ItoKuro, Inc. (6049) AI Stock Analysis

• Market Cap: ¥5.63B
• Dividend Yield: N/A
• Average Volume (3M): 50.17K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.83
• Revenue Growth: -6.75%
• EPS Growth: N/A
• Country: JP
• Employees: 89
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 6.48
• Shares Outstanding: 22,680,000
• 10 Day Avg. Volume: 10,920
• 30 Day Avg. Volume: 50,173
• PEG Ratio: -1.52
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -10.48
• 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: 63 Neutral
• Price Target: ¥306.00 ▲(12.50% Upside)

The overall stock score for ItoKuro, Inc. is primarily influenced by its strong balance sheet and reasonable valuation. However, challenges in revenue growth, cash flow volatility, and bearish technical indicators weigh on the score. The absence of a dividend yield and lack of earnings call data further limit the stock's appeal.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling ItoKuro to invest in growth opportunities without significant financial risk.

Efficient Cost Management

Efficient cost management supports profitability by maximizing margins, allowing ItoKuro to maintain competitiveness and invest in strategic initiatives.

Recurring Revenue Model

A recurring revenue model from subscriptions provides predictable cash flows and enhances revenue stability, supporting long-term business sustainability.

Negative Factors

Revenue Growth Challenges

Stagnant revenue growth may limit ItoKuro's ability to scale and compete effectively, potentially impacting long-term market position and profitability.

Cash Flow Volatility

Volatile cash flows can hinder ItoKuro's ability to fund operations and growth initiatives, posing risks to financial stability and strategic execution.

Inconsistent Profitability

Inconsistent profitability may undermine ItoKuro's ability to generate shareholder value and reinvest in business development, affecting long-term growth prospects.

ItoKuro, Inc. Business Overview & Revenue Model

Company Description

ItoKuro Inc. provides media and consulting services in Japan. It operates school information portal sites for infants, elementary school students, junior high school students, high school students, and parents to search and compare cram schools and preparatory schools; and for nurseries, kindergartens, elementary schools, junior high schools, high schools, vocational schools, and universities. The company also operates tutor comparison net, medical school examination manual, and medical school preparatory school guide sites. In addition, it operates Kodomo Booster, a portal site for children's lessons; and Comolib, a family and outing information site. Further, the company provides consulting services in the education industry. ItoKuro Inc. was incorporated in 2006 and is headquartered in Tokyo, Japan.

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. demonstrates financial stability with a strong balance sheet and efficient cost management. However, challenges in revenue growth and cash flow volatility present potential risks. The company needs to focus on enhancing profitability and cash flow generation to support future growth and shareholder returns.

Income Statement

ItoKuro, Inc. has shown a stable revenue base with minor fluctuations over the years. The gross profit margin is strong, indicating efficient cost management. However, the company has faced challenges in maintaining consistent net profitability, with recent periods showing negative EBIT margins. Revenue growth has been stagnant, which could be a concern for future expansion.

Balance Sheet

The balance sheet is robust, with a high equity ratio and minimal debt, indicating financial stability. The debt-to-equity ratio is very low, suggesting low leverage and reduced financial risk. Return on equity has been inconsistent but remains positive, reflecting potential for shareholder value creation.

Cash Flow

Cash flow analysis reveals volatility, with recent periods showing negative free cash flow and operating cash flow. This could indicate potential liquidity challenges. However, the company has managed to maintain a positive free cash flow to net income ratio in previous years, highlighting some capacity for generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.94B	3.95B	3.94B	3.96B	4.27B	3.86B
Gross Profit	3.46B	3.51B	3.46B	3.49B	3.76B	3.34B
EBITDA	599.41M	110.79M	599.41M	-181.77M	1.42B	703.89M
Net Income	285.77M	37.95M	285.77M	-337.11M	824.82M	317.85M
Balance Sheet
Total Assets	9.61B	9.29B	9.61B	9.03B	10.05B	8.90B
Cash, Cash Equivalents and Short-Term Investments	8.36B	6.86B	8.36B	7.65B	8.78B	7.56B
Total Debt	6.64M	13.84M	6.64M	9.49M	12.34M	20.60M
Total Liabilities	706.56M	416.50M	706.56M	427.52M	881.08M	561.12M
Stockholders Equity	8.91B	8.87B	8.91B	8.60B	9.16B	8.34B
Cash Flow
Free Cash Flow	157.37M	-478.18M	1.07B	-814.75M	1.26B	665.89M
Operating Cash Flow	157.37M	-458.28M	1.09B	-716.75M	1.30B	778.92M
Investing Cash Flow	0.00	3.26B	-876.69M	-1.62B	1.95B	-1.85B
Financing Cash Flow	0.00	-1.08M	-1.36M	-302.03M	-22.57M	6.05M

ItoKuro, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 272.00
• 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:6049, the sentiment is Negative. The current price of 272 is below the 20-day moving average (MA) of 272.50, below the 50-day MA of 282.84, and below the 200-day MA of 279.70, indicating a bearish trend. The MACD of -3.34 indicates Negative momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 27.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥2.92B	12.21	―	―	14.67%	267.69%
5571	68 Neutral	¥6.00B	―	―	2.34%	23.91%	-101.16%
6049	63 Neutral	¥5.63B	16.40	―	―	-6.75%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3815	45 Neutral	¥5.21B	-10.30	―	―	-6.92%	-86.77%
3985	42 Neutral	¥2.65B	-10.31	―	―	0.36%	―