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

• Market Cap: ¥4.58B
• Dividend Yield: 2.2%
• Average Volume (3M): 21.01K
• Price to Earnings (P/E): 11.4
• 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): 33.75
• 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: ¥942.00 ▲(13.49% Upside)

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

Free Cash Flow Strength

A high free cash flow to net income ratio indicates the business converts profits into cash effectively, supporting durable capital allocation: funding client service investments, paying dividends, reducing leverage, or financing acquisitions without depending on external funding over the next 2–6 months.

Low Leverage / Strong Balance Sheet

Manageable leverage increases financial flexibility and resilience, enabling the firm to withstand market swings, invest in product development or partnerships, and pursue strategic opportunities with lower refinancing risk—structurally important for multi-quarter stability.

Recurring AUM Fee Revenue Model

A fee-based AUM model produces recurring, predictable revenue that scales with asset growth and fosters client retention; coupled with partnerships that broaden product access, this structurally supports steady revenue and aligns incentives with clients over the medium term.

Negative Factors

Low Net Profit Margin

A modest net margin constrains the firm's ability to absorb cost pressure, invest in higher-value services, or boost dividends. Over several quarters, persistent low margins could limit reinvestment in client offerings and slow margin expansion needed for durable earnings improvement.

Cash Flow Volatility Risk

Volatile cash generation undermines planning and may force reactive capital decisions. For an advisory business reliant on market-linked fees, sustained cashflow variability can hinder hiring, technology upgrades, and consistent distributions to shareholders across business cycles.

Moderate Return on Equity

Moderate ROE implies the firm isn't fully leveraging its equity base to drive higher returns. Without improvements in operational efficiency or higher-margin offerings, shareholder returns may lag, and capital deployment choices will need to focus on lifting ROE over the medium term.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3965, the sentiment is Negative. The current price of 830 is below the 20-day moving average (MA) of 835.70, above the 50-day MA of 810.24, and above the 200-day MA of 794.64, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.36B	12.00	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.57B	7.35	―	2.28%	―	―
3965	69 Neutral	¥4.58B	11.36	―	2.20%	18.47%	155.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4167	58 Neutral	¥2.48B	-98.77	―	―	-6.33%	-129.18%
4829	50 Neutral	¥4.51B	135.76	―	2.78%	-4.90%	-85.89%
3967	44 Neutral	¥3.98B	-4.79	―	―	15.39%	-562.65%