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

• Market Cap: ¥4.66B
• Dividend Yield: 2.2%
• Average Volume (3M): 21.01K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.28
• Revenue Growth: 18.47%
• EPS Growth: 155.94%
• Country: JP
• Employees: 360
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 20.11
• Shares Outstanding: 5,759,057
• 10 Day Avg. Volume: 6,930
• 30 Day Avg. Volume: 21,010
• PEG Ratio: 0.08
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 13.15
• 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: 70 Outperform
• Price Target: ¥891.00 ▲(7.35% Upside)
• Action: Upgraded Date: 03/24/26
• Date: Action: Upgraded 03/24/26

The score is driven primarily by improving financial performance in FY2025, tempered by a volatile cash-flow track record and only modest margins. Valuation is supportive with a low P/E and meaningful dividend yield, while technicals are currently weak-to-neutral with the stock below key moving averages.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth indicates expanding product adoption and market penetration in the application software segment. Durable top-line expansion supports reinvestment in R&D and sales, enabling scaling economics and longer-term competitive positioning over the next 2–6 months and beyond.

Low Leverage / Strong Balance Sheet

A low debt-to-equity ratio and a strong equity base provide financial flexibility for funding growth, absorbing shocks, or pursuing opportunistic M&A without stressing liquidity. This durable capital structure reduces refinancing risk and supports consistent investment in product and go-to-market priorities.

Cash Generation

The company’s turnaround to positive operating and free cash flow with high FCF conversion demonstrates ability to fund operations and returns internally. Reliable cash generation underpins sustainable dividends, capex, and strategic investments, improving long-term financial resilience.

Negative Factors

Low Net Margin

A modest net margin limits the company’s profitability cushion against cost inflation or pricing pressure. With only ~4% net margin, the firm must sustain revenue growth or improve cost structure to materially lift returns to shareholders and absorb cyclical headwinds over the medium term.

Cash Flow Volatility

Volatile cash flows reduce predictability for capital allocation, making it harder to commit to sustained dividends, R&D, or expansion without precautionary buffers. This variability can force short-term financing or cutbacks in adverse periods, undermining strategic plans.

Moderate Return on Equity

A moderate ROE suggests the company is not extracting maximum value from shareholder equity compared with higher-efficiency peers. Without improvements in margins, asset turnover, or capital allocation, ROE may constrain long-term shareholder returns and make capital less productive.

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.

Capital Asset Planning, Inc. Financial Statement Overview

Summary

FY2025 shows a clear recovery with improving revenue growth and meaningfully higher profitability (net margin ~4.1% vs ~1.9% prior year) alongside better returns (ROE ~10.6%). However, margins remain modest for the industry and earnings/cash-flow history is volatile, with multiple years of negative operating/free cash flow.

Income Statement

Revenue has resumed a steady upward trend, accelerating to ~4.7% growth in FY2025 after a flat FY2024 and strong FY2023. Profitability has improved meaningfully: net margin rose to ~4.1% in FY2025 from ~1.9% in FY2024, and the company has recovered from the FY2022 loss year. Gross margin also expanded to ~21.9% in FY2025 from ~14.6% in FY2022. Key watchouts are that margins remain modest for application software (EBITDA margin ~8.7% in FY2025) and earnings have shown volatility across the cycle (loss in FY2022, sharp rebound thereafter).

Balance Sheet

Leverage looks manageable and improving: debt-to-equity declined to ~0.37 in FY2025 from ~0.51 in FY2021, and equity has grown alongside assets. Returns also strengthened, with return on equity rising to ~10.6% in FY2025 versus ~4.8% in FY2024 and negative in FY2022. The main weakness is the business has carried a consistent debt load (~¥1.3–¥1.6B) through periods of uneven profitability, which can pressure flexibility if operating performance softens again.

Cash Flow

Cash generation is positive in FY2025, with operating cash flow (~¥435M) and free cash flow (~¥384M) both back in the black, and free cash flow covering a large portion of net income (~0.88x). However, cash flow has been volatile year-to-year: operating and free cash flow were negative in FY2024 and FY2022 (and also negative in FY2020), which reduces confidence in consistency. Overall, the latest year is encouraging, but the track record suggests working-capital or investment swings can materially impact cash conversion.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	9.69B	8.18B	8.05B	6.75B	6.63B
Gross Profit	2.12B	1.73B	1.66B	983.87M	1.27B
EBITDA	846.59M	613.21M	761.85M	53.22M	387.13M
Net Income	401.82M	156.75M	221.62M	-248.38M	69.57M
Balance Sheet
Total Assets	6.63B	5.77B	5.61B	5.15B	5.87B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.44B	1.89B	1.21B	1.89B
Total Debt	1.41B	1.44B	1.34B	1.38B	1.65B
Total Liabilities	2.70B	2.48B	2.47B	2.21B	2.63B
Stockholders Equity	3.79B	3.30B	3.15B	2.94B	3.24B
Cash Flow
Free Cash Flow	383.71M	-429.50M	879.67M	-460.04M	486.59M
Operating Cash Flow	434.51M	-283.41M	1.22B	-182.17M	996.62M
Investing Cash Flow	16.48M	-178.02M	-433.68M	-164.65M	-525.36M
Financing Cash Flow	-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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 851.10, below the 50-day MA of 836.36, and above the 200-day MA of 808.42, indicating a neutral trend. The MACD of 3.82 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, 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
4389	74 Outperform	¥9.31B	13.21	―	1.48%	17.83%	34.25%
3965	70 Outperform	¥4.66B	10.32	―	2.20%	18.47%	155.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4375	59 Neutral	¥40.07B	29.34	―	―	29.56%	86.66%
4446	51 Neutral	¥11.48B	96.68	―	―	14.10%	-53.62%
5035	50 Neutral	¥2.92B	-14.10	―	0.72%	4.40%	-336.50%
7320	44 Neutral	¥18.10B	8.93	―	0.98%	18.21%	-179.11%