SAKURA KCS Corporation (4761) AI Stock Analysis

• Market Cap: ¥13.89B
• Dividend Yield: 3%
• Average Volume (3M): 10.27K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.59
• Revenue Growth: 5.14%
• EPS Growth: 16.05%
• Country: JP
• Employees: 1,045
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 17.97
• Shares Outstanding: 11,200,000
• 10 Day Avg. Volume: 6,480
• 30 Day Avg. Volume: 10,270
• PEG Ratio: 0.41
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -31.25
• 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: 60 Neutral
• Price Target: ¥1,247.00 ▼(-5.74% Downside)

The overall stock score reflects strong financial stability and reasonable valuation, but is significantly impacted by bearish technical indicators and concerns over declining revenue and negative free cash flow. The lack of earnings call data and corporate events further limits the assessment.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates financial stability, providing the company with flexibility to invest in growth opportunities without the burden of high debt.

Profit Margin Improvement

Improving profit margins suggest enhanced operational efficiency and cost management, which can contribute to sustainable profitability over time.

Revenue Streams

Diverse revenue streams, including recurring income from maintenance services, provide a stable financial base and reduce reliance on any single revenue source.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market expansion or product adoption, potentially impacting long-term growth prospects and competitive positioning.

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth initiatives or weather economic downturns, posing a risk to future financial health.

Revenue Growth Concerns

Persistent revenue decline and cash flow issues may hinder the company's capacity to sustain operations and invest in strategic growth areas.

SAKURA KCS Corporation Business Overview & Revenue Model

Company Description

SAKURA KCS Corporation (4761) is a Japan-based company that specializes in providing IT solutions and services, primarily focusing on the development and implementation of software and systems for various industries. The company operates in sectors such as healthcare, finance, and enterprise management, offering core products that include electronic medical record systems, financial transaction processing systems, and business process management solutions.

How the Company Makes Money

SAKURA KCS Corporation generates revenue through multiple streams, primarily by selling software licenses and providing customized system integration services. The company also earns income from maintenance and support services for its software products, ensuring continued client engagement and satisfaction. Additionally, SAKURA KCS may benefit from strategic partnerships with other technology firms, allowing them to enhance their product offerings and reach new markets. The recurring revenue from support contracts and the growing demand for digital transformation solutions in various sectors further contribute to the company's financial performance.

SAKURA KCS Corporation Financial Statement Overview

Summary

SAKURA KCS Corporation shows strong profitability with improved margins and low leverage, highlighted by a net profit margin increase and a low debt-to-equity ratio. However, declining revenue and negative free cash flow are significant concerns.

Income Statement

SAKURA KCS Corporation exhibits a stable gross profit margin of approximately 27.7% for 2025, with a slight increase from the previous year. Net profit margin improved to 5.1% in 2025 from 3.9% in 2024, indicating enhanced profitability. However, revenue growth has been negative, reflecting a decline of 1.0% from 2024 to 2025, which raises concerns about top-line growth.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of approximately 0.05, highlighting financial stability. The equity ratio stands at 77.7%, indicating a high degree of financial independence. Return on equity improved to 5.8% in 2025, showcasing effective use of equity to generate profits.

Cash Flow

Operating cash flow has significantly declined in 2025 compared to 2024, affecting free cash flow, which turned negative. The free cash flow to net income ratio is negative, indicating potential issues in converting income to cash. Despite this, the operating cash flow to net income ratio is 0.31, suggesting some ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.81B	22.54B	22.77B	23.59B	24.79B	24.66B
Gross Profit	6.39B	6.25B	5.72B	5.30B	5.04B	4.86B
EBITDA	2.34B	2.29B	1.92B	1.90B	1.73B	1.85B
Net Income	1.21B	1.15B	895.00M	748.00M	602.00M	736.00M
Balance Sheet
Total Assets	24.34B	25.56B	24.24B	22.81B	22.29B	22.82B
Cash, Cash Equivalents and Short-Term Investments	6.80B	5.92B	10.35B	8.43B	7.40B	8.72B
Total Debt	831.00M	923.00M	532.00M	660.00M	874.00M	1.36B
Total Liabilities	4.48B	5.69B	5.06B	4.98B	4.95B	6.01B
Stockholders Equity	19.86B	19.87B	19.18B	17.83B	17.34B	16.81B
Cash Flow
Free Cash Flow	0.00	-415.00M	2.42B	1.53B	-694.00M	369.00M
Operating Cash Flow	0.00	359.00M	2.97B	1.74B	-187.00M	725.00M
Investing Cash Flow	0.00	-6.42B	-527.00M	-201.00M	-561.00M	245.00M
Financing Cash Flow	0.00	-590.00M	-523.00M	-518.00M	-569.00M	-563.00M

SAKURA KCS Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1323.00
• 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:4761, the sentiment is Negative. The current price of 1323 is above the 20-day moving average (MA) of 1232.05, above the 50-day MA of 1283.82, and above the 200-day MA of 1284.93, indicating a neutral trend. The MACD of -10.46 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4761.

SAKURA KCS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3968	78 Outperform	¥20.31B	41.76	―	1.68%	26.24%	29.73%
2335	71 Outperform	¥16.00B	14.17	―	3.72%	2.46%	-5.85%
3924	69 Neutral	¥16.35B	14.74	―	4.01%	-5.92%	3.16%
3683	68 Neutral	¥14.84B	11.69	―	1.22%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4761	60 Neutral	¥13.89B	13.82	―	3.00%	5.14%	16.05%