Uluru Co., Ltd. (3979) AI Stock Analysis

• Market Cap: ¥11.72B
• Dividend Yield: 2.21%
• Average Volume (3M): 37.28K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.40
• Revenue Growth: 12.77%
• EPS Growth: -1.50%
• Country: JP
• Employees: 140
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 6.96
• Shares Outstanding: 27,701,600
• 10 Day Avg. Volume: 27,770
• 30 Day Avg. Volume: 37,283
• PEG Ratio: -0.30
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 22.63
• 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: ¥1,763.00
• Price Target Upside: 316.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,763.00 ▲(316.78% Upside)

Uluru Co., Ltd. demonstrates strong financial performance with robust revenue growth and efficient cash flow management, contributing significantly to the overall score. Technical analysis indicates a positive trend, though bearish momentum is a concern. The stock's valuation is reasonable, supporting a solid investment case.

Uluru Co., Ltd. Business Overview & Revenue Model

Company Description

Uluru Co., Ltd. (3979) is a Japanese company specializing in providing information technology services, focusing on developing software solutions and platforms that enhance business operations. The company operates primarily in sectors such as IT services, business process outsourcing, and digital transformation, offering products and services designed to improve efficiency and productivity for corporate clients.

How the Company Makes Money

Uluru Co., Ltd. generates revenue through the sale of its proprietary software solutions and IT services. The company earns money by licensing its software platforms to businesses, providing ongoing maintenance and support services, and offering customization and integration services for its products. Key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings, one-time licensing fees, and contracts for consulting and implementation services. Additionally, Uluru Co., Ltd. may form strategic partnerships with other technology firms to enhance its product offerings and reach a broader client base, further contributing to its earnings.

Uluru Co., Ltd. Financial Statement Overview

Summary

Uluru Co., Ltd. exhibits a robust financial profile with strong revenue growth and efficient cash flow management. The company maintains a stable balance sheet with low leverage, although challenges in profitability and declining return on equity highlight areas for improvement.

Income Statement

Uluru Co., Ltd. has consistently demonstrated strong revenue growth, with an impressive revenue growth rate of 12.85% from 2024 to 2025. The gross profit margin stands at 69.78%, indicating efficient cost management. However, a decline in EBIT and net profit margins suggests potential challenges in operational efficiency and profitability.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 48.51% and a low debt-to-equity ratio of 0.05, reflecting strong financial stability. However, the return on equity has decreased to 15.13%, indicating a need for better utilization of equity capital to generate profits.

Cash Flow

Uluru Co., Ltd. has achieved positive free cash flow of 509.35 million, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.42, indicating effective cash operations. However, the significant reduction in free cash flow growth rate from the previous year signals potential challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.91B	6.70B	5.94B	4.86B	4.03B	3.22B
Gross Profit	4.87B	4.68B	4.25B	3.49B	2.84B	2.24B
EBITDA	990.74M	937.14M	1.35B	103.33M	-174.09M	199.50M
Net Income	601.99M	458.07M	720.11M	-45.51M	-64.40M	42.20M
Balance Sheet
Total Assets	6.50B	6.24B	6.05B	4.62B	4.34B	4.20B
Cash, Cash Equivalents and Short-Term Investments	3.69B	3.41B	3.59B	2.40B	2.81B	3.29B
Total Debt	148.33M	158.33M	198.33M	38.88M	80.69M	123.01M
Total Liabilities	3.35B	3.21B	3.24B	2.53B	2.21B	1.99B
Stockholders Equity	3.15B	3.03B	2.81B	2.09B	2.13B	2.21B
Cash Flow
Free Cash Flow	389.00M	509.35M	1.10B	41.92M	-105.49M	643.99M
Operating Cash Flow	532.00M	651.91M	1.47B	328.86M	-30.70M	701.83M
Investing Cash Flow	-420.00M	-553.08M	-441.29M	-695.05M	-416.77M	-196.43M
Financing Cash Flow	-154.00M	-283.60M	160.11M	-42.85M	-39.20M	-78.59M

Uluru Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 423.00
• 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:3979, the sentiment is Neutral. The current price of 423 is below the 20-day moving average (MA) of 430.30, above the 50-day MA of 408.69, and above the 200-day MA of 394.67, indicating a neutral trend. The MACD of 7.25 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3979.

Uluru Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	76 Outperform	¥7.85B	10.67	10.58%	3.24%	9.60%	2.11%
3918	74 Outperform	¥11.72B	10.33	9.28%	3.70%	-7.36%	35.89%
3979	73 Outperform	¥11.72B	19.89	―	2.21%	12.77%	-1.50%
3940	72 Outperform	¥6.30B	15.98	―	2.41%	8.71%	4.70%
4398	57 Neutral	¥5.62B	39.73	6.77%	1.20%	-5.47%	-68.77%
4056	51 Neutral	¥12.50B	246.40	-9.92%	―	4.41%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Uluru Co., Ltd. Corporate Events

Uluru Co., Ltd. Reports Fiscal Year 2025 Financial Results with Increased Sales but Lower Profits

Uluru Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 12.9% increase in net sales to 6,701 million yen. However, there was a significant decline in profits, with EBITDA dropping by 33.9% and operating profit decreasing by 42.4%. The company also announced a reduction in dividends per share from 35 yen to 10 yen, reflecting a lower payout ratio. Despite these challenges, Uluru forecasts a 15.1% increase in net sales for the next fiscal year, indicating a positive outlook for future growth.