Zuken Inc. (6947) AI Stock Analysis

• Market Cap: ¥114.94B
• Dividend Yield: 2.03%
• Average Volume (3M): 65.21K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.73
• Revenue Growth: 3.64%
• EPS Growth: 51.48%
• Country: JP
• Employees: 1,578
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 64.93
• Shares Outstanding: 22,249,804
• 10 Day Avg. Volume: 63,070
• 30 Day Avg. Volume: 65,210
• PEG Ratio: 0.52
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 2.56
• P/FCF Ratio: 22.78
• 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: 72 Outperform
• Price Target: ¥5,522.00 ▲(6.81% Upside)

Zuken Inc. scores well due to its strong financial performance, characterized by consistent growth and robust cash flow. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial outlook. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield, making it a balanced investment option.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Zuken's products and services, reflecting the company's ability to capture market share and expand its customer base.

Cash Flow Generation

Strong cash flow generation supports Zuken's financial stability, enabling reinvestment in R&D and strategic initiatives, which are crucial for long-term growth and competitiveness.

Profitability Margins

High profitability margins indicate efficient cost management and operational performance, allowing Zuken to sustain competitive pricing and invest in future growth.

Negative Factors

Market Position Challenges

Bearish momentum may reflect market concerns over competitive pressures or industry challenges, potentially impacting Zuken's ability to maintain its market position.

Debt Levels

While currently low, any increase in debt levels could strain financial flexibility, particularly if revenue growth slows or market conditions worsen.

Valuation Concerns

Moderate valuation suggests limited upside potential unless significant growth catalysts emerge, which could affect investor sentiment and capital inflow.

Zuken Inc. Business Overview & Revenue Model

Company Description

Zuken Inc., a software company, provides advanced design solutions for the creation and management of printed circuit board (PCB) designs, electrical and fluid systems, and 3D cabinet and wire harness layouts. The company offers CR-8000, a product-centric electronic system design solution that provides the tools to enhance designs at IC and PCB levels. It also provides E3.series solutions for electrical wire harness, control systems, and fluid engineering; DS-2, a data management platform for PCB and electrical/fluid engineering; eCADSTAR, an Internet connected PCB design platform; and CADSTAR, a single-board PCB design software. In addition, the company provides consulting services. It serves customers in the industrial machinery, consumer electronics, electronic components, medical devices, special-purpose vehicles, rail transport, and aerospace sectors in Japan, rest of Asia, the Americas, and Europe. The company was formerly known as Zukei Shori Gijutsu Kenkyusho Inc. and changed its name to Zuken Inc. in June 1985. Zuken Inc. was founded in 1976 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Zuken generates revenue primarily through the sale of software licenses, maintenance contracts, and software updates. The company offers a subscription-based model for its software, allowing clients to access the latest tools and features while providing ongoing support. Additionally, Zuken earns revenue from professional services, including training, consulting, and customization of its software solutions to meet specific customer needs. Strategic partnerships with major technology firms and industry players also contribute to its earnings by expanding its market reach and enhancing its product offerings. The company continuously invests in research and development to innovate and adapt to the evolving demands of the electronic design industry, driving further revenue growth.

Zuken Inc. Financial Statement Overview

Summary

Zuken Inc. exhibits strong financial health with consistent revenue and profit growth, robust margins, and a solid balance sheet with minimal leverage. The company's cash flow generation is impressive, supporting its growth trajectory and financial stability.

Income Statement

Zuken Inc. has demonstrated consistent revenue growth over the years, with a notable increase in revenue from 2024 to 2025. The company maintains strong profitability margins, with a gross profit margin consistently above 66% and a net profit margin improving to over 12% in 2025. The EBIT and EBITDA margins also show positive trends, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio indicating minimal leverage and a healthy equity position. Return on equity has improved over the years, reaching 13% in 2025, reflecting effective use of shareholder funds. The equity ratio remains robust, showcasing financial stability and a solid asset base.

