Toukei Computer Co., Ltd. (4746) AI Stock Analysis

• Market Cap: ¥76.89B
• Dividend Yield: 3.34%
• Average Volume (3M): 25.79K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.72
• Revenue Growth: 2.61%
• EPS Growth: 16.80%
• Country: JP
• Employees: 825
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 71.45
• Shares Outstanding: 18,700,000
• 10 Day Avg. Volume: 54,610
• 30 Day Avg. Volume: 25,786
• PEG Ratio: 1.30
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 3.89
• P/FCF Ratio: 22.33
• 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: 79 Outperform
• Price Target: ¥5,147.00 ▲(31.47% Upside)

The score is driven primarily by strong financial quality (high margins, strong balance sheet with zero debt, and generally solid free cash flow). Valuation is supportive with a reasonable P/E and attractive dividend yield. Technical signals are mixed, with mild trend support but weaker momentum indicators.

Positive Factors

High profit margins

Sustained high gross, EBIT and net margins indicate durable pricing power and operational efficiency in core services. Over the next 2–6 months this margin base supports cash generation capacity, funds reinvestment, and resilience to modest revenue pressures without immediate margin compression.

Zero debt, conservative balance sheet

A debt-free balance sheet gives long-term strategic optionality: funding M&A, sustaining dividends, or weathering cyclical shocks without refinancing risk. This structural strength materially lowers solvency risk and supports capital allocation flexibility over multiple market cycles.

Strong free cash flow versus earnings

Consistent FCF near earnings levels indicates real cash conversion ability and supports shareholder returns and reinvestment. While year-to-year volatility exists, structurally high FCF ratios underpin sustainable dividends and capital spending capacity over the medium term.

Negative Factors

Stagnant to declining revenue

Flat-to-negative top-line growth constrains the company's ability to scale earnings organically. Without sustainable revenue expansion, profitability must rely on cost leverage, limiting long-term upside and making growth driven returns less durable absent new product adoption or market expansion.

Weaker and volatile cash conversion

Episodic shortfalls in operating cash versus reported earnings signal working-capital sensitivity and timing risks. This volatility reduces predictability of distributable cash, can pressure liquidity in downturns, and complicates reliable funding of dividends or opportunistic investments.

Moderate returns and limited disclosure detail

ROE in the high single to low double digits suggests competent capital use but not breakout returns that drive rapid value creation. Coupled with missing liquidity line details, it hampers assessment of short-term resilience and the company’s capacity to amplify returns via scale or leverage.

Toukei Computer Co., Ltd. Business Overview & Revenue Model

Company Description

Toukei Computer Co., Ltd. (4746) is a Japanese company operating in the Information Technology sector. The company specializes in providing software development, IT consulting, and system integration services. It caters to a diverse range of industries, including finance, manufacturing, and public services, offering tailored solutions to enhance operational efficiency and drive digital transformation.

How the Company Makes Money

Toukei Computer Co., Ltd. generates revenue primarily through its IT services and solutions. The company earns money by developing custom software applications, providing IT consulting services, and integrating complex systems for its clients. Its revenue streams are diversified across various industries, with significant contributions from long-term service contracts and project-based engagements. Additionally, partnerships with technology providers and hardware vendors play a crucial role in its business model, allowing the company to offer comprehensive solutions that include both software and hardware components.

Toukei Computer Co., Ltd. Financial Statement Overview

Summary

Strong profitability (2024 gross margin ~43%, EBIT ~33%, net ~23%) and an exceptionally conservative balance sheet with zero debt support a high score. Free cash flow is generally strong relative to earnings, but revenue has been modest/flat and declined in 2024 (-2.8%), and cash conversion was weaker in 2024 versus recent years.

Income Statement

Profitability is a clear strength: 2024 shows strong gross margin (~43%), EBIT margin (~33%), and net margin (~23%), improving versus 2020–2023. Earnings have also expanded meaningfully over the last several years. The main weakness is growth: revenue was essentially flat over the period and declined in 2024 (-2.8%), which tempers the otherwise strong margin trajectory.

Balance Sheet

Balance sheet is very conservative with zero debt across all periods provided, supporting high financial flexibility and low solvency risk. Equity has grown steadily (supporting asset growth), and returns on equity have been consistently solid (~9%–12%). The key limitation is that returns are good but not exceptional, and the analysis is constrained by the lack of liquidity detail (e.g., cash/current assets not provided).

Cash Flow

Free cash flow generation is strong relative to earnings, with free cash flow running at roughly 83%–92% of net income across 2019–2024. However, cash conversion is somewhat uneven: in 2024, operating cash flow covered only ~73% of net income (down from ~95% in 2023 and above 100% in 2021), indicating some working-capital or timing drag. Free cash flow growth is volatile year-to-year, though the latest year is notably strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.02B	19.63B	19.56B	17.61B	16.78B	15.85B
Gross Profit	9.09B	8.49B	7.68B	7.20B	6.52B	5.48B
EBITDA	7.23B	6.98B	6.23B	5.29B	4.70B	4.01B
Net Income	4.91B	4.50B	3.97B	3.41B	3.01B	2.51B
Balance Sheet
Total Assets	50.76B	49.72B	41.67B	35.45B	34.76B	33.47B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.51B	3.48B	3.77B	2.49B	3.00B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	8.60B	9.40B	7.61B	6.14B	6.27B	6.40B
Stockholders Equity	42.17B	40.32B	34.06B	29.31B	28.49B	27.08B
Cash Flow
Free Cash Flow	0.00	3.42B	4.47B	4.09B	4.47B	2.10B
Operating Cash Flow	0.00	3.74B	5.04B	4.47B	4.91B	2.52B
Investing Cash Flow	0.00	-1.70B	-3.60B	-1.84B	-1.63B	-1.47B
Financing Cash Flow	0.00	-2.88B	-1.66B	-1.40B	-2.88B	-954.94M

Toukei Computer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3915.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4746, the sentiment is Neutral. The current price of 3915 is below the 20-day moving average (MA) of 4348.50, below the 50-day MA of 4132.50, and below the 200-day MA of 3933.04, indicating a neutral trend. The MACD of 49.62 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 7.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4746.

Toukei Computer Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥46.00B	15.98	―	1.92%	20.81%	68.06%
4746	79 Outperform	¥76.89B	14.95	―	3.34%	2.61%	16.80%
3836	76 Outperform	¥61.62B	16.62	―	1.41%	13.38%	24.62%
9692	73 Outperform	¥71.70B	15.96	―	2.41%	13.05%	4.42%
3800	71 Outperform	¥14.19B	19.16	―	3.62%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3673	61 Neutral	¥58.08B	56.18	―	0.62%	18.86%	―