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

• Market Cap: ¥2.05B
• Dividend Yield: 2.81%
• Average Volume (3M): 24.38K
• Price to Earnings (P/E): 306.6
• Beta (1Y): 0.69
• Revenue Growth: 49.99%
• EPS Growth: 142.46%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): N/A
• Shares Outstanding: 7,330,700
• 10 Day Avg. Volume: 12,410
• 30 Day Avg. Volume: 24,376
• PEG Ratio: 0.13
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 14.07
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥373.00 ▲(30.88% 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.

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 Development and Management Business. The Sales Promotion Business segment provides sales, contracts, and collection agency services, as well as sells optical and solar panels. The Media Business segment operates Rooch, a digital media site, that provides real estate and local information; Ultema, a game strategy site; Matching App Plus and Match Life, digital media sites that provides matching map information; Care High Career Change, an information site for job-changers; and Ie AGENT, a real estate brokerage store. The Application Development and Management Business segment operates Pairful, a smartphone matching app. The company was formerly known as NLINKS Co., Ltd. and changed its name to CORREC Co., Ltd. in March 2024. CORREC Co., Ltd. was incorporated in 2010 and is headquartered in Tokyo, Japan.

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	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

• Technical Analysis Sentiment: Neutral
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 285 is below the 20-day moving average (MA) of 286.00, below the 50-day MA of 303.78, and below the 200-day MA of 318.96, indicating a neutral trend. The MACD of -5.87 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.31 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5867	79 Outperform	¥4.26B	13.64	―	3.16%	―	―
6560	73 Outperform	¥11.17B	12.80	―	1.26%	16.18%	68.41%
7379	71 Outperform	―	―	―	―	14.88%	48.97%
6578	70 Outperform	¥2.05B	306.65	―	2.81%	49.99%	142.46%
9237	66 Neutral	¥4.57B	37.67	―	―	54.00%	6.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7034	49 Neutral	¥6.30B	35.49	―	―	181.64%	-139.55%