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

• Market Cap: ¥2.07B
• Dividend Yield: 2.27%
• Average Volume (3M): 24.38K
• Price to Earnings (P/E): 309.9
• Beta (1Y): 0.65
• Revenue Growth: 49.99%
• EPS Growth: 142.46%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -19.86
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥361.00 ▲(3.14% Upside)

CORREC CO., LTD. is positioned well with strong financial performance and positive earnings call sentiment. The technical analysis supports a bullish trend, although the high P/E ratio suggests caution regarding valuation. The company's robust cash flow and strategic growth in key segments contribute positively to its overall stock score.

Positive Factors

Revenue Growth

The company's impressive revenue growth indicates a strong market position and successful product adoption, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances liquidity and provides the company with the flexibility to invest in growth opportunities and manage financial obligations.

Business Model

The subscription-based model provides predictable revenue streams and customer retention, which are crucial for sustained financial health and growth.

Negative Factors

Operational Inefficiencies

Operational inefficiencies can hinder profitability and limit the company's ability to scale effectively, impacting long-term competitiveness.

Increasing Liabilities

Rising liabilities may strain financial resources and limit strategic flexibility, potentially impacting the company's financial stability.

Investing Cash Flow Volatility

Volatility in investing cash flow can indicate uncertainty in capital allocation, affecting the company's ability to execute long-term strategic initiatives.

CORREC CO., LTD. Business Overview & Revenue Model

Company Description

CORREC 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 Money

CORREC 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. 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: Positive
• Last Price: 350.00
• 50DMA: Positive
• 100DMA: Positive
• 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 350 is above the 20-day moving average (MA) of 326.50, above the 50-day MA of 302.20, and above the 200-day MA of 321.29, indicating a bullish trend. The MACD of 15.80 indicates Negative momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 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
6578	76 Outperform	¥2.07B	309.93	―	2.27%	49.99%	142.46%
6560	73 Outperform	¥10.59B	13.94	―	1.30%	5.97%	-5.60%
5867	71 Outperform	¥3.98B	13.96	―	3.66%	13.81%	64.18%
7379	71 Outperform	―	―	―	―	14.88%	48.97%
9237	70 Outperform	¥4.22B	34.64	―	―	54.00%	6.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7034	49 Neutral	¥5.91B	-51.49	―	―	181.64%	-139.55%

CORREC CO., LTD. Corporate Events

Sony’s Earnings Call: Record Highs Amid Challenges

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.