Kubotek Corporation (7709) AI Stock Analysis

• Market Cap: ¥2.74B
• Dividend Yield: N/A
• Average Volume (3M): 328.92K
• Price to Earnings (P/E): 140.3
• Beta (1Y): 0.27
• Revenue Growth: 27.23%
• EPS Growth: 26.46%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 90
• Industry: Computer Hardware
• EPS (TTM): -18.25
• Shares Outstanding: 13,830,000
• 10 Day Avg. Volume: 413,040
• 30 Day Avg. Volume: 328,923
• PEG Ratio: -0.22
• Price to Book (P/B): 4.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.96
• 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: ¥313.00
• Price Target Upside: 57.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥197.00 ▼(-1.01%Downside)

The most significant factor affecting Kubotek Corporation's stock score is its precarious financial performance, highlighted by unprofitability and negative cash flows. While some technical indicators suggest potential for a rebound, the overall financial health remains a substantial risk. Valuation challenges further weigh down the score, given the negative P/E ratio and absence of dividend yield.

Kubotek Corporation Business Overview & Revenue Model

Company Description

Kubotek Corporation (7709) is a technology company primarily engaged in the development and distribution of computer-aided design (CAD) software. The company operates in the software and technology sector, focusing on providing advanced modeling and design software tools that cater to industries such as manufacturing, engineering, and industrial design. Kubotek is known for its flagship product, KeyCreator, a 3D CAD software solution that offers a unique approach to direct modeling and design flexibility.

How the Company Makes Money

Kubotek Corporation generates revenue through the sale of its software products, particularly its KeyCreator CAD software. The company offers various licensing models, including perpetual licenses, subscription-based models, and maintenance contracts, providing customers with flexibility in how they purchase and use the software. Additional revenue is derived from providing technical support, training, and consulting services to enhance customer experience and maximize the utility of their software solutions. The company also engages in strategic partnerships and collaborations with other technology firms and industry players to expand its market reach and drive additional sales opportunities.

Kubotek Corporation Financial Statement Overview

Summary

Kubotek Corporation is experiencing significant financial challenges. Despite revenue growth, the company remains unprofitable with negative net income and EBIT. The balance sheet shows high leverage, and cash flow issues are pronounced with negative operating and free cash flows. These factors indicate a precarious financial health needing urgent improvements.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.68B	1.66B	1.31B	1.22B	1.02B	1.07B
Gross Profit	718.05M	680.33M	535.40M	455.40M	407.64M	432.73M
EBITDA	265.51M	51.36M	-57.00M	-44.68M	70.64M	71.59M
Net Income	-16.02M	-200.89M	-273.17M	-204.85M	-121.58M	-116.52M
Balance Sheet
Total Assets	1.69B	1.74B	2.35B	1.58B	2.09B	2.53B
Cash, Cash Equivalents and Short-Term Investments	382.00M	438.70M	1.16B	849.22M	1.41B	1.78B
Total Debt	275.00M	251.60M	512.01M	408.74M	624.40M	937.68M
Total Liabilities	1.21B	1.53B	1.92B	861.11M	1.12B	1.41B
Stockholders Equity	483.00M	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: 199.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 199 is below the 20-day moving average (MA) of 275.50, below the 50-day MA of 233.34, and below the 200-day MA of 208.44, indicating a bearish trend. The MACD of -14.86 indicates Positive momentum. The RSI at 31.24 is Neutral, neither overbought nor oversold. The STOCH value of 5.41 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	¥3.37B	10.56		2.84%	26.52%	-8.57%
6803	60 Neutral	¥2.51B	30.94		1.15%	-0.03%	―
6840	60 Neutral	¥2.44B	21.76		―	15.29%	-61.63%
Sector *	57 Neutral	$911.41M	14.23	-16.47%	3.42%	10.57%	-36.53%
7709	46 Neutral	¥2.74B	140.33		―	27.23%	26.46%
6836	42 Neutral	¥7.71B	636.15		―	14.80%	70.15%
6731	36 Underperform	¥6.27B	―		―	-13.87%	80.85%