CUC Inc. (9158) AI Stock Analysis

• Market Cap: ¥28.61B
• Dividend Yield: N/A
• Average Volume (3M): 143.75K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.74
• Revenue Growth: 31.65%
• EPS Growth: -51.36%
• Country: JP
• Employees: 3,743
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 13.79
• Shares Outstanding: 29,990,400
• 10 Day Avg. Volume: 142,970
• 30 Day Avg. Volume: 143,746
• PEG Ratio: 0.94
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -13.21
• 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: 64 Neutral
• Price Target: ¥1,098.00 ▲(9.91% Upside)

CUC Inc. demonstrates strong financial performance with significant revenue growth and profitability, but faces challenges with cash flow management. The technical analysis indicates a bearish trend, which could impact short-term stock performance. The valuation is fair, but the lack of a dividend yield may deter income-focused investors. Overall, while the company is fundamentally strong, market sentiment and cash flow issues present risks.

Positive Factors

Revenue Growth

The company's robust revenue growth of approximately 42.5% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability

Improved gross profit margins reflect effective cost controls and pricing strategies, enhancing the company's ability to sustain profitability over time.

Operational Efficiency

Strong EBIT and EBITDA margins demonstrate effective operational management, which is crucial for maintaining competitive advantage and profitability.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives without external financing.

Earnings Decline

A decline in earnings per share growth suggests challenges in maintaining profitability, which could impact investor confidence and future capital raising efforts.

CUC Inc. Business Overview & Revenue Model

Company Description

CUC Inc. (9158) is a diversified company operating primarily in the technology and telecommunications sectors. The company specializes in providing innovative solutions and services such as cloud computing, data analytics, and managed IT services. CUC Inc. focuses on enhancing operational efficiency for businesses through its suite of products designed to optimize workflow and improve customer engagement, positioning itself as a key player in digital transformation initiatives.

How the Company Makes Money

CUC Inc. generates revenue through a multi-faceted model that includes subscription-based services, licensing fees for software products, and consulting services. The primary revenue stream comes from recurring subscriptions to its cloud services, which provide businesses with scalable IT infrastructure and support. Additionally, CUC Inc. earns income through the sale of proprietary software licenses, allowing companies to utilize its tools for data management and analytics. Strategic partnerships with other technology firms and service providers enhance its offerings and enable cross-selling opportunities, further contributing to its financial performance.

CUC Inc. Financial Statement Overview

Summary

CUC Inc. shows strong revenue growth and profitability, with improving margins indicating efficient operations. The balance sheet reflects a moderate leverage position, but the high debt level requires careful management. Cash flow challenges persist, particularly with free cash flow, suggesting a need for enhanced cash management strategies. Overall, the company is on a positive trajectory but must address cash flow issues to ensure long-term stability.

Income Statement

CUC Inc. has demonstrated strong revenue growth, with a significant increase from 33.0 billion to 47.0 billion over the last year, representing a growth rate of approximately 42.5%. The gross profit margin has improved to 42.3%, indicating efficient cost management. The net profit margin stands at 6.7%, showing profitability, though there's room for improvement. EBIT and EBITDA margins are 10.1% and 19.2% respectively, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.47, indicating a moderate level of leverage. The return on equity (ROE) is 10.6%, suggesting decent profitability relative to shareholder equity. The equity ratio is 34.8%, showing a stable capital structure with a good proportion of assets financed by equity. However, the high level of total debt at 43.5 billion poses a risk if not managed carefully.

Cash Flow

CUC Inc. has faced challenges with free cash flow, which is negative at -3.0 billion, although it has improved from the previous year. The operating cash flow to net income ratio is 0.80, indicating that operating cash flow is not fully covering net income, which could be a concern. The free cash flow to net income ratio is negative, highlighting the need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.44B	47.04B	33.02B	35.21B	35.31B	16.61B
Gross Profit	22.92B	19.89B	15.92B	13.78B	14.25B	7.55B
EBITDA	8.10B	9.04B	6.23B	4.95B	4.79B	2.46B
Net Income	2.37B	3.13B	2.60B	2.42B	2.71B	1.10B
Balance Sheet
Total Assets	86.17B	85.17B	62.84B	39.75B	34.53B	28.45B
Cash, Cash Equivalents and Short-Term Investments	7.04B	7.53B	8.26B	4.12B	4.36B	3.62B
Total Debt	48.16B	43.54B	26.72B	21.45B	14.90B	18.77B
Total Liabilities	56.07B	54.88B	34.83B	27.83B	24.85B	23.10B
Stockholders Equity	29.54B	29.68B	27.32B	11.70B	9.46B	4.73B
Cash Flow
Free Cash Flow	0.00	-3.04B	-747.00M	-3.23B	5.77B	1.64B
Operating Cash Flow	0.00	2.50B	4.16B	2.36B	6.62B	2.12B
Investing Cash Flow	0.00	4.45B	-14.75B	-6.68B	-1.47B	-2.42B
Financing Cash Flow	0.00	-7.60B	14.37B	3.97B	-4.43B	-591.00M

CUC Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 999.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9158, the sentiment is Neutral. The current price of 999 is above the 20-day moving average (MA) of 997.45, below the 50-day MA of 1102.92, and below the 200-day MA of 1194.47, indicating a neutral trend. The MACD of -33.29 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9158.

CUC Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6197	80 Outperform	¥53.24B	11.82	―	4.09%	1.86%	1370.48%
2374	75 Outperform	¥20.65B	11.80	―	2.47%	3.88%	0.31%
6062	72 Outperform	¥35.51B	12.12	―	2.67%	0.30%	-31.28%
7071	65 Neutral	¥42.08B	11.41	―	0.85%	15.77%	-50.57%
9158	64 Neutral	¥28.61B	16.50	―	―	31.65%	-51.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9229	44 Neutral	¥17.19B	-8.93	―	―	10.09%	-340.83%

CUC Inc. Corporate Events

CUC Inc. Announces Details of 9th Stock Option Issuance

CUC Inc. has announced the details of its 9th issuance of tax-qualified stock options, following a resolution by its Board of Directors. The issuance involves 567 stock option units, with a total of 56,700 common shares. The options are priced at 79,700 yen per unit, and the exercise price is set at 121,900 yen per unit. The stock options are allocated to directors and executive officers of CUC and its subsidiaries.

The most recent analyst rating on (JP:9158) stock is a Hold with a Yen1244.00 price target. To see the full list of analyst forecasts on CUC Inc. stock, see the JP:9158 Stock Forecast page.