Ubicom Holdings. Inc. (3937) AI Stock Analysis

• Market Cap: ¥11.33B
• Dividend Yield: 4.32%
• Average Volume (3M): 103.49K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.77
• Revenue Growth: 6.70%
• EPS Growth: 59.13%
• Country: JP
• Employees: 1,088
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 34.26
• Shares Outstanding: 12,249,920
• 10 Day Avg. Volume: 95,920
• 30 Day Avg. Volume: 103,493
• PEG Ratio: 1.11
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 69 Neutral
• Price Target: ¥1,018.00 ▲(10.05%Upside)

The strong financial performance of Ubicom Holdings is the most significant factor driving its stock score, reflecting efficient operations and a solid financial position. However, bearish technical indicators weigh down the overall score, suggesting caution. The valuation is reasonable, with a low P/E ratio and high dividend yield offering potential value and income to investors.

Ubicom Holdings. Inc. Business Overview & Revenue Model

Company Description

Ubicom Holdings, Inc. (3937) is a technology company that specializes in the development and provision of software solutions and services. The company operates within the information technology sector, focusing on the creation of embedded systems, software development, and IT consulting services. Ubicom Holdings aims to deliver high-quality, innovative technology solutions to its clients, enhancing their operational efficiency and productivity.

How the Company Makes Money

Ubicom Holdings, Inc. generates revenue primarily through the sale of its software solutions and services. Its revenue streams include licensing fees for its software products, consulting fees from IT services, and customer support contracts. The company may also engage in strategic partnerships with other technology firms to expand its market reach and enhance its service offerings. By providing customized technology solutions, Ubicom Holdings caters to a diverse client base, which contributes significantly to its earnings.

Ubicom Holdings. Inc. Financial Statement Overview

Summary

Ubicom Holdings demonstrates strong financial performance with consistent revenue growth, robust profit margins, and effective cash flow management. The company maintains low leverage, enhancing its financial stability.

Income Statement

Ubicom Holdings has shown consistent revenue growth with a 6.71% increase from 2024 to 2025. Gross profit margin is strong at 39.6% for 2025. Net profit margin stands at 13.5%, indicating solid profitability. EBIT and EBITDA margins are robust at 20.7% and 24.6%, respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.07, indicating minimal leverage risk. The return on equity for 2025 is healthy at 15.3%. The equity ratio is strong at 71.2%, reflecting a stable financial position with substantial equity backing.

Cash Flow

Ubicom Holdings exhibits impressive cash flow management with a free cash flow growth rate of 49.5% from 2024 to 2025. The operating cash flow to net income ratio is 1.08, indicating efficient conversion of earnings into cash. Free cash flow to net income ratio is 1.05, demonstrating strong cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.29B	6.34B	5.94B	5.25B	4.73B	4.20B
Gross Profit	2.47B	2.51B	2.25B	2.05B	2.00B	1.82B
EBITDA	1.40B	1.56B	1.11B	1.10B	1.16B	1.04B
Net Income	759.52M	858.40M	526.14M	573.79M	832.14M	623.77M
Balance Sheet
Total Assets	5.67B	7.87B	6.88B	5.80B	5.62B	4.44B
Cash, Cash Equivalents and Short-Term Investments	3.60B	4.86B	4.03B	3.67B	3.38B	2.81B
Total Debt	262.82M	407.48M	288.61M	244.95M	327.98M	158.16M
Total Liabilities	1.70B	2.27B	2.16B	1.71B	1.81B	1.50B
Stockholders Equity	3.97B	5.60B	4.72B	4.09B	3.81B	2.94B
Cash Flow
Free Cash Flow	0.00	903.52M	604.27M	769.83M	819.89M	887.85M
Operating Cash Flow	0.00	930.83M	726.90M	820.66M	874.14M	921.74M
Investing Cash Flow	0.00	18.80M	-272.76M	-110.51M	-202.88M	-60.52M
Financing Cash Flow	0.00	-126.43M	-155.02M	-447.49M	-151.54M	-76.06M

Ubicom Holdings. Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 925.00
• 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:3937, the sentiment is Negative. The current price of 925 is below the 20-day moving average (MA) of 954.95, below the 50-day MA of 1038.06, and below the 200-day MA of 1228.71, indicating a bearish trend. The MACD of -29.50 indicates Negative momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3937.

Ubicom Holdings. Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4299	79 Outperform	¥13.90B	10.72		3.84%	2.13%	7.67%
3937	69 Neutral	¥11.33B	13.00		4.32%	6.70%	59.13%
3800	68 Neutral	¥13.61B	20.07		3.69%	-2.98%	-31.07%
4011	67 Neutral	¥14.32B	88.21		―	25.52%	282.24%
4168	67 Neutral	¥9.87B	16.12		0.79%	11.74%	158.89%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
4382	47 Neutral	¥16.27B	―		―	17.40%	59.85%

Ubicom Holdings. Inc. Corporate Events

Ubicom Holdings Announces Strategic Organizational and Personnel Changes

Ubicom Holdings, Inc. announced significant organizational and personnel changes effective July 1, 2025, following a Board of Directors meeting. These changes involve various executive positions across the company’s divisions, including the Technology Consulting Business Division and the Medical Business Division, indicating a strategic realignment to enhance operational efficiency and market competitiveness.

Ubicom Holdings Plans to Meet TSE Prime Market Criteria Amid Improvement Period

Ubicom Holdings, Inc. has announced a plan to meet the listing maintenance criteria for the Tokyo Stock Exchange’s Prime Market, after failing to conform with the market capitalization of tradable shares as of March 2025. The company is in an improvement period and must meet the criteria by March 2026 to avoid potential delisting. Ubicom is focusing on improving consolidated performance, managing foreign exchange risks, and enhancing shareholder returns to achieve this goal. The company plans to continue its growth strategy, including M&A activities in the medical business and adapting to changes in the technology consulting sector, while considering a market segment change if necessary.

Ubicom Holdings Announces Changes in Board of Directors

Ubicom Holdings, Inc. announced changes in its Board of Directors, appointing Taisuke Tsuyuguchi and Natsumi Horikawa as Outside Directors. Tsuyuguchi’s extensive experience in the insurance and medical fields is expected to enhance the company’s strategic initiatives in these sectors, while Horikawa’s expertise in marketing and digital transformation is anticipated to boost the competitiveness of Ubicom’s Technology Consulting Business.

Ubicom Holdings Corrects Financial Results and Updates Dividend Forecast

Ubicom Holdings, Inc. announced corrections to its Consolidated Financial Results for the year ended March 31, 2025, due to errors in the initial release. The company also clarified its dividend forecast for the fiscal year ending March 31, 2026, aiming for a higher standard than the previous year. These corrections are part of Ubicom’s efforts to ensure clear and accurate disclosures to investors, reinforcing its commitment to transparency and stakeholder trust.

Ubicom Holdings Reports Strong Financial Growth and Increased Dividends

Ubicom Holdings, Inc. reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 6.7% and profit attributable to owners of the parent rising by 63.1%. The company also announced a substantial increase in its year-end dividend, reflecting its strong financial position and commitment to returning value to shareholders. These results indicate a positive trajectory for Ubicom Holdings in the technology industry, potentially enhancing its market position and stakeholder confidence.