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rakumo Inc. (JP:4060)
:4060
Japanese Market

rakumo Inc. (4060) AI Stock Analysis

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JP:4060

rakumo Inc.

(4060)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,147.00
▲(14.47% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by strong financial performance (accelerating growth, strong margins, and solid cash generation). Technicals also support the rating with an uptrend and positive momentum. Valuation is a modest headwind due to a ~25x P/E and low dividend yield, while increased leverage and softer net margin temper the financial strength.
Positive Factors
Revenue Growth Acceleration
Consistent, accelerating revenue through 2025 demonstrates expanding adoption of rakumo's Google Workspace–integrated SaaS. Durable subscription flows and service upsells support predictable recurring revenue, scalable unit economics, and a foundation for continued investment in product and sales over the medium term.
Negative Factors
Rising Leverage
A marked increase in leverage reduces balance-sheet flexibility and raises interest and refinancing risk. Higher debt-to-equity constrains capacity for opportunistic investment or buffer during downturns and increases sensitivity of free cash flow to adverse operating or macro shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Acceleration
Consistent, accelerating revenue through 2025 demonstrates expanding adoption of rakumo's Google Workspace–integrated SaaS. Durable subscription flows and service upsells support predictable recurring revenue, scalable unit economics, and a foundation for continued investment in product and sales over the medium term.
Read all positive factors

rakumo Inc. (4060) vs. iShares MSCI Japan ETF (EWJ)

rakumo Inc. Business Overview & Revenue Model

Company Description
rakumo Inc. develops and sells cloud-based extension tools in Tokyo, Japan. Its products include rakumo for Google Workspace, a cloud-based extension tool for attendance management, reimbursement solution, workflow approvals, in-house portal, sche...
How the Company Makes Money
rakumo primarily makes money by selling cloud software on a recurring subscription basis (SaaS). Customers (generally businesses and organizations) pay ongoing usage fees—typically priced per user/seat and billed monthly or annually—to use rakumo’...

rakumo Inc. Financial Statement Overview

Summary
Strong and accelerating revenue growth through 2025 with software-like profitability (high gross margin ~70% and solid operating margin ~23%) and improving operating/free cash flow. Score is moderated by the sharp rise in leverage in 2025 (higher debt-to-equity) and a dip in net margin, which increases financial risk despite healthy operations.
Income Statement
84
Very Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.55B1.83B1.44B1.30B1.10B963.78M
Gross Profit1.06B1.29B951.21M831.79M697.03M599.50M
EBITDA528.95M579.38M487.16M378.29M275.08M273.81M
Net Income290.59M272.31M253.03M196.43M184.55M188.75M
Balance Sheet
Total Assets3.31B4.17B3.04B2.67B1.78B1.52B
Cash, Cash Equivalents and Short-Term Investments2.54B1.82B2.28B1.89B1.44B1.29B
Total Debt500.00M1.22B500.00M510.00M50.00M64.98M
Total Liabilities1.56B2.28B1.40B1.31B625.84M571.03M
Stockholders Equity1.74B1.89B1.63B1.37B1.15B947.95M
Cash Flow
Free Cash Flow0.00507.96M459.03M346.51M273.02M282.58M
Operating Cash Flow0.00510.98M463.42M351.73M275.03M286.07M
Investing Cash Flow0.00-1.58B-70.78M-357.87M-92.27M-53.42M
Financing Cash Flow0.00606.49M-3.70M455.61M-47.29M11.22M

rakumo Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1002.00
Price Trends
50DMA
1080.64
Negative
100DMA
1059.35
Negative
200DMA
1067.09
Negative
Market Momentum
MACD
-17.89
Positive
RSI
38.99
Neutral
STOCH
10.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4060, the sentiment is Negative. The current price of 1002 is below the 20-day moving average (MA) of 1085.65, below the 50-day MA of 1080.64, and below the 200-day MA of 1067.09, indicating a bearish trend. The MACD of -17.89 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 10.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4060.

rakumo Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥5.97B21.400.57%21.03%32.29%
71
Outperform
¥4.79B21.997.60%19.13%
67
Neutral
¥9.00B11.670.70%9.78%-23.98%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥6.64B27.1511.32%
58
Neutral
¥11.16B23.5914.63%-760.87%
52
Neutral
¥2.24B-91.39-14.55%-8.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4060
rakumo Inc.
1,037.00
219.42
26.84%
JP:3976
Shanon, Inc.
378.00
-24.00
-5.97%
JP:4168
Yappli, Inc.
693.00
-69.75
-9.14%
JP:4397
TeamSpirit, Inc.
411.00
-28.00
-6.38%
JP:4448
Chatwork Co.Ltd.
274.00
-219.00
-44.42%
JP:5033
Nulab Inc.
732.00
-358.00
-32.84%

rakumo Inc. Corporate Events

Rakumo lifts dividend as cloud software growth drives strong 2025 results and upbeat 2026 outlook
Feb 13, 2026
Rakumo Inc. reported strong results for the year ended Dec. 31, 2025, with net sales rising 26.8% to ¥1.83 billion and operating profit up 11.6% to ¥428 million, while profit attributable to owners of parent increased 7.6% to ¥272 m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026