Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥18.37B
• Dividend Yield: N/A
• Average Volume (3M): 109.66K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.47
• Revenue Growth: 14.61%
• EPS Growth: 2.30%
• Country: JP
• Employees: 533
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 20.59
• Shares Outstanding: 17,574,400
• 10 Day Avg. Volume: 92,220
• 30 Day Avg. Volume: 109,656
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,350.00
• Price Target Upside: 26.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,350.00 ▲(26.40% Upside)

Core Concept Technologies Inc. demonstrates strong financial performance with robust revenue growth and efficient operations, contributing significantly to the overall score. Technical analysis indicates potential bearish momentum, but the stock is nearing oversold conditions, which could present a buying opportunity. The valuation is reasonable, supporting a favorable investment outlook.

Positive Factors

Revenue Growth

Consistent revenue growth over several years indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reduces risk, and provides flexibility for future investments and growth opportunities.

Profitability

Improved profit margins reflect effective cost control and operational efficiency, contributing to sustainable profitability and competitive advantage.

Negative Factors

Free Cash Flow Growth

Slowing free cash flow growth could limit the company's ability to invest in new opportunities and meet financial obligations, impacting long-term growth potential.

Liabilities Increase

Rising liabilities may increase financial risk and strain resources, potentially affecting the company's ability to maintain its financial health and operational flexibility.

Slower Growth Rate

A deceleration in growth rate may signal challenges in maintaining market momentum, potentially impacting future revenue and profitability expansion.

Core Concept Technologies Inc. Business Overview & Revenue Model

Company Description

Core Concept Technologies Inc. (4371) is a technology company that operates in the information technology sector. The company specializes in providing IT solutions and services, including system integration, software development, and IT consulting. Core Concept Technologies is known for its innovative approach to integrating cutting-edge technologies to enhance business operations and deliver high-quality digital transformation solutions to its clients.

How the Company Makes Money

Core Concept Technologies Inc. generates revenue primarily through its IT solutions and services. The company earns money by offering system integration services, which involve combining different technological systems and software applications to work together within a business environment. In addition, Core Concept Technologies provides custom software development services, generating income by creating tailored software solutions for specific client needs. IT consulting services also contribute to the company's earnings, as businesses seek expert advice and strategies for optimizing their IT infrastructure and digital capabilities. The company may also engage in strategic partnerships and collaborations that enhance its service offerings and expand its client base, further contributing to its revenue streams.

Core Concept Technologies Inc. Financial Statement Overview

Summary

Core Concept Technologies Inc. exhibits strong financial health with robust revenue and profit growth, efficient operations, and prudent financial management. The company's balance sheet is solid with low leverage and strong equity financing. While cash flow generation remains positive, attention should be given to maintaining growth in free cash flow.

Income Statement

Core Concept Technologies Inc. demonstrates a strong financial performance with consistent revenue growth, increasing from ¥4.77 billion in 2019 to ¥19.17 billion in 2024. The gross profit margin has improved significantly, highlighting efficient cost management. The net profit margin has also increased, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, underlining robust operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is strong, suggesting a high proportion of assets financed by equity, which reduces financial risk. Return on equity has improved significantly, reflecting better utilization of shareholder funds. However, the increase in total liabilities should be monitored for potential risks.

Cash Flow

Operating cash flow to net income ratio is positive, indicating good cash generation from operations. Free cash flow has been consistently positive, supporting the company's ability to invest and meet financial obligations. However, the decline in free cash flow growth rate in recent years suggests a need for caution in managing cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.77B	19.17B	15.92B	12.11B	7.80B	5.53B
Gross Profit	5.18B	5.02B	4.32B	2.73B	1.80B	1.12B
EBITDA	2.28B	2.19B	1.88B	1.22B	610.22M	245.37M
Net Income	1.45B	1.44B	1.30B	836.83M	410.34M	124.79M
Balance Sheet
Total Assets	7.64B	8.01B	6.11B	5.11B	3.77B	2.18B
Cash, Cash Equivalents and Short-Term Investments	1.69B	2.20B	1.82B	2.20B	1.34B	307.34M
Total Debt	473.61M	906.72M	148.91M	172.39M	127.34M	422.35M
Total Liabilities	3.02B	3.81B	2.90B	2.27B	1.81B	1.47B
Stockholders Equity	4.61B	4.20B	3.21B	2.85B	1.96B	716.25M
Cash Flow
Free Cash Flow	0.00	834.87M	916.26M	799.11M	514.11M	-118.37M
Operating Cash Flow	0.00	983.05M	1.16B	883.68M	581.75M	136.29M
Investing Cash Flow	0.00	-970.75M	-429.12M	-118.55M	-67.14M	-112.81M
Financing Cash Flow	0.00	232.13M	-1.11B	92.38M	519.72M	-103.10M

Core Concept Technologies Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1068.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4371, the sentiment is Negative. The current price of 1068 is below the 20-day moving average (MA) of 1123.05, below the 50-day MA of 1211.42, and below the 200-day MA of 1121.99, indicating a bearish trend. The MACD of -54.92 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4371.

Core Concept Technologies Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6199	80 Outperform	¥23.96B	13.61		0.75%	11.33%	24.80%
9658	74 Outperform	¥22.01B	11.91		2.64%	16.54%	69.97%
4371	72 Outperform	¥18.37B	12.26		―	14.61%	2.30%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
2158	60 Neutral	¥35.30B	134.43		―	-18.95%	―
2338	―	¥22.73B	―		―	―	―
6050	66 Neutral	¥24.51B	23.61		1.46%	1.80%	-10.15%

Core Concept Technologies Inc. Corporate Events

Core Concept Technologies Reports Steady Growth in H1 2025 Financial Results

Core Concept Technologies Inc. reported its consolidated financial results for the first half of 2025, showing a year-on-year increase in net sales and profits. The company achieved net sales of 10,168 million yen, a 10.9% increase, and a profit attributable to owners of the parent of 762 million yen, up 3.6%. The financial results indicate a steady growth trajectory for the company, despite a slower growth rate compared to the previous year. The company also announced a forecasted dividend of 19 yen per share for the fiscal year ending December 31, 2025, reflecting confidence in its financial stability and future prospects.