CAC Holdings Corporation (4725) AI Stock Analysis

• Market Cap: €32.98B
• Dividend Yield: 5.12%
• Average Volume (3M): 32.50K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.48
• Revenue Growth: 2.87%
• EPS Growth: 4.34%
• Country: JP
• Employees: 4,653
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 2.73
• Shares Outstanding: 20,541,400
• 10 Day Avg. Volume: 33,130
• 30 Day Avg. Volume: 32,499
• PEG Ratio: -0.85
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 67 Neutral
• Price Target: ¥2,118.00 ▲(8.45%Upside)

CAC Holdings Corporation's strong financial performance is the key driver of its overall score, supported by its robust cash flow and low financial leverage. However, technical indicators suggest potential short-term challenges, which moderates the overall score. The reasonable valuation and strong dividend yield offer some compensation for the technical weakness.

CAC Holdings Corporation Business Overview & Revenue Model

Company Description

CAC Holdings Corporation (4725) is a Japanese company specializing in the provision of information technology services. It operates in various sectors including financial services, life sciences, and manufacturing, offering a wide range of IT solutions such as system integration, consulting, and outsourcing services. The company is known for its expertise in developing tailored IT strategies that help businesses optimize their operations and improve efficiency.

How the Company Makes Money

CAC Holdings Corporation generates revenue primarily through its IT services, which include system integration, consulting, and outsourcing. The company earns money by partnering with businesses to design, implement, and manage IT systems and solutions that cater to their specific needs. Key revenue streams include fees for consulting services, maintenance contracts, and project-based system integration services. Significant partnerships with companies across industries like finance and pharmaceuticals contribute to its earnings by providing a steady flow of projects and long-term service agreements.

CAC Holdings Corporation Financial Statement Overview

Summary

CAC Holdings Corporation has a strong financial performance with consistent revenue growth, strong profit margins, a robust balance sheet with low leverage, and excellent cash flow generation. These factors contribute to a solid financial standing and strategic flexibility.

Income Statement

CAC Holdings Corporation shows a strong financial performance with consistent revenue growth, evidenced by a 3.02% increase from 2023 to 2024 and a notable improvement in both gross profit margin (26.06%) and net profit margin (5.95%) in 2024. The company also maintains solid EBIT (6.52%) and EBITDA (8.26%) margins, indicating efficient cost management and profitability.

Balance Sheet

The company has a robust balance sheet with a low debt-to-equity ratio of 0.06, reflecting minimal leverage and strong equity position. The return on equity is healthy at 8.29%, showcasing efficient utilization of shareholder funds. The equity ratio stands at 68.28%, indicating a stable financial structure with significant asset backing by equity.

Cash Flow

CAC Holdings exhibits a strong cash flow position with impressive free cash flow growth and an operating cash flow to net income ratio of 1.85, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.80, highlighting effective conversion of income into cash flow and ample liquidity for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.41B	52.06B	50.54B	47.97B	47.94B	48.54B
Gross Profit	13.71B	13.57B	12.29B	11.60B	11.90B	10.75B
EBITDA	3.87B	5.63B	4.75B	4.46B	4.76B	3.60B
Net Income	2.63B	3.10B	2.47B	2.09B	2.48B	1.67B
Balance Sheet
Total Assets	48.56B	54.73B	48.53B	44.21B	47.26B	44.56B
Cash, Cash Equivalents and Short-Term Investments	10.60B	13.78B	11.04B	13.79B	11.63B	10.13B
Total Debt	1.79B	2.07B	2.64B	2.96B	3.03B	3.07B
Total Liabilities	14.28B	17.02B	16.19B	14.92B	15.86B	18.33B
Stockholders Equity	33.85B	37.37B	31.94B	28.62B	30.77B	25.38B
Cash Flow
Free Cash Flow	0.00	5.58B	67.00M	2.38B	2.50B	608.00M
Operating Cash Flow	0.00	5.71B	594.00M	2.63B	2.90B	1.11B
Investing Cash Flow	0.00	-1.33B	1.25B	-591.00M	532.00M	1.34B
Financing Cash Flow	0.00	-2.85B	-2.07B	-1.71B	-2.93B	-1.70B

CAC Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1953.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4725, the sentiment is Negative. The current price of 1953 is below the 20-day moving average (MA) of 1989.27, below the 50-day MA of 2000.60, and above the 200-day MA of 1810.47, indicating a neutral trend. The MACD of -11.28 indicates Positive momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 2.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4725.

CAC Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	80 Outperform	¥38.11B	13.57		3.41%	1.34%	-3.93%
4709	78 Outperform	¥36.77B	16.23		3.22%	11.00%	33.93%
9742	71 Outperform	¥33.10B	14.12		3.64%	0.01%	35.73%
9739	68 Neutral	¥39.19B	10.70		3.42%	4.53%	-6.57%
4725	67 Neutral	€32.98B	12.67	7.79%	5.12%	2.87%	4.34%
3916	67 Neutral	¥36.55B	16.79		3.00%	18.56%	43.88%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%

CAC Holdings Corporation Corporate Events

CAC Holdings to Record Extraordinary Income from Securities Sale

CAC Holdings Corporation has announced its decision to sell a portion of its investment securities, expecting to record extraordinary income from this sale in the second quarter of the fiscal year ending December 2025. The sale aims to improve asset efficiency and provide investment resources for the company’s growth, with an anticipated gain of approximately JPY 1.7 billion, though this is subject to market conditions.

CAC Holdings Restructures to Boost Digital Solutions Growth

CAC Holdings Corporation announced a strategic restructuring by transferring its New Business Development Division to a newly established subsidiary, CAC identity Corporation, as part of its CAC Vision 2030. This move is intended to enhance flexibility and dynamism in business strategies, ultimately aiming to accelerate the creation and growth of digital solutions and increase the corporate value of the CAC Group.