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

• Market Cap: ¥71.70B
• Dividend Yield: 2.41%
• Average Volume (3M): 66.73K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.86
• 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: 35,168,200
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,743.00 ▲(12.33% 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

Balance sheet strength

Extremely low leverage and a strong equity ratio provide durable financial flexibility, lowering refinancing and bankruptcy risk. This supports sustained investment in projects, cushions against cyclical downturns, and underpins dividend and capital allocation policies over the medium term.

Revenue and margin stability

Consistent revenue growth with stable gross margin and rising EBIT margin indicates the business can grow sales while improving operational efficiency. These traits support predictable earnings expansion and scalable profitability, strengthening long-term competitive positioning in services and software.

Operating cash flow resilience

Sustained operating cash generation and efficient conversion to free cash flow provide reliable internal funding for capex, R&D, and shareholder returns. Combined with low leverage, strong cash flow underpins durable self-financing ability and strategic optionality.

Negative Factors

Net profit margin pressure

A declining net margin, despite stable gross margins, signals rising operating or non-operating costs that can erode long-term profitability. If persistent, this reduces retained earnings, limits reinvestment capacity, and may pressure dividend sustainability and long-run return generation.

Stagnant free cash flow growth

Limited growth in free cash flow constrains the company’s ability to fund expansion, strategic M&A, or higher shareholder distributions over time. Even with strong OCF today, muted FCF growth risks slower capital deployment and weaker long-term value creation.

Declining return on equity

A falling ROE indicates the company is generating less profit per unit of equity capital, suggesting either slower profit growth or less efficient capital use. Over months, this trend can weigh on shareholder returns and highlights a need to improve operational leverage or capital allocation.

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: Negative
• Last Price: 2442.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9692, the sentiment is Negative. The current price of 2442 is above the 20-day moving average (MA) of 2337.22, above the 50-day MA of 2318.69, and above the 200-day MA of 2227.33, indicating a bearish trend. The MACD of -30.37 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 4.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4746	79 Outperform	¥76.89B	14.95	―	3.34%	2.61%	16.80%
4828	77 Outperform	¥85.90B	20.60	31.13%	1.68%	16.12%	46.57%
9928	74 Outperform	¥53.55B	11.62	―	2.81%	4.47%	11.37%
9692	73 Outperform	¥71.70B	15.96	―	2.41%	13.05%	4.42%
9691	73 Outperform	¥16.30B	7.74	―	0.99%	33.30%	163.81%
4826	70 Outperform	¥32.78B	18.29	―	2.83%	4.51%	75.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Computer Engineering & Consulting Ltd. Corporate Events

Computer Engineering & Consulting Retires 2.47% of Outstanding Shares

Computer Engineering & Consulting Ltd. has retired 891,400 shares of its common stock, equivalent to 2.47% of its previously issued and outstanding shares, pursuant to a board resolution made in March 2025 and executed on January 16, 2026 under Article 178 of the Companies Act. Following the retirement, the company has 35,168,200 shares issued and outstanding and 3,957,736 treasury shares, a capital measure that marginally increases the relative ownership stake of existing shareholders and may be interpreted as a sign of management’s confidence in the firm’s equity value and capital structure discipline.

The most recent analyst rating on (JP:9692) stock is a Hold with a Yen2453.00 price target. To see the full list of analyst forecasts on Computer Engineering & Consulting Ltd. stock, see the JP:9692 Stock Forecast page.

Computer Engineering & Consulting Ltd. Reports Strong Q3 Financial Results

Computer Engineering & Consulting Ltd. reported a significant increase in its consolidated financial results for the third quarter of the fiscal year ending January 31, 2026, with net sales rising by 14.7% and net income attributable to owners of the parent increasing by 9.6% compared to the previous year. The company also announced a forecast for the full fiscal year, expecting a 10.3% increase in net sales and a 23.8% rise in net income attributable to owners of the parent, indicating strong financial performance and positive future prospects.

The most recent analyst rating on (JP:9692) stock is a Buy with a Yen2498.00 price target. To see the full list of analyst forecasts on Computer Engineering & Consulting Ltd. stock, see the JP:9692 Stock Forecast page.