Kufu Company Inc. (4376) AI Stock Analysis

• Market Cap: ¥9.48B
• Dividend Yield: N/A
• Average Volume (3M): 214.30K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.65
• Revenue Growth: -9.23%
• EPS Growth: -882.64%
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 4.64
• Shares Outstanding: 60,415,370
• 10 Day Avg. Volume: 54,170
• 30 Day Avg. Volume: 214,300
• PEG Ratio: <0.01
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 7.89
• 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: 46 Neutral
• Price Target: ¥153.00 ▼(-6.13% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Kufu Company Inc. faces significant financial and technical challenges. The most impactful factor is the company's weak financial performance, particularly in profitability and cash flow. Technical analysis further supports a bearish outlook. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Manageable leverage

A debt-to-equity ratio of 0.42 and a healthy equity ratio indicate conservative financial leverage. This structural balance reduces refinancing and solvency risk, preserving financial flexibility to fund operations, capital needs or strategic actions over the next several months.

Stable gross profit margin

A relatively stable gross profit margin suggests consistent core product or service economics and some pricing power or cost control at the production level. That stability supports the potential to restore operating profitability if SG&A pressures are addressed, a durable positive for margins.

Earnings convert to cash

A positive operating cash flow to net income ratio indicates earnings quality and an ability to generate cash from core operations. Even with volatile free cash flow, this conversion capacity underpins working capital management and reduces structural liquidity risk over the medium term.

Negative Factors

Negative net profit margin

A negative net profit margin shows the company is currently unprofitable at the bottom line, a structural weakness that depletes equity and limits internal funding. Without durable improvement in operating leverage or revenue, profitability shortfalls will impede reinvestment and shareholder returns.

Declining revenue trend

A ~12% revenue decline indicates shrinking top-line scale, which undermines bargaining power and amplifies fixed-cost absorption issues. Persistent revenue contraction weakens competitive position and makes margin recovery reliant on structural revenue fixes rather than short-term cost cuts.

Volatile, falling free cash flow

Significant volatility and a sharp decline in free cash flow materially reduce the firm's ability to self-fund capital needs or absorb shocks. This creates dependency on external financing, constrains strategic investments, and increases execution risk over the next several months.

Kufu Company Inc. Business Overview & Revenue Model

Company Description

Kufu Company Inc., through its subsidiaries, engages in the daily life related and life events related businesses. It operates Tokubai, a flyer and shopping information service platform. The company also engages in management consulting business, that includes housing, construction, real estate business knowledge development, property consulting business, sales promotion support business, etc.; and planning, development, and operation of Zaim, an online household account book service platform using Internet. In addition, it develops and sells OM solar systems; provides OM guidance on construction technology, design, and construction, as well as sales of components to member construction companies for installing solar systems, construction technology, design, and construction methods to design offices for installing OM solar systems in private residences, public buildings, etc. Further, it is involved in sports-type amusement park facility management business, sports school management business; and operates BUZMA, a local store public relations support Saas business. Kufu Company Inc. was founded in 2016 and is headquartered in Tokyo, Japan.

Kufu Company Inc. Financial Statement Overview

Summary

Kufu Company Inc. is facing financial challenges, particularly in profitability and cash flow management. The income statement and cash flow metrics highlight areas of concern, such as declining profitability and cash flow volatility. The balance sheet remains relatively stable, but overall financial health needs improvement.

Income Statement

Kufu Company Inc. has faced challenges in maintaining profitability, as evidenced by a negative net profit margin in the latest year. The company has experienced a decline in revenue growth, with a slight increase of 1.024% in the most recent year compared to a significant drop in the previous year. The gross profit margin remains relatively stable, but the negative EBITDA margin indicates operational inefficiencies.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.42, indicating a manageable level of debt. However, the return on equity has decreased over the years, reflecting challenges in generating returns for shareholders. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

The cash flow statement reveals significant volatility, with a drastic decline in free cash flow growth. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash, but the overall cash flow position is weak due to negative free cash flow growth.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2020
Income Statement
Total Revenue	14.11B	15.54B	20.49B	18.63B	4.55B
Gross Profit	7.75B	8.12B	9.80B	9.21B	2.78B
EBITDA	-845.00M	1.75B	2.77B	2.11B	319.29M
Net Income	-2.35B	308.00M	548.00M	452.00M	-94.78M
Balance Sheet
Total Assets	16.48B	18.88B	20.97B	21.33B	6.37B
Cash, Cash Equivalents and Short-Term Investments	9.32B	9.20B	10.74B	10.25B	1.99B
Total Debt	3.40B	3.56B	5.36B	5.89B	1.36B
Total Liabilities	6.85B	6.70B	9.38B	9.67B	1.94B
Stockholders Equity	8.00B	10.72B	10.08B	10.19B	4.34B
Cash Flow
Free Cash Flow	1.32B	-962.00M	4.20B	1.29B	-703.13M
Operating Cash Flow	1.50B	-196.00M	4.75B	1.55B	-569.86M
Investing Cash Flow	-823.00M	-498.00M	-886.00M	-1.04B	-222.16M
Financing Cash Flow	-161.00M	-1.19B	-1.75B	-1.04B	811.49M

Kufu Company Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 163.00
• 50DMA: Negative
• 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 Negative. The current price of 163 is below the 20-day moving average (MA) of 164.40, below the 50-day MA of 163.88, and below the 200-day MA of 172.67, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 30.91 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
6580	67 Neutral	¥8.51B	14.73	―	0.61%	32.31%	105.04%
7373	67 Neutral	¥26.14B	24.45	―	1.02%	24.97%	37.84%
4346	64 Neutral	¥9.89B	35.99	―	3.65%	16.07%	50.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4384	62 Neutral	¥115.05B	21.77	19.59%	0.16%	18.08%	136.77%
7814	52 Neutral	¥29.13B	5.57	―	1.57%	9.04%	-0.91%
4376	46 Neutral	¥9.48B	8.77	―	―	-9.23%	-882.64%

Kufu Company Inc. Corporate Events

Kufu Company swings to profit and forecasts strong FY2026 growth despite lower sales

Kufu Company Holdings Inc. reported consolidated net sales of ¥3.18 billion for the quarter ended 31 December 2025, down 7.9% year-on-year, but sharply improved profitability with operating profit up 118.1% to ¥138 million and ordinary profit up 161.0% to ¥202 million. Profit attributable to owners of the parent swung to ¥277 million from a ¥78 million loss a year earlier, lifting earnings per share to ¥4.64 and driving total assets to ¥17.58 billion and net assets to ¥10.07 billion, despite a slight decline in the equity ratio.

The company maintained its policy of paying no dividends for the year ended September 2025 and forecasts zero dividends again for the year ending September 2026, signaling a continued preference for reinvestment over shareholder payouts. For the full year to September 2026, Kufu projects a 20.5% rise in net sales to ¥17 billion, a near doubling of operating profit to ¥1 billion, and EBITDA growth of 17.7% to ¥2 billion, supported in part by recent changes in the consolidation scope that may expand the group’s operational base and earnings capacity.

The most recent analyst rating on (JP:4376) stock is a Hold with a Yen165.00 price target. To see the full list of analyst forecasts on Kufu Company Inc. stock, see the JP:4376 Stock Forecast page.