CNS Co.,Ltd. (4076) AI Stock Analysis

• Market Cap: ¥4.94B
• Dividend Yield: 4.41%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.47
• Revenue Growth: 8.71%
• EPS Growth: 23.46%
• Country: JP
• Employees: 255
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 53.27
• Shares Outstanding: 2,906,000
• 10 Day Avg. Volume: 7,010
• 30 Day Avg. Volume: 4,813
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,928.00 ▲(13.68% Upside)

CNS Co., Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and a robust balance sheet. The technical analysis supports a bullish outlook with the stock trading above key moving averages. Additionally, the valuation metrics suggest the stock is undervalued, with an attractive dividend yield. These factors contribute to a favorable overall stock score.

CNS Co.,Ltd. Business Overview & Revenue Model

Company Description

CNS Co., Ltd. (4076) is a technology-focused company primarily engaged in the development and provision of innovative solutions in the telecommunications and IT sectors. The company specializes in software development, IT consulting, and system integration services, catering to a diverse clientele that spans various industries. CNS Co., Ltd. aims to enhance operational efficiency and digital transformation for its customers through cutting-edge technology and comprehensive support services.

How the Company Makes Money

CNS Co., Ltd. generates revenue through multiple channels, including software licensing, consulting fees, and system integration projects. A significant portion of its income comes from long-term contracts with corporate clients who require customized IT solutions and ongoing support. Additionally, the company leverages partnerships with major technology providers to enhance its service offerings, which can lead to joint ventures and revenue-sharing opportunities. The growth in demand for digital transformation services in various sectors, including finance and healthcare, also contributes to its revenue streams, as organizations increasingly seek to modernize their IT infrastructure.

CNS Co.,Ltd. Financial Statement Overview

Summary

CNS Co., Ltd. exhibits a solid financial position with consistent revenue growth and a strong balance sheet characterized by low leverage. While profitability margins have slightly declined, the company maintains a healthy return on equity. Cash flow generation is robust, though the recent decline in operating cash flow coverage warrants attention.

Income Statement

CNS Co., Ltd. has demonstrated consistent revenue growth over the past few years, with a notable increase of 2.05% in the latest period. The gross profit margin remains stable around 24%, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.10%, suggesting increased expenses or lower pricing power. The EBIT and EBITDA margins have also seen a decline, which could impact profitability if not addressed.

Balance Sheet

The company's balance sheet is strong, with a very low debt-to-equity ratio of 0.00198, indicating minimal leverage and financial risk. The return on equity is healthy at 10.79%, showing effective use of shareholder funds. The equity ratio stands at a solid 75.28%, reflecting a strong capital structure and financial stability.

Cash Flow

CNS Co., Ltd. has experienced significant free cash flow growth, although the latest period shows an 'Infinity' growth rate due to a low base effect. The operating cash flow to net income ratio is moderate at 0.51, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is high at 0.95, indicating strong cash conversion, but the decline in operating cash flow coverage ratio over the years is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.86B	7.00B	6.66B	5.99B	5.42B	4.84B
Gross Profit	1.66B	1.71B	1.64B	1.51B	1.32B	1.15B
EBITDA	591.76M	628.72M	671.18M	619.28M	620.28M	503.30M
Net Income	411.14M	427.35M	461.33M	433.10M	409.49M	336.71M
Balance Sheet
Total Assets	4.95B	5.26B	4.93B	4.55B	4.15B	3.14B
Cash, Cash Equivalents and Short-Term Investments	3.35B	3.67B	3.57B	3.16B	3.01B	1.88B
Total Debt	8.54M	7.83M	10.65M	13.40M	5.65M	7.01M
Total Liabilities	1.11B	1.30B	1.26B	1.21B	1.11B	1.14B
Stockholders Equity	3.83B	3.96B	3.67B	3.34B	3.04B	1.99B
Cash Flow
Free Cash Flow	0.00	420.14M	553.82M	293.94M	442.91M	125.44M
Operating Cash Flow	0.00	443.71M	564.57M	352.80M	461.45M	183.12M
Investing Cash Flow	0.00	-268.63M	-80.65M	-125.97M	-23.01M	135.29M
Financing Cash Flow	0.00	-142.37M	-133.52M	-132.92M	633.75M	-64.02M

CNS Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1696.00
• 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:4076, the sentiment is Positive. The current price of 1696 is above the 20-day moving average (MA) of 1643.30, above the 50-day MA of 1562.32, and above the 200-day MA of 1470.27, indicating a bullish trend. The MACD of 39.83 indicates Negative momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 36.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4076.

CNS Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4076	80 Outperform	¥4.94B	9.35	―	4.41%	8.71%	23.46%
3920	79 Outperform	¥5.56B	13.63	―	1.19%	7.38%	515.19%
3839	76 Outperform	¥5.08B	21.18	―	1.61%	7.78%	1.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6942	57 Neutral	¥5.57B	52.11	―	―	-5.20%	133.74%
3997	46 Neutral	¥10.30B	―	―	0.68%	15.05%	89.12%
2375	44 Neutral	¥4.76B	―	―	0.43%	-11.66%	-137.22%