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

• Market Cap: ¥22.44B
• Dividend Yield: 0.8%
• Average Volume (3M): 39.81K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.48
• Revenue Growth: 10.07%
• EPS Growth: 27.39%
• Country: JP
• Employees: 3,387
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 126.91
• Shares Outstanding: 13,834,400
• 10 Day Avg. Volume: 35,350
• 30 Day Avg. Volume: 39,810
• PEG Ratio: -9.80
• Price to Book (P/B): 2.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• 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. Business Overview & Revenue Model

Company Description

SERAKU 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 Money

SERAKU 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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
23.06B	22.22B	20.86B	17.86B	15.26B	13.77B
	Gross Profit
6.10B	5.70B	5.18B	3.90B	3.67B	3.29B
	EBIT
2.52B	2.27B	1.94B	1.44B	1.84B	1.13B
	EBITDA
2.60B	2.37B	2.20B	1.48B	1.88B	1.10B
	Net Income Common Stockholders
1.76B	1.58B	1.47B	966.00M	1.24B	654.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.19B	6.90B	6.87B	5.66B	5.46B	4.33B
	Total Assets
12.99B	12.05B	11.25B	9.62B	8.73B	7.34B
	Total Debt
52.79M	84.90M	244.45M	750.00M	1.01B	1.11B
	Net Debt
-7.14B	-6.81B	-6.62B	-4.91B	-4.45B	-3.22B
	Total Liabilities
4.94B	4.29B	4.35B	4.10B	4.11B	3.91B
	Stockholders Equity
8.05B	7.76B	6.90B	5.52B	4.62B	3.43B
Cash Flow		Free Cash Flow
0.00	1.16B	1.97B	638.80M	1.40B	927.64M
	Operating Cash Flow
0.00	1.36B	2.03B	704.48M	1.47B	995.53M
	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	-154.67M	724.56M

SERAKU Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1622.00
• 50DMA: Positive
• 100DMA: Negative
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6199	77 Outperform	¥22.44B	12.78		0.80%	10.07%	27.39%
4371	73 Outperform	¥24.16B	16.47		―	17.91%	1.59%
3788	69 Neutral	¥23.40B	32.35		1.80%	7.60%	-6.99%
2158	66 Neutral	¥24.91B	44.88		―	-17.30%	―
6050	66 Neutral	¥23.28B	20.58		1.54%	-2.15%	-13.31%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

SERAKU Co., Ltd. Corporate Events

SERAKU Co., Ltd. Reports Strong Financial Growth in H1 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.