Zuken Inc. (6947) AI Stock Analysis

• Market Cap: ¥112.05B
• Dividend Yield: 1.57%
• Average Volume (3M): 48.76K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.72
• Revenue Growth: 4.60%
• EPS Growth: 37.53%
• Country: JP
• Employees: 1,578
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 32.44
• Shares Outstanding: 22,249,804
• 10 Day Avg. Volume: 51,180
• 30 Day Avg. Volume: 48,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,384.00
• Price Target Upside: 6.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥5,384.00 ▲(6.83% Upside)

Zuken Inc.'s strong financial performance is the most significant factor, supported by consistent revenue and profit growth, robust margins, and impressive cash flow generation. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is moderate, providing some support but not enough to offset the technical weakness.

Zuken Inc. Business Overview & Revenue Model

Company Description

Zuken Inc. (6947) is a global leader in electronic design automation (EDA), providing software solutions for the design and manufacturing of printed circuit boards (PCBs) and other electronic systems. Established in Japan, the company specializes in offering innovative tools that enhance the efficiency of electronic design processes across various sectors, including automotive, telecommunications, and consumer electronics. Zuken's core products include design software, data management systems, and engineering services that support engineers and designers in their workflows.

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	40.74B	40.74B	38.47B	35.07B	31.50B	28.82B
Gross Profit	27.92B	27.19B	26.14B	23.94B	21.79B	20.04B
EBITDA	6.56B	8.32B	6.43B	5.43B	7.02B	3.93B
Net Income	5.23B	5.23B	3.87B	3.20B	3.00B	2.14B
Balance Sheet
Total Assets	63.27B	63.27B	63.88B	62.50B	59.11B	57.17B
Cash, Cash Equivalents and Short-Term Investments	34.92B	34.92B	35.15B	35.21B	33.89B	28.39B
Total Debt	115.78M	115.78M	98.50M	112.35M	71.73M	61.66M
Total Liabilities	23.33B	23.33B	22.86B	21.14B	20.49B	18.33B
Stockholders Equity	39.95B	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: Negative
• Last Price: 5040.00
• 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:6947, the sentiment is Negative. The current price of 5040 is below the 20-day moving average (MA) of 5133.25, below the 50-day MA of 5411.70, and above the 200-day MA of 4890.19, indicating a neutral trend. The MACD of -123.55 indicates Negative momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6947.

Zuken Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2326	76 Outperform	¥107.22B	33.00		1.06%	-10.59%	-26.51%
4071	74 Outperform	¥105.53B	26.20		0.65%	27.18%	35.88%
4776	72 Outperform	¥163.33B	31.08		0.84%	22.97%	107.52%
6947	66 Neutral	¥112.05B	21.07		1.57%	4.60%	37.53%
4477	64 Neutral	¥42.53B	123.55		―	30.45%	56.35%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
4259	61 Neutral	¥44.24B	―		―	10.39%	-322.87%

Zuken Inc. Corporate Events

Zuken Inc. Reports Extraordinary Income from Securities Sale

Zuken Inc. has announced an extraordinary income resulting from the sale of investment securities, specifically a stock listed on the U.S. NASDAQ market, yielding a gain of 1,496 million yen. This financial move is part of Zuken’s strategy to reduce strategic shareholdings, and the gain will be recorded in the financial statements for the fiscal year ending March 31, 2025, potentially impacting the company’s earnings forecast.

Zuken Inc. Reports Strong Q3 FY2024 Financial Results and Shareholder Initiatives

Zuken Inc. reported its financial results for the third quarter of FY2024, showcasing a positive performance with a 5.5% increase in net sales and a significant rise in operating and ordinary profits compared to the previous year. The company also completed a share repurchase, positively impacting its net income per share, and announced an increased dividend forecast, highlighting its strong financial health and commitment to shareholder value.