash Flow3.39B9.01B5.29B2.17B-11.00M4.27B
Investing Cash Flow-1.35B-3.46B-4.86B-699.00M-877.00M-432.52M
Financing Cash Flow-803.00M-1.18B579.00M-348.00M-295.00M-303.85M

RAKUS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2631.00
Price Trends
50DMA
2369.92
Positive
100DMA
2274.91
Positive
200DMA
2114.62
Positive
Market Momentum
MACD
84.50
Negative
RSI
65.42
Neutral
STOCH
44.69
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 2631 is above the 20-day moving average (MA) of 2510.10, above the 50-day MA of 2369.92, and above the 200-day MA of 2114.62, indicating a bullish trend. The MACD of 84.50 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.69 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥227.86B20.69
2.38%9.00%3.63%
76
Outperform
¥474.45B50.05
0.17%25.22%70.77%
61
Neutral
$35.48B7.63-10.11%1.88%8.73%-9.23%
$1.16B-13.94%1.68%
73
Outperform
¥202.55B20.28
1.92%13.51%2.63%
73
Outperform
¥582.59B22.44
1.57%8.94%10.67%
67
Neutral
¥430.11B26.19
1.69%7.93%7.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3923
RAKUS Co., Ltd.
2,631.00
237.79
9.94%
DLGEF
Digital Garage
20.99
3.94
23.11%
JP:4722
Future Corporation
2,288.00
572.78
33.39%
JP:4812
DENTSU SOKEN INC.
6,610.00
754.86
12.89%
JP:8056
BIPROGY Inc.
6,365.00
1,666.47
35.47%
JP:9746
TKC Corporation
4,420.00
731.51
19.83%

RAKUS Co., Ltd. Corporate Events

RAKUS Co., Ltd. Reports Strong July Sales Growth
Aug 13, 2025

RAKUS Co., Ltd. reported a consistent increase in its monthly sales for July 2025, with consolidated sales reaching 4,926 million yen, marking a year-on-year growth of 126.3%. The cloud business segment, a significant contributor to the company’s revenue, showed a robust performance with a 127.6% year-on-year increase in sales. These figures indicate strong market demand for RAKUS’s cloud solutions, potentially enhancing its competitive positioning in the industry.

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 Q1 2025 Financial Results
Aug 13, 2025

RAKUS Co., Ltd. reported significant growth in its financial performance for the three months ended June 30, 2025, with a 25.5% increase in net sales and a 70.8% rise in profit attributable to owners of the parent compared to the same period in the previous year. The company also revised its cash dividend forecast for the fiscal year ending March 31, 2026, indicating a potential impact on shareholder returns.

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. Forms Strategic Alliance with Plus Alpha Consulting
Aug 13, 2025

RAKUS Co., Ltd. has entered into a basic agreement for a business alliance with Plus Alpha Consulting Co., Ltd. to enhance sales opportunities and customer satisfaction through mutual support in sales, marketing, and technical collaboration. This alliance aims to deepen service penetration and improve productivity for their clients, leveraging RAKUS’s strong customer base and Plus Alpha’s talent management platform.

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. Announces Stock Split and Dividend Revision
Aug 13, 2025

RAKUS Co., Ltd. has announced a 2-for-1 stock split to increase share liquidity and expand its investor base, effective October 1, 2025. The company will also amend its Articles of Incorporation to reflect the increased number of authorized shares and has revised its dividend guidance to align with the stock split, maintaining the pre-split dividend forecast.

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. Completes Treasury Stock Disposal for Executive Compensation
Jul 18, 2025

RAKUS Co., Ltd. has successfully completed the payment process for the disposal of its treasury stock as restricted stock compensation, a decision made during the Board of Directors meeting on June 20, 2025. This move involves the disposal of 1,510 shares at a price of 2,317 yen per share, totaling 3,498,670 yen, and is allocated to one executive officer, indicating a strategic approach to employee compensation and stock management.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2300.00 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 Sales Growth in June 2025
Jul 14, 2025

RAKUS Co., Ltd. reported a steady increase in its monthly sales for June 2025, with consolidated sales reaching 4,782 million yen, marking a year-on-year growth of 126.3%. The company’s cloud business, which includes recurring revenue from services like Raku Raku Seisan and Raku Raku Meisai, showed robust growth, reflecting its strong market position and ongoing demand for cloud solutions. These preliminary figures indicate a positive trend for RAKUS Co., Ltd., suggesting potential benefits for stakeholders as the company continues to expand its footprint in the cloud services sector.

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. Expands Global Reach with New Indonesian Subsidiary
Jul 11, 2025

RAKUS Co., Ltd. has established a new subsidiary, PT. Reformasi Kerja Solusi, in Jakarta, Indonesia, to capitalize on the region’s talent pool and enhance its global development capabilities. This strategic move is expected to have minimal immediate impact on the company’s consolidated results, but it positions RAKUS for potential growth in the cloud services market.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2300.00 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. Establishes Chief AI Officer Role to Drive AI Strategy
Jul 11, 2025

RAKUS Co., Ltd. announced the establishment of a new executive position, Chief AI Officer (CAIO), to lead its AI strategy and align it with corporate management. This move underscores the company’s commitment to integrating AI into its operations, aiming to enhance its management strategy and deliver greater value to customers.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2300.00 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 Cancellation
Jun 30, 2025

RAKUS Co., Ltd. has completed the cancellation of 882,700 treasury shares, which accounts for 0.49% of its total issued shares prior to the cancellation. This strategic move, finalized on June 30, 2025, is expected to impact the company’s share structure and potentially enhance shareholder value, reflecting RAKUS’s commitment to optimizing its capital management.

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. 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.

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