TOKAI SOFT CO.,LTD. (4430) AI Stock Analysis

• Market Cap: ¥8.82B
• Dividend Yield: 3.06%
• Average Volume (3M): 30.25K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.61
• Revenue Growth: 27.08%
• EPS Growth: 18.85%
• Country: JP
• Employees: 565
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 50.59
• Shares Outstanding: 4,920,300
• 10 Day Avg. Volume: 61,840
• 30 Day Avg. Volume: 30,253
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,828.00
• Price Target Upside: 4.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,828.00 ▲(4.16% Upside)

TOKAI SOFT CO.,LTD. has a strong financial foundation with impressive revenue growth and profitability. The valuation is attractive with a low P/E ratio and a solid dividend yield. Technical indicators suggest a neutral to slightly bullish trend, though momentum is weak. Overall, the stock is well-positioned for potential growth and offers value to investors.

TOKAI SOFT CO.,LTD. Business Overview & Revenue Model

Company Description

Tokai Soft Co., Ltd. provides factory automation and embedded software development and network infrastructure technology services. It develops industrial system, which includes artificial intelligence system, kaizen solution, images solution, FA system, logistics system, and product development; business system, such as contract business development, enterprise resource planning, manufacturing execution system, IoT/cloud solution, and data visualization/digitization solution; and government system development. The company also offers embedded software development, comprising vending machine software development, embedded system construction technology, collaboration and project participation, and refactoring; and in-vehicle software development, which consist ECU software development, model-based development, and autosar platform development support. Tokai Soft Co., Ltd. was founded in 1970 and is based in Nagoya, Japan.

How the Company Makes Money

TOKAI SOFT generates revenue through a multi-faceted model that includes subscription fees for its software products, licensing agreements, and consulting services. The primary revenue stream comes from its SaaS offerings, where customers pay recurring fees to access software applications hosted in the cloud. Additionally, the company earns income from custom software development projects and support services for businesses looking to implement or optimize their IT infrastructure. Strategic partnerships with other tech firms enhance its service offerings and broaden its market reach, further contributing to its financial performance.

TOKAI SOFT CO.,LTD. Financial Statement Overview

Summary

TOKAI SOFT CO.,LTD. demonstrates strong financial performance with impressive revenue growth and healthy profitability margins. The balance sheet is stable with moderate leverage and strong equity returns. Cash flow generation is robust, though there is room for efficiency improvements.

Income Statement

TOKAI SOFT CO.,LTD. has demonstrated strong revenue growth with a 15.28% increase in the latest year, indicating a robust expansion trajectory. The company maintains healthy profitability margins, with a gross profit margin of approximately 23.84% and a net profit margin of 7.61%. The EBIT and EBITDA margins are also solid, reflecting efficient operational management. Overall, the income statement reflects a strong financial performance with consistent growth and profitability.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.41, indicating moderate leverage. The return on equity is strong at 13.88%, suggesting effective use of equity capital. The equity ratio stands at 53.90%, highlighting a solid equity base relative to total assets. Overall, the balance sheet reflects a healthy financial structure with manageable debt levels and strong equity returns.

Cash Flow

TOKAI SOFT CO.,LTD. has shown significant improvement in free cash flow, with a remarkable growth rate of 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is 0.92, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is slightly lower at 0.92, suggesting room for improvement in cash flow efficiency. Overall, the cash flow statement reflects positive cash generation with potential for further optimization.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.68B	8.74B	7.72B	7.30B	6.68B
Gross Profit	2.55B	2.16B	1.95B	1.69B	1.48B
EBITDA	1.38B	1.13B	989.64M	796.33M	705.75M
Net Income	813.37M	736.31M	623.76M	442.79M	402.80M
Balance Sheet
Total Assets	11.24B	8.39B	7.79B	7.81B	7.27B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.70B	1.48B	1.88B	1.29B
Total Debt	2.49B	1.07B	1.40B	1.71B	2.03B
Total Liabilities	5.18B	3.09B	3.09B	3.73B	3.49B
Stockholders Equity	6.06B	5.31B	4.70B	4.08B	3.78B
Cash Flow
Free Cash Flow	745.35M	702.40M	-18.23M	1.14B	-3.23B
Operating Cash Flow	751.25M	737.05M	12.72M	1.23B	-160.04M
Investing Cash Flow	-248.36M	-36.96M	-33.53M	-74.05M	-2.55B
Financing Cash Flow	-3.53M	-476.33M	-385.39M	-564.03M	1.76B

TOKAI SOFT CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1755.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4430, the sentiment is Positive. The current price of 1755 is above the 20-day moving average (MA) of 1671.40, above the 50-day MA of 1640.20, and above the 200-day MA of 1534.66, indicating a bullish trend. The MACD of 51.91 indicates Negative momentum. The RSI at 71.62 is Negative, neither overbought nor oversold. The STOCH value of 78.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4430.

TOKAI SOFT CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9558	83 Outperform	¥9.67B	11.88	―	4.07%	8.03%	34.39%
4430	77 Outperform	¥8.82B	9.41	―	3.06%	27.08%	18.85%
4374	76 Outperform	¥11.17B	25.60	―	0.47%	21.21%	82.61%
4667	75 Outperform	¥8.39B	29.02	―	1.64%	8.21%	-16.15%
3633	71 Outperform	¥11.01B	16.47	―	2.55%	3.28%	13.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5129	57 Neutral	¥6.63B	87.48	―	―	-38.47%	-1455.49%