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

• Market Cap: ¥4.93B
• Dividend Yield: 2.2%
• Average Volume (3M): 21.01K
• Price to Earnings (P/E): 9.5
• 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: 69 Neutral
• Price Target: ¥937.00 ▲(12.89% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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 Trend

Reported revenue growth above 20% indicates expanding fee-bearing AUM and client traction. For an advisory firm, sustained top-line expansion increases recurring management fees, enabling scale economies, stronger cash generation and reinvestment capacity to support medium-term strategic initiatives.

Strong Balance Sheet

Low leverage and a 57.1% equity ratio provide financial flexibility to fund growth, weather market stress, and pursue partnerships without overreliance on external debt. A conservative balance sheet reduces refinancing risk and supports durable operations across economic cycles.

Cash Generation Ability

Consistent positive operating and free cash flow with high FCF-to-net-income conversion shows efficient cash conversion. Reliable cash generation supports dividends, capex for product/service enhancements and reduces the need for external financing, strengthening long-term strategic execution.

Negative Factors

Modest Net Profit Margin

A net margin around 4.15% is relatively thin for a services firm, limiting internal funding for growth and leaving limited cushions against fee pressure or cost inflation. Persistent low margins constrain the firm's ability to convert revenue into durable shareholder returns without efficiency gains or higher-fee offerings.

Cash Flow Volatility

Noted historical volatility in cash flows reduces predictability of distributions and reinvestment plans. For a business reliant on recurring management fees, uneven inflows can necessitate short-term financing or delay strategic investments, impairing long-term capital allocation and planning reliability.

Moderate Return on Equity

A moderate ROE implies the company is not fully converting its equity base into proportional profits. This suggests limited operational leverage or pricing power; improving margin structure or scaling AUM is needed to enhance returns and create more durable shareholder value over time.

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. exhibits strong revenue growth and improving profitability, supported by a solid balance sheet with low leverage. While cash flow has improved, historical volatility remains a concern. Overall, the company is on a positive trajectory but should focus on enhancing profit margins and maintaining stable cash flows to ensure long-term financial health.

Income Statement

Capital Asset Planning, Inc. has demonstrated consistent revenue growth over the years, with a recent growth rate of 4.68%. The company maintains a healthy gross profit margin of 21.9% and a net profit margin of 4.15%, indicating profitability. The EBIT and EBITDA margins have improved, reflecting operational efficiency. However, the net profit margin is relatively modest, suggesting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.37, indicating a strong balance sheet with manageable leverage. The equity ratio stands at 57.1%, showcasing a solid equity base. However, the return on equity is moderate, suggesting that there is potential for better utilization of equity to generate profits.

Cash Flow

The company has shown a significant turnaround in cash flow, with positive operating and free cash flows in the latest period. The free cash flow to net income ratio is strong at 0.88, indicating efficient cash generation relative to net income. However, the historical volatility in cash flows poses a risk, and consistent positive cash flow generation is crucial for future stability.

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	5.66B	5.55B	5.10B	5.87B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.41B	1.89B	1.21B	1.89B
Total Debt	1.41B	1.44B	1.34B	1.38B	1.65B
Total Liabilities	2.70B	2.36B	2.40B	2.16B	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: 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 825.30, above the 50-day MA of 828.72, and above the 200-day MA of 801.33, indicating a bullish trend. The MACD of 10.13 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 84.03 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
4389	80 Outperform	¥9.45B	14.92	―	1.48%	17.83%	34.25%
3965	69 Neutral	¥4.93B	9.54	―	2.20%	18.47%	155.94%
4446	69 Neutral	¥17.49B	206.15	―	―	14.10%	-53.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4375	57 Neutral	¥47.37B	107.87	―	―	29.56%	86.66%
5035	52 Neutral	¥3.00B	-14.80	―	0.72%	4.40%	-336.50%
7320	44 Neutral	¥19.23B	-37.06	―	0.98%	18.21%	-179.11%