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Ray Corporation (JP:4317)
:4317
Japanese Market

Ray Corporation (4317) AI Stock Analysis

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JP

Ray Corporation

(4317)

Rating:72Outperform
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 (4317) vs. iShares MSCI Japan ETF (EWJ)

Ray Corporation Business Overview & Revenue Model

Company DescriptionRay 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 MoneyRay 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
78
Positive
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
85
Very Positive
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
82
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.45B10.46B11.22B12.45B11.05B7.05B
Gross Profit3.41B3.55B3.79B4.15B3.65B1.57B
EBITDA1.21B1.57B1.68B1.69B1.38B95.43M
Net Income632.52M745.58M818.49M715.54M419.47M-367.98M
Balance Sheet
Total Assets8.82B9.12B9.40B9.58B9.79B8.65B
Cash, Cash Equivalents and Short-Term Investments2.29B2.87B2.83B3.14B3.61B3.02B
Total Debt819.00M769.43M1.02B1.29B2.05B2.18B
Total Liabilities2.29B2.33B2.85B3.54B4.32B3.52B
Stockholders Equity6.53B6.80B6.55B6.05B5.47B5.13B
Cash Flow
Free Cash Flow0.00844.33M384.25M543.27M939.10M751.27M
Operating Cash Flow0.001.69B1.05B721.29M1.03B849.86M
Investing Cash Flow0.00-836.28M-668.97M-170.41M-49.13M-149.48M
Financing Cash Flow0.00-813.04M-686.68M-1.02B-388.49M263.21M

Ray Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price453.00
Price Trends
50DMA
459.40
Negative
100DMA
433.44
Positive
200DMA
417.67
Positive
Market Momentum
MACD
-1.86
Positive
RSI
47.88
Neutral
STOCH
24.56
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥9.23B16.75
3.77%4.74%84.68%
74
Outperform
¥13.50B40.20
2.12%9.55%-49.89%
72
Outperform
¥6.49B8.38
3.31%-6.82%-4.67%
68
Neutral
¥13.43B5.43
1.41%17.70%68.00%
68
Neutral
¥12.86B20.50
0.90%-4.12%115.46%
61
Neutral
$40.70B-0.98-11.97%3.93%2.03%-69.70%
47
Neutral
¥6.14B
16.03%-27.98%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4317
Ray Corporation
452.00
18.11
4.17%
JP:3686
DLE, Inc.
144.00
-15.00
-9.43%
JP:4308
J-Stream Inc.
373.00
10.35
2.85%
JP:4347
Broadmedia Corporation
1,905.00
160.51
9.20%
JP:4712
KeyHolder, Inc.
715.00
-79.35
-9.99%
JP:4772
Stream Media Corporation
112.00
-29.73
-20.98%
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: Jul 01, 2025