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

• Market Cap: ¥2.36B
• Dividend Yield: 2.48%
• Average Volume (3M): 20.33K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.67
• Revenue Growth: 61.37%
• EPS Growth: 101.49%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 92
• Industry: Consulting Services
• EPS (TTM): 9.77
• Shares Outstanding: 7,330,700
• 10 Day Avg. Volume: 14,540
• 30 Day Avg. Volume: 20,326
• PEG Ratio: -0.05
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.87
• 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: ¥342.00
• Price Target Upside: 6.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥349.00 ▲(8.39%Upside)

The strong financial performance, highlighted by robust revenue growth and improved profit margins, is the primary driver of the stock score. While the valuation indicates potential undervaluation, the technical analysis reflects a lack of clear momentum, moderating the overall score.

CORREC CO., LTD. Business Overview & Revenue Model

Company Description

CORREC CO., LTD. (6578) is a Japanese company that operates in the information technology sector, focusing on providing software solutions and services. The company specializes in developing and offering software products that enhance business operations and efficiency across various industries. CORREC CO., LTD. is known for its innovative approach to solving complex business challenges through technology, delivering tailored solutions to meet the specific needs of its clients.

How the Company Makes Money

CORREC CO., LTD. generates revenue primarily through the sale of its software products and the provision of related services. The company's revenue streams include software licensing fees, subscription services, and maintenance and support contracts. Additionally, CORREC CO., LTD. may engage in consulting services and customization projects for clients, which provide additional income. Strategic partnerships and collaborations with other technology firms contribute to expanding its market reach and enhancing its product offerings, further supporting its revenue growth.

CORREC CO., LTD. Financial Statement Overview

Summary

CORREC CO., LTD. shows strong revenue growth and improved profit margins due to efficient cost management. The balance sheet is robust, with prudent leverage, though liabilities need monitoring. Cash flow is strengthening, but historical volatility indicates the need for stable management.

Income Statement

CORREC CO., LTD. has demonstrated robust revenue growth, with total revenue rising from 3,938,768,000 to 6,355,942,000 over the past year, representing a significant growth rate. The gross profit margin remains strong at 69.8%, indicating efficient cost management. However, there are concerns regarding the net profit margin improvement from 2.25% to 2.83%, which, while positive, remains low. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.64, suggesting prudent leverage management. Stockholders' equity has grown, enhancing the equity ratio to 40.2%. However, high total liabilities relative to assets pose a potential risk, requiring careful monitoring to maintain financial stability.

Cash Flow

The free cash flow has grown significantly from the previous year, indicating improved cash generation capabilities. The operating cash flow to net income ratio is positive, showcasing effective cash conversion from earnings. However, fluctuations in free cash flow from negative to positive in recent years suggest potential volatility in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.66B	6.36B	3.94B	4.12B	4.82B	4.05B
Gross Profit	4.18B	4.44B	3.46B	3.85B	4.66B	4.00B
EBITDA	212.04M	271.39M	156.02M	292.86M	-62.03M	541.51M
Net Income	157.03M	179.78M	88.79M	201.76M	-371.05M	108.74M
Balance Sheet
Total Assets	2.93B	3.09B	2.38B	1.82B	1.93B	2.54B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.56B	1.41B	1.05B	1.04B	1.58B
Total Debt	729.00M	792.78M	640.00M	316.67M	341.66M	200.00M
Total Liabilities	1.76B	1.85B	1.27B	806.73M	1.05B	1.27B
Stockholders Equity	1.17B	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: Positive
• Last Price: 322.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 322 is above the 20-day moving average (MA) of 314.80, below the 50-day MA of 323.86, and above the 200-day MA of 308.57, indicating a neutral trend. The MACD of -1.16 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 88.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6578.

CORREC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6560	81 Outperform	¥10.42B	10.32		1.32%	25.65%	84.06%
5867	80 Outperform	¥3.30B	10.61		4.08%	―	―
9237	74 Outperform	¥4.50B	27.06		―	―	―
6578	72 Outperform	¥2.36B	13.12		2.48%	61.37%	101.49%
7379	71 Outperform	¥7.61B	30.69		―	0.66%	14.40%
7034	64 Neutral	¥6.66B	35.49		―	125.74%	-109.66%
Sector *	61 Neutral	C$6.67B	7.58	3.42%	2.78%	6.63%	-23.02%