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rakumo Inc. (JP:4060)
:4060
Japanese Market
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rakumo Inc. (4060) AI Stock Analysis

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JP:4060

rakumo Inc.

(4060)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥1,144.00
▲(14.17% Upside)
Action:Downgraded
Date:05/16/26
Overall score reflects strong underlying financial performance (consistent growth, strong margins, and solid cash flow quality) offset by increased leverage and a softer net margin. Technicals are the main near-term drag, with the stock trading below major moving averages and weak momentum signals. Valuation is moderate, with a mid-range P/E and a modest dividend yield.
Positive Factors
SaaS recurring model
A subscription model tied to Google Workspace creates durable recurring revenue and predictable cash flows. Deep integration with a dominant collaboration suite increases customer stickiness and expansion potential inside accounts, supporting long-term revenue visibility and efficient sales motions.
Negative Factors
Rising leverage
A meaningful step-up in leverage reduces balance-sheet flexibility and raises interest and refinancing risk. For a growth-oriented SaaS firm, higher debt can constrain investment choices, amplify earnings volatility if growth slows, and pressure credit metrics during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
SaaS recurring model
A subscription model tied to Google Workspace creates durable recurring revenue and predictable cash flows. Deep integration with a dominant collaboration suite increases customer stickiness and expansion potential inside accounts, supporting long-term revenue visibility and efficient sales motions.
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 its cloud software as subscriptions (SaaS). Revenue is generated through recurring usage fees paid by corporate customers for access to its Google Workspace–integrated products, typically priced and contract...

rakumo Inc. Financial Statement Overview

Summary
Strong revenue growth through 2020–2025 with acceleration in 2025 (+18.18%) and healthy software-like profitability (gross margin ~70%, operating margin ~23%, EBITDA margin ~32%). Cash generation is solid with FCF closely tracking earnings, but net margin softened in 2025 (~14.9% vs. ~17.5% in 2024) and leverage increased meaningfully (debt-to-equity ~0.64 vs. ~0.31), reducing balance-sheet flexibility.
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
1103.16
Negative
100DMA
1081.85
Negative
200DMA
1103.33
Negative
Market Momentum
MACD
-8.28
Positive
RSI
36.52
Neutral
STOCH
20.04
Neutral
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 1138.10, below the 50-day MA of 1103.16, and below the 200-day MA of 1103.33, indicating a bearish trend. The MACD of -8.28 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 20.04 is Neutral, 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
67
Neutral
¥9.51B5.520.70%12.98%80.52%
66
Neutral
¥6.17B22.680.57%32.11%-0.12%
66
Neutral
¥2.55B3.52-13.29%
62
Neutral
¥4.45B25.266.84%-67.48%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥6.08B20.7518.87%
58
Neutral
¥11.81B23.5912.68%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4060
rakumo Inc.
1,058.00
223.58
26.79%
JP:3976
Shanon, Inc.
430.00
53.00
14.06%
JP:4168
Yappli, Inc.
732.00
-14.02
-1.88%
JP:4397
TeamSpirit, Inc.
368.00
-56.00
-13.21%
JP:4448
Chatwork Co.Ltd.
277.00
-178.00
-39.12%
JP:5033
Nulab Inc.
687.00
-161.00
-18.99%
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: May 16, 2026