Ray Corporation (4317) AI Stock Analysis

• Market Cap: ¥6.49B
• Dividend Yield: 3.31%
• Average Volume (3M): 12.07K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.72
• Revenue Growth: -6.82%
• EPS Growth: -4.67%
• Country: JP
• Employees: 407
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 54.39
• Shares Outstanding: 14,328,976
• 10 Day Avg. Volume: 7,230
• 30 Day Avg. Volume: 12,066
• PEG Ratio: 0.13
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.00
• 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: 72 Outperform
• Price Target: ¥508.00 ▲(12.14%Upside)

Ray Corporation's strong financial performance is the most significant contributor to its overall score, showcasing solid profitability and financial stability. The stock's valuation is attractive due to a low P/E ratio and a good dividend yield. However, the technical analysis presents a mixed picture with no strong momentum, which tempers the overall optimism.

Ray Corporation Business Overview & Revenue Model

Company Description

Ray Corporation (4317) is a Japanese company primarily engaged in the information technology sector. It specializes in providing a wide range of IT services, including system integration, cloud solutions, and IT infrastructure development. The company caters to various industries, offering tailored solutions to enhance operational efficiency and drive digital transformation.

How the Company Makes Money

Ray Corporation generates revenue through multiple streams, primarily focusing on IT services and solutions. Its key revenue sources include fees from system integration projects, subscription and usage fees for cloud services, and consulting fees for IT infrastructure development. The company also benefits from strategic partnerships with technology providers, enabling it to offer comprehensive solutions to its clients. By leveraging its expertise in digital transformation, Ray Corporation helps businesses optimize their IT operations, which in turn contributes to its earnings.

Ray Corporation Financial Statement Overview

Summary

Ray Corporation presents a strong financial profile with solid profitability, a robust equity position, and efficient cash flow management. The company maintains stable margins and demonstrates prudent leverage management, which minimizes financial risk. While revenue growth has faced challenges, the overall financial stability and operational efficiency position the company well for future opportunities.

Income Statement

The company exhibits strong profitability with a consistent gross profit margin averaging around 34% over recent years. Despite fluctuations in revenue growth, with a notable decline in the latest year, the EBIT and EBITDA margins remain solid at 9.2% and 13.4% respectively in TTM, indicating efficient operational management. However, the net profit margin shows some variability, reflecting potential areas for cost improvement.

Balance Sheet

A robust equity position is evident with a consistently high equity ratio of approximately 74%, indicating financial stability. The low debt-to-equity ratio of 0.11 in TTM suggests prudent leverage management. Return on equity has been improving, reaching 10.97%, reflecting effective utilization of equity capital. Overall, the balance sheet portrays a strong financial footing with minimal risks from debt.

Cash Flow

The company's cash flow is solid, with a strong operating cash flow to net income ratio of 2.26, indicating efficient cash generation relative to earnings. Free cash flow growth has been substantial, though it saw a dip in the latest year. The free cash flow to net income ratio of 1.13 suggests healthy cash flow coverage. These factors reflect good liquidity and cash management practices.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.45B	10.46B	11.22B	12.45B	11.05B	7.05B
Gross Profit	3.41B	3.55B	3.79B	4.15B	3.65B	1.57B
EBITDA	1.21B	1.57B	1.68B	1.69B	1.38B	95.43M
Net Income	632.52M	745.58M	818.49M	715.54M	419.47M	-367.98M
Balance Sheet
Total Assets	8.82B	9.12B	9.40B	9.58B	9.79B	8.65B
Cash, Cash Equivalents and Short-Term Investments	2.29B	2.87B	2.83B	3.14B	3.61B	3.02B
Total Debt	819.00M	769.43M	1.02B	1.29B	2.05B	2.18B
Total Liabilities	2.29B	2.33B	2.85B	3.54B	4.32B	3.52B
Stockholders Equity	6.53B	6.80B	6.55B	6.05B	5.47B	5.13B
Cash Flow
Free Cash Flow	0.00	844.33M	384.25M	543.27M	939.10M	751.27M
Operating Cash Flow	0.00	1.69B	1.05B	721.29M	1.03B	849.86M
Investing Cash Flow	0.00	-836.28M	-668.97M	-170.41M	-49.13M	-149.48M
Financing Cash Flow	0.00	-813.04M	-686.68M	-1.02B	-388.49M	263.21M

Ray Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 453.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4317, the sentiment is Positive. The current price of 453 is below the 20-day moving average (MA) of 454.10, below the 50-day MA of 459.40, and above the 200-day MA of 417.67, indicating a neutral trend. The MACD of -1.86 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 24.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4317.

Ray Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4308	76 Outperform	¥9.23B	16.75		3.77%	4.74%	84.68%
4347	74 Outperform	¥13.50B	40.20		2.12%	9.55%	-49.89%
4317	72 Outperform	¥6.49B	8.38		3.31%	-6.82%	-4.67%
4712	68 Neutral	¥13.43B	5.43		1.41%	17.70%	68.00%
4772	68 Neutral	¥12.86B	20.50		0.90%	-4.12%	115.46%
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
3686	47 Neutral	¥6.14B	―		―	16.03%	-27.98%