PKSHA Technology (3993) AI Stock Analysis

• Market Cap: €106.13B
• Dividend Yield: N/A
• Average Volume (3M): 512.42K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.21
• Revenue Growth: 22.58%
• EPS Growth: 67.32%
• Country: JP
• Employees: 683
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 23.71
• Shares Outstanding: 31,948,000
• 10 Day Avg. Volume: 401,600
• 30 Day Avg. Volume: 512,420
• PEG Ratio: -8.67
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 75.23
• 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: €3,758.40
• Price Target Upside: 11.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,763.00 ▲(11.50%Upside)

PKSHA Technology's strong financial performance, particularly in revenue growth and profitability, significantly contributes to the overall score. The technical analysis presents a mixed view, with potential short-term weakness but some upward momentum. The valuation reflects growth expectations but lacks a dividend component, which slightly moderates the overall score.

PKSHA Technology Business Overview & Revenue Model

Company Description

PKSHA Technology (3993) is a Japanese technology company specializing in the development and implementation of artificial intelligence (AI) and machine learning solutions. The company focuses on creating software that enhances natural language processing, computer vision, and machine learning capabilities for various industries. PKSHA Technology aims to integrate its AI solutions into diverse sectors, such as customer service, automotive, and manufacturing, to improve efficiency and innovation.

How the Company Makes Money

PKSHA Technology generates revenue through the sale of its AI software solutions and services. The company's primary revenue streams include licensing fees for its proprietary software platforms and customized AI solutions tailored to meet specific client needs. Additionally, PKSHA Technology engages in collaborative projects and partnerships with businesses across various industries, which not only provide a source of direct revenue but also facilitate the adoption of their AI technologies. The company may also earn income from consulting services, where they leverage their expertise in AI to assist organizations in optimizing their operations and implementing advanced technological solutions.

PKSHA Technology Financial Statement Overview

Summary

PKSHA Technology shows robust financial performance with strong revenue growth and profitability metrics. The balance sheet is solid with low leverage, and cash flow management is effective, although there's 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	16.89B	13.91B	11.51B	8.73B	7.39B
Gross Profit	8.53B	6.92B	5.74B	3.59B	2.84B
EBITDA	5.08B	2.39B	3.06B	1.41B	3.30B
Net Income	2.10B	760.45M	836.61M	139.43M	1.75B
Balance Sheet
Total Assets	41.70B	36.89B	35.80B	35.28B	31.90B
Cash, Cash Equivalents and Short-Term Investments	15.27B	15.51B	12.50B	12.80B	24.14B
Total Debt	4.72B	3.05B	3.73B	4.43B	2.15B
Total Liabilities	9.36B	8.07B	6.54B	6.67B	4.47B
Stockholders Equity	32.25B	28.69B	28.85B	28.36B	27.44B
Cash Flow
Free Cash Flow	2.19B	2.38B	2.09B	-309.96M	171.60M
Operating Cash Flow	3.01B	2.39B	2.70B	168.23M	661.31M
Investing Cash Flow	-3.08B	1.72B	-2.32B	-13.48B	1.97B
Financing Cash Flow	37.86M	-1.09B	-681.45M	1.98B	-1.11B

PKSHA Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3375.00
• 50DMA: Positive
• 100DMA: Positive
• 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 3375 is below the 20-day moving average (MA) of 3443.50, above the 50-day MA of 3321.46, and below the 200-day MA of 3439.91, indicating a neutral trend. The MACD of 11.65 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.29 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
3993	73 Outperform	€106.13B	37.04	8.67%	―	22.58%	67.32%
4493	67 Neutral	¥16.56B	30.16		0.18%	24.15%	-7.80%
4475	66 Neutral	¥52.81B	43.62		0.18%	25.42%	36.27%
3778	60 Neutral	¥146.32B	48.65		0.20%	43.92%	302.88%
4180	60 Neutral	¥156.81B	53.79		0.13%	27.60%	165.28%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	6.39%	9.34%	-42.23%

PKSHA Technology Corporate Events

PKSHA Technology Announces Tender Offer for Circulation Co. Ltd.

PKSHA Technology Inc. has announced its decision to acquire all common shares and stock acquisition rights of Circulation Co. Ltd. through a tender offer. This strategic move, supported by borrowed funds, aims to strengthen PKSHA’s market position by integrating Circulation’s pro-sharing services, which address corporate management issues through external professional resources.

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.