rakumo Inc. (4060) AI Stock Analysis

• Market Cap: ¥5.86B
• Dividend Yield: 0.57%
• Average Volume (3M): 35.65K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.51
• Revenue Growth: 21.03%
• EPS Growth: 32.29%
• Country: JP
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.34
• Shares Outstanding: 5,826,000
• 10 Day Avg. Volume: 28,050
• 30 Day Avg. Volume: 35,650
• PEG Ratio: 0.73
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 11.45
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,130.00 ▲(12.77% Upside)

rakumo Inc. demonstrates strong financial performance with robust revenue and profitability growth, which is the most significant factor in its stock score. However, technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is moderate, reflecting a fair market price. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and product adoption, which supports long-term business sustainability and competitive positioning.

Cash Flow Generation

Robust cash flow generation enhances the company's ability to reinvest in growth opportunities and maintain financial flexibility, crucial for long-term success.

Profit Margin Improvement

Improving profit margins reflect efficient cost management, enhancing profitability and providing a buffer against market fluctuations.

Negative Factors

Liability Management

Effective liability management is essential to prevent potential financial strain, ensuring long-term stability and operational efficiency.

Revenue and Profit Growth Momentum

Sustaining growth momentum is critical; any slowdown could impact investor confidence and the company's competitive edge.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the attractiveness of the stock in certain market conditions.

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, schedule management, and contact information of Google Workspace; and rakumo for Salesforce, a cloud extension tool that includes rakumo Social Scheduler, which analyses behavior of daily activities, as well as rakumo Sync that synchronizes between salesforce and Google Calendar schedule in real time. The company is also involved in the sale of information and communication equipment and software; and provision of support services. rakumo Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan. rakumo Inc. is a subsidiary of Netyear Group Corporation.

How the Company Makes Money

rakumo Inc. generates revenue through a subscription-based model, offering tiered pricing plans for its software solutions. This model allows businesses to pay a recurring fee for access to its applications, which are regularly updated with new features. Key revenue streams include monthly and annual subscription fees from its diverse customer base, which ranges from small businesses to large enterprises. Additionally, the company may benefit from strategic partnerships with other tech firms to integrate its services, thus expanding its market reach and enhancing its product offerings. Furthermore, rakumo Inc. may also earn revenue through professional services such as training and support, which assist clients in maximizing the use of its tools.

rakumo Inc. Financial Statement Overview

Summary

rakumo Inc. demonstrates strong financial performance with significant revenue growth, improved profit margins, and robust cash flow generation. The balance sheet is healthy with low debt and strong equity, indicating financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.44B	1.30B	1.10B	963.78M	822.42M
Gross Profit	1.06B	951.21M	831.79M	697.03M	599.50M	480.68M
EBITDA	528.22M	487.16M	373.35M	266.51M	240.27M	157.10M
Net Income	290.59M	253.03M	196.43M	184.55M	188.75M	125.22M
Balance Sheet
Total Assets	3.31B	3.04B	2.67B	1.78B	1.52B	1.25B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.28B	1.89B	1.44B	1.29B	1.04B
Total Debt	500.00M	500.00M	510.00M	50.00M	64.98M	84.99M
Total Liabilities	1.56B	1.40B	1.31B	624.11M	569.14M	533.89M
Stockholders Equity	1.74B	1.63B	1.37B	1.15B	947.95M	717.15M
Cash Flow
Free Cash Flow	0.00	459.39M	293.39M	226.79M	232.65M	206.40M
Operating Cash Flow	0.00	463.42M	351.73M	275.03M	286.07M	258.90M
Investing Cash Flow	0.00	-70.78M	-357.87M	-92.27M	-53.42M	-52.50M
Financing Cash Flow	0.00	-3.70M	455.61M	-47.29M	11.22M	501.12M

rakumo Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1002.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 1002 is below the 20-day moving average (MA) of 1004.68, below the 50-day MA of 1040.35, and above the 200-day MA of 1001.64, indicating a neutral trend. The MACD of -9.45 indicates Negative momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 29.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4060.

rakumo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	80 Outperform	¥6.18B	11.70	―	1.35%	39.66%	57.28%
4492	72 Outperform	¥5.63B	17.39	―	4.06%	15.79%	-33.67%
4060	64 Neutral	¥5.86B	20.71	―	0.57%	21.03%	32.29%
3841	62 Neutral	¥5.14B	22.79	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4829	50 Neutral	¥4.39B	132.28	―	2.78%	-4.90%	-85.89%
3936	48 Neutral	¥5.48B	67.36	―	―	33.73%	―