Crops Corp. (9428) AI Stock Analysis

• Market Cap: ¥14.15B
• Dividend Yield: 1.47%
• Average Volume (3M): 3.00K
• Price to Earnings (P/E): 11.8
• 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: ¥1,667.00 ▲(20.19% 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

A 13% year-over-year revenue increase signals durable demand for Crops Corp.'s agritech products and services. Sustained top-line growth supports reinvestment in R&D, scaling of software subscriptions and hardware deployments, and underpins recurring revenue potential over the next 2–6 months and beyond.

Balance Sheet Strength

A conservative capital structure with low leverage and a solid equity base reduces refinancing and solvency risk. This financial flexibility supports continued investment in product development and partnerships while preserving the ability to absorb cyclical agricultural demand shocks without stressing liquidity.

Cash Generation

Free cash flow materially exceeds reported net income, showing strong cash conversion. Robust cash generation funds operations, maintenance contracts, and strategic initiatives without heavy reliance on external funding, supporting durability of operations and potential steady reinvestment into growth areas.

Negative Factors

Net Margin Compression

A sharp decline to a 1.61% net margin points to cost pressures or non-operating expenses eroding profitability despite revenue growth. Structural margin compression reduces retained earnings available for R&D, dividends or debt paydown and makes earnings more sensitive to revenue volatility over the medium term.

Low Operating Profitability

Thin EBIT/EBITDA margins indicate limited operating leverage and constrained ability to absorb higher input or SG&A costs. Lower operating profitability limits cash available for scaling sales, product improvements, or buffering competitive pressure, challenging sustainable margin expansion absent efficiency gains.

Modest Return on Equity

An ROE around 8% implies the company generates only moderate returns on shareholder capital. Persistently modest ROE versus peers may signal inefficiencies in asset deployment or margin constraints, limiting long-term shareholder value creation unless operational returns or capital allocation improve.

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: Negative
• RSI: Neutral
• STOCH: Negative

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 1513.60, below the 50-day MA of 1442.10, and below the 200-day MA of 1390.76, indicating a bullish trend. The MACD of 33.14 indicates Negative momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 82.45 is Negative, 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	¥9.60B	10.23	―	3.85%	1.75%	24.87%
3934	73 Outperform	¥12.51B	12.86	―	2.10%	13.64%	44.55%
9450	64 Neutral	¥13.97B	10.69	―	4.02%	5.13%	-13.74%
9428	63 Neutral	¥14.15B	11.84	―	1.47%	10.12%	21.04%
3776	63 Neutral	¥14.01B	46.65	―	1.01%	17.19%	-43.91%
4415	61 Neutral	¥7.99B	19.07	―	―	39.18%	27.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%