Ubicom Holdings. Inc. (3937) AI Stock Analysis

• Market Cap: ¥13.12B
• Dividend Yield: 3.65%
• Average Volume (3M): 34.03K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.78
• Revenue Growth: 2.47%
• EPS Growth: 46.51%
• Country: JP
• Employees: 1,088
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 22.42
• Shares Outstanding: 12,249,920
• 10 Day Avg. Volume: 31,240
• 30 Day Avg. Volume: 34,026
• PEG Ratio: 0.30
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 2.44
• P/FCF Ratio: 17.10
• 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: ¥1,204.00
• Price Target Upside: 12.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,204.00 ▲(12.42% Upside)

Ubicom Holdings' strong financial performance is the most significant factor, supported by robust revenue and profit growth, efficient operations, and strong cash flow. The valuation is reasonable with a good dividend yield, although technical indicators suggest some short-term bearish trends.

Ubicom Holdings. Inc. Business Overview & Revenue Model

Company Description

Ubicom Holdings, Inc. (3937) is a technology-driven company specializing in the development and provision of innovative solutions in the fields of telecommunications and IoT (Internet of Things). The company focuses on enhancing connectivity and data processing capabilities through its advanced software and hardware products. Ubicom operates within the telecommunications sector, catering to a diverse range of clients, including service providers and enterprises, by offering products such as communication systems, network management tools, and IoT applications.

How the Company Makes Money

Ubicom Holdings generates revenue primarily through the sale of its technology products and services. The company has a diversified revenue model that includes direct sales of hardware and software solutions, recurring subscription fees from its IoT platforms, and service contracts for maintenance and support. Key revenue streams also include partnerships with telecommunications providers, where Ubicom supplies essential infrastructure components and software integrations. Additionally, the company may benefit from strategic alliances with technology firms, enhancing its offerings and expanding market reach, ultimately contributing to its overall earnings.

Ubicom Holdings. Inc. Financial Statement Overview

Summary

Ubicom Holdings displays a strong financial profile with consistent revenue and profit growth, efficient operations, and robust cash flow generation. The company maintains a low leverage level, enhancing its financial flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	6.34B	5.94B	5.25B	4.73B	4.20B
Gross Profit	2.55B	2.51B	2.25B	2.05B	2.00B	1.82B
EBITDA	1.57B	1.56B	1.11B	1.10B	1.16B	1.04B
Net Income	931.15M	858.40M	526.14M	573.79M	832.14M	623.77M
Balance Sheet
Total Assets	7.48B	7.87B	6.88B	5.80B	5.62B	4.44B
Cash, Cash Equivalents and Short-Term Investments	4.67B	4.86B	4.03B	3.67B	3.38B	2.81B
Total Debt	369.13M	407.48M	288.61M	244.95M	327.98M	158.16M
Total Liabilities	2.11B	2.27B	2.16B	1.71B	1.81B	1.50B
Stockholders Equity	5.37B	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: 1071.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 1071 is below the 20-day moving average (MA) of 1101.80, below the 50-day MA of 1099.78, and below the 200-day MA of 1144.77, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 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	¥14.24B	11.39	―	3.75%	4.86%	4.48%
3937	75 Outperform	¥13.12B	13.94	―	3.65%	2.47%	46.51%
3800	68 Neutral	¥13.88B	19.31	―	3.67%	-1.03%	-3.19%
4011	67 Neutral	¥12.73B	106.69	―	―	28.99%	-16.50%
4168	66 Neutral	¥12.56B	16.67	―	0.62%	12.09%	141.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4382	46 Neutral	¥15.62B	―	―	―	17.83%	87.36%

Ubicom Holdings. Inc. Corporate Events

Ubicom Holdings Revises Dividend Forecast and Strengthens Shareholder Value Strategy

Ubicom Holdings has revised its dividend forecast for FY2025, reflecting a commitment to shareholder returns amidst steady business performance and limited impact from U.S. tariffs. The company plans to enhance shareholder value through strategic M&A, aiming for significant growth and a strong dividend policy that balances stability with performance-linked returns.

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.