Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥20.62B
• Dividend Yield: N/A
• Average Volume (3M): 112.57K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.51
• Revenue Growth: 8.79%
• EPS Growth: 1.38%
• Country: JP
• Employees: 533
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 22.04
• Shares Outstanding: 17,602,800
• 10 Day Avg. Volume: 230,770
• 30 Day Avg. Volume: 112,566
• PEG Ratio: 0.98
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 19.74
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,435.00 ▲(20.08% Upside)

The score is driven primarily by strong financial performance (robust growth, improving profitability, and a solid balance sheet). Technicals support the uptrend but are tempered by overbought signals, while valuation is reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Sustained revenue growth

Multi-year revenue expansion shows the company has scaled its offerings and grown market share. This durable top-line expansion underpins reinvestment capacity, supports economies of scale, and provides a foundation for sustained profit growth and strategic initiatives over the medium term.

Improving profitability and margins

Rising gross and net margins and healthy operating margins indicate structural gains in cost efficiency or pricing power. Sustained margin improvement increases cash generation, builds resilience to industry cycles, and enhances returns on capital over the next several quarters to years.

Prudent balance sheet and leverage

A conservative capital structure with low leverage reduces solvency and refinancing risks, enabling strategic flexibility. Strong equity financing and rising ROE suggest efficient capital deployment, supporting durable funding for growth, buybacks, or M&A without stressing liquidity.

Negative Factors

Slowing free cash flow growth

Though free cash flow remains positive, a slowing growth rate reduces available internal funding for capex, acquisitions, dividends, or debt paydown. Persistently weaker FCF growth can erode financial flexibility and force trade-offs in capital allocation over the medium term.

Rising total liabilities

An uptick in total liabilities raises interest and liquidity exposure if the trend continues. Even with current low leverage, rising obligations can compress financial headroom, elevate refinancing needs, and limit strategic options if not matched by commensurate asset generation or equity growth.

Moderate recent revenue growth rate

A mid-single-digit revenue growth rate suggests the business may be transitioning from rapid expansion to a more mature phase. Without faster top-line acceleration, the company will need sustained margin improvement or new market expansion to maintain high returns and justify capital investments.

Core Concept Technologies Inc. Business Overview & Revenue Model

Company Description

Core Concept Technologies Inc. provides digital transformation realization and IT human resources procurement support services in Japan. The company offers DX and development support services. It serves clients primarily in manufacturing and construction industries; and supports IT human resource procurement. Core Concept Technologies Inc. was incorporated in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

Core Concept Technologies Inc. generates revenue through multiple streams, primarily from software licenses, subscription services, and hardware sales. The company offers a tiered subscription model for its cloud-based applications, allowing customers to choose packages based on their usage and needs. Additionally, revenue is supplemented by the sale of proprietary hardware that integrates with its software solutions. Significant partnerships with major technology firms enhance its market reach and credibility, while also providing opportunities for joint ventures and co-development projects, contributing positively to its earnings.

Core Concept Technologies Inc. Financial Statement Overview

Summary

Strong fundamentals supported by high Income Statement (88) and Balance Sheet (82) scores: sustained revenue growth, improving margins, and prudent leverage. Cash Flow score (75) is solid with positive free cash flow, but slower free cash flow growth is a moderating factor.