Cash Flow

Zuken Inc. has shown impressive free cash flow growth, particularly from 2023 to 2024. The operating cash flow to net income ratio is stable, indicating good cash generation relative to earnings. The free cash flow to net income ratio is high, suggesting strong cash conversion and efficient capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.84B	40.74B	38.47B	35.07B	31.50B	28.82B
Gross Profit	27.91B	27.19B	26.14B	23.94B	21.79B	20.04B
EBITDA	6.81B	8.32B	6.43B	5.43B	7.02B	3.93B
Net Income	5.22B	5.23B	3.87B	3.20B	3.00B	2.14B
Balance Sheet
Total Assets	62.46B	63.27B	63.88B	62.50B	59.11B	57.17B
Cash, Cash Equivalents and Short-Term Investments	35.66B	34.92B	35.15B	35.21B	33.89B	28.39B
Total Debt	247.90M	115.78M	98.50M	112.35M	71.73M	61.66M
Total Liabilities	23.22B	23.33B	22.86B	21.14B	20.49B	18.33B
Stockholders Equity	39.25B	39.95B	40.45B	40.88B	38.24B	38.51B
Cash Flow
Free Cash Flow	0.00	4.58B	4.22B	2.02B	530.04M	2.05B
Operating Cash Flow	0.00	4.86B	4.88B	2.88B	1.25B	2.66B
Investing Cash Flow	0.00	1.08B	-1.64B	-747.37M	4.70B	-1.17B
Financing Cash Flow	0.00	-5.96B	-5.22B	-1.02B	-765.90M	-749.84M

Zuken Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6947, the sentiment is Positive. The current price of 5170 is above the 20-day moving average (MA) of 4879.50, above the 50-day MA of 4747.50, and above the 200-day MA of 5015.12, indicating a bullish trend. The MACD of 104.82 indicates Negative momentum. The RSI at 72.91 is Negative, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6947.

Zuken Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4071	79 Outperform	¥103.34B	31.03	―	1.19%	22.78%	7.57%
6947	72 Outperform	¥114.94B	19.69	―	2.03%	3.64%	51.48%
2326	66 Neutral	¥86.31B	26.34	―	1.42%	-6.04%	-24.88%
4477	62 Neutral	¥39.12B	68.03	―	―	27.97%	-5.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥54.03B	-28.98	―	―	8.98%	-581.59%
4776	―	¥125.25B	19.73	―	1.02%	26.47%	142.77%

Zuken Inc. Corporate Events

Zuken Advances Share Buyback Program, Repurchasing 525,500 Shares by Year-End 2025

Zuken Inc. has disclosed the status of its ongoing share repurchase program, confirming that it bought back 69,400 shares of its common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥325.7 million. This buyback is part of a broader Board-approved program, authorized in May 2025, that allows repurchases of up to 750,000 shares or ¥3.0 billion by March 31, 2026; as of December 31, 2025, Zuken had cumulatively repurchased 525,500 shares for approximately ¥2.67 billion, signaling an active capital return policy and potential enhancement of shareholder value through reduced share float.

The most recent analyst rating on (JP:6947) stock is a Buy with a Yen5522.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.

Zuken Inc. Advances Share Repurchase Strategy

Zuken Inc. has repurchased 74,700 of its own shares, valued at 347,061,000 yen, from November 1 to November 30, 2025, as part of a broader strategy approved by the Board of Directors. This move is part of a larger plan to repurchase up to 750,000 shares, reflecting the company’s commitment to enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:6947) stock is a Buy with a Yen5522.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.

Zuken Inc. Announces 50th Anniversary Commemorative Dividend

Zuken Inc. announced a revision to its year-end dividend forecast in celebration of its 50th anniversary. The company plans to pay a commemorative dividend of 100 yen per share, resulting in a total year-end dividend of 150 yen per share for the fiscal year ending March 31, 2026. This gesture reflects Zuken’s gratitude towards its shareholders and signifies its strong financial performance and commitment to stakeholder value.

The most recent analyst rating on (JP:6947) stock is a Buy with a Yen5522.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.

Zuken Inc. Reports Q2 FY2025 Financial Results and Announces Commemorative Dividend

Zuken Inc. reported its consolidated financial results for the second quarter of FY2025, showing a modest increase in net sales and operating profit compared to the previous year. The company also announced a significant revision to its year-end dividend forecast, including a commemorative dividend for its 50th anniversary, which reflects positively on its financial health and commitment to shareholder returns.

The most recent analyst rating on (JP:6947) stock is a Buy with a Yen5522.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.

Zuken Inc. Advances Share Buyback Program

Zuken Inc. has repurchased 79,900 shares of its own common stock, valued at 383,434,500 yen, from October 1 to October 31, 2025, as part of a broader share buyback initiative. This move is part of a strategic decision to enhance shareholder value, with the company having repurchased a total of 381,400 shares worth 1,996,830,500 yen by the end of October 2025, under a resolution allowing for up to 750,000 shares to be repurchased by March 2026.

The most recent analyst rating on (JP:6947) stock is a Buy with a Yen5522.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.