Future Corporation (4722) AI Stock Analysis

• Market Cap: ¥141.73B
• Dividend Yield: 2.22%
• Average Volume (3M): 123.85K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.42
• Revenue Growth: 9.29%
• EPS Growth: 1.18%
• Country: JP
• Employees: 3,499
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 42.80
• Shares Outstanding: 95,328,000
• 10 Day Avg. Volume: 103,480
• 30 Day Avg. Volume: 123,853
• PEG Ratio: 1.12
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 25.06
• 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): 144.15
• Revenue Forecast (FY): ¥84.03B

• Rating: 67 Neutral
• Price Target: ¥1,737.00 ▼(-13.19% Downside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is driven primarily by strong fundamentals (profitability, ROE, and conservative leverage), partially offset by weaker recent cash-flow conversion. Technicals are the main drag, with a clear downtrend and very weak momentum despite oversold readings. Valuation is reasonable with a moderate P/E and a ~2.6% dividend yield.

Positive Factors

Strong profitability and high ROE

ROE near 18.7% and consistent returns indicate the company converts equity into profit efficiently. Sustained high ROE supports durable capital-generation, reinvestment capacity and shareholder distributions, reflecting a structurally profitable business model in IT services.

Conservative balance sheet and low leverage

Modest leverage (D/E ~0.24) and meaningful equity growth provide financial flexibility to fund investments, absorb cyclicality, or pursue acquisitions without straining coverage. A conservative capital structure supports resilient operations over multiple quarters.

Steady revenue growth with healthy margins

Consistent top-line growth paired with robust gross and EBIT margins signals durable operating economics and potential for long-term operating leverage. Strong margins in IT services support reinvestment and margin resilience versus peers through product mix and pricing.

Negative Factors

Weaker cash conversion and operating cash flow decline

Declining operating cash flow and a coverage ratio near 0.51 indicate working-capital or timing pressure that reduces cash reliability. Over months this raises variability in free cash generation, potentially constraining capex, dividends, or opportunistic M&A despite reported profits.

Mild margin compression year-over-year

Observed margin decline between years suggests cost pressures or mix shifts that erode operating leverage. If persistent, margin compression can reduce sustainable profitability, lower cashflow margins and limit capital available for strategic investments over the next several quarters.

Increase in absolute debt since 2023

Rising absolute debt from zero in 2023 increases fixed obligations and interest exposure versus prior years. Even with low leverage, higher nominal debt can reduce financial optionality and raise refinancing or interest-rate risk if the company needs external funding in adverse conditions.

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.

Future Corporation Financial Statement Overview

Summary

Strong profitability and returns with steady revenue growth and low leverage (healthy margins and ~18.7% ROE; debt-to-equity ~0.24). Main offset is weaker cash conversion in 2025 as operating cash flow declined and covered a smaller share of operating profit, adding variability risk.

Income Statement

Revenue has grown steadily across the period, accelerating in 2025 (annual revenue growth ~4.7% vs. low/near-flat growth in 2024). Profitability is strong for IT services, with 2025 gross margin ~45.6% and net margin ~15.4%, and operating profitability remaining healthy (EBIT margin ~22.9%). The main weakness is mild margin compression from 2024 to 2025 (gross and net margins dipped), suggesting some cost pressure despite higher scale.

Balance Sheet

The balance sheet looks conservatively positioned with modest leverage: 2025 debt-to-equity is ~0.24 and equity has grown meaningfully versus prior years. Returns remain strong and consistent, with return on equity around ~18.7% in 2025 (similar to 2024), indicating solid profitability on the capital base. A watch item is the increase in absolute debt since 2023 (when debt was reported at zero), though overall leverage remains very manageable.

