Future Corporation (4722) AI Stock Analysis

• Market Cap: ¥175.90B
• Dividend Yield: 2.22%
• Average Volume (3M): 123.85K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.40
• Revenue Growth: 9.29%
• EPS Growth: 1.18%
• Country: JP
• Employees: 3,499
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 37.73
• Shares Outstanding: 95,328,000
• 10 Day Avg. Volume: 103,480
• 30 Day Avg. Volume: 123,853
• PEG Ratio: 1.34
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 17.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,249.00 ▲(12.39% Upside)

The score is primarily driven by strong financial performance—steady growth, healthy margins, and high ROE—tempered by emerging balance-sheet and cash-conversion variability risks. Technicals are only neutral-to-weak (below key longer-term moving averages with negative MACD), while valuation is reasonable with a modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for services and effective market strategies, supporting long-term business expansion.

Profitability

High profitability margins suggest efficient operations and pricing power, which can sustain competitive advantage and shareholder returns.

Equity Ratio

A strong equity ratio enhances financial stability and reduces risk, providing a solid foundation for future growth and investment.

Negative Factors

Debt Increase

Increased debt levels can elevate financial risk and interest obligations, potentially impacting cash flow and limiting strategic flexibility.

Cash Conversion Variability

Inconsistent cash conversion may indicate volatility in working capital management, affecting liquidity and operational efficiency.

Subsidiary Performance

Underperformance in key subsidiaries could hinder overall growth and profitability, necessitating strategic adjustments to maintain momentum.

Future Corporation Business Overview & Revenue Model

Company Description

Future Corporation provides IT consulting and services primarily in Japan. The company offers its services in digital marketing, IT education, e-commerce, and various other fields. The company was formerly known as Future Architect, Inc. and changed its name to Future Corporation in April 2016. Future Corporation was founded in 1989 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Future Corporation generates revenue through the sale of its consumer electronics, which include smart devices, wearable technology, and home automation systems. The company also earns money from its software development segment by licensing its proprietary software and offering subscription-based services for cloud computing and data analytics. Additionally, Future Corporation has significant investments in renewable energy projects, providing sustainable energy solutions to businesses and governments, which contribute to its earnings. Strategic partnerships with technology firms and energy providers further bolster its revenue streams by expanding its market reach and enhancing its product offerings.

Future Corporation Financial Statement Overview

Summary

Future Corporation exhibits a robust financial position with strong revenue and profit growth, efficient cost management, and low leverage. The company efficiently converts earnings into cash, supporting its growth initiatives.

Income Statement

Future Corporation shows strong revenue growth with a 17.8% increase from the previous year. The gross profit margin stands at 48.2%, indicating efficient cost management. Net profit margin has increased to 14.8%, reflecting improved profitability. Both EBIT and EBITDA margins are robust at 21.0% and 24.9%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 60.3%. The debt-to-equity ratio is low at 0.32, indicating low leverage risk. Return on equity is high at 18.6%, demonstrating effective use of shareholders' equity to generate profits.

Cash Flow

Operating cash flow to net income ratio is at 1.03, indicating good cash conversion from earnings. Free cash flow grew by 57.2%, showcasing excellent cash generation capability. However, the free cash flow to net income ratio at 0.92 suggests substantial reinvestment back into the business.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.57B	69.88B	59.32B	53.74B	48.70B	44.31B
Gross Profit	33.03B	33.70B	28.81B	26.66B	22.55B	18.07B
EBITDA	18.05B	17.43B	15.01B	13.47B	10.33B	6.67B
Net Income	10.03B	10.32B	9.22B	9.24B	6.37B	3.80B
Balance Sheet
Total Assets	93.21B	92.05B	66.04B	57.86B	54.48B	49.82B
Cash, Cash Equivalents and Short-Term Investments	34.75B	32.37B	28.21B	27.65B	22.43B	16.11B
Total Debt	16.43B	17.86B	0.00	0.00	0.00	3.32M
Total Liabilities	34.30B	36.56B	14.66B	13.03B	12.68B	11.59B
Stockholders Equity	58.91B	55.49B	51.39B	44.83B	41.80B	38.18B
Cash Flow
Free Cash Flow	0.00	9.54B	6.07B	8.40B	8.59B	3.90B
Operating Cash Flow	0.00	10.68B	7.57B	10.17B	9.61B	4.45B
Investing Cash Flow	0.00	-20.41B	-3.03B	-1.01B	-1.69B	-666.80M
Financing Cash Flow	0.00	13.81B	-3.90B	-3.02B	-2.50B	-2.71B

Future Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2001.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4722, the sentiment is Negative. The current price of 2001 is above the 20-day moving average (MA) of 1981.54, above the 50-day MA of 1999.13, and below the 200-day MA of 2076.96, indicating a neutral trend. The MACD of 5.82 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4722.

Future Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4722	76 Outperform	¥175.90B	17.21	―	2.22%	9.29%	1.18%
2317	76 Outperform	¥187.72B	18.05	―	2.30%	13.82%	37.07%
9746	73 Outperform	¥216.21B	18.10	―	2.55%	10.98%	8.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Future Corporation Corporate Events

Future Corporation Announces Corrections to Financial Results

Future Corporation announced corrections to its previously released financial results for the nine months ended September 30, 2025. The corrections highlight a decrease in revenue and profit for its subsidiary, Future Artisan, Inc., due to lower-than-expected project orders and increased software amortization expenses, despite securing new large-scale projects in the PLM business and DX consulting projects.

Future Corporation Reports Q3 Growth Amid Global Uncertainty

Future Corporation reported a 6.5% increase in net sales and a 1.0% rise in operating income for the third quarter of the fiscal year ending December 31, 2025, despite global economic uncertainties. The company successfully launched its ‘Next-Generation Banking System’ for multiple banks and saw contributions from Revamp Corporation, although net profit decreased due to a special corporate tax. The IT Consulting & Services segment showed mixed results, with some subsidiaries experiencing growth while others faced challenges, highlighting the company’s ongoing efforts in digital transformation and IT investment.

Future Corporation Reports 6.5% Increase in Net Sales for Nine Months Ending September 2025

Future Corporation reported its consolidated financial results for the nine months ending September 30, 2025, showing a 6.5% increase in net sales compared to the previous year. Despite this growth, the profit attributable to owners of the parent decreased by 1.1%. The company’s equity ratio improved to 64.6%, and it announced an increase in annual dividends per share for the fiscal year ending December 31, 2025, reflecting a positive outlook on future performance.