Serverworks Co., Ltd. (JP:4434)
:4434
Want to see JP:4434 full AI Analyst Report?
Top Page
Serverworks Co., Ltd.
(4434)
Select Model
Select Model
Rating:68Neutral
Price Target:
¥2,224.00
▲(22.33% Upside)
Action:ReiteratedDate:04/17/26
The score is driven primarily by solid-but-mixed financial performance: strong revenue growth and a healthy balance sheet are offset by weakened profitability (including a net loss) and volatile cash flow. Technicals are moderately bullish with the stock trading above key moving averages and positive momentum, while valuation is supportive due to a low P/E and a modest dividend yield.
Positive Factors
Sustained revenue growth
Consistent multi-year top-line growth and a ~10% revenue increase in 2026 indicate expanding customer adoption of cloud services. Durable demand for migrations and managed services supports predictable project pipelines and underpins mid-term revenue expansion independent of short-term market swings.
Negative Factors
Deteriorating profitability and net loss
A net loss in 2026—despite operating profit—signals material below-the-line pressures (e.g., financing, one-offs or non-op costs) eroding retained earnings. Persistent losses would deplete equity, constrain reinvestment in services, and raise the need for external financing or cost restructuring over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Consistent multi-year top-line growth and a ~10% revenue increase in 2026 indicate expanding customer adoption of cloud services. Durable demand for migrations and managed services supports predictable project pipelines and underpins mid-term revenue expansion independent of short-term market swings.
Read all positive factors
Serverworks Co., Ltd. (4434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.09B
Dividend YieldN/A
Average Volume (3M)49.51K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth12.01%
EPS Growth-191.28%
CountryJP
Employees370
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-12.59
Shares Outstanding7,936,261
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)¥47.00B
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
null...
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 | 36.30B | 40.01B | 35.72B | 27.51B | 17.30B | 10.92B |
| Gross Profit | 3.91B | 3.64B | 4.10B | 3.54B | 2.30B | 1.75B |
| EBITDA | 871.32M | 777.26M | 1.15B | 1.05B | 724.71M | 707.02M |
| Net Income | 513.63M | -600.96M | 677.33M | 638.36M | 453.58M | 442.35M |
Balance Sheet | ||||||
| Total Assets | 20.66B | 20.26B | 20.49B | 18.28B | 14.74B | 11.67B |
| Cash, Cash Equivalents and Short-Term Investments | 6.24B | 6.66B | 6.64B | 6.89B | 5.65B | 6.80B |
| Total Debt | 0.00 | 720.00M | 0.00 | 100.00M | 0.00 | 0.00 |
| Total Liabilities | 9.31B | 10.52B | 9.03B | 7.61B | 5.06B | 2.58B |
| Stockholders Equity | 11.35B | 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥30.76B | 19.37 | ― | 1.74% | 18.05% | 15.78% | |
73 Outperform | ¥33.02B | 16.59 | 19.71% | 3.09% | 6.21% | 33.18% | |
71 Outperform | ¥22.65B | 14.66 | ― | ― | 13.54% | 54.38% | |
68 Neutral | ¥16.09B | -26.33 | ― | ― | 12.01% | -191.28% | |
68 Neutral | ¥31.04B | 27.58 | ― | 0.39% | 27.56% | 36.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | ¥125.13B | 459.59 | ― | 0.14% | 12.38% | -92.66% |
* Technology Sector Average
JP:4434
Serverworks Co., Ltd.
2,028.00
-225.12
-9.99%
JP:3040
Soliton Systems KK
1,784.00
561.82
45.97%
JP:3741
Systems Engineering Consultants Co., Ltd.
3,005.00
836.50
38.57%
JP:3778
SAKURA Internet Inc.
3,130.00
-163.71
-4.97%
JP:3915
TerraSky Co., Ltd.
1,754.00
-665.56
-27.51%
JP:4475
HENNGE K.K.
955.00
-773.38
-44.75%
Serverworks Co., Ltd. Corporate Events
Serverworks Releases FY02/26 Financial Summary and FY02/27 Outlook
Apr 14, 2026
Serverworks Co., Ltd. has released its FY02/26 financial summary, outlining overall performance, key business topics, and a consolidated view of its financial condition. The disclosure also includes anticipated investor questions, a performance ou...
Serverworks Swings to Loss Despite Higher Sales, Signals Profit Rebound and Higher Dividends
Apr 14, 2026
Serverworks reported consolidated net sales of ¥40.0 billion for the fiscal year ended Feb. 28, 2026, up 12.0% year on year, but operating profit dropped 41.7% to ¥625 million and ordinary profit fell 28.1% to ¥766 million. The comp...
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.