Cash Flow

Cash generation is positive, with 2025 free cash flow of ~¥7.0B and free cash flow running at ~81% of net income, which is generally supportive of earnings quality. However, cash conversion weakened recently: operating cash flow fell in 2025 (~¥8.7B) versus 2024 (~¥10.7B), and operating cash flow covered only about half of operating profit in 2025 (coverage ~0.51), down from 2024 (~0.67). This indicates more working-capital or timing drag and adds variability risk despite solid profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.57B	75.99B	69.88B	59.32B	53.74B	48.70B
Gross Profit	33.03B	34.69B	33.70B	28.81B	26.66B	22.55B
EBITDA	18.05B	20.85B	17.43B	15.01B	13.47B	10.33B
Net Income	10.03B	11.71B	10.32B	9.22B	9.24B	6.37B
Balance Sheet
Total Assets	93.21B	97.49B	93.27B	66.72B	58.53B	54.48B
Cash, Cash Equivalents and Short-Term Investments	34.75B	32.80B	32.37B	28.21B	27.65B	22.43B
Total Debt	16.43B	15.00B	18.03B	0.00	0.00	0.00
Total Liabilities	34.30B	34.73B	37.78B	15.33B	13.70B	12.68B
Stockholders Equity	58.91B	62.76B	55.49B	51.39B	44.83B	41.80B
Cash Flow
Free Cash Flow	0.00	7.02B	10.29B	7.40B	10.10B	9.34B
Operating Cash Flow	0.00	8.66B	10.68B	7.57B	10.17B	9.61B
Investing Cash Flow	0.00	-1.39B	-20.41B	-3.03B	-1.01B	-1.69B
Financing Cash Flow	0.00	-6.88B	13.81B	-3.90B	-3.02B	-2.50B

Future Corporation Technical Analysis

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

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 1696.05, above the 50-day MA of 1816.68, and below the 200-day MA of 2072.18, indicating a bearish trend. The MACD of -55.52 indicates Positive momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.85 is Positive, 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
2317	76 Outperform	¥151.48B	14.81	―	2.30%	13.82%	37.07%
9715	75 Outperform	¥147.83B	9.34	11.52%	2.76%	4.00%	38.72%
3923	74 Outperform	¥265.49B	28.54	―	0.22%	25.00%	62.07%
4722	67 Neutral	¥141.73B	15.01	―	2.22%	9.29%	1.18%
9682	66 Neutral	¥169.13B	15.99	18.89%	2.78%	11.90%	60.66%
4725	65 Neutral	¥30.97B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Future Corporation Corporate Events

Future Corporation Elevates CTO Yohei Saito to Lead Core Subsidiary Future Architect

Future Corporation has named Group Chief Technology Strategy Officer Yohei Saito as the next Representative Director and President of its core subsidiary Future Architect, Inc., effective March 26, 2026, elevating him from his current role as Executive Vice President. Incumbent president Tomohiko Taniguchi will shift to Chairman of the Board, signaling a leadership transition that keeps continuity at the top while reinforcing the subsidiary’s technology-led growth agenda.

Saito’s appointment caps a 25-year career within the group, during which he has led IT and AI research and development, expanded the technology organization through aggressive hiring, and helped turn R&D results into client-facing projects. By placing its long-time CTO and technology strategist in charge of the main operating unit, Future Corporation is underscoring the centrality of advanced IT and AI capabilities to its competitive positioning and future expansion.

The most recent analyst rating on (JP:4722) stock is a Hold with a Yen1933.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.

Future Corporation Revamps Board Lineup and Confirms Year-End Dividend

Future Corporation has outlined a refreshed leadership slate ahead of its March 26, 2026 shareholders meeting, reappointing key executives including Chairman Yasufumi Kanemaru and several senior technology and financial business leaders. The company is also promoting Executive Officer Mina Morioka to Director and Group Chief Human Resources Officer, underscoring a focus on group-wide talent management and organizational development.

The board will likewise retain its existing audit and supervisory framework, with all current Audit and Supervisory Committee members, including several outside directors, nominated for reappointment. Alongside these governance moves, the company approved a year-end dividend of surplus based on a December 31, 2025 record date, signaling continued capital returns to shareholders and stability in its financial policy.

