Crops Corp. (9428) AI Stock Analysis

• Market Cap: ¥13.92B
• Dividend Yield: 1.47%
• Average Volume (3M): 3.00K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.40
• Revenue Growth: 10.12%
• EPS Growth: 21.04%
• Country: JP
• Employees: 1,200
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 69.95
• Shares Outstanding: 9,597,400
• 10 Day Avg. Volume: 2,640
• 30 Day Avg. Volume: 3,000
• PEG Ratio: -0.52
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 7.08
• 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: 63 Neutral
• Price Target: ¥1,640.00 ▲(18.24% Upside)
• Action: Downgraded Date: 12/03/25
• Date: Action: Downgraded 12/03/25

Crops Corp. benefits from strong financial performance and a reasonable valuation. However, technical indicators suggest bearish momentum, which could pose short-term risks. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue growth & gross margin

Sustained revenue growth (13% YoY) together with a 24.66% gross margin indicate expanding product adoption and effective cost control at the production level. Combined with the company’s hardware, software subscription and maintenance revenue mix, this supports recurring sales, reinvestment capacity and durable top-line momentum over months ahead.

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.23 and a 33.89% equity ratio reflect low financial leverage and a solid capital structure. This reduces refinancing and interest-rate risk, preserves financial flexibility for R&D or strategic partnerships, and supports resilience to industry cyclicality over the medium term.

Robust cash generation

Free cash flow generation above net income (FCF/NI 1.31) and operating cash flow that remains positive versus earnings show the business is converting earnings into cash. This durable cash conversion supports capex, software platform investment, recurring-service delivery, and provides a cushion for strategic spending without relying on external funding.

Negative Factors

Compressed net profitability

A net profit margin of only 1.61% after a decline signals thin after-tax profitability and mounting expense pressure. Over the medium term this constrains the company’s ability to fund growth from retained earnings, reduces buffers against demand shocks, and makes long-term return improvement dependent on sustained cost or pricing remediation.

Modest return on equity

ROE of 8.11% suggests the company delivers only modest returns on shareholder capital versus higher-return compounding businesses. Persistently middling ROE can limit equity-investor appeal and indicates management must either improve operational margins or allocate capital more productively to raise long-term shareholder value.

Weakening operational efficiency

A decline in operating cash flow relative to net income, even while above 1, suggests some operational efficiency erosion or rising working capital needs. Over months this trend could pressure liquidity, reduce free cash available for strategic initiatives, and signal rising costs or slower cash collection to monitor closely.

Crops Corp. Business Overview & Revenue Model

Company Description

Crops Corporation engages in the sale and service of mobile phones through stores in Japan. As of September 1, 2020, it operated 46 stores. The company is also involved in the temporary staffing, building maintenance, security management, restaurant leasing, wholesale of stationery packaging material, and planning and wholesale of imported stationery. Crops Corporation was founded in 1977 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Crops Corp. generates revenue through multiple streams, primarily from the sale of its precision agriculture products and services. This includes hardware sales for crop monitoring and management, software subscriptions for data analytics, and consulting services aimed at improving farming practices. The company has established key partnerships with agricultural cooperatives and research institutions, which not only enhances its product offerings but also expands its market reach. Additionally, revenue is bolstered by ongoing maintenance and support contracts for its technologies, ensuring continued engagement with clients and recurring income.

Crops Corp. Financial Statement Overview

Summary

Crops Corp. shows strong revenue growth and a solid balance sheet with low leverage. However, the decline in net profit margin indicates potential cost pressures. Cash flow remains robust, supporting operational stability.

Income Statement

Crops Corp. has demonstrated strong revenue growth, with a notable increase of 13% from 2024 to 2025. The gross profit margin stands at 24.66%, indicating efficient cost management. However, the net profit margin decreased to 1.61% in 2025, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are stable at 3.89% and 4.73% respectively, reflecting consistent operational performance.

Balance Sheet

The company's balance sheet shows a solid equity base with an equity ratio of 33.89%, indicating a sound financial structure. The debt-to-equity ratio is low at 0.23, suggesting low leverage and reduced financial risk. Return on equity is modest at 8.11%, which could be improved to enhance shareholder returns.

Cash Flow

Crops Corp. maintains a healthy cash flow, with a free cash flow to net income ratio of 1.31, indicating strong cash generation relative to net earnings. However, the operating cash flow to net income ratio decreased to 1.43, which may require monitoring to ensure operational efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	63.27B	61.57B	54.49B	48.38B	45.32B	41.04B
Gross Profit	15.94B	15.18B	13.68B	12.24B	11.46B	9.79B
EBITDA	3.64B	2.91B	2.75B	2.69B	2.97B	2.69B
Net Income	1.43B	992.00M	1.21B	1.18B	1.48B	852.00M
Balance Sheet
Total Assets	34.73B	36.11B	33.38B	30.72B	27.50B	24.69B
Cash, Cash Equivalents and Short-Term Investments	9.06B	8.30B	7.47B	7.01B	7.29B	6.63B
Total Debt	2.48B	2.78B	2.87B	2.73B	2.02B	2.43B
Total Liabilities	20.41B	21.76B	20.16B	18.23B	16.11B	14.82B
Stockholders Equity	12.25B	12.24B	11.41B	10.54B	9.44B	7.98B
Cash Flow
Free Cash Flow	0.00	1.29B	1.36B	1.34B	1.75B	1.65B
Operating Cash Flow	0.00	1.42B	1.52B	1.59B	2.23B	1.92B
Investing Cash Flow	0.00	-218.00M	-268.00M	-2.05B	-725.00M	-112.00M
Financing Cash Flow	0.00	-475.00M	-813.00M	56.00M	-871.00M	-1.24B

Crops Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1387.00
• 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:9428, the sentiment is Positive. The current price of 1387 is below the 20-day moving average (MA) of 1493.15, below the 50-day MA of 1433.42, and above the 200-day MA of 1385.69, indicating a bullish trend. The MACD of 30.57 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9428.

Crops Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9445	75 Outperform	¥9.65B	10.29	―	3.85%	1.75%	24.87%
3934	73 Outperform	¥12.80B	13.17	―	2.10%	13.64%	44.55%
9450	64 Neutral	¥14.34B	10.97	―	4.02%	5.13%	-13.74%
9428	63 Neutral	¥13.92B	11.64	―	1.47%	10.12%	21.04%
3776	63 Neutral	¥14.14B	47.06	―	1.01%	17.19%	-43.91%
4415	61 Neutral	¥8.47B	20.21	―	―	39.18%	27.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%