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SERAKU Co., Ltd. (JP:6199)
:6199
Japanese Market

SERAKU Co., Ltd. (6199) AI Stock Analysis

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JP

SERAKU Co., Ltd.

(6199)

Rating:77Outperform
Price Target:
¥1,672.00
▲(3.08%Upside)
SERAKU Co., Ltd. presents a strong financial performance, bolstered by robust revenue growth and a healthy balance sheet. The company's valuation metrics indicate it is potentially undervalued, while technical indicators suggest a cautious outlook due to a lack of upward momentum. Addressing cash flow challenges could further enhance its financial health and stock performance potential.

SERAKU Co., Ltd. (6199) vs. iShares MSCI Japan ETF (EWJ)

SERAKU Co., Ltd. Business Overview & Revenue Model

Company DescriptionSERAKU Co., Ltd. is a Japanese company that operates primarily in the information technology sector. It specializes in providing IT services, including system integration, cloud solutions, and digital transformation services. The company focuses on helping businesses optimize their IT infrastructure and processes through innovative technological solutions.
How the Company Makes MoneySERAKU Co., Ltd. generates revenue primarily through its IT services offerings. These include system integration services where they design and implement IT systems tailored to client needs, cloud solutions that assist businesses in migrating to and managing cloud-based environments, and digital transformation services aimed at enhancing business processes through technology. The company also offers IT staffing services, providing skilled IT professionals to businesses on a temporary or project basis. Key revenue streams include consultancy fees, service charges for system maintenance and support, and subscription fees for cloud services. Significant partnerships with technology providers and a diverse client base across various industries contribute to SERAKU's earnings.

SERAKU Co., Ltd. Financial Statement Overview

Summary
SERAKU Co., Ltd. demonstrates strong financial performance with notable revenue growth and profitability, supported by a robust balance sheet with low leverage and high equity ratios. However, there is a need to address the decline in free cash flow to ensure sustained financial health.
Income Statement
89
Very Positive
SERAKU Co., Ltd. shows a strong income statement with consistent revenue growth, increasing by 6.53% from the previous year, signifying robust demand for its services. The net profit margin is solid at 7.09%, while both EBIT and EBITDA margins reflect efficient operational management at 10.23% and 10.65%, respectively. The gross profit margin is healthy at 25.65%, indicating effective cost management. Overall, the company demonstrates impressive growth and profitability in its core operations.
Balance Sheet
85
Very Positive
The balance sheet of SERAKU Co., Ltd. is strong, with a low debt-to-equity ratio of 0.01, suggesting minimal reliance on debt financing. The equity ratio is robust at 64.42%, indicating a solid equity position supporting the company's asset base. Return on equity is commendable at 20.30%, highlighting efficient use of shareholder funds. The company maintains a healthy balance sheet with strong equity and low leverage, providing stability and financial flexibility.
Cash Flow
78
Positive
Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio is 0.86, showing a decent conversion of income to cash. However, free cash flow decreased by 41.28% compared to the previous year, indicating potential investment or operational cash challenges. The free cash flow to net income ratio of 0.73 suggests that not all net income is translating into free cash flow. While the company remains operationally cash-positive, there is room for improvement in cash flow efficiency.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
23.06B22.22B20.86B17.86B15.26B13.77B
Gross Profit
6.10B5.70B5.18B3.90B3.67B3.29B
EBIT
2.52B2.27B1.94B1.44B1.84B1.13B
EBITDA
2.60B2.37B2.20B1.48B1.88B1.10B
Net Income Common Stockholders
1.76B1.58B1.47B966.00M1.24B654.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.19B6.90B6.87B5.66B5.46B4.33B
Total Assets
12.99B12.05B11.25B9.62B8.73B7.34B
Total Debt
52.79M84.90M244.45M750.00M1.01B1.11B
Net Debt
-7.14B-6.81B-6.62B-4.91B-4.45B-3.22B
Total Liabilities
4.94B4.29B4.35B4.10B4.11B3.91B
Stockholders Equity
8.05B7.76B6.90B5.52B4.62B3.43B
Cash FlowFree Cash Flow
0.001.16B1.97B638.80M1.40B927.64M
Operating Cash Flow
0.001.36B2.03B704.48M1.47B995.53M
Investing Cash Flow
0.00-404.10M-195.68M-176.95M-186.33M-160.45M
Financing Cash Flow
0.00-923.34M-625.81M-328.88M-154.67M724.56M

SERAKU Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1622.00
Price Trends
50DMA
1554.34
Positive
100DMA
1641.67
Negative
200DMA
1494.79
Positive
Market Momentum
MACD
23.87
Positive
RSI
55.42
Neutral
STOCH
34.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6199, the sentiment is Positive. The current price of 1622 is above the 20-day moving average (MA) of 1599.05, above the 50-day MA of 1554.34, and above the 200-day MA of 1494.79, indicating a bullish trend. The MACD of 23.87 indicates Positive momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 34.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6199.

SERAKU Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥22.44B12.78
0.80%10.07%27.39%
73
Outperform
¥24.16B16.47
17.91%1.59%
69
Neutral
¥23.40B32.35
1.80%7.60%-6.99%
66
Neutral
¥24.91B44.88
-17.30%
66
Neutral
¥23.28B20.58
1.54%-2.15%-13.31%
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6199
SERAKU Co., Ltd.
1,642.00
522.51
46.67%
JP:2158
FRONTEO, Inc.
642.00
17.00
2.72%
JP:3788
GMO GlobalSign Holdings K.K.
2,072.00
-873.23
-29.65%
JP:4371
Core Concept Technologies Inc.
1,416.00
-689.00
-32.73%
JP:6050
E-Guardian Inc.
2,043.00
174.37
9.33%

SERAKU Co., Ltd. Corporate Events

SERAKU Co., Ltd. Reports Strong Financial Growth in H1 2025
Apr 14, 2025

SERAKU Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended February 28, 2025, with net sales rising by 13.6% and operating profit increasing by 22% compared to the previous year. The company also improved its equity ratio to 67.2%, indicating a strong financial position, and maintained its dividend forecast, reflecting stability and potential growth for stakeholders.

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.