Capital Asset Planning, Inc. (3965) AI Stock Analysis

• Market Cap: ¥4.78B
• Dividend Yield: 2.2%
• Average Volume (3M): 21.01K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.26
• Revenue Growth: 18.47%
• EPS Growth: 155.94%
• Country: JP
• Employees: 360
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 33.75
• Shares Outstanding: 5,747,616
• 10 Day Avg. Volume: 6,930
• 30 Day Avg. Volume: 21,010
• PEG Ratio: -0.94
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -10.02
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥829.00 ▼(-0.12% Downside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. The company's solid revenue growth and low leverage are positive indicators, while the low P/E ratio and decent dividend yield suggest undervaluation. However, technical analysis reveals bearish market momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective client acquisition strategies, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Cash Flow Generation

Positive cash flow generation indicates efficient operations and provides the company with the liquidity needed to invest in growth and weather economic fluctuations.

Negative Factors

Profit Margin Concerns

Modest net profit margins may limit profitability and shareholder returns, necessitating improved cost efficiency to enhance financial performance.

Historical Cash Flow Volatility

Volatile cash flows can undermine financial planning and stability, making it essential for the company to achieve consistent cash flow performance.

Return on Equity

Moderate return on equity indicates potential inefficiencies in using shareholder funds, which could impact long-term profitability and investor confidence.

Capital Asset Planning, Inc. Business Overview & Revenue Model

Company Description

Capital Asset Planning, Inc. provides system integration services in Japan and internationally. The company offers application systems for life insurance companies, including insurance design/application issuance, insurance information provision site for customer relationship management, and system construction for Web and PC, as well as life planning, public pension estimation, and retirement simulation system construction services. It also provides systems for banks and securities companies, such as investment trust/life insurance and individual annuity insurance counter sales support, counter sales portfolio design, individual stock selection, information provision system for defined contribution pension policyholders, and future fund management forecast. In addition, the company offers Wealth Management Workstation (WMW), an integrated asset management system in the cloud computing environment; and estate planning services for asset practitioners using WMW. In addition, the company offers financial planning education, other portfolio and life insurance theories, real estate business, and private banking education consisting of tax law services; and develops and distributes education content. Capital Asset Planning, Inc. was founded in 1990 and is headquartered in Osaka, Japan.

How the Company Makes Money

Capital Asset Planning, Inc. generates revenue through multiple streams, primarily from management fees charged on the assets under management (AUM). The company typically charges a percentage of AUM as a fee for its advisory services, which can vary based on the size and complexity of the investment portfolio. Additionally, the firm may earn performance-based fees tied to the success of investment strategies implemented for clients. Significant partnerships with financial institutions and investment firms further enhance its service offerings, allowing for diversified investment products and access to exclusive market opportunities, thereby contributing to its overall earnings.

Capital Asset Planning, Inc. Financial Statement Overview

Summary

Capital Asset Planning, Inc. shows stable revenue growth but faces challenges in profitability and cash flow management. The balance sheet remains strong with a healthy equity ratio and manageable debt levels. However, declining margins and negative cash flow ratios indicate potential operational inefficiencies and cash management issues that need addressing to sustain long-term growth.

Income Statement

The company shows a moderate revenue growth rate of 1.64% from 2023 to 2024, indicating stability in revenue generation. However, the net profit margin has decreased from 2.75% in 2023 to 1.92% in 2024, reflecting a decline in profitability. Gross profit margin remains stable at around 21%, while EBIT margin slightly decreased from 4.03% to 3.64%. The EBITDA margin also saw a decline from 9.46% to 7.50%, suggesting increased operational challenges.

Balance Sheet

The company's debt-to-equity ratio is stable at approximately 0.44, indicating a balanced leverage position. The return on equity (ROE) decreased from 7.04% in 2023 to 4.76% in 2024, showing reduced profitability relative to equity. The equity ratio remains healthy at around 58%, reflecting strong equity financing and a solid financial structure.

Cash Flow

The company experienced a significant decline in free cash flow from 2023 to 2024, dropping from 879.68 million to -429.51 million, indicating cash flow challenges. The operating cash flow to net income ratio turned negative, highlighting inefficiencies in converting income to cash. The free cash flow to net income ratio also turned negative, suggesting difficulties in maintaining positive cash flow from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.26B	9.69B	8.18B	8.05B	6.75B	6.63B
Gross Profit	1.95B	2.12B	1.73B	1.66B	983.87M	1.27B
EBITDA	695.42M	846.59M	613.21M	761.85M	53.22M	387.13M
Net Income	263.81M	401.82M	156.75M	221.62M	-248.38M	69.57M
Balance Sheet
Total Assets	6.19B	6.63B	5.66B	5.55B	5.10B	5.87B
Cash, Cash Equivalents and Short-Term Investments	2.13B	1.77B	1.41B	1.89B	1.21B	1.89B
Total Debt	1.24B	1.41B	1.44B	1.34B	1.38B	1.65B
Total Liabilities	2.67B	2.70B	2.36B	2.40B	2.16B	2.63B
Stockholders Equity	3.53B	3.79B	3.30B	3.15B	2.94B	3.24B
Cash Flow
Free Cash Flow	0.00	383.71M	-429.50M	879.67M	-460.04M	486.59M
Operating Cash Flow	0.00	434.51M	-283.41M	1.22B	-182.17M	996.62M
Investing Cash Flow	0.00	16.48M	-178.02M	-433.68M	-164.65M	-525.36M
Financing Cash Flow	0.00	-119.53M	11.15M	-104.54M	-335.00M	4.71M

Capital Asset Planning, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3965, the sentiment is Positive. The current price of 830 is above the 20-day moving average (MA) of 816.10, above the 50-day MA of 795.90, and above the 200-day MA of 787.28, indicating a bullish trend. The MACD of 11.71 indicates Negative momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3965.

Capital Asset Planning, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3816	71 Outperform	¥4.37B	12.01	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.29B	7.33	―	2.28%	―	―
3965	69 Neutral	¥4.78B	11.89	―	2.20%	18.47%	155.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4167	58 Neutral	¥2.37B	-94.35	―	―	-6.33%	-129.18%
4829	50 Neutral	¥4.39B	132.28	―	2.78%	-4.90%	-85.89%
3967	44 Neutral	¥4.27B	-5.50	―	―	15.39%	-562.65%