Computer Engineering & Consulting Ltd. (9692) AI Stock Analysis

• Market Cap: ¥72.16B
• Dividend Yield: 2.56%
• Average Volume (3M): 66.73K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.89
• Revenue Growth: 13.05%
• EPS Growth: 4.42%
• Country: JP
• Employees: 2,270
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 24.03
• Shares Outstanding: 36,059,600
• 10 Day Avg. Volume: 45,020
• 30 Day Avg. Volume: 66,726
• PEG Ratio: -1.64
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 13.93
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,498.00 ▲(6.39% Upside)

The stock's overall score is driven by strong financial performance, characterized by robust revenue growth and solid operational efficiency. However, technical indicators suggest a bearish trend, which tempers the overall score. The valuation is reasonable, with an attractive dividend yield, supporting the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business model execution, enhancing long-term sustainability.

Balance Sheet Strength

Minimal leverage and a strong equity base provide financial stability and flexibility for future investments and growth.

Operational Efficiency

Improved operational efficiency through higher EBIT margins supports profitability and competitive positioning in the market.

Negative Factors

Net Profit Margin Pressure

Decreasing net profit margins suggest challenges in maintaining profitability, potentially impacting long-term earnings growth.

Free Cash Flow Growth

Limited growth in free cash flow might constrain the company's ability to fund new projects and return capital to shareholders.

Return on Equity Decline

A decline in return on equity indicates reduced profitability from equity investments, which could affect investor confidence and capital efficiency.

Computer Engineering & Consulting Ltd. Business Overview & Revenue Model

Company Description

Computer Engineering & Consulting, Ltd. engages in digital industry and system integration businesses in Japan. It offers ICT services for manufacturing industry. The company also provides system development, construction, maintenance, and operation services; ICT implementation support and operation services; security solutions; package software installation support services; and temporary staffing services. Computer Engineering & Consulting, Ltd. was founded in 1968 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue primarily through its consulting services, which include project-based work and ongoing support contracts. Key revenue streams consist of fees for software development projects, consulting services, and maintenance contracts with both private and public sector clients. Additionally, Computer Engineering & Consulting Ltd. may benefit from partnerships with technology vendors, which can provide a source of referral business and joint marketing opportunities. The company's ability to deliver high-quality solutions and maintain long-term client relationships contributes significantly to its earnings.

Computer Engineering & Consulting Ltd. Financial Statement Overview

Summary

The company demonstrates strong financial health with robust revenue growth and solid operational efficiency. It maintains a healthy balance sheet with low leverage and strong equity. Cash flow management is effective, although there is room for improved free cash flow growth.

Income Statement

The company exhibits strong revenue growth with a 6% increase from 2024 to 2025. Gross profit margin remains stable at approximately 27.3%, indicating effective cost management. However, the net profit margin slightly decreased to 7.2%, suggesting pressure on net income despite revenue growth. The EBIT margin improved to 11.9%, reflecting better operational efficiency.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.009, indicating minimal leverage and prudent financial management. The equity ratio is strong at 76.7%, underlining a solid equity base. Return on equity decreased to 10%, which is decent but shows a decline in profitability from equity investments.

Cash Flow

Operating cash flow remains strong, though slightly down from the previous year, indicating operational resilience. Free cash flow to net income ratio is high, suggesting efficient capital expenditure management. However, the free cash flow growth rate is marginal, indicating a need for improvement in generating additional free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.48B	56.21B	53.12B	48.21B	45.22B	48.00B
Gross Profit	16.04B	15.35B	14.10B	11.31B	10.84B	11.49B
EBITDA	6.78B	6.62B	7.07B	7.44B	5.06B	6.32B
Net Income	4.21B	4.04B	4.54B	5.18B	3.04B	4.04B
Balance Sheet
Total Assets	53.35B	52.64B	51.39B	46.33B	45.15B	43.79B
Cash, Cash Equivalents and Short-Term Investments	25.97B	25.47B	26.71B	23.30B	22.43B	21.02B
Total Debt	376.00M	350.00M	363.80M	377.40M	391.00M	404.60M
Total Liabilities	13.48B	12.24B	10.60B	8.95B	9.41B	9.41B
Stockholders Equity	39.86B	40.40B	40.79B	37.38B	35.74B	34.38B
Cash Flow
Free Cash Flow	0.00	4.50B	5.25B	1.65B	2.02B	4.89B
Operating Cash Flow	0.00	5.27B	5.68B	2.49B	3.15B	5.35B
Investing Cash Flow	0.00	-1.67B	-747.91M	1.93B	-340.73M	-470.60M
Financing Cash Flow	0.00	-4.85B	-1.53B	-3.56B	-1.41B	-1.41B

Computer Engineering & Consulting Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2348.00
• 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:9692, the sentiment is Positive. The current price of 2348 is above the 20-day moving average (MA) of 2240.45, above the 50-day MA of 2242.44, and above the 200-day MA of 2202.94, indicating a bullish trend. The MACD of 21.08 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9692.

Computer Engineering & Consulting Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9691	81 Outperform	¥15.39B	7.86	―	1.00%	33.30%	163.81%
4828	77 Outperform	€84.73B	20.34	31.13%	1.71%	16.12%	46.57%
9928	74 Outperform	¥51.39B	11.15	―	2.97%	4.47%	11.37%
9692	73 Outperform	¥72.16B	16.38	―	2.56%	13.05%	4.42%
4826	70 Outperform	¥35.03B	19.55	―	2.87%	4.51%	75.35%
4746	69 Neutral	¥73.43B	14.27	―	3.29%	2.61%	16.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Computer Engineering & Consulting Ltd. Corporate Events

Computer Engineering & Consulting Ltd. Revises Financial Forecasts Upward After Strong Q2

Computer Engineering & Consulting Ltd. announced an upward revision of its full-year financial forecasts following better-than-expected second-quarter results. The company attributes this positive performance to strong ICT investments, particularly from the automotive sector and government agencies, despite uncertainties in global economic policies.

Computer Engineering & Consulting Ltd. Reports Strong First Half Financial Results

Computer Engineering & Consulting Ltd. reported an 11.9% increase in net sales for the first half of the fiscal year ending January 31, 2026, with operating income rising by 6.2%. The company also announced a revision to its financial results forecast, indicating an expected full-year net income growth of 23.8%, reflecting a strong market position and operational performance.