C&G SYSTEMS INC. (6633) AI Stock Analysis

• Market Cap: ¥3.34B
• Dividend Yield: 2.86%
• Average Volume (3M): 21.44K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.42
• Revenue Growth: 21.10%
• EPS Growth: N/A
• Country: JP
• Employees: 245
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 14.56
• Shares Outstanding: 9,801,549
• 10 Day Avg. Volume: 7,080
• 30 Day Avg. Volume: 21,443
• PEG Ratio: 0.29
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 14.58
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

C&G SYSTEMS INC. holds a strong financial position with robust growth and profitability metrics, indicating solid operational efficiency. Despite the strong financial foundation, the current technical indicators suggest potential downward pressure on the stock price. Valuation is moderate, with an attractive dividend yield, adding appeal for income-focused investors. Overall, the company is positioned well financially but faces challenges in market momentum.

C&G SYSTEMS INC. Business Overview & Revenue Model

Company Description

C&G SYSTEMS INC. (6633) is a technology company specializing in the development and distribution of computer-aided design (CAD) and computer-aided manufacturing (CAM) systems. The company operates primarily in the software sector, delivering innovative solutions that enhance productivity and precision in manufacturing processes. Its core products are focused on providing advanced tools for industries such as automotive, aerospace, and industrial machinery, supporting clients in optimizing their design and production workflows.

How the Company Makes Money

C&G SYSTEMS INC. generates revenue primarily through the sale of its CAD and CAM software solutions. The company offers licensing models that include both perpetual licenses and subscription-based models, allowing flexibility for different customer needs. Additionally, C&G SYSTEMS INC. earns money by providing technical support, maintenance services, and training for its software products. Strategic partnerships with hardware manufacturers and industry leaders also contribute to its earnings, enhancing product offerings and expanding market reach.

C&G SYSTEMS INC. Financial Statement Overview

Summary

C&G SYSTEMS INC. demonstrates a strong financial position with consistent revenue growth, improved profitability, and a solid balance sheet with no debt. The company’s effective cost management and strong cash flow generation reinforce its stability and potential for future growth. However, maintaining profitability and managing growth sustainably in a competitive industry remains essential.

Income Statement

C&G SYSTEMS INC. has shown strong financial performance with consistent revenue growth from 2023 to 2024 (2.64%). The gross profit margin is healthy at around 66% in 2024, indicating efficient cost management. The net profit margin improved significantly to 3.08% in 2024, highlighting increased profitability. EBIT and EBITDA margins also showed positive trends, reinforcing the company’s operational efficiency.

Balance Sheet

The balance sheet of C&G SYSTEMS INC. is robust, with a debt-free status as of 2024, showcasing financial prudence. The equity ratio stands at approximately 52.74% in 2024, indicating a strong equity base relative to total assets. The return on equity (ROE) in 2024 improved to 3.79%, reflecting better utilization of shareholder funds. The company's liquidity position is strong with substantial cash reserves.

Cash Flow

The cash flow statements indicate solid performance, with a remarkable increase in free cash flow from 2023 to 2024 (34.45%). The operating cash flow to net income ratio is favorable at 1.73 in 2024, suggesting strong operational cash generation relative to net income. The free cash flow to net income ratio of 1.56 in 2024 further underscores healthy cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35B	3.93B	3.83B	4.42B	3.74B	3.68B
Gross Profit	2.79B	2.59B	2.51B	2.75B	2.39B	2.34B
EBITDA	428.56M	288.29M	221.79M	565.25M	426.10M	208.04M
Net Income	273.75M	121.87M	68.37M	293.76M	218.89M	60.45M
Balance Sheet
Total Assets	5.98B	6.05B	5.58B	5.73B	5.37B	4.97B
Cash, Cash Equivalents and Short-Term Investments	2.64B	2.87B	2.81B	3.00B	2.76B	2.50B
Total Debt	0.00	0.00	0.00	331.00K	988.00K	12.18M
Total Liabilities	2.71B	2.82B	2.46B	2.59B	2.50B	2.35B
Stockholders Equity	3.20B	3.19B	3.07B	3.05B	2.80B	2.58B
Cash Flow
Free Cash Flow	0.00	189.00M	14.06M	359.90M	299.50M	449.71M
Operating Cash Flow	0.00	209.35M	89.38M	411.85M	339.69M	492.63M
Investing Cash Flow	0.00	-120.24M	-134.55M	-80.69M	-52.40M	-11.37M
Financing Cash Flow	0.00	-117.79M	-179.86M	-139.12M	-62.99M	-209.68M

C&G SYSTEMS INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 352.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6633, the sentiment is Negative. The current price of 352 is below the 20-day moving average (MA) of 375.50, below the 50-day MA of 370.66, and above the 200-day MA of 326.19, indicating a neutral trend. The MACD of -7.78 indicates Positive momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 3.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6633.

C&G SYSTEMS INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3744	73 Outperform	¥3.92B	8.76	―	―	-7.06%	147.27%
6633	67 Neutral	¥3.34B	12.13	―	2.86%	21.10%	―
4447	62 Neutral	¥3.31B	16.93	―	3.89%	42.88%	-5.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3909	51 Neutral	¥3.17B	10.52	―	―	-8.20%	―
4014	51 Neutral	¥2.77B	51.41	―	―	-42.11%	-188.50%