CORREC CO., LTD. (6578) AI Stock Analysis

• Market Cap: ¥2.53B
• Dividend Yield: 2.61%
• Average Volume (3M): 22.44K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.61
• Revenue Growth: 82.83%
• EPS Growth: N/A
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): N/A
• Shares Outstanding: 7,330,700
• 10 Day Avg. Volume: 31,110
• 30 Day Avg. Volume: 22,440
• 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: ¥373.00
• Price Target Upside: 21.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥373.00 ▲(21.50% Upside)

CORREC CO., LTD. demonstrates strong financial performance, which is the most significant factor contributing to the overall score. The valuation is attractive, providing a reasonable P/E ratio and a good dividend yield. However, technical analysis indicates weak momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful business model and expanding market presence, supporting long-term sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Profit Margin Improvement

Improved profit margins demonstrate effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Earnings Volatility

Operational inefficiencies can lead to earnings volatility, affecting the company's ability to maintain stable profitability over time.

Liability Increase

Rising liabilities may strain financial resources and limit strategic flexibility, potentially impacting long-term growth prospects.

EPS Decline

A significant decline in EPS growth suggests challenges in maintaining earnings momentum, which could affect investor confidence and future valuations.

CORREC CO., LTD. Business Overview & Revenue Model

Company Description

CORREC CO., LTD. (6578) is a prominent company operating within the technology sector, specializing in innovative solutions for data management and analytics. The company focuses on developing advanced software applications and platforms that enhance operational efficiency for businesses across various industries. Its core offerings include data processing software, cloud-based analytics tools, and customized data solutions aimed at helping organizations leverage their data for strategic decision-making.

How the Company Makes Money

CORREC CO., LTD. generates revenue primarily through the sale of its software products and subscription-based services. The company offers a tiered pricing model for its cloud-based solutions, allowing clients to choose plans that best fit their operational needs. Additionally, CORREC earns income through licensing agreements for its proprietary technology, as well as through service contracts for ongoing support and maintenance. Significant partnerships with other tech firms and enterprises further bolster its sales, enabling collaborative offerings and expanding its market reach. The company also invests in research and development to create new products, which can lead to additional revenue streams through innovation and market differentiation.

CORREC CO., LTD. Financial Statement Overview

Summary

CORREC CO., LTD. exhibits strong financial health with impressive revenue and profit growth. The balance sheet is solid, with a good equity base and manageable debt levels. Cash flow generation is robust, supporting ongoing operations and investments. While there are areas for operational improvement, the overall financial position is positive, positioning the company well for future growth.

Income Statement

CORREC CO., LTD. has demonstrated strong revenue growth, with a significant increase from the previous year. The gross profit margin is robust, indicating efficient cost management. The net profit margin has improved considerably, reflecting enhanced profitability. However, EBIT and EBITDA margins show room for improvement, suggesting potential operational inefficiencies.

Balance Sheet

The company maintains a healthy equity ratio, indicative of a solid financial structure. The debt-to-equity ratio is manageable, suggesting prudent leverage use. Return on equity has improved, highlighting better returns for shareholders. However, the total liabilities have increased, which could pose future risks if not managed carefully.

Cash Flow

Operating cash flow has remained stable, supporting the company's liquidity position. Free cash flow has grown, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, reflecting efficient cash conversion. However, fluctuations in investing cash flow suggest potential volatility in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.36B	6.36B	3.94B	4.12B	4.82B	4.05B
Gross Profit	4.43B	4.44B	3.46B	3.85B	4.66B	4.00B
EBITDA	245.35M	271.39M	156.02M	292.86M	-62.03M	541.51M
Net Income	179.38M	179.78M	88.79M	201.76M	-371.05M	108.74M
Balance Sheet
Total Assets	3.09B	3.09B	2.38B	1.82B	1.93B	2.54B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.56B	1.41B	1.05B	1.04B	1.58B
Total Debt	792.78M	792.78M	640.00M	316.67M	341.66M	200.00M
Total Liabilities	1.85B	1.85B	1.27B	806.73M	1.05B	1.27B
Stockholders Equity	1.24B	1.24B	1.10B	1.01B	876.69M	1.27B
Cash Flow
Free Cash Flow	0.00	171.24M	141.72M	-42.04M	-646.53M	660.87M
Operating Cash Flow	0.00	175.36M	175.05M	-41.21M	-644.53M	703.78M
Investing Cash Flow	0.00	-132.22M	-33.65M	22.11M	-63.13M	-181.80M
Financing Cash Flow	0.00	105.84M	323.95M	-23.70M	119.13M	170.14M

CORREC CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 307.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6578, the sentiment is Negative. The current price of 307 is below the 20-day moving average (MA) of 321.25, below the 50-day MA of 318.18, and below the 200-day MA of 316.91, indicating a bearish trend. The MACD of 2.03 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 40.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6578.

CORREC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5867	79 Outperform	¥3.85B	12.30		3.50%	―	―
9237	73 Outperform	¥5.66B	47.04		―	54.00%	6.84%
7379	71 Outperform	¥7.77B	28.53		―	14.88%	48.97%
6578	70 Outperform	¥2.53B	14.64		2.61%	82.83%	―
6560	65 Neutral	¥9.08B	10.62		1.52%	16.18%	68.41%
7034	65 Neutral	¥8.52B	35.49		―	125.74%	-109.66%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%