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	20.17B	19.17B	15.92B	12.11B	7.80B	5.53B
Gross Profit	5.29B	5.02B	4.32B	2.73B	1.80B	1.12B
EBITDA	2.29B	2.19B	1.88B	1.22B	610.22M	245.37M
Net Income	1.47B	1.44B	1.30B	836.83M	410.34M	124.79M
Balance Sheet
Total Assets	7.97B	8.01B	6.11B	5.11B	3.77B	2.18B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.20B	1.82B	2.20B	1.34B	307.34M
Total Debt	168.57M	906.72M	148.91M	172.39M	127.34M	422.35M
Total Liabilities	3.00B	3.81B	2.90B	2.27B	1.81B	1.47B
Stockholders Equity	4.96B	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: Neutral
• Last Price: 1195.00
• 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:4371, the sentiment is Neutral. The current price of 1195 is below the 20-day moving average (MA) of 1305.20, below the 50-day MA of 1202.24, and above the 200-day MA of 1145.82, indicating a neutral trend. The MACD of 10.06 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 36.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9658	82 Outperform	¥38.50B	13.94	―	2.97%	16.59%	40.56%
4371	78 Outperform	¥20.62B	14.88	―	―	8.79%	1.38%
6199	73 Outperform	¥22.07B	13.73	―	0.85%	11.50%	11.20%
6050	69 Neutral	¥18.86B	24.22	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥32.91B	119.24	―	―	-10.49%	―
2338	42 Neutral	¥10.14B	-7.04	―	―	―	―

Core Concept Technologies Inc. Corporate Events

Core Concept Technologies Reports Progress on Share Buyback Program

Core Concept Technologies Inc. reported progress on its ongoing share buyback program authorized by its board in November 2025, disclosing that it purchased 313,600 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of ¥352.1 million. Under the broader resolution allowing repurchases of up to 900,000 shares or ¥1.0 billion through March 31, 2026, the company has cumulatively bought back 600,600 shares for ¥647.5 million by the end of December, signaling active execution of its capital allocation plan and potentially enhancing shareholder value through reduced share float and improved capital efficiency.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1191.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.

Core Concept Technologies Restructures Executive Leadership System

Core Concept Technologies Inc. has announced changes to its executive officer system and personnel assignments following a Board of Directors meeting held on December 18, 2025. The restructuring includes the abolition of the Senior Executive Officer post and newly defined roles for executive officers, aiming to enhance operational efficiency and focus on strategic business areas such as construction DX, personnel staffing, and enterprise solutions. This move is likely to impact the company’s internal operations and streamline leadership responsibilities, positioning it for continued growth and market adaptation.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1191.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.

Core Concept Technologies Advances Treasury Share Acquisition

Core Concept Technologies Inc. has announced the progress of its treasury share acquisition, which was resolved by the Board of Directors on November 13, 2025. The company acquired 287,000 common shares at a total cost of 295,374,200 yen through open-market purchases at the Tokyo Stock Exchange between November 14 and November 30, 2025. This acquisition is part of a larger plan to acquire up to 900,000 shares by March 31, 2026, with a total budget of up to 1,000,000,000 yen. The move is expected to impact the company’s market positioning by potentially increasing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1191.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.

Core Concept Technologies Reports Q3 2025 Financial Results and Revises Year-End Forecast

Core Concept Technologies Inc. reported its consolidated financial results for the nine months ending September 30, 2025, showing a 7.8% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a slight decline in operating and ordinary profit, reflecting challenges in maintaining profitability. The company has revised its financial forecast for the full year 2025, indicating expectations of continued growth in net sales and profits, which could impact its market positioning and stakeholder interests positively.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1075.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.

Core Concept Technologies to Acquire Treasury Shares

Core Concept Technologies Inc. announced a decision by its Board of Directors to acquire up to 900,000 of its own common shares, representing 5.35% of its outstanding shares, with a total acquisition cost of up to 1 billion yen. This strategic move, set to occur between November 14, 2025, and March 31, 2026, aims to optimize shareholder returns and reflects the company’s strong financial standing and stock price considerations.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1075.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.

Core Concept Technologies Revises FY 2025 Earnings Forecast

Core Concept Technologies Inc. announced a revision to its earnings forecast for FY 2025, citing lower-than-expected revenue growth despite increased marketing efforts and organizational restructuring. The company adjusted its projections downward, anticipating both revenue and profit to fall short of initial forecasts, although they reported an increase in revenue and profit compared to the previous year. The final dividend remains unchanged at 19 yen per share.

The most recent analyst rating on (JP:4371) stock is a Buy with a Yen1075.00 price target. To see the full list of analyst forecasts on Core Concept Technologies Inc. stock, see the JP:4371 Stock Forecast page.