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

• Market Cap: ¥4.84B
• 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: 69 Neutral
• Price Target: ¥919.00 ▲(10.72% 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

Consistent revenue growth

Sustained top-line growth indicates ongoing product demand and market traction, enabling predictable scale benefits. Over 2-6 months this supports reinvestment in R&D and sales, helps absorb fixed costs, and underpins longer-term profitability expansion if maintained.

Strong balance sheet / low leverage

Low leverage and a solid equity base provide financial flexibility to fund organic growth, weather downturns, and pursue strategic initiatives without heavy refinancing. This structural strength reduces bankruptcy risk and preserves investment optionality over months.

Positive cash generation

High free cash flow relative to earnings shows efficient conversion of profits into cash, supporting dividends, capex, and debt reduction. Reliable cash generation is a durable foundation for funding growth and smoothing financing needs over the medium term.

Negative Factors

Modest net profit margin

A single-digit net margin leaves limited buffer against cost inflation or pricing pressure, constraining internal funding for expansion and making earnings volatile relative to revenue swings. Structural margin improvement is needed to boost durable returns.

Historical cash flow volatility

Past swings in operating and free cash flow undermine predictability for capital allocation, dividends, and debt servicing. Unless cash flow stability is sustained, the company may face harder choices on capex or financing during adverse periods.

Moderate return on equity

A middling ROE suggests capital is not being deployed at top-tier efficiency versus peers. Over time this limits shareholder value creation and implies management has room to improve asset allocation, pricing, or operational leverage.

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

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	5.77B	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	80 Outperform	¥9.49B	13.21	―	1.48%	17.83%	34.25%
3965	69 Neutral	¥4.84B	10.32	―	2.20%	18.47%	155.94%
4446	69 Neutral	¥12.42B	96.68	―	―	14.10%	-53.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4375	57 Neutral	¥42.97B	29.34	―	―	29.56%	86.66%
5035	52 Neutral	¥2.98B	-14.10	―	0.72%	4.40%	-336.50%
7320	44 Neutral	¥18.80B	8.93	―	0.98%	18.21%	-179.11%