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

• Market Cap: ¥23.60B
• Dividend Yield: 0.77%
• Average Volume (3M): 30.75K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.44
• Revenue Growth: 11.33%
• EPS Growth: 24.80%
• Country: JP
• Employees: 3,387
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 29.53
• Shares Outstanding: 13,680,900
• 10 Day Avg. Volume: 17,280
• 30 Day Avg. Volume: 30,753
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,830.00
• Price Target Upside: 6.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,830.00 ▲(6.09% Upside)

SERAKU Co., Ltd. receives a strong overall stock score driven by its robust financial performance, characterized by consistent revenue growth and solid profitability. The technical analysis supports a stable trend, and the valuation is attractive with a reasonable P/E ratio. The absence of earnings call and corporate events data does not impact the score significantly.

SERAKU Co., Ltd. Business Overview & Revenue Model

Company Description

SERAKU 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 Money

SERAKU 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. demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and high equity ratios, though there is a need to improve cash flow efficiency due to a decline in free cash flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.69B	22.22B	20.86B	17.86B	15.26B	13.77B
Gross Profit	6.29B	5.70B	5.18B	3.90B	3.67B	3.29B
EBITDA	2.64B	2.37B	2.20B	1.48B	1.87B	1.10B
Net Income	1.73B	1.58B	1.47B	966.00M	1.24B	654.00M
Balance Sheet
Total Assets	12.49B	12.05B	11.25B	9.62B	8.73B	7.34B
Cash, Cash Equivalents and Short-Term Investments	6.66B	6.90B	6.87B	5.66B	5.46B	4.33B
Total Debt	53.16M	84.90M	244.45M	750.00M	1.01B	1.11B
Total Liabilities	4.07B	4.29B	4.35B	4.10B	4.11B	3.91B
Stockholders Equity	8.42B	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: 1725.00
• 50DMA: Positive
• 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:6199, the sentiment is Positive. The current price of 1725 is above the 20-day moving average (MA) of 1702.35, above the 50-day MA of 1620.87, and above the 200-day MA of 1577.51, indicating a bullish trend. The MACD of 30.95 indicates Positive momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 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	80 Outperform	¥23.60B	13.41	―	0.77%	11.33%	24.80%
4371	72 Outperform	17.08B	11.40	34.31%	―	14.61%	2.30%
3788	66 Neutral	25.10B	32.92	9.03%	1.67%	5.38%	-8.86%
6050	66 Neutral	24.59B	23.69	―	1.46%	1.80%	-10.15%
2158	60 Neutral	42.07B	160.20	17.20%	―	-18.95%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SERAKU Co., Ltd. Corporate Events

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

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.