Zuken Inc. (6947) AI Stock Analysis

• Market Cap: ¥117.61B
• Dividend Yield: 1.51%
• Average Volume (3M): 46.99K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.70
• Revenue Growth: 4.60%
• EPS Growth: 37.53%
• Country: JP
• Employees: 1,578
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 32.44
• Shares Outstanding: 22,249,804
• 10 Day Avg. Volume: 50,820
• 30 Day Avg. Volume: 46,986
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 71 Outperform
• Price Target: ―

Zuken Inc.'s stock score reflects a strong financial foundation with robust income and balance sheet metrics. However, technical indicators suggest caution due to recent price trends, and cash flow transparency issues highlight potential risks. The valuation is moderate, providing a balanced view of growth and income potential.

Zuken Inc. Business Overview & Revenue Model

Company Description

Zuken Inc. (6947) is a leading provider in the engineering and electronics design automation (EDA) sector, offering innovative software solutions and services primarily for the electrical and electronic industries. The company specializes in developing advanced EDA tools that facilitate the design, simulation, and verification of electrical circuits, printed circuit boards (PCBs), and wiring harness systems. Zuken's products are utilized by a wide range of industries including automotive, aerospace, consumer electronics, and telecommunications, helping clients streamline their design processes and enhance product quality.

How the Company Makes Money

Zuken Inc. generates revenue primarily through the sale of its specialized EDA software solutions and related services. The company offers various licensing models for its software products, including perpetual licenses, subscription-based models, and maintenance contracts, providing flexibility and continual support to its clients. Zuken also earns income from consulting services and training programs that help customers optimize the use of its software tools. Additionally, the company engages in strategic partnerships and collaborations with other technology firms, enhancing its market reach and technology offerings. These partnerships often lead to joint development projects and technology integrations that further drive sales and customer engagement.

Zuken Inc. Financial Statement Overview

Summary

Zuken Inc. presents a strong financial profile with a robust income statement, high profit margins, and growing revenue. The balance sheet is impressively strong, with no debt and high equity, indicating financial stability. However, the cash flow analysis reveals areas for improvement due to data gaps, making ongoing cash flow health difficult to assess.

Income Statement

Zuken Inc. demonstrates strong performance in its income statement metrics. The gross profit margin is consistently high, with TTM figures showing a margin of 68.6%. The net profit margin stands at 10.3% for TTM, indicating solid profitability. Revenue has grown steadily, with a TTM growth rate of 3.9% compared to the previous annual report. Additionally, EBIT and EBITDA margins are healthy at 12.9% and 15.3% respectively. Overall, the company's revenue and profit margins reflect a robust and growing position in the software application industry.

Balance Sheet

Zuken Inc.'s balance sheet is exceptionally strong, characterized by zero debt and a high equity ratio of 64.3% in TTM. The company has no leverage risks, enhancing financial stability. The return on equity (ROE) is an impressive 10.5%, indicating effective utilization of equity to generate profits. Overall, this balance sheet reflects a financially stable company with substantial shareholder equity and minimal liabilities, ideal for long-term sustainability.

Cash Flow

Cash flow analysis shows areas for improvement. The operating cash flow to net income ratio is not calculable due to missing recent cash flow data, posing a challenge in assessing cash generation efficiency. Historically, the company has shown positive free cash flow, but recent data gaps highlight potential concerns. Despite previous free cash flow growth, the lack of current metrics makes it difficult to assess ongoing cash flow health.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.74B	38.47B	35.07B	31.50B	28.82B
Gross Profit	27.19B	26.14B	23.94B	21.79B	20.04B
EBITDA	8.32B	6.43B	5.43B	7.02B	3.93B
Net Income	5.23B	3.87B	3.20B	3.00B	2.14B
Balance Sheet
Total Assets	63.27B	63.88B	62.50B	59.11B	57.17B
Cash, Cash Equivalents and Short-Term Investments	34.92B	35.15B	35.21B	33.89B	28.39B
Total Debt	0.00	0.00	112.35M	71.73M	61.66M
Total Liabilities	23.33B	22.86B	21.14B	20.49B	18.33B
Stockholders Equity	39.95B	40.45B	40.88B	38.24B	38.51B
Cash Flow
Free Cash Flow	4.58B	4.22B	2.02B	530.04M	2.05B
Operating Cash Flow	4.86B	4.88B	2.88B	1.25B	2.66B
Investing Cash Flow	1.08B	-1.64B	-747.37M	4.70B	-1.17B
Financing Cash Flow	-5.96B	-5.22B	-1.02B	-765.90M	-749.84M

Zuken Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5290.00
• 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:6947, the sentiment is Neutral. The current price of 5290 is below the 20-day moving average (MA) of 5628.00, below the 50-day MA of 5518.00, and above the 200-day MA of 4772.68, indicating a neutral trend. The MACD of -47.11 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 10.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6947.

Zuken Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6701	79 Outperform	$6.22T	30.47	10.52%	0.59%	-0.35%	32.66%
6501	78 Outperform	$19.52T	30.96	10.93%	1.01%	2.21%	-7.98%
6752	75 Outperform	$3.56T	9.69	7.89%	2.63%	-4.14%	16.99%
6503	73 Outperform	€7.62T	20.57	9.91%	1.35%	4.21%	33.53%
6947	71 Outperform	¥117.61B	22.11		1.51%	4.60%	37.53%
6702	70 Outperform	$6.44T	16.69	11.82%	0.80%	-8.36%	45.42%
Sector *	68 Neutral	¥242.89B	15.23	6.64%	2.42%	9.16%	-0.19%

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.