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Zuken Inc. (JP:6947)
:6947
Japanese Market
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Zuken Inc. (6947) AI Stock Analysis

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JP:6947

Zuken Inc.

(6947)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥5,522.00
▲(13.27% 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. (6947) vs. iShares MSCI Japan ETF (EWJ)

Zuken Inc. Business Overview & Revenue Model

Company DescriptionZuken 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 MoneyZuken 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.74B40.74B38.47B35.07B31.50B28.82B
Gross Profit27.92B27.19B26.14B23.94B21.79B20.04B
EBITDA6.56B8.32B6.43B5.43B7.02B3.93B
Net Income5.23B5.23B3.87B3.20B3.00B2.14B
Balance Sheet
Total Assets63.27B63.27B63.88B62.50B59.11B57.17B
Cash, Cash Equivalents and Short-Term Investments34.92B34.92B35.15B35.21B33.89B28.39B
Total Debt115.78M115.78M98.50M112.35M71.73M61.66M
Total Liabilities23.33B23.33B22.86B21.14B20.49B18.33B
Stockholders Equity39.95B39.95B40.45B40.88B38.24B38.51B
Cash Flow
Free Cash Flow0.004.58B4.22B2.02B530.04M2.05B
Operating Cash Flow0.004.86B4.88B2.88B1.25B2.66B
Investing Cash Flow0.001.08B-1.64B-747.37M4.70B-1.17B
Financing Cash Flow0.00-5.96B-5.22B-1.02B-765.90M-749.84M

Zuken Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4875.00
Price Trends
50DMA
5238.42
Negative
100DMA
5281.46
Negative
200DMA
4907.87
Negative
Market Momentum
MACD
-52.80
Positive
RSI
35.51
Neutral
STOCH
22.92
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 4875 is below the 20-day moving average (MA) of 5034.37, below the 50-day MA of 5238.42, and below the 200-day MA of 4907.87, indicating a bearish trend. The MACD of -52.80 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥101.18B33.171.17%-10.59%-26.51%
74
Outperform
¥103.86B26.350.74%27.18%35.88%
72
Outperform
¥108.38B20.502.04%4.60%37.53%
72
Outperform
¥149.79B29.770.92%22.97%107.52%
64
Neutral
¥37.35B108.4930.45%56.35%
61
Neutral
¥46.86B-20.30-104.63%10.39%-322.87%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6947
Zuken Inc.
4,875.00
1,366.41
38.94%
JP:2326
Digital Arts Inc.
7,210.00
2,371.04
49.00%
JP:4071
Plus Alpha Consulting Co. LTD.
2,432.00
280.42
13.03%
JP:4259
ExaWizards Inc.
542.00
214.00
65.24%
JP:4477
BASE, Inc.
317.00
84.00
36.05%
JP:4776
Cybozu, Inc.
3,265.00
1,295.42
65.77%

Zuken Inc. Corporate Events

Zuken Inc. Advances Share Buyback to Boost Shareholder Value
Sep 2, 2025

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
Aug 6, 2025

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
Aug 4, 2025

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
Jul 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 01, 2025