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

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JP

SERAKU Co., Ltd.

(6199)

Rating:70Outperform
Price Target:
¥1,660.00
▲(2.79%Upside)
The overall stock score is driven by strong financial performance, which is the most significant factor. However, bearish technical indicators detract from the score, indicating potential short-term weakness. The valuation is reasonable, supporting a stable long-term outlook despite current technical pressures.

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

SERAKU Co., Ltd. Business Overview & Revenue Model

Company DescriptionSERAKU Co., Ltd. (6199) is a Japan-based company primarily engaged in the provision of information technology services. The company operates in sectors including IT infrastructure, web application development, and IT engineering services. SERAKU provides solutions such as system integration, IT consultant services, and managed services, focusing on supporting businesses in optimizing their IT environments and enhancing their digital transformation initiatives.
How the Company Makes MoneySERAKU Co., Ltd. generates revenue through a diversified model centered around IT and digital services. Key revenue streams include IT infrastructure services, where the company provides system integration and managed services to help businesses manage their IT environments. Additionally, SERAKU offers web application development and engineering services, assisting clients in building and maintaining web-based solutions. The company also earns from IT consultancy services by providing expert guidance to organizations undergoing digital transformation. Partnerships with technology providers and clients across various industries further contribute to its earnings, facilitating access to new markets and enhancing service offerings.

SERAKU Co., Ltd. Financial Statement Overview

Summary
SERAKU Co., Ltd. shows strong financial performance with high revenue growth, solid profitability, and a robust balance sheet. The income statement and balance sheet scores are high, but cash flow indicates some potential challenges with a decline in free cash flow.
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue22.22B20.86B17.86B15.26B13.77B
Gross Profit5.70B5.18B3.90B3.67B3.29B
EBITDA2.37B2.20B1.48B1.88B1.10B
Net Income1.58B1.47B966.00M1.24B654.00M
Balance Sheet
Total Assets12.05B11.25B9.62B8.73B7.34B
Cash, Cash Equivalents and Short-Term Investments6.90B6.87B5.66B5.46B4.33B
Total Debt84.90M244.45M750.00M1.01B1.11B
Total Liabilities4.29B4.35B4.10B4.11B3.91B
Stockholders Equity7.76B6.90B5.52B4.62B3.43B
Cash Flow
Free Cash Flow1.16B1.97B638.80M1.40B927.64M
Operating Cash Flow1.36B2.03B704.48M1.47B995.53M
Investing Cash Flow-404.10M-195.68M-176.95M-186.33M-160.45M
Financing Cash Flow-923.34M-625.81M-328.88M-154.67M724.56M

SERAKU Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1615.00
Price Trends
50DMA
1582.02
Positive
100DMA
1611.64
Negative
200DMA
1524.68
Positive
Market Momentum
MACD
6.82
Negative
RSI
51.60
Neutral
STOCH
46.65
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 1615 is above the 20-day moving average (MA) of 1591.10, above the 50-day MA of 1582.02, and above the 200-day MA of 1524.68, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 46.65 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥21.27B14.13
17.91%1.59%
70
Outperform
¥22.18B12.46
0.81%11.33%24.80%
69
Neutral
¥24.29B33.59
1.73%7.60%-6.99%
66
Neutral
¥24.88B21.99
1.44%-2.15%-13.31%
63
Neutral
$34.16B5.47-11.67%1.85%5.30%-18.30%
59
Neutral
¥22.87B40.84
-17.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6199
SERAKU Co., Ltd.
1,603.00
211.07
15.16%
JP:2158
FRONTEO, Inc.
565.00
-76.00
-11.86%
JP:3788
GMO GlobalSign Holdings K.K.
2,109.00
-806.73
-27.67%
JP:4371
Core Concept Technologies Inc.
1,206.00
-1,251.00
-50.92%
JP:6050
E-Guardian Inc.
2,173.00
179.60
9.01%

SERAKU Co., Ltd. Corporate Events

SERAKU Co., Ltd. Reports Strong Financial Growth for Q3 FY2025
Jul 15, 2025

SERAKU Co., Ltd. reported a notable increase in its financial performance for the nine months ending May 31, 2025, with net sales rising by 12.7% to 18,545 million yen. The company also saw a significant rise in operating profit and ordinary profit, indicating strong operational growth. This positive financial trajectory is expected to continue, as reflected in the company’s earnings forecast for the fiscal year ending August 31, 2025, projecting a 10.3% increase in net sales and a 12.1% rise in operating profit. These results and projections suggest a strengthening position in the market, which could have favorable implications 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.Date of analysis: Jul 17, 2025