Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥17.38B
• Dividend Yield: N/A
• Average Volume (3M): 112.57K
• Price to Earnings (P/E): 11.7
• 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: 74 Outperform
• Price Target: ¥1,191.00 ▲(12.04% Upside)

Core Concept Technologies Inc. demonstrates strong financial performance with robust revenue growth and efficient operations, which significantly contribute to its favorable stock score. The technical analysis indicates short-term bullish momentum, although caution is advised due to potential resistance and overbought signals. The valuation is reasonable, but the lack of a dividend yield may deter income-focused investors.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and successful product adoption, which supports long-term business expansion.

Balance Sheet Health

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

Profitability

Improved profitability through higher net profit margins suggests effective cost management and operational efficiency, supporting sustainable growth.

Negative Factors

Free Cash Flow Growth

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

Liabilities Increase

Rising liabilities may increase financial risk and strain resources, potentially affecting the company's ability to invest and expand.

Cash Reserve Management

Effective cash reserve management is crucial to ensure liquidity and support ongoing operations, especially with declining free cash flow growth.

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

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	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: Positive
• Last Price: 1063.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1063 is above the 20-day moving average (MA) of 1000.35, above the 50-day MA of 978.40, and below the 200-day MA of 1123.09, indicating a neutral trend. The MACD of 21.63 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥41.76B	14.48	―	2.58%	16.59%	40.56%
6199	80 Outperform	¥20.55B	11.81	―	0.88%	11.50%	11.20%
4371	74 Outperform	¥17.38B	11.73	―	―	8.79%	1.38%
6050	66 Neutral	¥20.74B	19.98	―	2.14%	-0.62%	-11.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥35.66B	135.78	―	―	-10.49%	―

Core Concept Technologies Inc. Corporate Events

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.