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CORREC CO., LTD. (JP:6578)
:6578
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CORREC CO., LTD.
(6578)
Select Model
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Rating:70Outperform
Price Target:
¥393.00
▲(10.08% Upside)
CORREC CO., LTD. shows strong financial performance and positive earnings call highlights, which are the primary drivers of the score. However, the high P/E ratio suggests overvaluation, and technical indicators point to a potential pullback due to overbought conditions. Despite these concerns, the company's robust financial health and strategic growth in key segments support a favorable outlook.
CORREC CO., LTD. (6578) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.07B
Dividend Yield2.89%
Average Volume (3M)24.38K
Price to Earnings (P/E)309.9
Beta (1Y)0.65
Revenue Growth49.99%
EPS Growth142.46%
CountryJP
Employees366
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)-19.86
Shares Outstanding7,330,700
10 Day Avg. Volume12,410
30 Day Avg. Volume24,376
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.94
Price to Sales (P/S)0.38
P/FCF Ratio14.07
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 ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CORREC CO., LTD. Business Overview & Revenue Model
Company DescriptionCORREC CO., LTD. (6578) is a company specializing in the development and provision of advanced technology solutions within the healthcare sector. It focuses on digital health innovations, including software platforms and applications aimed at improving patient care and operational efficiency in medical facilities. The company is dedicated to enhancing healthcare delivery through its core products, which include electronic health record systems, telemedicine solutions, and data analytics tools.
How the Company Makes MoneyCORREC CO., LTD. generates revenue primarily through the sale of its software solutions and services to healthcare providers, hospitals, and clinics. The company operates on a subscription-based model for many of its products, ensuring a steady stream of recurring revenue as clients pay for ongoing access and support. Additional revenue streams include one-time licensing fees for software purchases, consulting services for system implementation, and training programs for healthcare staff. CORREC also engages in strategic partnerships with other technology firms and healthcare organizations to expand its market reach, enhance its product offerings, and leverage collaborative innovations, further contributing to its financial growth.
CORREC CO., LTD. Earnings Call Summary
Earnings Call Date:Oct 09, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 09, 2026
Earnings Call Sentiment Positive
Sony demonstrated strong financial performance, with record-high operating income and growth in key segments like Gaming & Network Services and Music. However, it faced challenges in the Pictures segment and financial services, as well as a tough environment in the Indian market. Despite these obstacles, the overall performance was positive, with improvements in inventory management and stable progress in strategic segments.Q2-2025 Updates
Positive Updates
Record High Operating Income
Operating income for the quarter increased 73% to JPY 451.1 billion, setting a record high for the second quarter.
Gaming & Network Services Segment Growth
Sales increased by 12% year-on-year to JPY 1,071.5 billion, and operating income soared 184% to JPY 138.8 billion, marking a new record high for the segment.
Monthly Active Users on PlayStation Platforms
The number of monthly active users increased by 8% to 116 million accounts, marking the eighth consecutive quarter of growth.
Music Segment Growth
Sales increased by 10% year-on-year to JPY 448.2 billion, and operating income rose 12% to JPY 90.4 billion.
Image Sensor Sales Increase
Sales in the I&SS segment increased by 32% year-on-year to JPY 535.6 billion, driven by increased sales of image sensors for mobile products.
Negative Updates
Pictures Segment Sales Decline
Sales decreased by 11% year-on-year to JPY 355.8 billion, primarily due to a decrease in the number of television programs and the impact of strikes.
Financial Services Segment Revenue Decrease
Financial services revenue decreased by JPY 167.2 billion year-on-year to a negative JPY 63.3 billion, primarily due to market fluctuations at Sony Life.
Challenges in the Indian Market
The operating environment in India is challenging due to a softness in the ad market and a decrease in pay television viewership.
Downward Revision of I&SS Forecast
Sales and profit forecasts for mobile sensors were revised downward due to a customer's production plan adjustment.
Company Guidance
During Sony Group Corporation's financial results announcement for the second quarter of fiscal year 2025, several key metrics were discussed. Consolidated sales excluding the Financial Services segment rose by 9% year-on-year to JPY 2,973.4 billion, with operating income increasing by 57% to JPY 389.3 billion. Including the Financial Services segment, sales increased by 3% to JPY 2,905.6 billion, and operating income reached a record high of JPY 451.1 billion, up 73% from the previous year, with net income at JPY 338.5 billion, a 69% increase. The G&NS segment saw a 12% rise in sales to JPY 1,071.5 billion, and operating income surged by 184% to JPY 138.8 billion. The Music segment also experienced growth, with a 10% increase in sales to JPY 448.2 billion and a 12% rise in operating income to JPY 90.4 billion. Conversely, the Pictures segment faced an 11% decrease in sales to JPY 355.8 billion and a 37% drop in operating income to JPY 18.5 billion. The I&SS segment reported a 32% increase in sales to JPY 535.6 billion, with operating income doubling to JPY 92.4 billion. Sony's full-year forecast for fiscal year 2024 remains optimistic, with consolidated sales expected to reach JPY 11.800 trillion excluding Financial Services and JPY 12.710 trillion including it, while operating income forecasts remain unchanged at JPY 1.310 trillion.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.16B | 6.36B | 3.94B | 4.12B | 4.82B | 4.05B |
| Gross Profit | 4.83B | 4.44B | 3.46B | 3.85B | 4.66B | 4.00B |
| EBITDA | 425.78M | 271.39M | 156.02M | 292.86M | -62.03M | 541.51M |
| Net Income | 331.95M | 179.78M | 88.79M | 201.76M | -371.05M | 108.74M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 3.09B | 2.38B | 1.82B | 1.93B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.56B | 1.41B | 1.05B | 1.04B | 1.58B |
| Total Debt | 753.00M | 792.78M | 640.00M | 316.67M | 341.66M | 200.00M |
| Total Liabilities | 1.93B | 1.85B | 1.27B | 806.73M | 1.05B | 1.27B |
| Stockholders Equity | 1.11B | 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
Negative
357.00
Price Trends
294.38
Negative
305.37
Negative
318.63
Negative
Market Momentum
-4.52
Negative
41.54
Neutral
38.17
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 357 is above the 20-day moving average (MA) of 281.10, above the 50-day MA of 294.38, and above the 200-day MA of 318.63, indicating a bearish trend. The MACD of -4.52 indicates Negative momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 38.17 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥11.42B | 15.03 | ― | 1.21% | 5.97% | -5.60% | |
71 Outperform | ¥3.83B | 13.41 | ― | 3.56% | 13.81% | 64.18% | |
71 Outperform | ― | ― | ― | ― | 14.88% | 48.97% | |
70 Outperform | ¥2.07B | 309.93 | ― | 2.89% | 49.99% | 142.46% | |
70 Outperform | ¥4.44B | 36.48 | ― | ― | 54.00% | 6.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | ¥5.91B | -51.49 | ― | ― | 181.64% | -139.55% |
* Industrials Sector Average
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CORREC CO., LTD. Corporate Events
Sony’s Earnings Call: Record Highs Amid Challenges
Nov 8, 2025
Sony’s recent earnings call painted a picture of robust financial health, marked by record-high operating income and significant growth in key segments such as Gaming & Network Services and Music. Despite facing hurdles in the Pictures segment and financial services, as well as a challenging market environment in India, the overall sentiment was positive. The company demonstrated improvements in inventory management and stable progress in its strategic segments, contributing to its strong performance.
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.