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

• Market Cap: ¥22.07B
• Dividend Yield: 0.85%
• Average Volume (3M): 42.81K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.50
• Revenue Growth: 11.50%
• EPS Growth: 11.20%
• Country: JP
• Employees: 3,387
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 26.93
• Shares Outstanding: 13,700,100
• 10 Day Avg. Volume: 36,570
• 30 Day Avg. Volume: 42,806
• PEG Ratio: 1.15
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 14.75
• 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: 73 Outperform
• Price Target: ¥1,911.00 ▲(24.82% Upside)

SERAKU Co., Ltd. demonstrates strong financial performance and reasonable valuation, which are the primary drivers of the overall score. Technical analysis indicates a neutral trend, slightly tempering the overall positive outlook.

Positive Factors

Balance sheet strength

Low leverage, a healthy equity ratio and robust return on equity indicate financial resilience. This balance-sheet strength supports strategic investments, M&A optionality and steadier access to capital, reducing solvency risk across economic cycles.

Cash generation and FCF

Consistent positive free cash flow and a strong operating cash flow to net income ratio show the business can fund operations and organic growth internally. Durable cash generation supports reinvestment, R&D, and cushioning versus demand volatility.

Revenue growth with improving margins

Sustained revenue expansion coupled with improving gross and stable net margins suggests effective cost control and product-market fit. Margin durability enhances long-term profitability and frees cash for strategic initiatives without relying on external financing.

Negative Factors

Negative EPS growth

A declining EPS trend signals pressure on per-share earnings, which can reflect margin compression, higher operating costs, or dilution. Persisting negative EPS growth can limit ability to reward shareholders and may constrain strategic flexibility over the medium term.

Slowing latest-year revenue uptick

A modest 1.89% revenue increase in the most recent year suggests deceleration versus prior trends. Slower top-line momentum may limit operating leverage and make it harder to expand margins, challenging medium-term growth targets and competitive positioning.

Historical free cash flow volatility

While FCF is currently positive, prior-year fluctuations indicate variability in cash conversion from operations. Persistent FCF volatility raises funding and planning risks, potentially forcing precautionary capital controls or higher reliance on external financing during downturns.

SERAKU Co., Ltd. Business Overview & Revenue Model

Company Description

SERAKU Co., Ltd. (6199) is a Japan-based company primarily engaged in the provision of cloud-based solutions and IT services. The company focuses on the development and deployment of innovative software applications that cater to various industries, including finance, healthcare, and logistics. SERAKU is known for its flagship product, a cloud management platform that enables businesses to optimize their IT infrastructure and enhance operational efficiency.

How the Company Makes Money

SERAKU generates revenue through multiple streams, primarily by offering subscription-based cloud services and software licensing. The company charges clients for access to its cloud management platform, which includes features such as data analytics, security, and system integration. Additionally, SERAKU earns money through consulting services that help organizations implement and customize their IT solutions. Key partnerships with technology providers and integration with third-party applications also enhance its service offerings, driving more business to the company and contributing to its overall earnings.

SERAKU Co., Ltd. Financial Statement Overview

Summary

SERAKU Co., Ltd. exhibits strong financial performance with consistent revenue growth and improved gross profit margins. The balance sheet is stable with low leverage, and cash flow metrics are positive, indicating efficient cash management.

Income Statement

SERAKU Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 1.89% in the latest year. The gross profit margin has improved, indicating efficient cost management. The net profit margin is stable, reflecting solid profitability. EBIT and EBITDA margins show healthy operational efficiency, supporting a strong income statement performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity is robust, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable financial position. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

SERAKU Co., Ltd. has shown positive free cash flow growth, although it experienced fluctuations in previous years. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. The free cash flow to net income ratio supports the company's ability to generate cash relative to its earnings, highlighting a solid cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.32B	24.78B	22.22B	20.86B	17.86B	15.26B
Gross Profit	6.39B	6.46B	5.70B	5.18B	3.90B	3.67B
EBITDA	2.63B	2.68B	2.37B	2.20B	1.48B	1.87B
Net Income	1.74B	1.71B	1.58B	1.47B	966.00M	1.24B
Balance Sheet
Total Assets	13.67B	13.32B	12.05B	11.25B	9.62B	8.73B
Cash, Cash Equivalents and Short-Term Investments	7.74B	7.77B	6.90B	6.87B	5.66B	5.46B
Total Debt	36.13M	27.80M	84.90M	244.45M	750.00M	1.01B
Total Liabilities	4.96B	4.42B	4.29B	4.35B	4.10B	4.11B
Stockholders Equity	8.71B	8.90B	7.76B	6.90B	5.52B	4.62B
Cash Flow
Free Cash Flow	0.00	1.50B	1.16B	1.97B	638.80M	1.40B
Operating Cash Flow	0.00	2.05B	1.36B	2.03B	704.48M	1.47B
Investing Cash Flow	0.00	-650.75M	-404.10M	-195.68M	-176.95M	-186.33M
Financing Cash Flow	0.00	-634.65M	-923.34M	-625.81M	-328.88M	-154.67M

SERAKU Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1531.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1531 is below the 20-day moving average (MA) of 1667.50, below the 50-day MA of 1578.86, and below the 200-day MA of 1571.76, indicating a neutral trend. The MACD of 11.70 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 17.14 is Positive, 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
4371	78 Outperform	¥20.62B	14.88	―	―	8.79%	1.38%
3788	76 Outperform	¥25.01B	24.84	―	1.50%	7.83%	49.73%
6199	73 Outperform	¥22.07B	13.73	―	0.85%	11.50%	11.20%
6050	69 Neutral	¥18.86B	24.22	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥32.91B	119.24	―	―	-10.49%	―
2338	42 Neutral	¥10.14B	-7.04	―	―	―	―

SERAKU Co., Ltd. Corporate Events

Seraku Posts Profit Drop in Q1 but Sticks to Double-Digit Full-Year Growth Outlook

SERAKU Co., Ltd. reported first-quarter fiscal 2026 consolidated results showing virtually flat net sales at ¥6,252 million, up 0.9% year on year, but a sharp decline in profitability, with operating profit down 24.3% to ¥582 million and profit attributable to owners of parent falling 25.8% to ¥356 million. Despite the earnings pressure, total assets rose to ¥14,078 million and net assets to ¥9,032 million, while the equity ratio remained solid at 63.9%, indicating a still-robust balance sheet. The company maintained its full-year forecast, projecting a 10.6% increase in net sales to ¥27,400 million and a return to double-digit profit growth for operating and ordinary profit, signalling management’s confidence in demand recovery and operational improvements, which will be closely watched by investors given the current margin squeeze.

The most recent analyst rating on (JP:6199) stock is a Hold with a Yen1669.00 price target. To see the full list of analyst forecasts on SERAKU Co., Ltd. stock, see the JP:6199 Stock Forecast page.