FLECT Co.,Ltd. (JP:4414)
:4414
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FLECT Co.,Ltd.
(4414)
Select Model
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Rating:68Neutral
Price Target:
¥1,083.00
▼(-41.24% Downside)
Action:Reiterated
Date:05/16/26
Financial performance is solid overall with strong margins and low leverage, but the score is held back by weaker cash-flow conversion in the latest year. Technically, the stock is in a clear downtrend (below major moving averages with negative MACD), partially offset by a low P/E that suggests relatively attractive valuation.
Positive Factors
Multi-year revenue scaling
Sustained revenue expansion from JPY ~2.6B to ~8.3B reflects durable demand for cloud and DX services. This scale supports recurring operations, deeper client relationships, and larger project wins, increasing predictable long-term service revenue and platform integration opportunities.
Negative Factors
Weaker cash conversion in 2026
Lower operating cash coverage and FCF below net income signal weaker cash conversion, which can constrain funding for capex, hiring, or dividends without relying on accrual earnings or external financing. Persistent weakness would limit strategic flexibility and increase liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue scaling
Sustained revenue expansion from JPY ~2.6B to ~8.3B reflects durable demand for cloud and DX services. This scale supports recurring operations, deeper client relationships, and larger project wins, increasing predictable long-term service revenue and platform integration opportunities.
Read all positive factors
FLECT Co.,Ltd. (4414) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.52B
Dividend YieldN/A
Average Volume (3M)29.06K
Price to Earnings (P/E)8.7
Beta (1Y)1.12
Revenue Growth3.81%
EPS Growth-4.74%
CountryJP
Employees324
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)112.60
Shares Outstanding6,197,920
10 Day Avg. Volume24,060
30 Day Avg. Volume29,056
Financial Highlights & Ratios
PEG Ratio-1.82
Price to Book (P/B)2.65
Price to Sales (P/S)0.72
P/FCF Ratio26.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)138.3
Revenue Forecast (FY)¥10.00B
FLECT Co.,Ltd. Business Overview & Revenue Model
Company Description
FLECT Co., Ltd. (4414) is a Japanese company that specializes in the development and provision of advanced optical devices and related technologies. The company operates primarily within the fields of imaging and display solutions, leveraging inno...
How the Company Makes Money
Factual, company-specific detail on FLECT Co.,Ltd.’s disclosed revenue model and segment breakdown is null. In general terms consistent with its stated business focus, the company makes money primarily by providing (1) professional services such a...
FLECT Co.,Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.85B | 8.25B | 7.95B | 6.93B | 5.31B | 3.64B |
| Gross Profit | 3.53B | 3.91B | 3.54B | 3.00B | 2.05B | 1.61B |
| EBITDA | 1.12B | 1.31B | 1.18B | 871.12M | 343.06M | 318.42M |
| Net Income | 685.34M | 684.27M | 720.79M | 440.47M | 222.50M | 266.40M |
Balance Sheet | ||||||
| Total Assets | 3.96B | 3.70B | 4.20B | 4.01B | 2.88B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.96B | 1.14B | 2.13B | 1.58B | 1.16B | 1.64B |
| Total Debt | 500.93M | 450.12M | 517.87M | 585.29M | 633.11M | 691.24M |
| Total Liabilities | 1.15B | 1.46B | 1.48B | 2.02B | 1.35B | 1.40B |
| Stockholders Equity | 2.80B | 2.24B | 2.72B | 1.99B | 1.53B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 221.49M | 833.94M | 464.01M | -447.92M | 97.37M |
| Operating Cash Flow | 0.00 | 330.23M | 895.21M | 600.03M | -306.04M | 161.48M |
| Investing Cash Flow | 0.00 | -69.77M | -288.05M | -149.63M | -135.81M | -101.29M |
| Financing Cash Flow | 0.00 | -1.25B | -54.13M | -30.36M | -42.19M | 682.32M |
FLECT Co.,Ltd. Technical Analysis
Negative
1843.00
Price Trends
1107.12
Negative
1356.84
Negative
1615.89
Negative
Market Momentum
-27.90
Positive
42.91
Neutral
25.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4414, the sentiment is Negative. The current price of 1843 is above the 20-day moving average (MA) of 1106.20, above the 50-day MA of 1107.12, and above the 200-day MA of 1615.89, indicating a bearish trend. The MACD of -27.90 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4414.
FLECT Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥8.58B | 9.74 | ― | 1.01% | 8.34% | -5.27% | |
69 Neutral | ¥8.78B | 9.94 | ― | 3.06% | 22.74% | 6.75% | |
68 Neutral | ¥5.52B | 8.65 | ― | ― | 3.81% | -4.74% | |
68 Neutral | ¥16.00B | -40.95 | ― | ― | 12.01% | -191.28% | |
66 Neutral | ¥94.00B | 288.85 | ― | 0.18% | 29.01% | -10.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥8.80B | 24.79 | ― | ― | 7.92% | ― |
* Technology Sector Average
JP:4414
FLECT Co.,Ltd.
1,052.00
-1,168.00
-52.61%
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FLECT Co.,Ltd. Corporate Events
FLECT Shifts Stock Compensation Plans to Performance-Linked Structure and Extends Trusts
May 14, 2026
FLECT Co., Ltd. has approved revisions to its stock-based compensation frameworks, extending the trust periods for its Board Incentive Plan (BIP) Trust and Stock Granting ESOP Trust by two years to August 2028 and shifting both from fixed-point to...
FLECT outlines growth plans as multi-cloud and AI-driven DX integrator
May 14, 2026
FLECT Co., Ltd., a Tokyo-headquartered multi-cloud integrator, focuses on professional cloud integration services that enable corporate digital transformation. The company applies advanced cloud and AI technologies to support development, operatio...
FLECT Books ¥102 Million Extraordinary Loss on Cariot Share Valuation
May 14, 2026
FLECT Co., Ltd. has recognized a significant extraordinary loss related to shares it holds in its associate, Cariot, Inc., after large-scale project acquisitions at the affiliate progressed more slowly than expected, causing results to diverge fro...
FLECT Hits Record Quarterly Earnings and Ramps Up AI-Focused DX Investments for 2027
May 14, 2026
FLECT Co., Ltd. reported record-high fourth-quarter net sales of JPY 2,282 million and operating profit of JPY 452 million for the fiscal year ended March 2026, driven by stronger proposal activities with existing clients and improved project exec...
FLECT lifts revenue and profit margins but trims net income, keeps zero-dividend stance
May 14, 2026
FLECT Co., Ltd., a Tokyo Stock Exchange-listed IT and cloud solutions provider, reported modest top-line growth for the fiscal year ended March 31, 2026, as net sales rose 3.8% to ¥8.25 billion while operating profit climbed 14.6%. Despite th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.