FLECT Co.,Ltd. (4414) AI Stock Analysis

• Market Cap: ¥11.41B
• Dividend Yield: N/A
• Average Volume (3M): 24.03K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.55
• Revenue Growth: 6.86%
• EPS Growth: 30.13%
• Country: JP
• Employees: 324
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 11.73
• Shares Outstanding: 6,192,560
• 10 Day Avg. Volume: 19,260
• 30 Day Avg. Volume: 24,030
• PEG Ratio: 0.25
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 13.39
• 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: ¥2,190.00
• Price Target Upside: 18.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,190.00 ▲(18.83% Upside)

FLECT Co.,Ltd. receives a strong overall score driven primarily by its robust financial performance, characterized by significant revenue and profit growth, and efficient cash flow generation. The technical analysis indicates a neutral trend with some bullish signals, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events limits additional insights.

FLECT Co.,Ltd. Business Overview & Revenue Model

Company Description

Flect Co., Ltd. engages in the provision of multi-cloud integration services for digital transformation in Japan. The company provides professional services of DX support, including planning and design, UI/UX design, cloud development, and operation by combining multiple public cloud services, such as Salesforce, Amazon Web Services, and Heroku. It offers its services in the areas of CRM/Salesforce, e-commerce, IoT/AI, integration/API orchestration, MaaS/mobility, and service design. In addition, the company is involved in the provision of Cariot Service, a driver work style reform cloud that connects cars and companies. Flect Co., Ltd. was incorporated in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

FLECT Co.,Ltd. generates revenue primarily through service fees for its cloud system integration and IT infrastructure development projects. The company earns money by partnering with businesses to implement digital transformation strategies, charging for consultancy, implementation, and ongoing support services. Additionally, FLECT Co.,Ltd. benefits from significant partnerships with major cloud service providers, which allow it to offer tailored solutions to its clients. These collaborations not only enhance their service offerings but also contribute to their revenue through shared projects and commissions on cloud service sales.

FLECT Co.,Ltd. Financial Statement Overview

Summary

FLECT Co.,Ltd. showcases a robust financial performance with strong revenue and profit growth, improved operational efficiency, and a solid balance sheet. The company's ability to generate cash flow efficiently further strengthens its financial standing. While the increase in liabilities is noteworthy, the overall financial health remains strong with effective leverage and equity utilization.

Income Statement

FLECT Co.,Ltd. has demonstrated strong revenue growth with a significant increase from 6.93 billion JPY to 7.95 billion JPY over the last year, marking a revenue growth rate of 14.72%. The gross profit margin remains robust at 44.57%, and the net profit margin has improved to 9.07%. The company has also seen an increase in EBIT and EBITDA margins, indicating improved operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.19, showcasing strong financial leverage management. The return on equity has improved to 26.47%, indicating effective utilization of equity capital. The equity ratio is strong at 64.84%, suggesting a solid financial structure. However, the total liabilities have increased, which needs monitoring.

Cash Flow

Operating cash flow has improved significantly to 895 million JPY, with a strong free cash flow of 834 million JPY, leading to a favorable free cash flow to net income ratio of 1.16. The operating cash flow to net income ratio of 1.24 indicates efficient cash conversion. The free cash flow growth rate is 79.74%, reflecting enhanced cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.95B	6.93B	5.31B	3.64B	2.56B
Gross Profit	3.53B	3.54B	3.00B	2.05B	1.61B	1.08B
EBITDA	1.12B	1.18B	871.12M	343.06M	318.42M	-110.20M
Net Income	685.34M	720.79M	440.47M	222.50M	266.40M	-194.92M
Balance Sheet
Total Assets	3.96B	4.20B	4.01B	2.88B	2.69B	1.50B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.13B	1.58B	1.16B	1.64B	896.56M
Total Debt	500.93M	517.87M	585.29M	633.11M	691.24M	763.57M
Total Liabilities	1.15B	1.48B	2.02B	1.35B	1.40B	1.26B
Stockholders Equity	2.80B	2.72B	1.99B	1.53B	1.29B	243.03M
Cash Flow
Free Cash Flow	0.00	833.94M	464.01M	-447.92M	97.37M	-317.53M
Operating Cash Flow	0.00	895.21M	600.03M	-306.04M	161.48M	-253.62M
Investing Cash Flow	0.00	-288.05M	-149.63M	-135.81M	-101.29M	13.88M
Financing Cash Flow	0.00	-54.13M	-30.36M	-42.19M	682.32M	618.14M

FLECT Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1843.00
• 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:4414, the sentiment is Negative. The current price of 1843 is below the 20-day moving average (MA) of 1909.60, below the 50-day MA of 1924.42, and below the 200-day MA of 1944.63, indicating a bearish trend. The MACD of -26.23 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4414	74 Outperform	¥11.41B	16.34	―	―	6.86%	30.13%
2428	74 Outperform	¥12.74B	11.76	―	4.06%	7.76%	30.00%
4811	71 Outperform	¥14.27B	19.22	―	1.03%	16.64%	87.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3665	61 Neutral	¥16.74B	63.23	―	2.49%	8.77%	-63.71%
3695	61 Neutral	¥8.72B	50.20	―	5.69%	14.59%	-71.29%
4488	60 Neutral	¥11.22B	77.06	―	―	6.29%	-180.52%