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SAKURA KCS Corporation (JP:4761)
:4761
Japanese Market
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SAKURA KCS Corporation (4761) AI Stock Analysis

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JP:4761

SAKURA KCS Corporation

(4761)

Rating:77Outperform
Price Target:
¥1,809.00
▲(22.15%Upside)
SAKURA KCS Corporation currently benefits from strong technical indicators and reasonable valuation metrics, reflecting positive investor sentiment. However, financial performance shows areas of concern, particularly in revenue growth and cash flow generation, which could pose risks to sustained growth.

SAKURA KCS Corporation (4761) vs. iShares MSCI Japan ETF (EWJ)

SAKURA KCS Corporation Business Overview & Revenue Model

Company DescriptionSAKURA KCS Corporation is a Japan-based company primarily engaged in the provision of information technology (IT) services. The company operates in various sectors, including system integration, software development, and IT-related consulting services. SAKURA KCS offers a range of solutions that cater to the needs of businesses across different industries, focusing on enhancing operational efficiency and supporting digital transformation initiatives.
How the Company Makes MoneySAKURA KCS Corporation generates revenue primarily through its IT services and solutions. The company earns money by providing customized system integration services, which involve the design, development, and implementation of IT systems tailored to client requirements. Additionally, SAKURA KCS offers software development services, creating bespoke software solutions for customers. Consulting services further contribute to the company's income, as it provides expert advice and support to businesses looking to optimize their IT infrastructure. The company may also engage in strategic partnerships and collaborations to expand its service offerings and enhance its market presence, although specific partners or collaborations are not detailed in available data.

SAKURA KCS Corporation Financial Statement Overview

Summary
SAKURA KCS Corporation shows strong profitability and financial stability with improved margins and low leverage. However, negative revenue growth and declining free cash flow present challenges that could impact future growth and operational efficiency.
Income Statement
75
Positive
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
80
Positive
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
60
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue22.54B22.77B23.59B24.79B24.66B
Gross Profit6.25B5.72B5.30B5.04B4.86B
EBITDA2.29B1.92B1.80B1.65B1.58B
Net Income1.15B895.00M748.00M602.00M736.00M
Balance Sheet
Total Assets25.56B24.24B22.81B22.29B22.82B
Cash, Cash Equivalents and Short-Term Investments5.92B10.35B8.43B7.40B8.72B
Total Debt923.00M532.00M660.00M874.00M1.36B
Total Liabilities5.69B5.06B4.98B4.95B6.01B
Stockholders Equity19.87B19.18B17.83B17.34B16.81B
Cash Flow
Free Cash Flow-415.00M2.42B1.53B-694.00M369.00M
Operating Cash Flow359.00M2.97B1.74B-187.00M725.00M
Investing Cash Flow-6.42B-527.00M-201.00M-561.00M245.00M
Financing Cash Flow-590.00M-523.00M-518.00M-569.00M-563.00M

SAKURA KCS Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1481.00
Price Trends
50DMA
1380.66
Positive
100DMA
1267.08
Positive
200DMA
1165.47
Positive
Market Momentum
MACD
36.19
Positive
RSI
54.24
Neutral
STOCH
42.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4761, the sentiment is Positive. The current price of 1481 is above the 20-day moving average (MA) of 1478.70, above the 50-day MA of 1380.66, and above the 200-day MA of 1165.47, indicating a bullish trend. The MACD of 36.19 indicates Positive momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 42.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4761.

SAKURA KCS Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥16.93B13.70
3.42%1.83%19.05%
77
Outperform
¥17.05B14.89
2.16%-1.02%27.93%
76
Outperform
¥14.52B16.91
1.23%6.22%29.99%
69
Neutral
¥13.96B13.63
4.63%4.11%-5.13%
63
Neutral
¥16.15B145.95
2.41%4.02%-87.61%
63
Neutral
$34.93B5.90-12.00%2.00%5.61%-19.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4761
SAKURA KCS Corporation
1,481.00
220.45
17.49%
JP:2335
Cube System Inc.
1,170.00
31.76
2.79%
JP:3683
Cyberlinks Co., Ltd.
1,281.00
516.81
67.63%
JP:3924
R&D Computer Co. Ltd.
778.00
4.57
0.59%
JP:3968
Segue Group Co., Ltd.
498.00
-107.82
-17.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025