Revenue Growth TrendSustained revenue growth (+22.33% YoY) indicates the company's products/services are gaining market traction and customer adoption. Over a multimonth horizon this top-line momentum provides runway for scaling, supports targeted investment in growth, and can fund margin recovery if costs are controlled.

Operating Cash QualityAn operating cash flow to net income ratio of 1.84 shows operations convert earnings into cash at a healthy rate even with reported net losses. Durable cash conversion reduces reliance on financing, enables working capital funding and organic expansion, and cushions the business while profitability is addressed.

Manageable LeverageA debt-to-equity ratio around 0.66 with an equity ratio near 44% implies a moderate capital structure that preserves financial flexibility. This manageable leverage supports continued investment in product development and customer acquisition while limiting immediate solvency risk through the coming months.

Bears Say

Negative Free Cash FlowNegative free cash flow of -13M JPY, driven by high capital spending, indicates the business is consuming cash rather than generating it. Persistent FCF deficits can deplete liquidity, restrict reinvestment and strategic options, and may force dependence on external financing if not turned positive.

Persistent LossesNegative net margin (-3.29%) and EBIT (-1.20%) show the company remains loss-making despite revenue gains. Structural profitability weakness risks eroding retained earnings and competitiveness over time unless management improves pricing, cost structure, or shifts toward higher-margin offerings.

Declining Equity BaseA year-over-year decline in shareholders' equity points to retained losses or capital erosion, weakening the firm's capital cushion. Reduced equity increases financial vulnerability, can raise borrowing costs or constrain access to new capital, and limits strategic flexibility for longer-term initiatives.

3997 FAQ

What was TRADE WORKS Co.,Ltd’s price range in the past 12 months?

TRADE WORKS Co.,Ltd lowest stock price was ¥105.00 and its highest was ¥650.00 in the past 12 months.

What is TRADE WORKS Co.,Ltd’s market cap?

TRADE WORKS Co.,Ltd’s market cap is ¥21.67B.

When is TRADE WORKS Co.,Ltd’s upcoming earnings report date?

TRADE WORKS Co.,Ltd’s upcoming earnings report date is Apr 30, 2026 which is in 71 days.

How were TRADE WORKS Co.,Ltd’s earnings last quarter?

TRADE WORKS Co.,Ltd released its earnings results on Feb 12, 2026. The company reported ¥0.09 earnings per share for the quarter, beating the consensus estimate of N/A by ¥0.09.

Is TRADE WORKS Co.,Ltd overvalued?

According to Wall Street analysts TRADE WORKS Co.,Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does TRADE WORKS Co.,Ltd pay dividends?

TRADE WORKS Co.,Ltd pays a Annually dividend of ¥2 which represents an annual dividend yield of 0.49%. See more information on TRADE WORKS Co.,Ltd dividends here

What is TRADE WORKS Co.,Ltd’s EPS estimate?

TRADE WORKS Co.,Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does TRADE WORKS Co.,Ltd have?

TRADE WORKS Co.,Ltd has 39,042,000 shares outstanding.

What happened to TRADE WORKS Co.,Ltd’s price movement after its last earnings report?

TRADE WORKS Co.,Ltd reported an EPS of ¥0.09 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.21%.

Which hedge fund is a major shareholder of TRADE WORKS Co.,Ltd?

Currently, no hedge funds are holding shares in JP:3997

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

TRADE WORKS Co.,Ltd

TRADE WORKS Co., Ltd. provides solutions for front system exchange connection system and unfair transaction monitoring system for securities, forex margin trading (FX), and commodity futures industry. It offers TradeAgent, an Internet stock exchange system that supports various trading tools for online trading of various financial products in the securities, FX, and commodity futures fields; Dealing Athena, a solution that supports transactions and revenue management by persons in charge of self-sales department, as well as provides functions for administrators who manage transactions of each person in charge; Mars, an exchange trading terminal solution that supports securities trading; and MarsWeb, an exchange and information provider connection gateway. The company also provides MTS, an unfair trade monitoring system; and security diagnostic services. TRADE WORKS Co., Ltd. was founded in 1999 and is based in Tokyo, Japan.