PKSHA Technology (3993) AI Stock Analysis

• Market Cap: ¥100.94B
• Dividend Yield: N/A
• Average Volume (3M): 520.22K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 1.19
• Revenue Growth: 28.88%
• EPS Growth: 27.52%
• Country: JP
• Employees: 683
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.67
• Shares Outstanding: 31,948,000
• 10 Day Avg. Volume: 572,290
• 30 Day Avg. Volume: 520,223
• PEG Ratio: 1.62
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 5.50
• P/FCF Ratio: 24.19
• 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: 68 Neutral
• Price Target: ¥3,864.00 ▲(20.37% Upside)

PKSHA Technology's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid cash flow management. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and operational stability over time.

Balance Sheet Health

A strong balance sheet with low leverage ensures financial stability and resilience against economic fluctuations.

Negative Factors

Stock Valuation Concerns

High valuation metrics may limit stock price appreciation potential and attract scrutiny, impacting investor sentiment over the medium term.

Technical Analysis Signals

Trading below key moving averages could indicate potential bearish trends, affecting investor confidence and stock performance.

Lack of Dividend Yield

Without dividends, the stock may be less appealing to income-focused investors, potentially reducing demand and price support.

PKSHA Technology Business Overview & Revenue Model

Company Description

PKSHA Technology Inc. develops algorithmic solutions in Japan. Its products include BEDORE Conversation, a chat type dialogue engine to enhance customer experience and support; CELLOR, a digital marketing tool for companies operating stores; CELLOR for Chat, a solution that supports chat services on Instagram; Sisei Carte, a system that allow users to perform AI posture analysis and electronic medical record management with a tablet or a smart phone; OKBIZ, a cloud based support solution for creating, publishing, and evaluating frequently asked questions (FAQ) and answers; and IBISE BY PKSHA, a cloud based FAQ system. The company also provides PKSHA automation, conversion, security, SCM, and CRM solutions. PKSHA Technology Inc. was incorporated in 2012 and is based in Tokyo, Japan.

How the Company Makes Money

PKSHA Technology generates revenue primarily through the sale of its software products and solutions, which are often provided as a subscription service or through licensing agreements. Key revenue streams include direct sales to enterprise clients, ongoing service contracts for system integration and support, and partnerships with other technology firms that enhance its product offerings. The company also engages in research and development collaborations, which can lead to additional funding and joint ventures, further contributing to its earnings.

PKSHA Technology Financial Statement Overview

Summary

PKSHA Technology exhibits a strong financial position with consistent revenue growth, improving profitability, and a solid balance sheet. The company's effective cash flow management further enhances its financial health, positioning it well for future growth and stability.

Income Statement

PKSHA Technology has demonstrated strong revenue growth with a 15.55% increase in the latest year, supported by improving margins. The gross profit margin is solid, and the net profit margin has improved significantly over the years, indicating enhanced profitability. The EBIT and EBITDA margins are robust, reflecting efficient operational management.

Balance Sheet

The company's balance sheet shows a healthy equity position with a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity has been improving, suggesting effective use of shareholder funds. The equity ratio is strong, highlighting a stable financial structure.

Cash Flow

PKSHA Technology's cash flow performance is commendable, with a positive free cash flow growth rate and strong operating cash flow to net income ratio. The company efficiently converts its earnings into cash, supporting its financial flexibility and investment capacity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.98B	21.77B	16.89B	13.91B	11.51B	8.73B
Gross Profit	10.06B	10.84B	8.53B	6.92B	5.74B	3.59B
EBITDA	7.12B	7.30B	5.08B	2.39B	3.06B	1.41B
Net Income	3.11B	2.68B	2.10B	760.45M	836.61M	139.43M
Balance Sheet
Total Assets	45.72B	54.37B	41.70B	36.89B	35.80B	35.28B
Cash, Cash Equivalents and Short-Term Investments	16.29B	19.36B	15.27B	15.51B	12.50B	12.80B
Total Debt	4.63B	10.88B	4.72B	3.05B	3.73B	4.43B
Total Liabilities	10.94B	19.67B	9.36B	8.07B	6.54B	6.67B
Stockholders Equity	34.59B	34.48B	32.25B	28.69B	28.85B	28.36B
Cash Flow
Free Cash Flow	0.00	4.95B	2.19B	2.84B	2.09B	-309.96M
Operating Cash Flow	0.00	5.18B	3.01B	3.08B	2.70B	168.23M
Investing Cash Flow	0.00	-6.20B	-3.08B	1.72B	-2.32B	-13.48B
Financing Cash Flow	0.00	4.89B	37.86M	-1.09B	-681.45M	1.98B

PKSHA Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3210.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3993, the sentiment is Negative. The current price of 3210 is below the 20-day moving average (MA) of 3373.00, below the 50-day MA of 3690.60, and below the 200-day MA of 3410.83, indicating a bearish trend. The MACD of -121.68 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3993.

PKSHA Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥17.63B	25.58	―	0.17%	31.39%	13.12%
3993	68 Neutral	¥100.94B	37.13	8.26%	―	28.88%	27.52%
4180	66 Neutral	¥110.60B	32.85	―	0.19%	25.88%	80.30%
4475	66 Neutral	¥41.50B	30.12	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	52 Neutral	¥116.58B	72.87	―	0.14%	36.42%	28.23%

PKSHA Technology Corporate Events

PKSHA Technology Completes Acquisition of Circulation Co. Ltd.

PKSHA Technology Inc. has successfully completed a tender offer to acquire all common shares and stock acquisition rights of Circulation Co. Ltd., making it a consolidated subsidiary. This strategic acquisition, set to finalize on August 26, 2025, is expected to strengthen PKSHA’s market position by integrating Circulation’s pro-sharing services, which address corporate management issues through professional human resource solutions.

The most recent analyst rating on (JP:3993) stock is a Hold with a Yen3687.00 price target. To see the full list of analyst forecasts on PKSHA Technology stock, see the JP:3993 Stock Forecast page.

PKSHA Technology Reports Robust Financial Growth for Nine Months Ending September 2025

PKSHA Technology Inc. reported a notable increase in its financial performance for the nine months ending September 30, 2025, with sales growing by 25.1% and profit before tax increasing by 57.4%. This financial growth underscores the company’s robust operations and potential positive impact on stakeholders, highlighting its strong positioning within the industry.