User Local, Inc. (JP:3984)
:3984
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User Local, Inc.
(3984)
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Rating:74Outperform
Price Target:
¥1,597.00
▼(-16.91% Downside)
Action:ReiteratedDate:03/24/26
The score is primarily driven by outstanding financial performance (strong profitability, cash generation, and a debt-free balance sheet). This is partially offset by weak technicals (below key moving averages with negative MACD), while valuation is supportive with a reasonable P/E and moderate dividend yield.
Positive Factors
High profitability and margins
Sustained very high gross and operating margins indicate a scalable, software-driven business with strong pricing power and low incremental cost. This margin profile supports durable cash generation, funds reinvestment in product development, and provides resilience to cyclical revenue swings over months.
Negative Factors
Decelerating revenue growth
A visible slowdown in topline growth suggests market maturation or tougher competitive dynamics. If revenue growth continues to decelerate, it can compress future operating leverage, limit margin expansion opportunities, and make long-term revenue and profitability targets harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained very high gross and operating margins indicate a scalable, software-driven business with strong pricing power and low incremental cost. This margin profile supports durable cash generation, funds reinvestment in product development, and provides resilience to cyclical revenue swings over months.
Read all positive factors
User Local, Inc. (3984) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥23.56B
Dividend Yield0.73%
Average Volume (3M)63.91K
Price to Earnings (P/E)16.1
Beta (1Y)0.94
Revenue Growth17.86%
EPS Growth21.52%
CountryJP
Employees102
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding16,245,700
10 Day Avg. Volume50,620
30 Day Avg. Volume63,906
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)3.50
Price to Sales (P/S)6.65
P/FCF Ratio19.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
User Local, Inc. Business Overview & Revenue Model
Company Description
User Local, Inc. develops various analysis tools for website creators and marketers. The company engages in the research and development of big data analysis systems. It also provides Web marketing support tools under the User Insight name; social...
User Local, Inc. Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.58B | 3.91B | 3.29B | 2.68B | 2.09B |
| Gross Profit | 4.12B | 3.57B | 3.05B | 2.48B | 1.89B |
| EBITDA | 2.01B | 1.76B | 1.38B | 1.10B | 911.25M |
| Net Income | 1.43B | 1.19B | 954.35M | 721.89M | 615.47M |
Balance Sheet | |||||
| Total Assets | 9.97B | 8.84B | 7.21B | 6.24B | 5.28B |
| Cash, Cash Equivalents and Short-Term Investments | 8.55B | 7.68B | 6.37B | 5.32B | 4.70B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.27B | 1.11B | 871.51M | 700.50M | 571.26M |
| Stockholders Equity | 8.70B | 7.72B | 6.34B | 5.54B | 4.71B |
Cash Flow | |||||
| Free Cash Flow | 1.55B | 1.53B | 1.29B | 869.30M | 676.74M |
| Operating Cash Flow | 1.81B | 1.55B | 1.31B | 911.55M | 696.73M |
| Investing Cash Flow | -260.31M | -198.80M | -28.03M | -120.50M | -100.09M |
| Financing Cash Flow | -676.70M | -36.68M | -238.22M | -167.26M | 64.99M |
User Local, Inc. Technical Analysis
Neutral
1922.00
Price Trends
1592.18
Negative
1767.83
Negative
1857.67
Negative
Market Momentum
-30.97
Negative
48.32
Neutral
84.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3984, the sentiment is Neutral. The current price of 1922 is above the 20-day moving average (MA) of 1474.85, above the 50-day MA of 1592.18, and above the 200-day MA of 1857.67, indicating a neutral trend. The MACD of -30.97 indicates Negative momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 84.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3984.
User Local, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥23.56B | 16.06 | ― | 0.73% | 17.86% | 21.52% | |
74 Outperform | ¥29.81B | 35.99 | ― | ― | 29.61% | 93.16% | |
72 Outperform | ¥30.71B | 13.94 | ― | 3.40% | 12.64% | 30.73% | |
68 Neutral | ¥28.69B | -28.94 | ― | 2.51% | 8.88% | 2.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥32.00B | 29.01 | ― | ― | -10.49% | ― |
* Technology Sector Average
JP:3984
User Local, Inc.
1,458.00
-73.51
-4.80%
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9.30%
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ABEJA,Inc.
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43.68%
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Forval Corporation
1,112.00
-137.90
-11.03%
User Local, Inc. Corporate Events
User Local Reports Progress on Ongoing Share Buyback Program
Apr 2, 2026
User Local, Inc. has disclosed the latest status of its ongoing share repurchase program, confirming it bought 77,200 shares of its common stock on the Tokyo Stock Exchange between March 1 and March 31, 2026, for a total of ¥117,787,200. Thes...
User Local Begins Share Buyback Under ¥1 Billion Treasury Stock Program
Mar 3, 2026
User Local, Inc. has repurchased 43,200 shares of its common stock on the Tokyo Stock Exchange between February 16 and February 28, 2026, at a total cost of 68,523,000 yen. The buyback is part of a broader board-approved program allowing purchases...
User Local Launches ¥1 Billion Share Buyback to Boost Capital Efficiency
Feb 13, 2026
User Local, Inc. has resolved at its board meeting on February 13, 2026 to implement a share buyback under Article 459, Paragraph 1 of the Companies Act of Japan, authorizing the repurchase of up to 500,000 shares, or about 3.12% of its outstandin...
User Local Delivers Strong First-Half Earnings and Confirms Fiscal 2026 Outlook
Feb 12, 2026
User Local reported strong non-consolidated results for the six months to December 31, 2025, with net sales rising 17.7% year-on-year to ¥2.58 billion and profit climbing 32.1% to ¥914 million, driven by improved operating margins. Earni...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.