CORREC CO., LTD. (JP:6578)
:6578
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CORREC CO., LTD.
(6578)
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Rating:55Neutral
Price Target:
¥436.00
▲(9.55% Upside)
Action:Downgraded
Date:04/17/26
The score is driven mainly by mixed fundamentals: shrinking revenue, compressed profitability, and weakening 2026 operating cash flow, despite positive free cash flow and an equity-backed balance sheet. Technical indicators are neutral-to-soft (negative MACD, below 50-day average), and valuation is less attractive given the high P/E, only partly supported by the dividend yield.
Positive Factors
Equity-supported balance sheet
The firm’s equity base has been stable near ¥1.01–1.10B across 2023–2026, providing a durable capital cushion. That equity support underpins solvency, supports ongoing operations and shareholder returns, and gives capacity to absorb shocks or fund strategic initiatives over months ahead.
Negative Factors
Revenue volatility & decline
Revenue has swung materially over recent years with a renewed -8.1% decline in 2026, eroding predictability and undermining operating leverage. Persistent top-line volatility makes earnings and cash-flow planning harder and raises the risk that margins and returns will remain pressured into the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Equity-supported balance sheet
The firm’s equity base has been stable near ¥1.01–1.10B across 2023–2026, providing a durable capital cushion. That equity support underpins solvency, supports ongoing operations and shareholder returns, and gives capacity to absorb shocks or fund strategic initiatives over months ahead.
Read all positive factors
CORREC CO., LTD. (6578) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.17B
Dividend Yield2.07%
Average Volume (3M)24.38K
Price to Earnings (P/E)10.4
Beta (1Y)0.53
Revenue Growth3.36%
EPS Growth103.73%
CountryJP
Employees366
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding7,348,900
10 Day Avg. Volume12,410
30 Day Avg. Volume24,376
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)3.08
Price to Sales (P/S)0.49
P/FCF Ratio41.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CORREC CO., LTD. Business Overview & Revenue Model
Company Description
CORREC Co., Ltd., together with its subsidiaries, engages in the sales promotion, media, and application development and operation businesses in Japan. It operates through three segments: Sales Promotion Business, Media Business, and Application D...
How the Company Makes Money
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CORREC CO., LTD. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.28B | 6.69B | 6.47B | 3.94B | 4.12B | 4.82B |
| Gross Profit | 4.79B | 5.35B | 4.39B | 3.43B | 3.85B | 4.62B |
| EBITDA | 473.94M | 111.60M | 299.07M | 155.19M | 318.31M | -125.70M |
| Net Income | 172.71M | 40.25M | 19.94M | 88.79M | 201.76M | -371.05M |
Balance Sheet | ||||||
| Total Assets | 3.05B | 3.07B | 2.94B | 2.38B | 1.82B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.46B | 1.56B | 1.41B | 1.05B | 1.04B |
| Total Debt | 754.45M | 733.90M | 792.78M | 640.00M | 316.67M | 341.66M |
| Total Liabilities | 1.93B | 2.00B | 1.86B | 1.27B | 807.81M | 1.05B |
| Stockholders Equity | 1.11B | 1.07B | 1.08B | 1.10B | 1.01B | 876.70M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 79.26M | 170.12M | 162.68M | -41.42M | -646.53M |
| Operating Cash Flow | 0.00 | 88.97M | 174.61M | 175.05M | -41.21M | -644.53M |
| Investing Cash Flow | 0.00 | -93.19M | -131.46M | -33.65M | 22.11M | -63.13M |
| Financing Cash Flow | 0.00 | -98.62M | 105.84M | 323.95M | -23.70M | 119.13M |
CORREC CO., LTD. Technical Analysis
Neutral
398.00
Price Trends
421.52
Positive
431.15
Negative
368.84
Positive
Market Momentum
2.90
Positive
47.80
Neutral
4.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6578, the sentiment is Neutral. The current price of 398 is below the 20-day moving average (MA) of 436.85, below the 50-day MA of 421.52, and above the 200-day MA of 368.84, indicating a neutral trend. The MACD of 2.90 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6578.
CORREC CO., LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥825.48B | 14.50 | ― | 1.30% | 27.81% | 23.24% | |
78 Outperform | ¥13.34B | 14.72 | ― | 2.91% | 6.19% | 28.57% | |
77 Outperform | ¥24.67B | 20.79 | ― | 3.50% | 11.96% | 10.15% | |
72 Outperform | ¥31.18B | 10.82 | ― | 4.39% | 17.36% | 0.17% | |
71 Outperform | ¥21.74B | 8.70 | ― | 2.18% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | ¥3.17B | 10.41 | ― | 2.07% | 3.36% | 103.73% |
* Industrials Sector Average
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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.