PKSHA Technology (3993) AI Stock Analysis

• Market Cap: €105.34B
• Dividend Yield: N/A
• Average Volume (3M): 520.22K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 1.18
• 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: <0.01
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 6.21
• P/FCF Ratio: 47.96
• 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): 105.1
• Revenue Forecast (FY): €33.16B

• Rating: 73 Outperform
• Price Target: ¥4,259.00 ▲(27.71% Upside)

PKSHA Technology's strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, the high P/E ratio and overbought technical signals suggest caution. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Profitability

A robust gross profit margin reflects effective cost control and pricing power, contributing to sustainable profitability and competitive advantage.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and prudent management, providing resilience against economic fluctuations.

Negative Factors

Operating Cash Flow Decline

Declining operating cash flow can strain liquidity and limit reinvestment capacity, potentially impacting long-term growth and flexibility.

Liability Management

Ineffective liability management can increase financial risk and reduce operational agility, affecting long-term financial health.

Earnings Call Data Absence

Lack of earnings call data limits transparency and investor insight, potentially affecting market confidence and decision-making.

PKSHA Technology Business Overview & Revenue Model

Company Description

PKSHA Technology (3993) is a Japanese company specializing in artificial intelligence and machine learning solutions. Operating primarily in the technology sector, PKSHA develops advanced algorithms and software that enhance various applications, including natural language processing, image recognition, and data analysis. The company's innovative products cater to diverse industries such as finance, healthcare, and retail, providing businesses with tools to optimize operations and improve decision-making processes.

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 demonstrates strong revenue growth and profitability metrics, with a robust gross profit margin and improved net profit margin. The balance sheet is solid with low leverage and high equity ratio, although there is room for improvement in liability management. Cash flow is positive, but recent declines in operating cash flow slightly offset these strengths.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.84B	16.89B	13.91B	11.51B	8.73B	7.39B
Gross Profit	9.29B	8.53B	6.92B	5.74B	3.59B	2.84B
EBITDA	6.52B	5.08B	2.39B	3.06B	1.41B	3.30B
Net Income	2.83B	2.10B	760.45M	836.61M	139.43M	1.75B
Balance Sheet
Total Assets	45.97B	41.70B	36.89B	35.80B	35.28B	31.90B
Cash, Cash Equivalents and Short-Term Investments	16.52B	15.27B	15.51B	12.50B	12.80B	24.14B
Total Debt	5.35B	4.72B	3.05B	3.73B	4.43B	2.33B
Total Liabilities	11.59B	9.36B	8.07B	6.54B	6.67B	4.47B
Stockholders Equity	34.20B	32.25B	28.69B	28.85B	28.36B	27.44B
Cash Flow
Free Cash Flow	0.00	2.19B	2.84B	2.09B	-309.96M	171.60M
Operating Cash Flow	0.00	3.01B	3.08B	2.70B	168.23M	661.31M
Investing Cash Flow	0.00	-3.08B	1.72B	-2.32B	-13.48B	1.97B
Financing Cash Flow	0.00	37.86M	-1.09B	-681.45M	1.98B	-1.11B

PKSHA Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3335.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3335 is below the 20-day moving average (MA) of 3777.50, below the 50-day MA of 3814.50, and below the 200-day MA of 3455.63, indicating a bearish trend. The MACD of -156.28 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.17 is Neutral, 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	¥18.29B	26.54	―	0.16%	31.39%	13.12%
3993	73 Outperform	€105.34B	38.75	8.26%	―	28.88%	27.52%
4475	66 Neutral	¥46.90B	39.88	―	0.38%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4180	58 Neutral	¥128.74B	41.43	―	0.19%	25.88%	80.30%
3778	52 Neutral	¥133.33B	83.34	―	0.12%	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.