The most recent analyst rating on (JP:4722) stock is a Hold with a Yen1933.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.

Future Corporation Names Taniguchi as New President in Planned Leadership Shift

Future Corporation has announced a leadership transition in which Tomohiko Taniguchi, a veteran executive with extensive IT and digital transformation experience, will become Representative Director and President on March 26, 2026. Current chief Yasufumi Kanemaru will move to the role of Representative Director and Chairman, remaining closely involved in group management.

The board highlighted Taniguchi’s track record leading core subsidiaries and large-scale organizations, as well as his ability to execute transformation and quickly incorporate stakeholder feedback. The move signals a planned generational shift intended to reinforce the group’s DX-focused strategy and organizational growth, suggesting continuity in long-term direction while refreshing top management to accelerate execution.

The most recent analyst rating on (JP:4722) stock is a Hold with a Yen1933.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.

Future Corporation Lifts Earnings on Strong DX and Core Banking System Demand

Future Corporation reported solid growth for the fiscal year ended December 31, 2025, with net sales rising 8.8% to ¥75.99 billion, operating profit up 10.3% to ¥16.18 billion and profit attributable to owners of parent increasing 13.5% to ¥11.71 billion, despite a challenging macroeconomic backdrop marked by global geopolitical tensions, domestic inflation, and labor shortages. Performance was driven primarily by the IT Consulting & Services segment, where Future Architect’s expansion of IP-based offerings, including successful live operation of its cloud-based Next-Generation Banking System at Shimane Bank and new implementations for additional regional banks, underpinned higher sales and earnings, while other group companies such as FutureOne, Future Artisan, and Future SecureWave contributed through stronger ERP, PLM/DX consulting, and security service demand; the results highlight the company’s strengthening position as a DX and AI-enabled solutions partner to financial institutions and industry clients, although some units like Future Inspace saw declines after the completion of large projects.

The most recent analyst rating on (JP:4722) stock is a Buy with a Yen2311.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.

Future Corporation Posts Strong FY25 Non-Consolidated Profit on Financial-Sector Growth and Higher Dividends

Future Corporation reported a significant year-on-year improvement in its non-consolidated results for the fiscal year ended FY25, with net sales rising 29.3% to ¥2.819 billion and operating revenue increasing 11.2% to ¥10.975 billion. Operating profit grew 4.3% to ¥7.372 billion, while profit climbed 25.6% to ¥8.296 billion, lifting basic earnings per share to ¥93.58; the company attributed the stronger performance primarily to robust new business in the financial sector within its technology division and higher dividends received from group companies, underscoring the growing contribution of financial-sector transactions and internal group earnings to its overall profitability.

The most recent analyst rating on (JP:4722) stock is a Buy with a Yen2311.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.

Future Corporation Delivers Higher Earnings and Dividends, Forecasts Steady Growth for 2026

Future Corporation reported solid growth for the fiscal year ended December 31, 2025, with net sales rising 8.8% year-on-year to ¥75.99 billion and operating profit increasing 10.3% to ¥16.18 billion. Profit attributable to owners of the parent climbed 13.5% to ¥11.71 billion, lifting basic earnings per share to ¥132.11 and equity to ¥62.76 billion, while the equity ratio improved to 64.4%. Cash flows from operating activities remained positive at ¥8.66 billion, and the company continued to return cash to shareholders, raising the annual dividend from ¥42.00 to ¥46.00 per share for 2025 and projecting a further increase to ¥48.00 in 2026. For the fiscal year ending December 31, 2026, Future forecasts continued, albeit moderating, growth, with full-year net sales expected to rise 6.1% to ¥80.60 billion and operating profit to increase 8.2% to ¥17.50 billion, signaling confidence in its earnings power despite changes in accounting policies and a more measured profit trajectory.

The most recent analyst rating on (JP:4722) stock is a Buy with a Yen2311.00 price target. To see the full list of analyst forecasts on Future Corporation stock, see the JP:4722 Stock Forecast page.