CAPITA, Inc. (7462) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: 2.1%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.15
• Revenue Growth: -29.28%
• EPS Growth: 86.70%
• Country: JP
• Employees: 83
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 31.28
• Shares Outstanding: 4,111,000
• 10 Day Avg. Volume: 18,980
• 30 Day Avg. Volume: 17,490
• PEG Ratio: 1.27
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 2.20
• 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: ¥685.00 ▲(54.98% Upside)
• Action: Reiterated Date: 12/10/25
• Date: Action: Reiterated 12/10/25

CAPITA, Inc. scores well due to its strong financial performance, particularly in cash flow management and revenue growth. The technical analysis supports a positive trend, although momentum is moderate. Valuation metrics suggest the stock is fairly valued, with a reasonable dividend yield adding to its appeal.

Positive Factors

Cash flow turnaround

The company moved free cash flow from negative to positive with strong operating cash conversion ratios (OCF/Net Income 19.12, FCF/Net Income 18.70). Durable cash generation enhances liquidity, funds capex/dividends, and reduces refinancing risk across multiple business cycles.

Healthy balance sheet

A moderate debt-to-equity (0.57) and equity ratio above 50% indicate prudent leverage and strong equity backing. That structural balance provides financial flexibility to invest or withstand sector volatility, lowering default risk and supporting medium-term strategic options.

Top-line growth and gross margin

Reported revenue growth of ~10.7% year-over-year combined with a 26.6% gross margin suggests competitive pricing or cost control at the core business. Sustained top-line expansion with healthy gross margins supports scaling operating leverage over the next several quarters.

Negative Factors

Very low net profitability

Extremely thin net and operating margins (net 0.89%, EBIT 2.36%, EBITDA 1.63%) indicate limited ability to convert revenue into durable profit. In a capital-intensive refining cycle, such low profitability constrains reinvestment, reduces shock absorption, and pressures sustainable shareholder returns.

Low return on equity

ROE under 2% signals weak returns on shareholder capital despite a solid equity base. Persistently low ROE implies inefficient capital deployment or margin compression, limiting value creation for investors and reducing the company's ability to finance growth internally over the medium term.

Revenue volatility / recent decline

A materially negative reported revenue growth metric in the fundamentals indicates revenue volatility or recent declines, which undermines predictability for cash flow and planning. Structural top-line instability complicates long-term capital allocation and margin recovery efforts.

CAPITA, Inc. Business Overview & Revenue Model

Company Description

CAPITA Inc. engages in the wholesale and direct sale of petroleum products in Japan. The company engages in the management of service stations; management of cycles; real estate leasing; and sales and brokerage of real estate, as well as management of store and rental office building. Capita Inc. was formerly known as Daiya Tsusho Co.,Ltd. and changed its name to Capita Inc. in September 2021. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CAPITA generates revenue primarily through its BPO services, which are structured around long-term contracts with clients in various industries. The company earns money by charging clients for services rendered, which can include transaction-based fees, fixed retainers, and performance-based incentives. Key revenue streams include customer service outsourcing, IT services, and consultancy solutions. CAPITA also benefits from strategic partnerships with technology providers, allowing for the integration of advanced technologies into their service offerings, thereby enhancing value and attracting new clients. Additionally, government contracts form a significant portion of CAPITA's earnings, providing a stable revenue base due to the often long-term nature of these agreements.

CAPITA, Inc. Financial Statement Overview

Summary

CAPITA, Inc. exhibits a robust financial position with strong revenue growth and effective cash flow management. While profitability margins are modest, the company's low leverage and solid equity base provide a stable foundation for future growth.

Income Statement

CAPITA, Inc. has demonstrated solid revenue growth with a 10.67% increase from the previous year. The gross profit margin stands at 26.61%, indicating efficient cost management. However, the net profit margin is relatively low at 0.89%, suggesting room for improvement in profitability. The EBIT margin of 2.36% and EBITDA margin of 1.63% are modest, reflecting operational challenges in the industry.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.57, indicating prudent leverage management. The return on equity is 1.98%, which is low but stable. The equity ratio of 52.79% shows a strong equity base, providing financial stability.

Cash Flow

CAPITA, Inc. has shown a remarkable turnaround in cash flow, with a significant improvement in free cash flow from negative to positive. The operating cash flow to net income ratio is 19.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 18.70, highlighting effective cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.37B	3.04B	3.34B	3.34B	2.88B
Gross Profit	896.74M	913.98M	936.64M	920.38M	897.67M
EBITDA	55.05M	73.34M	101.01M	82.89M	32.30M
Net Income	30.11M	22.69M	55.84M	56.49M	15.16M
Balance Sheet
Total Assets	2.89B	3.00B	2.57B	2.40B	1.96B
Cash, Cash Equivalents and Short-Term Investments	605.38M	126.29M	364.32M	444.29M	309.45M
Total Debt	875.83M	969.99M	587.00M	405.23M	1.38M
Total Liabilities	1.36B	1.50B	1.08B	958.30M	565.21M
Stockholders Equity	1.52B	1.51B	1.49B	1.44B	1.39B
Cash Flow
Free Cash Flow	563.06M	-607.38M	-230.54M	-259.82M	87.67M
Operating Cash Flow	575.80M	-22.31M	-187.37M	-248.94M	90.88M
Investing Cash Flow	10.32M	-587.42M	-66.42M	-10.14M	-4.55M
Financing Cash Flow	-107.03M	371.70M	173.82M	393.92M	-13.04M

CAPITA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 442.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7462, the sentiment is Positive. The current price of 442 is below the 20-day moving average (MA) of 607.10, below the 50-day MA of 590.96, and below the 200-day MA of 480.47, indicating a bullish trend. The MACD of 8.03 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 74.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7462.

CAPITA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7462	72 Outperform	¥2.17B	27.22	―	2.10%	-29.28%	86.70%
5015	70 Outperform	¥22.91B	21.89	―	4.50%	13.76%	13.58%
6239	68 Neutral	¥10.57B	13.62	―	2.51%	-17.41%	-32.14%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5010	59 Neutral	¥6.28B	9.01	―	―	-10.55%	-21.44%