ItoKuro, Inc. (6049) AI Stock Analysis

• Market Cap: ¥5.97B
• Dividend Yield: N/A
• Average Volume (3M): 12.92K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.77
• Revenue Growth: -4.64%
• EPS Growth: N/A
• Country: JP
• Employees: 89
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 4.84
• Shares Outstanding: 22,680,000
• 10 Day Avg. Volume: 15,850
• 30 Day Avg. Volume: 12,920
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥293.00
• Price Target Upside: 2.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥293.00 ▲(2.81% Upside)

The overall stock score is primarily influenced by financial stability and technical analysis. While the balance sheet is strong, challenges in revenue growth and cash flow volatility are significant risks. Technical indicators suggest potential bearish momentum, but oversold conditions could lead to a reversal. The valuation is moderate, but the lack of a dividend yield limits appeal.

ItoKuro, Inc. Business Overview & Revenue Model

Company Description

ItoKuro, Inc. (6049) is a Japanese technology company specializing in the development and provision of advanced IT solutions and services. The company operates primarily in the information technology sector, focusing on software development, cloud computing, and data analytics. ItoKuro aims to empower businesses with innovative technologies that drive efficiency and enhance decision-making processes, catering to a diverse range of industries including finance, healthcare, and manufacturing.

How the Company Makes Money

ItoKuro generates revenue through multiple streams, primarily by offering custom software development services, cloud-based solutions, and data analytics platforms. The company charges clients on a project basis for bespoke software solutions and ongoing support, which constitutes a significant portion of its income. Additionally, ItoKuro earns recurring revenue through subscription models for its cloud services and data analytics tools. Strategic partnerships with other technology firms and integration of its services into broader IT ecosystems further enhance its revenue potential, allowing for cross-selling opportunities and shared client bases.

ItoKuro, Inc. Financial Statement Overview

Summary

ItoKuro, Inc. shows a mixed financial performance. The balance sheet is strong with high equity and low debt, but the income statement and cash flow statement reveal challenges with declining revenues, negative EBIT, and fluctuating cash flows.

Income Statement

ItoKuro, Inc. has experienced volatility in its income statement with declining revenues and profitability over recent years. The gross profit margin remains relatively high, but negative EBIT and declining EBITDA are concerning. The net profit margin has also decreased significantly, reflecting challenges in maintaining profitability.

Balance Sheet

The company's balance sheet is strong with a high equity ratio and minimal debt, indicating financial stability. The debt-to-equity ratio is extremely low, and the return on equity has been positive in some periods but inconsistent. The equity base is solid, providing a buffer against potential financial stress.

Cash Flow

Cash flow analysis reveals fluctuations, with a significant decline in operating cash flow in the latest period, resulting in negative free cash flow. Although there was substantial cash flow from investing activities in the latest year, the free cash flow to net income ratio is a concern. The variability in free cash flow growth indicates operational challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.95B	3.94B	3.96B	4.27B	3.86B
Gross Profit	3.51B	3.46B	3.49B	3.76B	3.34B
EBITDA	110.79M	599.41M	-181.77M	1.42B	1.72B
Net Income	37.95M	285.77M	-337.11M	824.82M	317.85M
Balance Sheet
Total Assets	9.29B	9.61B	9.03B	10.05B	8.90B
Cash, Cash Equivalents and Short-Term Investments	6.86B	8.36B	7.65B	8.78B	7.56B
Total Debt	13.84M	6.64M	9.49M	12.34M	20.60M
Total Liabilities	416.50M	706.56M	427.52M	881.08M	561.12M
Stockholders Equity	8.87B	8.91B	8.60B	9.16B	8.34B
Cash Flow
Free Cash Flow	-478.18M	1.07B	-814.75M	1.26B	665.89M
Operating Cash Flow	-458.28M	1.09B	-716.75M	1.30B	778.92M
Investing Cash Flow	3.26B	-876.69M	-1.62B	1.95B	-1.85B
Financing Cash Flow	-1.08M	-1.36M	-302.03M	-22.57M	6.05M

ItoKuro, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6049, the sentiment is Neutral. The current price of 285 is below the 20-day moving average (MA) of 288.95, below the 50-day MA of 288.40, and above the 200-day MA of 270.88, indicating a neutral trend. The MACD of -1.68 indicates Positive momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 32.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6049.

ItoKuro, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.26B	14.52		―	19.99%	4285.55%
5571	68 Neutral	¥6.12B	64.57		2.34%	21.54%	-76.78%
Sector *	60 Neutral	$42.79B	1.96	-11.10%	4.01%	1.89%	-41.77%
6049	59 Neutral	¥5.97B	21.08		―	-4.64%	―
3985	59 Neutral	¥3.01B	―		―	-2.64%	-79.22%
3815	56 Neutral	¥6.06B	―		0.50%	-7.03%	-182.41%