Zuken Inc. (6947) AI Stock Analysis

• Market Cap: ¥106.49B
• Dividend Yield: 2.09%
• Average Volume (3M): 65.21K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.74
• Revenue Growth: 4.60%
• EPS Growth: 37.53%
• Country: JP
• Employees: 1,578
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 32.44
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥5,522.00 ▲(15.40% 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.

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: Negative
• Last Price: 4785.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4785 is below the 20-day moving average (MA) of 4851.00, below the 50-day MA of 4983.84, and below the 200-day MA of 4954.30, indicating a bearish trend. The MACD of -63.98 indicates Negative momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.59 is Neutral, 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	¥109.60B	33.73	―	1.15%	-10.59%	-26.51%
4071	74 Outperform	¥102.57B	25.27	―	1.21%	27.18%	35.88%
6947	72 Outperform	¥106.49B	19.94	―	2.09%	4.60%	37.53%
4776	72 Outperform	¥145.20B	27.63	―	0.95%	22.97%	107.52%
4477	64 Neutral	¥37.23B	108.15	―	―	30.45%	56.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥52.76B	―	―	―	10.39%	-322.87%

Zuken Inc. Corporate Events

Zuken Inc. Advances Share Buyback to Boost Shareholder Value

Zuken Inc. has repurchased 70,500 of its own shares, valued at 374,914,500 yen, as part of a larger buyback program approved by its Board of Directors. This move aims to enhance shareholder value and optimize the company’s capital structure, reflecting confidence in its financial health and future prospects.

The most recent analyst rating on (JP:6947) stock is a Hold with a Yen5384.00 price target. To see the full list of analyst forecasts on Zuken Inc. stock, see the JP:6947 Stock Forecast page.

Zuken Inc. Reports Mixed Financial Results for Q1 FY2025

Zuken Inc. reported its consolidated financial results for the first quarter of fiscal year 2025, showing a slight increase in net sales by 1.1% compared to the previous year. However, the company experienced a decline in operating and ordinary profits by 3.4% and 1.1%, respectively. Despite these challenges, comprehensive income rose by 11.1%, indicating some positive aspects in their financial performance. The company’s financial position remains stable with a shareholders’ equity ratio of 62.8%. No revisions were made to the dividend forecast, and the full-year forecast anticipates a 5.6% increase in net sales.

Zuken Inc. Executes Share Repurchase as Part of Strategic Capital Optimization

Zuken Inc. has announced the repurchase of 75,000 of its own shares, valued at 420,488,000 yen, conducted on the Tokyo Stock Exchange during July 2025. This move is part of a broader repurchase plan authorized by the Board of Directors, aiming to buy back up to 750,000 shares by March 2026, reflecting the company’s strategy to optimize capital structure and potentially enhance shareholder value.

Zuken Inc. Announces Share Repurchase Program

Zuken Inc. has repurchased 53,800 of its own shares, valued at 291,089,000 yen, as part of a broader initiative authorized by its Board of Directors to buy back up to 750,000 shares by March 2026. This strategic move is aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a commitment to returning capital to shareholders.