PKSHA Technology (3993) AI Stock Analysis

• Market Cap: ¥108.96B
• Dividend Yield: N/A
• Average Volume (3M): 556.03K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 1.20
• Revenue Growth: 22.58%
• EPS Growth: 67.32%
• Country: JP
• Employees: 683
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 23.71
• Shares Outstanding: 31,948,000
• 10 Day Avg. Volume: 557,350
• 30 Day Avg. Volume: 556,033
• PEG Ratio: 0.14
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.46
• 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

• Rating: 74 Outperform
• Price Target: ¥3,758.00 ▲(8.46%Upside)

PKSHA Technology's strong financial performance and bullish technical indicators are significant strengths. However, the high P/E ratio indicates potential overvaluation, and the lack of dividend yield may deter income-focused investors. The technical indicators suggest caution due to potential overbought conditions.

PKSHA Technology Business Overview & Revenue Model

Company Description

PKSHA Technology, Inc. is a Japanese company specializing in the development of artificial intelligence (AI) solutions. The company focuses on creating algorithmic software to enhance various business operations, leveraging machine learning, natural language processing, and deep learning technologies. PKSHA Technology caters to a wide range of sectors including finance, healthcare, and customer service, offering products that improve efficiency and automate processes.

How the Company Makes Money

PKSHA Technology makes money primarily through the development and sale of AI-driven software solutions and services. The company generates revenue by licensing its proprietary AI algorithms and platforms to businesses across various industries. Additionally, PKSHA Technology offers customized AI solutions and consulting services to help companies integrate AI into their operations, which also contributes to its revenue streams. Strategic partnerships and collaborations with other technology firms and corporations further enhance its market reach and revenue potential.

PKSHA Technology Financial Statement Overview

Summary

PKSHA Technology shows strong financial performance with excellent revenue growth, robust profit margins, and a stable balance sheet. However, there is room for improvement in cash flow generation and liability management.

Income Statement

PKSHA Technology demonstrates strong revenue growth, with TTM revenue rising significantly compared to previous years. The gross profit margin is robust, indicating efficient cost management. Net profit margin has improved, showcasing enhanced profitability, while both EBIT and EBITDA margins are strong, reflecting effective operational management.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio indicating conservative leverage. Return on equity is healthy, supported by strong net income. The equity ratio is high, suggesting financial stability and a strong asset base funded by equity. However, there is room for improvement in managing liabilities more effectively.

Cash Flow

PKSHA Technology's cash flow statement shows a positive trend in free cash flow, indicating good cash generation. The operating cash flow to net income ratio is strong, suggesting effective cash management. However, the recent decline in operating cash flow compared to the previous year slightly offsets these strengths.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	17.89B	16.89B	13.91B	11.51B	8.73B	7.39B
Gross Profit	9.01B	8.53B	6.92B	5.74B	3.59B	2.84B
EBITDA	6.53B	5.08B	2.39B	3.06B	1.41B	3.30B
Net Income	2.95B	2.10B	760.45M	836.61M	139.43M	1.75B
Balance Sheet
Total Assets	43.79B	41.70B	36.89B	35.80B	35.28B	31.90B
Cash, Cash Equivalents and Short-Term Investments	14.66B	15.27B	15.51B	12.50B	12.80B	24.14B
Total Debt	4.56B	4.72B	3.05B	3.73B	4.43B	2.15B
Total Liabilities	9.87B	9.36B	8.07B	6.54B	6.67B	4.47B
Stockholders Equity	33.87B	32.25B	28.69B	28.85B	28.36B	27.44B
Cash Flow
Free Cash Flow	1.37B	2.19B	2.38B	2.09B	-309.96M	171.60M
Operating Cash Flow	1.56B	3.01B	2.39B	2.70B	168.23M	661.31M
Investing Cash Flow	-120.60M	-3.08B	1.72B	-2.32B	-13.48B	1.97B
Financing Cash Flow	-383.83M	37.86M	-1.09B	-681.45M	1.98B	-1.11B

PKSHA Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3465.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3993, the sentiment is Positive. The current price of 3465 is above the 20-day moving average (MA) of 3422.00, above the 50-day MA of 3141.86, and above the 200-day MA of 3417.50, indicating a bullish trend. The MACD of 91.03 indicates Positive momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 80.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3993.

PKSHA Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	80 Outperform	¥17.95B	32.69		0.17%	24.15%	-7.80%
4180	75 Outperform	¥164.06B	56.28		0.12%	27.60%	165.28%
3993	74 Outperform	¥108.96B	38.03	8.67%	―	22.58%	67.32%
3778	66 Neutral	¥178.71B	59.42		0.09%	43.92%	302.88%
4475	66 Neutral	¥61.49B	50.79		0.16%	25.42%	36.27%
Sector *	63 Neutral	£571.22M	24.42	-6.00%	2.36%	3.52%	-29.29%

PKSHA Technology Corporate Events

PKSHA Technology Reports Strong Financial Growth for 2025

PKSHA Technology Inc. reported a substantial increase in its financial results for the nine months ending September 30, 2025, with sales rising by 24% and profit before tax increasing by 48.6%. This strong performance highlights the company’s robust market positioning and potential positive implications for stakeholders.