Kubotek Corporation (7709) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: N/A
• Average Volume (3M): 250.97K
• Price to Earnings (P/E): 140.3
• Beta (1Y): 0.21
• Revenue Growth: 6.75%
• EPS Growth: -17.60%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 3.57
• Shares Outstanding: 13,830,000
• 10 Day Avg. Volume: 651,590
• 30 Day Avg. Volume: 250,973
• 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: ¥198.00
• Price Target Upside: -1.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥198.00 ▼(-1.98% Downside)

Kubotek Corporation's overall stock score is primarily impacted by its challenging financial performance, marked by unprofitability and negative cash flows. While technical indicators show some mixed signals, the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Kubotek's software solutions, enhancing its market position and potential for future profitability.

Improved Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Recurring Revenue Stream

Recurring revenue from maintenance contracts and support services provides financial stability and predictability, supporting long-term growth.

Negative Factors

Unprofitability

Ongoing unprofitability suggests operational inefficiencies or high costs, which could hinder long-term financial health and growth prospects.

Negative Cash Flows

Negative cash flows indicate cash management issues, potentially limiting the company's ability to invest in growth and sustain operations.

High Level of Liabilities

A high level of liabilities relative to equity can strain financial stability and limit the company's ability to weather economic downturns.

Kubotek Corporation Business Overview & Revenue Model

Company Description

Kubotek Corporation (7709), established in Japan, specializes in providing software solutions for design and manufacturing industries. The company is renowned for its innovative CAD and CAM software products that enhance precision and efficiency in various engineering processes. Kubotek's offerings are primarily targeted at industries requiring advanced design capabilities, such as automotive, aerospace, and industrial machinery sectors.

How the Company Makes Money

Kubotek Corporation generates revenue through the sale and licensing of its CAD and CAM software solutions. The company offers these products through direct sales and a network of distributors, both domestically and internationally. Additionally, Kubotek provides maintenance contracts and technical support services, which offer a recurring revenue stream. Key partnerships with technology companies and industry associations also contribute to its earnings by expanding its market reach and enhancing product offerings through collaborative development efforts.

Kubotek Corporation Financial Statement Overview

Summary

Kubotek Corporation is facing significant financial hurdles, characterized by unprofitability despite revenue growth, high leverage, and negative cash flows. While there are positive trends in revenue and some balance sheet improvements, the company's overall financial health is precarious. Addressing operational inefficiencies and cash flow generation is critical for stabilization and growth.

Income Statement

Kubotek Corporation's income statement reveals a challenging financial trajectory. The company has experienced substantial revenue growth in the past year, but it remains unprofitable with persistent negative net income and EBIT. The gross profit margin is relatively healthy, yet the negative EBIT and net profit margins suggest inefficiencies or high operating costs. Overall, while revenue is growing, profitability remains a significant concern.

Balance Sheet

The balance sheet shows a mixed picture of financial health. The debt-to-equity ratio has improved, indicating better leverage management, but the company still carries a significant amount of debt relative to equity. The equity ratio remains low, reflecting a high level of liabilities. While Kubotek has reduced liabilities over the past year, the balance sheet stability is moderate, with room for improvement in financial robustness.

Cash Flow

Kubotek's cash flow statement highlights substantial challenges. The operating cash flow has turned negative, and free cash flow has significantly declined, indicating cash management issues. The ratios of operating and free cash flow to net income are concerning, showing cash flow underperformance relative to reported losses. The ability to generate positive cash flows needs urgent attention for improved financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.66B	1.31B	1.22B	1.02B	1.07B
Gross Profit	678.64M	680.33M	535.40M	455.40M	407.64M	432.73M
EBITDA	49.55M	51.36M	-57.00M	-44.68M	70.64M	71.59M
Net Income	-200.63M	-200.89M	-273.17M	-204.85M	-121.58M	-116.52M
Balance Sheet
Total Assets	1.74B	1.74B	2.35B	1.58B	2.09B	2.53B
Cash, Cash Equivalents and Short-Term Investments	438.70M	438.70M	1.16B	849.22M	1.41B	1.78B
Total Debt	251.60M	251.60M	512.01M	408.74M	624.40M	937.68M
Total Liabilities	1.53B	1.53B	1.92B	861.11M	1.12B	1.41B
Stockholders Equity	202.21M	202.21M	435.30M	720.18M	976.69M	1.12B
Cash Flow
Free Cash Flow	0.00	-277.08M	229.14M	-382.05M	-129.33M	59.52M
Operating Cash Flow	0.00	-195.42M	455.88M	-146.23M	51.28M	232.43M
Investing Cash Flow	0.00	-251.06M	-226.70M	-228.20M	-179.23M	-166.60M
Financing Cash Flow	0.00	-248.66M	75.34M	-215.66M	-258.04M	-164.19M

Kubotek Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7709, the sentiment is Negative. The current price of 202 is below the 20-day moving average (MA) of 202.30, above the 50-day MA of 199.06, and below the 200-day MA of 206.35, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7709.

Kubotek Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.71B	11.61		2.57%	47.58%	23.65%
6803	77 Outperform	¥2.79B	13.30		1.05%	2.27%	―
6840	68 Neutral	¥3.04B	20.33		―	21.30%	-15.27%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
7709	48 Neutral	¥2.78B	140.33		―	6.75%	-17.60%
6836	42 Neutral	¥6.26B	1,055.47		―	17.90%	―
6731	36 Underperform	¥5.63B	―		―	-11.45%	66.36%