Kufu Company Inc. (4376) AI Stock Analysis

• Market Cap: ¥10.66B
• Dividend Yield: N/A
• Average Volume (3M): 74.28K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.70
• Revenue Growth: -14.36%
• EPS Growth: 536.59%
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): -2.21
• Shares Outstanding: 59,887,596
• 10 Day Avg. Volume: 85,330
• 30 Day Avg. Volume: 74,276
• PEG Ratio: 0.00
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.08
• 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

• Rating: 59 Neutral
• Price Target: ¥199.00 ▲(11.80%Upside)

The overall stock score is driven primarily by financial performance challenges, including declining revenue and profitability, and significant cash flow issues. Technical indicators suggest a bearish trend, further impacting the score. Valuation is moderate, but the lack of dividend yield reduces its attractiveness to certain investors.

Kufu Company Inc. Business Overview & Revenue Model

Company Description

Kufu Company Inc. (4376) is a technology-driven company specializing in developing and providing innovative solutions primarily focused on the digital transformation sector. The company offers a range of products and services designed to enhance business operations, streamline processes, and boost efficiency for its clients. These offerings include software development, cloud services, and IT consultancy, catering to a diverse clientele across various industries.

How the Company Makes Money

Kufu Company Inc. generates revenue through a multifaceted business model centered on product sales, subscription services, and consultancy fees. The company earns income by licensing its proprietary software solutions to businesses, as well as offering cloud-based services on a subscription basis. Additionally, Kufu Company Inc. provides consulting services that help organizations implement and optimize their technology infrastructure, which further contributes to its revenue streams. The company also maintains strategic partnerships with other technology firms, enhancing its market reach and capability to deliver comprehensive solutions to its clients.

Kufu Company Inc. Financial Statement Overview

Summary

Despite strong balance sheet stability with low leverage and substantial equity, financial performance is hampered by declining revenue and profitability margins, as well as significant cash flow issues with zero operational cash flows.

Income Statement

The TTM (Trailing-Twelve-Months) data shows a gross profit margin of approximately 51.9% and a net profit margin of 2.76%. Revenue has decreased compared to the previous year, indicating a negative growth trend. The EBIT margin is 5.15%, and the EBITDA margin is 5.36%, both reflecting moderate profitability. The decline in revenue and net income is a concern, but the company maintains a healthy gross profit margin.

Balance Sheet

The company has a strong equity position with a debt-to-equity ratio of 0.31, indicating low leverage. The return on equity (ROE) is 4.11%, showing modest returns for shareholders. The equity ratio is 57.36%, suggesting a stable financial base. Despite the declining total assets, the company’s low level of debt and substantial equity are positive indicators of financial stability.

Cash Flow

The TTM shows zero operating and free cash flow, a significant decline from the previous year where operating cash flow was positive. The free cash flow to net income ratio cannot be calculated, indicating potential cash flow management issues. The absence of cash flow metrics suggests a need to improve operational efficiency and cash generation.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2020	Sep 2019
Income Statement		Total Revenue
15.73B	15.54B	20.49B	18.63B	4.55B	4.49B
	Gross Profit
8.17B	8.12B	9.80B	9.21B	2.78B	2.56B
	EBIT
811.00M	631.00M	1.88B	1.56B	235.62M	271.53M
	EBITDA
1.59B	1.75B	2.77B	2.58B	510.13M	465.78M
	Net Income Common Stockholders
435.00M	308.00M	548.00M	452.00M	-94.78M	16.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.92B	9.20B	10.74B	10.25B	1.99B	1.97B
	Total Assets
18.39B	18.88B	20.97B	21.33B	6.37B	5.84B
	Total Debt
3.28B	3.55B	5.35B	5.86B	1.36B	182.46M
	Net Debt
-3.65B	-3.95B	-4.06B	-1.41B	-624.65M	-1.79B
	Total Liabilities
6.34B	6.71B	9.38B	9.67B	1.94B	959.99M
	Stockholders Equity
10.55B	10.72B	10.08B	10.19B	4.34B	4.76B
Cash Flow		Free Cash Flow
0.00	-962.00M	4.20B	1.29B	-703.13M	284.32M
	Operating Cash Flow
0.00	-196.00M	4.75B	1.55B	-569.86M	367.73M
	Investing Cash Flow
0.00	-498.00M	-886.00M	-1.04B	-222.16M	-2.44B
	Financing Cash Flow
0.00	-1.19B	-1.75B	-1.04B	811.49M	-23.61M

Kufu Company Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 178.00
• 50DMA: Negative
• 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:4376, the sentiment is Negative. The current price of 178 is below the 20-day moving average (MA) of 181.00, below the 50-day MA of 185.00, and below the 200-day MA of 217.04, indicating a bearish trend. The MACD of -3.66 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4376.

Kufu Company Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5869	82 Outperform	¥10.75B	10.26		6.67%	―	―
9325	80 Outperform	¥12.02B	13.09		2.32%	14.84%	7.57%
7318	78 Outperform	¥12.52B	6.14		―	26.97%	275.83%
4346	76 Outperform	¥10.66B	12.15		2.44%	15.11%	139.25%
4304	68 Neutral	¥10.75B	21.64		2.72%	-10.70%	-0.90%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
4376	59 Neutral	¥10.66B	21.55		―	-14.36%	536.59%

Kufu Company Inc. Corporate Events

Kufu Company Holdings Inc. Reports Improved Operating Profit Amidst Slight Sales Decline

Kufu Company Holdings Inc. reported consolidated financial results for the six months ending March 31, 2025, showing a slight decrease in net sales compared to the previous year. Despite a reduction in net sales, the company achieved a positive operating profit, marking an improvement from the previous period’s loss. The financial position remains stable with a high equity ratio, although net assets have slightly decreased. The company has not declared any dividends for the period, and significant changes in accounting policies were noted.