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Serverworks Co., Ltd.
(4434)
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Rating:63Neutral
Price Target:
¥2,526.00
▲(38.94% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by acceptable financial quality with strong revenue growth but weakened profitability (including a net loss) and some balance-sheet/cash-flow volatility. Technically, the stock shows a positive trend above key moving averages, while valuation is held back by negative earnings despite a modest dividend yield.
Positive Factors
Revenue Growth
Sustained revenue growth across years indicates the company is scaling its cloud services and winning client engagements. Durable top-line expansion supports reinvestment in product and operations, increases bargaining power with cloud vendors, and helps absorb short-term profit volatility.
Negative Factors
Profitability Deterioration
A move to a net loss, even with positive operating profit, signals worsening below-the-line items (finance costs, one-offs, taxes) or margin compression. Persistent earnings weakness could limit reinvestment capacity, dividend sustainability, and investor confidence over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth across years indicates the company is scaling its cloud services and winning client engagements. Durable top-line expansion supports reinvestment in product and operations, increases bargaining power with cloud vendors, and helps absorb short-term profit volatility.
Read all positive factors
Serverworks Co., Ltd. (4434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥19.11B
Dividend Yield1.04%
Average Volume (3M)49.51K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth17.69%
EPS Growth-175.52%
CountryJP
Employees520
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-49.58
Shares Outstanding7,956,485
10 Day Avg. Volume29,330
30 Day Avg. Volume49,506
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.63
Price to Sales (P/S)0.40
P/FCF Ratio20.72
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)129.9
Revenue Forecast (FY)¥48.30B
Serverworks Co., Ltd. Business Overview & Revenue Model
Company Description
Serverworks Co., Ltd. (4434) is a Japan-based IT services company focused on cloud computing, providing services that support the design, migration, operation, and optimization of customer systems in public cloud environments. The company’s offeri...
How the Company Makes Money
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Serverworks Co., Ltd. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
73
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.72B | 40.01B | 35.72B | 27.51B | 17.30B | 10.92B |
| Gross Profit | 3.94B | 3.64B | 4.10B | 3.54B | 2.30B | 1.75B |
| EBITDA | 277.42M | 777.26M | 1.15B | 1.05B | 724.71M | 708.93M |
| Net Income | -390.08M | -600.96M | 677.33M | 638.36M | 453.58M | 442.35M |
Balance Sheet | ||||||
| Total Assets | 21.90B | 20.26B | 20.49B | 18.28B | 14.74B | 11.67B |
| Cash, Cash Equivalents and Short-Term Investments | 6.50B | 6.66B | 6.64B | 6.89B | 5.65B | 6.80B |
| Total Debt | 600.00M | 720.00M | 0.00 | 100.00M | 0.00 | 0.00 |
| Total Liabilities | 11.81B | 10.52B | 9.03B | 7.61B | 5.06B | 2.58B |
| Stockholders Equity | 10.09B | 9.74B | 11.46B | 10.66B | 9.66B | 9.04B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 763.48M | 836.35M | 1.67B | 8.52M | 280.87M |
| Operating Cash Flow | 0.00 | 773.54M | 906.59M | 1.73B | 81.52M | 337.95M |
| Investing Cash Flow | 0.00 | 149.18M | -1.00B | -439.40M | -799.59M | -1.07B |
| Financing Cash Flow | 0.00 | -398.62M | -677.27M | 121.44M | -437.33M | 101.05M |
Serverworks Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥37.13B | 14.43 | 20.19% | 3.09% | 9.27% | 48.93% | |
80 Outperform | ¥31.53B | 21.33 | ― | 1.74% | 8.98% | 12.22% | |
78 Outperform | ¥28.64B | 16.99 | ― | ― | 15.26% | 62.04% | |
77 Outperform | ¥47.97B | 32.03 | ― | 0.64% | ― | ― | |
63 Neutral | ¥19.11B | -48.16 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | ¥137.53B | 97.91 | ― | 0.14% | 18.12% | -45.73% |
* Technology Sector Average
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Serverworks Co., Ltd. Corporate Events
Serverworks Details Q1 FY02/27 Financial Summary and Business Overview
Jul 15, 2026
Serverworks Co., Ltd. has released its financial summary for the first quarter of fiscal year ending February 2027, outlining headline figures and key topics for the period. The disclosure also includes anticipated questions and answers, supplemen...
Serverworks Delivers Surging Profits and Lifts Dividend Outlook
Jul 15, 2026
Serverworks reported strong results for the three months ended May 31, 2026, with net sales rising 29.4% year on year to ¥11.9 billion and operating profit nearly doubling to ¥398 million. Profit attributable to owners of the parent surg...
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.