Kufu Company Inc. (4376) AI Stock Analysis

• Market Cap: ¥10.90B
• Dividend Yield: N/A
• Average Volume (3M): 33.99K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.71
• Revenue Growth: -14.36%
• EPS Growth: 536.59%
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): -2.21
• Shares Outstanding: 59,887,596
• 10 Day Avg. Volume: 37,000
• 30 Day Avg. Volume: 33,990
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥199.00
• Price Target Upside: 8.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥182.00 ▼(-1.09% Downside)

The overall stock score reflects significant financial challenges, including declining revenue and negative cash flows, which are the most impactful factors. Technical analysis indicates weak momentum, further weighing on the score. Valuation is moderate, but the lack of a dividend yield reduces its appeal.

Kufu Company Inc. Business Overview & Revenue Model

Company Description

Kufu Company Inc. (4376) is a leading provider in the technology sector, specializing in innovative software solutions designed to enhance business efficiency and productivity. The company operates primarily in the enterprise software market, offering a range of products including project management tools, collaboration platforms, and data analytics services tailored for various industries. Kufu Company Inc. focuses on delivering cutting-edge technology that empowers organizations to streamline their operations and drive growth.

How the Company Makes Money

Kufu Company Inc. generates revenue through a multi-faceted business model that includes subscription-based services, licensing fees, and professional consulting engagements. The primary revenue stream comes from its subscription services, where clients pay recurring fees for access to its software solutions, which are often offered as Software-as-a-Service (SaaS). Additionally, Kufu earns significant income from licensing its technology to other businesses and providing customized solutions tailored to client needs. The company also engages in strategic partnerships with other tech firms and industry leaders, expanding its market reach and enhancing its product offerings, which contribute to its overall revenue growth.

Kufu Company Inc. Financial Statement Overview

Summary

The company has a strong balance sheet with low leverage, indicated by a debt-to-equity ratio of 0.31. However, the income statement reveals declining revenue and profitability margins, which are concerns. The cash flow statement shows zero operating and free cash flow, highlighting significant issues in cash flow management. Overall, financial performance is mixed, with strong balance sheet stability but challenges in revenue growth and cash flow generation.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2020	Sep 2019
Income Statement
Total Revenue	15.54B	20.49B	18.63B	4.55B	4.49B
Gross Profit	8.12B	9.80B	9.21B	2.78B	2.56B
EBITDA	1.75B	2.77B	2.58B	510.13M	465.78M
Net Income	308.00M	548.00M	452.00M	-94.78M	16.39M
Balance Sheet
Total Assets	18.88B	20.97B	21.33B	6.37B	5.84B
Cash, Cash Equivalents and Short-Term Investments	9.20B	10.74B	10.25B	1.99B	1.97B
Total Debt	3.55B	5.35B	5.86B	1.36B	182.46M
Total Liabilities	6.71B	9.38B	9.67B	1.94B	959.99M
Stockholders Equity	10.72B	10.08B	10.19B	4.34B	4.76B
Cash Flow
Free Cash Flow	-962.00M	4.20B	1.29B	-703.13M	284.32M
Operating Cash Flow	-196.00M	4.75B	1.55B	-569.86M	367.73M
Investing Cash Flow	-498.00M	-886.00M	-1.04B	-222.16M	-2.44B
Financing Cash Flow	-1.19B	-1.75B	-1.04B	811.49M	-23.61M

Kufu Company Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.00
• 50DMA: Positive
• 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:4376, the sentiment is Positive. The current price of 184 is below the 20-day moving average (MA) of 184.65, above the 50-day MA of 180.64, and below the 200-day MA of 201.24, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4376.

Kufu Company Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7318	84 Outperform	¥17.25B	8.50		―	26.97%	285.34%
5869	82 Outperform	¥10.86B	10.39		4.89%	―	―
9325	76 Outperform	¥13.25B	13.85		2.12%	15.85%	16.36%
4346	74 Outperform	¥12.28B	13.99		2.13%	15.11%	139.25%
Sector *	71 Outperform	¥260.34B	14.71	8.48%	2.82%	6.35%	12.05%
4376	51 Neutral	¥10.90B	22.28		―	-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.