Serverworks Co., Ltd. (JP:4434)
:4434
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Serverworks Co., Ltd.
(4434)
Select Model
Select Model
Rating:61Neutral
Price Target:
¥2,082.00
▲(14.52% Upside)
Action:N/ADate:01/04/26
The score is primarily supported by a very strong, low-leverage balance sheet and generally positive cash generation, but is held back by clear profitability/margin compression and only neutral-to-weak technical positioning (below key longer-term moving averages). Valuation signals are also less supportive due to a negative P/E and no dividend yield data.
Positive Factors
Low-leverage balance sheet
Minimal debt and steadily expanding equity materially reduce financial risk and interest burden, giving management durable flexibility to invest in cloud capabilities, scale operations, or weather downturns without relying on external leverage for growth or strategic initiatives.
Negative Factors
Material margin compression
Sustained deterioration in gross and net margins erodes the company's profit pool, limiting internal cash available for R&D, sales expansion and margin-supporting investments. Lower margins also reduce resilience to pricing pressure and could impair long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-leverage balance sheet
Minimal debt and steadily expanding equity materially reduce financial risk and interest burden, giving management durable flexibility to invest in cloud capabilities, scale operations, or weather downturns without relying on external leverage for growth or strategic initiatives.
Read all positive factors
Serverworks Co., Ltd. (4434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.45B
Dividend YieldN/A
Average Volume (3M)49.51K
Price to Earnings (P/E)8.7
Beta (1Y)1.31
Revenue GrowthN/A
EPS GrowthN/A
CountryJP
Employees370
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)51.34
Shares Outstanding7,936,261
10 Day Avg. Volume29,330
30 Day Avg. Volume49,506
Financial Highlights & Ratios
PEG Ratio5.06
Price to Book (P/B)1.63
Price to Sales (P/S)0.52
P/FCF Ratio22.31
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)130.1
Revenue Forecast (FY)¥46.90B
Serverworks Co., Ltd. Business Overview & Revenue Model
Company Description
Serverworks Co.,Ltd. operates as a cloud integrator that provides integration business and service specialized for Amazon Web Services (AWS). The company is involved in planning, development, and operation of systems utilizing cloud computing; and...
How the Company Makes Money
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Serverworks Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.30B | 35.72B | 27.51B | 17.30B | 10.92B | 8.03B |
| Gross Profit | 3.91B | 4.10B | 3.54B | 2.30B | 1.75B | 1.22B |
| EBITDA | 871.32M | 1.15B | 1.05B | 724.71M | 707.02M | 724.69M |
| Net Income | 513.63M | 677.33M | 638.36M | 453.58M | 442.35M | 482.27M |
Balance Sheet | ||||||
| Total Assets | 20.66B | 20.49B | 18.28B | 14.74B | 11.67B | 10.77B |
| Cash, Cash Equivalents and Short-Term Investments | 6.24B | 6.64B | 6.89B | 5.65B | 6.80B | 7.43B |
| Total Debt | 0.00 | 0.00 | 100.00M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 9.31B | 9.03B | 7.61B | 5.06B | 2.58B | 1.92B |
| Stockholders Equity | 11.35B | 11.46B | 10.66B | 9.66B | 9.04B | 8.86B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 836.35M | 1.67B | 8.52M | 280.87M | 447.53M |
| Operating Cash Flow | 0.00 | 906.59M | 1.73B | 81.52M | 337.95M | 529.87M |
| Investing Cash Flow | 0.00 | -1.00B | -439.40M | -799.59M | -1.07B | 159.59M |
| Financing Cash Flow | 0.00 | -677.27M | 121.44M | -437.33M | 101.05M | 5.16B |
Serverworks Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥29.70B | 19.37 | ― | 1.74% | 21.97% | 15.89% | |
73 Outperform | ¥31.91B | 16.59 | 19.71% | 3.09% | 3.44% | 79.35% | |
68 Neutral | ¥21.45B | 9.96 | ― | ― | 17.93% | 91.21% | |
68 Neutral | ¥30.36B | 27.58 | ― | 0.39% | 30.59% | 65.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥15.45B | 8.71 | ― | ― | ― | ― | |
52 Neutral | ¥121.94B | 367.27 | ― | 0.14% | 36.42% | 28.23% |
* Technology Sector Average
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Serverworks Co., Ltd. Corporate Events
Serverworks Grows Revenue but Swings to Loss and Cuts Profit Outlook While Planning Dividend Resumption
Jan 14, 2026
Serverworks reported consolidated net sales of ¥29.1 billion for the nine months ended November 30, 2025, an 11.0% year-on-year increase, but operating profit fell 55.9% to ¥363 million and ordinary profit declined 42.8% to ¥485 mil...
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.