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TOKAI SOFT CO.,LTD. (JP:4430)
:4430
Japanese Market
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TOKAI SOFT CO.,LTD. (4430) AI Stock Analysis

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JP:4430

TOKAI SOFT CO.,LTD.

(4430)

Rating:81Outperform
Price Target:
¥1,872.00
▲(16.85% Upside)
TOKAI SOFT CO.,LTD. receives a strong overall score driven by its robust financial performance and attractive valuation. The technical analysis supports a positive outlook with moderate bullish momentum. The absence of earnings call and corporate events data does not impact the overall assessment.

TOKAI SOFT CO.,LTD. (4430) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTOKAI SOFT CO.,LTD. (4430) is a Japanese technology company specializing in software development and IT solutions. The company operates primarily in the fields of cloud computing, data management, and enterprise software, offering a range of products designed to enhance operational efficiency for businesses. TOKAI SOFT is known for its innovative approaches to software as a service (SaaS), providing clients with scalable solutions that cater to various industry needs.
How the Company Makes MoneyTOKAI 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.68B8.74B7.72B7.30B6.68B
Gross Profit2.55B2.16B1.95B1.69B1.48B
EBITDA1.38B1.13B989.64M796.33M705.75M
Net Income813.37M736.31M623.76M442.79M402.80M
Balance Sheet
Total Assets11.24B8.39B7.79B7.81B7.27B
Cash, Cash Equivalents and Short-Term Investments2.20B1.70B1.48B1.88B1.29B
Total Debt2.49B1.07B1.40B1.71B2.03B
Total Liabilities5.18B3.09B3.09B3.73B3.49B
Stockholders Equity6.06B5.31B4.70B4.08B3.78B
Cash Flow
Free Cash Flow745.35M702.40M-18.23M1.14B-3.23B
Operating Cash Flow751.25M737.05M12.72M1.23B-160.04M
Investing Cash Flow-248.36M-36.96M-33.53M-74.05M-2.55B
Financing Cash Flow-3.53M-476.33M-385.39M-564.03M1.76B

TOKAI SOFT CO.,LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1602.00
Price Trends
50DMA
1583.30
Positive
100DMA
1567.43
Positive
200DMA
1482.91
Positive
Market Momentum
MACD
7.59
Positive
RSI
47.32
Neutral
STOCH
11.40
Positive
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 1602 is below the 20-day moving average (MA) of 1633.35, above the 50-day MA of 1583.30, and above the 200-day MA of 1482.91, indicating a neutral trend. The MACD of 7.59 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 11.40 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥9.07B11.37
4.27%9.06%44.41%
81
Outperform
¥7.88B9.41
3.43%22.22%10.20%
76
Outperform
¥12.82B29.18
0.42%21.21%82.61%
75
Outperform
¥7.68B26.92
1.77%8.21%-16.15%
71
Outperform
¥8.95B13.39
3.06%3.28%13.20%
61
Neutral
$35.56B8.62-10.46%1.86%8.47%-8.26%
55
Neutral
¥8.28B87.48
-45.37%-346.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4430
TOKAI SOFT CO.,LTD.
1,616.00
440.22
37.44%
JP:3633
GMO Pepabo, Inc.
1,730.00
422.67
32.33%
JP:4374
ROBOT PAYMENT INC.
3,360.00
1,198.67
55.46%
JP:4667
Aisan Technology Co., Ltd.
1,412.00
268.48
23.48%
JP:5129
FIXER Inc.
559.00
-456.00
-44.93%
JP:9558
Japaniace Co., Ltd.
2,296.00
249.77
12.21%
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.Date of analysis: Aug 29, 2025