rakumo Inc. (4060) AI Stock Analysis

• Market Cap: ¥5.88B
• Dividend Yield: 0.59%
• Average Volume (3M): 11.77K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.66
• 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: 11,050
• 30 Day Avg. Volume: 11,770
• PEG Ratio: 3.62
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥925.00
• Price Target Upside: -8.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,093.00 ▲(8.11%Upside)

The overall stock score of 77 reflects rakumo Inc.'s strong financial performance, supported by solid revenue growth and profitability, and a fair valuation. While the technical indicators show bullish momentum, the overbought RSI suggests caution. The absence of earnings call and corporate event data limits additional context.

rakumo Inc. Business Overview & Revenue Model

Company Description

rakumo Inc. (4060) is a technology company specializing in providing cloud-based solutions and services. The company operates in the information technology sector, focusing on developing and offering software products that enhance business productivity and workflow efficiency. Its core products include a suite of software solutions designed for corporate use, primarily targeting small to medium-sized enterprises.

How the Company Makes Money

rakumo Inc. generates revenue through the sale of its software products and services. The company primarily earns money by licensing its cloud-based solutions to businesses, which often involves subscription-based pricing models. These software solutions include tools for collaboration, project management, and other business operations, which are offered as part of a software-as-a-service (SaaS) model. Additionally, rakumo Inc. may engage in partnerships with other companies to expand its product offerings and reach a wider customer base, although specific partnerships are not detailed. The recurring nature of subscription fees provides a stable revenue stream for the company.

rakumo Inc. Financial Statement Overview

Summary

rakumo Inc. exhibits strong financial performance, characterized by significant revenue growth, improved profit margins, and robust cash flow generation. The balance sheet is healthy with low leverage, indicating financial stability. Continued focus on growth and efficient cost management is essential.

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: 1011.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1011 is above the 20-day moving average (MA) of 963.90, above the 50-day MA of 894.50, and above the 200-day MA of 864.37, indicating a bullish trend. The MACD of 44.63 indicates Negative momentum. The RSI at 73.41 is Negative, neither overbought nor oversold. The STOCH value of 61.53 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	¥5.76B	12.21		1.02%	59.60%	353.05%
4060	77 Outperform	¥5.88B	22.69		0.59%	10.58%	29.96%
3841	77 Outperform	¥5.17B	24.04		3.00%	14.90%	-1.40%
4492	73 Outperform	¥5.26B	12.39		3.95%	13.66%	0.93%
4829	66 Neutral	¥4.59B	211.41		2.52%	-0.26%	-75.64%
Sector *	50 Neutral	C$3.05B	2.41	-63.57%	2.27%	4.49%	-6.15%
3936	47 Neutral	¥7.51B	―		―	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.