Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥21.27B
• Dividend Yield: N/A
• Average Volume (3M): 86.15K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.34
• Revenue Growth: 17.91%
• EPS Growth: 1.59%
• Country: JP
• Employees: 533
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 24.92
• Shares Outstanding: 17,557,200
• 10 Day Avg. Volume: 57,680
• 30 Day Avg. Volume: 86,150
• PEG Ratio: 8.80
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,565.00
• Price Target Upside: 26.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,374.00 ▲(10.99%Upside)

Core Concept Technologies Inc. has strong financial performance with robust growth and a solid balance sheet, which is the primary driver of its stock score. While the technical analysis reveals some bearish trends, the valuation remains reasonable. The absence of earnings call data and notable corporate events limits further insights into near-term catalysts or risks.

Core Concept Technologies Inc. Business Overview & Revenue Model

Company Description

Core Concept Technologies Inc. (4371) is a technology service provider engaged in offering comprehensive IT solutions and services. The company specializes in software development, IT consulting, and managed services, catering to various industries such as finance, healthcare, manufacturing, and telecommunications. With a focus on innovation and customer-centric solutions, Core Concept Technologies Inc. helps businesses optimize their operations through cutting-edge technology and strategic IT support.

How the Company Makes Money

Core Concept Technologies Inc. generates revenue through a diverse set of income streams primarily centered around its IT services and solutions. The company earns money by providing software development services, which include custom application development and software integration solutions tailored to client needs. Additionally, it offers IT consulting services, helping organizations design and implement effective IT strategies. Managed services, such as cloud computing, network management, and IT infrastructure support, constitute another vital revenue stream. The company may also engage in strategic partnerships with technology vendors, enhancing its service offerings and expanding its market reach. These partnerships can contribute to revenue through collaborative projects and reseller agreements, enabling Core Concept Technologies Inc. to leverage external expertise and resources to deliver enhanced value to its clients.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.17B	15.92B	12.11B	7.80B	5.53B
Gross Profit	5.02B	4.32B	2.73B	1.80B	1.12B
EBITDA	2.19B	1.88B	1.20B	610.22M	245.37M
Net Income	1.44B	1.30B	836.83M	410.34M	124.79M
Balance Sheet
Total Assets	8.01B	6.11B	5.11B	3.77B	2.18B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.82B	2.20B	1.34B	307.34M
Total Debt	906.72M	148.91M	172.39M	127.34M	422.35M
Total Liabilities	3.81B	2.90B	2.27B	1.81B	1.47B
Stockholders Equity	4.20B	3.21B	2.85B	1.96B	716.25M
Cash Flow
Free Cash Flow	834.87M	916.26M	799.11M	514.11M	-118.37M
Operating Cash Flow	983.05M	1.16B	883.68M	581.75M	136.29M
Investing Cash Flow	-970.75M	-429.12M	-118.55M	-67.14M	-112.81M
Financing Cash Flow	232.13M	-1.11B	92.38M	519.72M	-103.10M

Core Concept Technologies Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1238.00
• 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 Negative. The current price of 1238 is below the 20-day moving average (MA) of 1291.25, below the 50-day MA of 1299.68, and above the 200-day MA of 1154.59, indicating a neutral trend. The MACD of -21.47 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 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	77 Outperform	¥22.15B	12.62		0.80%	11.33%	24.80%
9658	74 Outperform	¥21.96B	11.96		3.19%	13.40%	-82.54%
4371	72 Outperform	¥21.27B	14.13		―	17.91%	1.59%
6050	66 Neutral	¥24.58B	21.73		1.46%	-2.15%	-13.31%
2158	59 Neutral	¥22.87B	40.84		―	-17.30%	―
Sector *	50 Neutral	C$2.97B	1.98	-63.12%	2.50%	11.24%	-12.42%

Core Concept Technologies Inc. Corporate Events

Core Concept Technologies Reports Strong Q1 2025 Financial Results

Core Concept Technologies Inc. reported a 13.6% increase in net sales for the first quarter of 2025, reaching 5,039 million yen, with operating profit and ordinary profit also seeing moderate growth. The company’s financial position strengthened with an improved equity capital ratio of 60.4%, indicating solid financial health. The forecast for the full fiscal year 2025 shows continued growth expectations, with net sales projected to rise by 13.7% and operating profit by 14.6%.