MCJ Co., Ltd. (6670) AI Stock Analysis

• Market Cap: ¥154.68B
• Dividend Yield: 2.7%
• Average Volume (3M): 162.28K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.79
• Revenue Growth: 10.23%
• EPS Growth: 8.78%
• Country: JP
• Employees: 2,298
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 33.82
• Shares Outstanding: 101,774,704
• 10 Day Avg. Volume: 157,000
• 30 Day Avg. Volume: 162,276
• PEG Ratio: 0.62
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 8.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,822.00 ▲(13.03% Upside)

MCJ Co., Ltd. receives a strong overall score due to its solid financial performance and attractive valuation. The company's robust revenue and profit growth, coupled with a low P/E ratio and appealing dividend yield, are significant strengths. Technical analysis indicates a generally positive trend, though some short-term caution is warranted due to a negative MACD.

Positive Factors

Consistent Revenue Growth

Sustained ~10% revenue growth indicates durable demand for MCJ's PC and peripheral offerings, supporting scale economics and reinvestment. Over 2–6 months this underpins capacity to fund product development, broaden sales channels, and smooth cyclical swings in hardware demand.

Strong Capital Structure

Very low leverage and a high equity ratio provide financial flexibility to withstand hardware cycles, pursue targeted M&A, or invest in R&D. A 15.7% ROE shows effective capital deployment, reducing refinancing risk and supporting longer-term strategic initiatives.

Robust Operating Cash Generation

Growing free cash flow and OpCF/Net Income >1 indicate the business converts earnings into cash, enabling sustainable capex, dividends, or buybacks. Strong cash generation lessens reliance on external funding and supports execution of multi-month strategic plans.

Negative Factors

Cash Conversion Weakness

A declining FCF-to-net-income ratio signals weakening cash conversion, possibly from higher working capital or rising capex. Persisting this over months could constrain discretionary spending, slow reinvestment, and pressure dividend/payout flexibility despite positive nominal FCF.

Thin Net Profit Margins

Net margins under 7% reflect the low-margin nature of PC hardware. Such thin margins leave earnings exposed to component cost inflation, price competition, and commoditization. Small margin improvements can reverse quickly, increasing earnings volatility over several months.

Concentration in PC Hardware

Heavy reliance on consumer and commercial PC sales concentrates revenue on a mature, cyclical market. Without faster expansion into recurring services or software, MCJ remains vulnerable to secular declines or competitive pricing pressure, limiting durable revenue diversification.

MCJ Co., Ltd. Business Overview & Revenue Model

Company Description

MCJ Co., Ltd. engages in the PC related and entertainment businesses in Japan. It manufactures, sells, and retails PCs and monitors; distributes PC components; provides repair and technical support services for IT products; and operates Internet cafes. The company was founded in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MCJ Co., Ltd. generates revenue primarily through the sale of its computing hardware, including servers and storage solutions, along with cloud services that offer scalable computing power to clients. The company's revenue model is multifaceted, encompassing direct sales to enterprise clients, long-term service contracts, and recurring revenue from cloud service subscriptions. Key revenue streams include hardware sales, which account for a significant portion of earnings, and consulting services that assist clients in optimizing their IT environments. Significant partnerships with technology providers and integration with major cloud platforms further enhance MCJ's market reach and contribute to its overall earnings.

MCJ Co., Ltd. Financial Statement Overview

Summary

MCJ Co., Ltd. demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company has a healthy debt-to-equity ratio and a strong equity position. While cash flow is robust, there is room for improvement in optimizing free cash flow relative to net income.

Income Statement

MCJ Co., Ltd. has shown strong financial performance with consistent growth in revenue and profitability. The gross profit margin increased from 24.8% in 2024 to 24.9% in 2025, while the net profit margin improved from 6.5% in 2024 to 6.8% in 2025. Revenue growth was solid at 10.5% from 2024 to 2025. EBIT and EBITDA margins have also shown positive trends, indicating operational efficiency.

Balance Sheet

The balance sheet of MCJ Co., Ltd. is stable, with a healthy debt-to-equity ratio of 0.15 in 2025, reflecting a strong equity position. Return on Equity (ROE) improved to 15.7% in 2025, showcasing effective use of equity to generate profits. The equity ratio stands at 66.6%, indicating a strong capital structure with significant equity backing.

Cash Flow

The company has demonstrated a robust cash flow position, with Free Cash Flow growing significantly from 2024 to 2025. Operating Cash Flow to Net Income ratio is 1.25, suggesting sufficient cash generation from operations. However, the Free Cash Flow to Net Income ratio slightly decreased, indicating potential areas for cash flow optimization despite the overall positive trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	208.84B	207.17B	187.46B	191.08B	191.25B	174.17B
Gross Profit	52.20B	51.68B	46.54B	42.35B	40.21B	41.87B
EBITDA	21.49B	21.32B	18.59B	14.94B	14.49B	16.36B
Net Income	13.95B	14.05B	12.20B	9.60B	9.28B	10.01B
Balance Sheet
Total Assets	128.60B	134.18B	120.73B	102.19B	95.22B	87.36B
Cash, Cash Equivalents and Short-Term Investments	51.45B	57.73B	48.52B	41.14B	24.57B	31.81B
Total Debt	14.39B	13.44B	14.97B	10.09B	12.71B	9.29B
Total Liabilities	41.51B	44.66B	41.38B	33.90B	35.94B	35.03B
Stockholders Equity	86.89B	89.32B	79.18B	67.22B	58.37B	51.52B
Cash Flow
Free Cash Flow	0.00	16.08B	5.04B	21.33B	-7.99B	11.29B
Operating Cash Flow	0.00	17.59B	8.20B	24.02B	-6.76B	13.17B
Investing Cash Flow	0.00	-24.83B	-6.20B	-2.74B	-1.19B	-1.52B
Financing Cash Flow	0.00	-8.12B	-132.00M	-5.81B	224.00M	-4.07B

MCJ Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1612.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6670, the sentiment is Positive. The current price of 1612 is above the 20-day moving average (MA) of 1611.70, above the 50-day MA of 1588.88, and above the 200-day MA of 1427.71, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6670.

MCJ Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6670	79 Outperform	¥154.68B	10.76	―	2.70%	10.23%	8.78%
7739	76 Outperform	¥148.12B	22.80	―	1.92%	7.46%	-8.01%
6750	72 Outperform	¥149.34B	12.28	12.77%	2.84%	4.48%	22.39%
6727	72 Outperform	¥109.25B	15.14	17.33%	4.06%	-8.93%	48.98%
6737	69 Neutral	¥88.47B	17.74	―	4.76%	1.81%	9.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	¥146.22B	-21.61	-6.22%	1.61%	-4.91%	-136.94%