Kycom Holdings Co., Ltd. (9685) AI Stock Analysis

• Market Cap: ¥3.36B
• Dividend Yield: 1.52%
• Average Volume (3M): 3.72K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.77
• Revenue Growth: 10.70%
• EPS Growth: 11.74%
• Country: JP
• Employees: 803
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 28.83
• Shares Outstanding: 5,115,492
• 10 Day Avg. Volume: 1,960
• 30 Day Avg. Volume: 3,723
• PEG Ratio: 0.66
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 9.24
• 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: 73 Outperform
• Price Target: ¥715.00 ▲(12.95% Upside)

Kycom Holdings Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and stable balance sheet. The valuation is attractive with a low P/E ratio and reasonable dividend yield. However, technical analysis indicates weak momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and sustaining operations.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability, reducing risk and supporting sustainable growth.

Negative Factors

Margin Sustainability

Competitive pressures may challenge the company's ability to sustain current margins, impacting long-term profitability.

Industry Competition

Intense industry competition could pressure pricing and margins, potentially affecting the company's growth and profitability.

Capital Expenditure Management

Effective management of capital expenditures is crucial to ensure cash flow stability and support ongoing growth initiatives.

Kycom Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Kycom Holdings Co., Ltd. (9685) is a diversified company primarily engaged in providing technology solutions and services within the telecommunications and IT sectors. The company focuses on the development and integration of software, hardware, and consultancy services that enhance communication systems and optimize operational efficiencies for businesses. Kycom Holdings also ventures into related markets, offering innovative products that cater to the evolving needs of consumers and enterprises alike.

How the Company Makes Money

Kycom Holdings generates revenue through multiple streams including the sale of software and hardware products, IT consulting services, and system integration solutions. The company typically charges clients for software licenses, maintenance contracts, and custom development projects. Additionally, Kycom Holdings may engage in partnerships with other technology firms to offer bundled services, further enhancing its market reach and profitability. The company also benefits from recurring revenue through service agreements and ongoing support contracts, which provide a steady income stream.

Kycom Holdings Co., Ltd. Financial Statement Overview

Summary

Kycom Holdings Co., Ltd. demonstrates a strong financial position with consistent revenue growth and profitability. The balance sheet reflects stability with low leverage, and cash flow generation is robust, supporting its growth trajectory. Future challenges include maintaining current margins amidst industry competition and managing capital expenditures to sustain cash flow health.

Income Statement

Kycom Holdings Co., Ltd. has demonstrated strong revenue growth, with a consistent increase over recent years, highlighted by a 11.15% revenue growth from 2024 to 2025. The company maintains robust profitability with a net profit margin of 6.92% and a gross profit margin of 21.25% for 2025. Both EBIT and EBITDA margins are impressive at 8.72% and 12.35%, respectively, showing efficient operational performance. However, the industry is competitive, and sustaining these margins will be crucial.

Balance Sheet

The balance sheet of Kycom Holdings Co., Ltd. is solid with a strong equity ratio of 56.38% and a debt-to-equity ratio of 0.48, indicating a stable financial structure with manageable leverage. Return on equity stands at 10.44%, showcasing effective use of equity to generate profits. The company's increase in stockholders' equity is a positive sign of financial health. Maintaining low leverage while expanding assets will be a key focus area.

Cash Flow

Kycom Holdings Co., Ltd. shows positive cash flow dynamics with a free cash flow growth rate of 15.86% from 2024 to 2025 and a healthy operating cash flow to net income ratio of 1.11 for 2025. The free cash flow to net income ratio is also strong at 0.85, highlighting efficient cash generation from operations. However, close attention to capital expenditures and maintaining cash flow stability will be important as the company continues to grow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93B	6.77B	6.09B	5.70B	5.18B	5.14B
Gross Profit	1.46B	1.44B	1.34B	1.30B	1.09B	1.10B
EBITDA	746.58M	836.47M	743.53M	703.12M	664.20M	733.29M
Net Income	471.07M	468.77M	419.37M	360.39M	336.43M	357.63M
Balance Sheet
Total Assets	8.05B	7.96B	7.72B	6.77B	5.92B	5.89B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.16B	2.15B	1.85B	1.52B	1.54B
Total Debt	2.04B	2.14B	2.40B	2.26B	1.98B	2.18B
Total Liabilities	3.49B	3.47B	3.62B	3.26B	2.83B	3.17B
Stockholders Equity	4.56B	4.49B	4.10B	3.51B	3.09B	2.71B
Cash Flow
Free Cash Flow	0.00	398.14M	343.66M	205.96M	288.56M	548.04M
Operating Cash Flow	0.00	519.84M	659.69M	506.79M	337.78M	586.87M
Investing Cash Flow	0.00	-227.06M	-469.79M	-406.12M	-87.91M	-53.70M
Financing Cash Flow	0.00	-281.31M	106.24M	223.72M	-201.73M	70.57M

Kycom Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 633.00
• 50DMA: Negative
• 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:9685, the sentiment is Positive. The current price of 633 is below the 20-day moving average (MA) of 670.15, below the 50-day MA of 667.22, and below the 200-day MA of 654.62, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 40.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9685.

Kycom Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9685	73 Outperform	¥3.36B	6.92	―	1.52%	10.70%	11.74%
4429	73 Outperform	¥4.51B	13.68	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4447	61 Neutral	¥3.19B	35.33	―	4.17%	-15.23%	-65.39%
4484	55 Neutral	¥4.71B	27.59	―	―	4.36%	-0.02%
3976	54 Neutral	¥2.11B	-10.42	―	―	-14.55%	-8.13%