rakumo Inc. (4060) AI Stock Analysis

• Market Cap: ¥5.07B
• Dividend Yield: 0.69%
• Average Volume (3M): 3.45K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.67
• Revenue Growth: 10.58%
• EPS Growth: 29.96%
• Country: JP
• Employees: 96
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 12.22
• Shares Outstanding: 5,817,500
• 10 Day Avg. Volume: 3,650
• 30 Day Avg. Volume: 3,450
• PEG Ratio: -6.96
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.55
• 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: 71 Outperform
• Price Target: ¥925.00 ▲(6.81%Upside)

rakumo Inc.'s stock is driven by strong financial fundamentals with impressive revenue growth and profitability. While the technical analysis presents mixed signals, the valuation remains reasonable. The absence of recent earnings call insights and notable corporate events limits a more comprehensive evaluation. Continued focus on growth and efficient cash management will be crucial for future performance.

rakumo Inc. Business Overview & Revenue Model

Company Description

rakumo Inc. (4060) is a technology company that specializes in providing cloud-based business solutions. The company primarily focuses on developing software applications that enhance productivity and collaboration for enterprises. Its flagship products include tools for workflow automation, group scheduling, and document management, which are designed to integrate seamlessly with popular cloud platforms like Google Workspace.

How the Company Makes Money

rakumo Inc. generates revenue through a subscription-based model, where businesses pay recurring fees for access to its software solutions. The company offers tiered pricing plans based on the number of users and the level of features required. Additionally, rakumo may earn income from professional services such as customization, integration support, and training. Strategic partnerships with cloud service providers and enterprise clients also play a significant role in expanding its market reach and customer base.

rakumo Inc. Financial Statement Overview

Summary

rakumo Inc. demonstrates strong financial performance marked by robust revenue growth, improving profit margins, and effective cash flow management. The balance sheet is solid with low debt levels and a strong equity base, though continued vigilance on liabilities and asset utilization is necessary.

Income Statement

rakumo Inc. has demonstrated strong revenue growth over the years, with a significant increase in total revenue from 2019 to 2024. The Gross Profit Margin and Net Profit Margin have consistently improved, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, further supporting the company's profitability. However, maintaining momentum in revenue and profit growth is essential for sustaining high performance.

Balance Sheet

The balance sheet showcases a healthy financial position with a strong equity base and low debt levels, as evidenced by a favorable Debt-to-Equity Ratio. The Equity Ratio is high, reflecting financial stability. Return on Equity (ROE) has grown, driven by increasing net income. Nevertheless, vigilance on managing liabilities and optimizing asset utilization remains crucial.

Cash Flow

rakumo Inc. has shown a consistent increase in Free Cash Flow, indicative of improving operational efficiency and cash generation capacity. The Operating Cash Flow to Net Income Ratio signifies strong cash generation relative to profits. The Free Cash Flow to Net Income Ratio further underscores effective cash management. Sustaining cash flow growth and reinvestment capabilities will be vital for future expansion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.30B	1.10B	963.78M	822.42M
Gross Profit	951.21M	831.79M	697.03M	599.50M	480.68M
EBITDA	487.16M	373.35M	266.51M	240.27M	157.10M
Net Income	253.03M	196.43M	184.55M	188.75M	125.22M
Balance Sheet
Total Assets	3.04B	2.67B	1.78B	1.52B	1.25B
Cash, Cash Equivalents and Short-Term Investments	2.28B	1.89B	1.44B	1.29B	1.04B
Total Debt	500.00M	510.00M	50.00M	64.98M	84.99M
Total Liabilities	1.40B	1.31B	624.11M	569.14M	533.89M
Stockholders Equity	1.63B	1.37B	1.15B	947.95M	717.15M
Cash Flow
Free Cash Flow	459.39M	293.39M	226.79M	232.65M	206.40M
Operating Cash Flow	463.42M	351.73M	275.03M	286.07M	258.90M
Investing Cash Flow	-70.78M	-357.87M	-92.27M	-53.42M	-52.50M
Financing Cash Flow	-3.70M	455.61M	-47.29M	11.22M	501.12M

rakumo Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 866.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4060, the sentiment is Positive. The current price of 866 is above the 20-day moving average (MA) of 857.10, above the 50-day MA of 848.08, and above the 200-day MA of 858.36, indicating a bullish trend. The MACD of 9.31 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4060.

rakumo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	78 Outperform	¥4.92B	11.41		1.19%	59.60%	353.05%
3841	77 Outperform	¥5.16B	24.01		3.00%	14.90%	-1.40%
4060	71 Outperform	¥5.07B	18.90		0.69%	10.58%	29.96%
4492	68 Neutral	¥5.08B	11.95		4.51%	13.66%	0.93%
4829	66 Neutral	¥4.51B	91.42		372.05%	-0.26%	-75.64%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
3936	50 Neutral	¥7.83B	―		―	25.06%	-60.67%

rakumo Inc. Corporate Events

rakumo Inc. Reports Strong Q1 2025 Financial Performance

rakumo Inc. reported a significant increase in its financial performance for the first quarter of 2025, with net sales rising by 13.8% and profits attributable to owners increasing by 25.8% compared to the previous year. The company also forecasts continued growth for the full year, projecting a 11.7% increase in net sales and a 2.5% rise in profits attributable to owners, indicating a positive outlook for stakeholders.