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FLECT Co.,Ltd.
(4414)
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Rating:70Outperform
Price Target:
¥1,251.00
▲(4.69% Upside)
Action:Upgraded
Date:07/02/26
The score is driven mainly by solid financial performance (strong operating profitability, conservative leverage, and strong ROE), tempered by weaker 2026 cash conversion versus net income. Valuation is supportive with a low P/E, while technical signals remain mixed-to-weak due to negative MACD and price sitting below longer-term moving averages.
Positive Factors
Multi-year revenue scaling
Sustained revenue scaling over several years indicates the company has successfully expanded its client base and service penetration in enterprise DX and cloud projects. This durable top-line growth supports continued investment in delivery capabilities and builds a larger recurring-services base that stabilizes revenue over a 2–6 month horizon and beyond.
Negative Factors
Weak cash conversion
Low operating cash coverage of earnings signals weaker cash realization from reported profits, reducing internal funding for working capital, capital expenditure, or shareholder returns. Persistently weak cash conversion can constrain strategic flexibility and increase reliance on external financing during growth or stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue scaling
Sustained revenue scaling over several years indicates the company has successfully expanded its client base and service penetration in enterprise DX and cloud projects. This durable top-line growth supports continued investment in delivery capabilities and builds a larger recurring-services base that stabilizes revenue over a 2–6 month horizon and beyond.
Read all positive factors
FLECT Co.,Ltd. (4414) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.74B
Dividend YieldN/A
Average Volume (3M)29.06K
Price to Earnings (P/E)10.9
Beta (1Y)1.10
Revenue Growth10.31%
EPS Growth-3.84%
CountryJP
Employees445
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)113.17
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
Headquartered in Tokyo, Japan, FLECT Co., Ltd. was established in 2005 and is dedicated to delivering multi-cloud integration solutions vital for digital transformation (DX) initiatives throughout the country. The company's professional DX support...
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.25B | 7.95B | 6.93B | 5.31B | 3.64B |
| Gross Profit | 3.91B | 3.54B | 3.00B | 2.05B | 1.61B |
| EBITDA | 1.31B | 1.18B | 871.12M | 343.06M | 318.42M |
| Net Income | 684.27M | 720.79M | 440.47M | 222.50M | 266.40M |
Balance Sheet | |||||
| Total Assets | 3.70B | 4.20B | 4.01B | 2.88B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 2.13B | 1.58B | 1.16B | 1.64B |
| Total Debt | 450.12M | 517.87M | 585.29M | 633.11M | 691.24M |
| Total Liabilities | 1.46B | 1.48B | 2.02B | 1.35B | 1.40B |
| Stockholders Equity | 2.24B | 2.72B | 1.99B | 1.53B | 1.29B |
Cash Flow | |||||
| Free Cash Flow | 221.49M | 833.94M | 464.01M | -447.92M | 97.37M |
| Operating Cash Flow | 330.23M | 895.21M | 600.03M | -306.04M | 161.48M |
| Investing Cash Flow | -69.77M | -288.05M | -149.63M | -135.81M | -101.29M |
| Financing Cash Flow | -1.25B | -54.13M | -30.36M | -42.19M | 682.32M |
FLECT Co.,Ltd. Technical Analysis
Positive
1195.00
Price Trends
1145.98
Positive
1115.10
Positive
1381.01
Negative
Market Momentum
23.13
Positive
57.44
Neutral
74.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4414, the sentiment is Positive. The current price of 1195 is below the 20-day moving average (MA) of 1227.30, above the 50-day MA of 1145.98, and below the 200-day MA of 1381.01, indicating a neutral trend. The MACD of 23.13 indicates Positive momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 74.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥8.28B | 8.45 | ― | 3.06% | 15.03% | 17.34% | |
73 Outperform | ¥10.11B | 14.04 | ― | 1.01% | 8.34% | -5.27% | |
70 Outperform | ¥6.74B | 10.90 | ― | ― | 10.31% | -3.84% | |
66 Neutral | ¥101.01B | 38.57 | ― | 0.18% | 28.35% | 8.73% | |
63 Neutral | ¥20.10B | -48.87 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥8.52B | 23.61 | ― | ― | 6.94% | ― |
* Technology Sector Average
JP:4414
FLECT Co.,Ltd.
1,234.00
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-34.05%
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FLECT Co.,Ltd. Corporate Events
FLECT Tightens Control Structure as CEO’s Vehicle and Treasury Buyback Shape Governance
Jun 22, 2026
FLECT Co., Ltd. disclosed that KURO LLC., its controlling shareholder and an asset management company wholly owned by CEO Koji Kurokawa, holds 53.54% of the company’s voting rights as of March 31, 2026. This confirms that effective control o...
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.