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

• Market Cap: ¥80.91B
• Dividend Yield: 3.34%
• Average Volume (3M): 25.79K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.73
• Revenue Growth: 2.61%
• EPS Growth: 16.80%
• Country: JP
• Employees: 825
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 88.99
• Shares Outstanding: 18,700,000
• 10 Day Avg. Volume: 54,610
• 30 Day Avg. Volume: 25,786
• PEG Ratio: 0.70
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 3.47
• P/FCF Ratio: 12.05
• 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: 84 Outperform
• Price Target: ¥5,101.00 ▲(30.29% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is led by strong financial performance—expanding margins and an exceptionally conservative, debt-free balance sheet—supported by reasonable valuation (P/E ~14.4) and a solid dividend yield (~3.84%). Technicals add a moderate positive tailwind given the stock’s position above key moving averages, though near-term momentum is mixed.

Positive Factors

Expanding Profitability

Sustained margin expansion indicates durable operating leverage and pricing or cost advantages in the software business. Higher gross and net margins improve cash generation and reinvestment capacity, supporting long-term resilience and the ability to fund growth or shareholder returns without needing leverage.

Debt-free Balance Sheet

Zero debt materially reduces financial risk and interest burden, giving management durable optionality to fund capex, M&A, or dividends from cash and equity. A strong capital base enhances stability through downturns and enables strategic flexibility without compromising solvency.

Strong Cash Conversion

Consistent conversion of profits into cash underpins sustainable dividends and internally funded growth. High conversion ratios reduce dependence on external financing and support capital allocation choices, making the business structurally more resilient to cyclical swings.

Negative Factors

Uneven Revenue Growth

Irregular top-line performance signals dependence on lumpy contract timing or cyclical demand, complicating long-term forecasting and scaling. Without steadier revenue growth, margin gains may be harder to translate into sustained EPS expansion and strategic investments.

Volatile Cash Flows

Intermittent drops in free cash flow create uncertainty around available funds for dividends, buybacks, or reinvestment. This volatility can force defensive capital allocation in weak years, reducing the predictability of shareholder returns and hampering multi-year planning.

Moderate, Non-accelerating ROE

ROE in the low double digits reflects decent profitability but limited upside absent faster growth or more aggressive capital deployment. A conservative balance sheet supports stability but may constrain return amplification for shareholders over the medium term if capital is underutilized.

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

High-quality fundamentals driven by strong and improving profitability (gross margin ~34.5% to ~45.3% from 2020–2025; net margin ~15.8% to ~25.8%). Balance sheet risk is very low with zero debt and meaningful equity growth (~¥27.1B to ~¥50.5B). Main drawback is uneven revenue and cash flow trends, despite solid overall cash conversion.

Income Statement

Profitability is strong and improving: gross margin expanded from ~34.5% (2020) to ~45.3% (2025), while net margin rose from ~15.8% to ~25.8% over the same period. Operating profitability is also very high, with the latest EBIT margin at ~37.4% and EBITDA margin at ~40.2% (2025). Revenue growth has been positive but somewhat uneven—stronger in 2023 and 2025, but nearly flat in 2024—so the main weakness is a less consistent top-line trajectory despite excellent margin performance.

Balance Sheet

The balance sheet is exceptionally conservative with zero total debt across all reported years and a 0.0 debt-to-equity ratio, which meaningfully reduces financial risk. Equity has grown materially (from ~¥27.1B in 2020 to ~¥50.5B in 2025), supporting a stronger capital base. Returns on equity are healthy and stable (~9%–12% range), though not accelerating—suggesting strong quality but with some limits to upside without faster growth or more aggressive capital deployment.

Cash Flow

Cash generation is solid, with free cash flow tracking net income well (free cash flow to net income generally ~0.83–0.94). The most recent year shows strong conversion, with operating cash flow covering net income at ~1.20 (2025). The key weakness is volatility in cash flow trends: free cash flow declined in 2022 and 2024 before rebounding strongly in 2025, and operating cash flow coverage dipped notably in 2020 and 2024.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.02B	20.84B	19.63B	19.56B	17.61B	16.78B
Gross Profit	9.09B	9.43B	8.49B	7.68B	7.20B	6.52B
EBITDA	7.23B	8.37B	6.98B	6.23B	5.29B	4.70B
Net Income	4.91B	5.37B	4.50B	3.97B	3.41B	3.01B
Balance Sheet
Total Assets	50.76B	63.24B	49.72B	41.67B	35.45B	34.76B
Cash, Cash Equivalents and Short-Term Investments	2.08B	3.18B	2.51B	3.48B	3.77B	2.49B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	8.60B	12.72B	9.40B	7.61B	6.14B	6.27B
Stockholders Equity	42.17B	50.52B	40.32B	34.06B	29.31B	28.49B
Cash Flow
Free Cash Flow	0.00	6.01B	3.42B	4.47B	4.09B	4.47B
Operating Cash Flow	0.00	6.40B	3.74B	5.04B	4.47B	4.91B
Investing Cash Flow	0.00	-3.56B	-1.70B	-3.60B	-1.84B	-1.63B
Financing Cash Flow	0.00	-2.22B	-2.88B	-1.66B	-1.40B	-2.88B

Toukei Computer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3915.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4746, the sentiment is Positive. The current price of 3915 is below the 20-day moving average (MA) of 4287.00, below the 50-day MA of 4244.58, and below the 200-day MA of 3966.00, indicating a bullish trend. The MACD of 21.52 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4746	84 Outperform	¥80.91B	14.79	―	3.34%	2.61%	16.80%
4828	77 Outperform	¥84.58B	18.62	31.13%	1.68%	16.12%	46.57%
4432	66 Neutral	¥94.68B	16.82	―	2.59%	5.22%	-6.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥56.30B	-35.71	―	―	27.58%	-1.50%
4478	55 Neutral	¥128.29B	144.60	―	―	31.57%	―
3994	49 Neutral	¥177.02B	112.18	-19.16%	―	19.57%	-16.67%