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

• Market Cap: ¥74.93B
• Dividend Yield: 2.68%
• Average Volume (3M): 66.73K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.92
• Revenue Growth: 9.65%
• EPS Growth: 2.79%
• 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: 11.90
• 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: ¥2,546.00
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥2,546.00 ▲(13.66% Upside)

The company's strong financial performance is the most significant factor, supported by robust revenue growth and a solid balance sheet. Technical analysis indicates short-term bearish momentum, which slightly offsets the positive financials. The stock's valuation is fair, with a reasonable P/E ratio and a decent dividend yield.

Computer Engineering & Consulting Ltd. Business Overview & Revenue Model

Company Description

Computer Engineering & Consulting Ltd. (9692) is a company that focuses on providing comprehensive IT solutions and services. The company operates primarily in the information technology sector, offering a range of services that include software development, systems integration, IT infrastructure management, and consulting services. Their core products and services are designed to support businesses in optimizing their IT operations and enhancing their technological capabilities.

How the Company Makes Money

Computer Engineering & Consulting Ltd. makes money through a diversified revenue model that includes service fees from IT consulting and systems integration projects, subscription and licensing fees for proprietary software products, and ongoing support and maintenance contracts. Additionally, the company may generate income from strategic partnerships with hardware and software vendors, allowing them to offer bundled solutions to their clients. The company's ability to deliver customized IT solutions and maintain long-term client relationships is a significant factor contributing to its earnings.

Computer Engineering & Consulting Ltd. Financial Statement Overview

Summary

The company exhibits strong financial health with robust revenue growth and solid operational efficiency. The balance sheet is robust with minimal leverage, and cash flow management is effective, though 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: 2240.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9692, the sentiment is Negative. The current price of 2240 is below the 20-day moving average (MA) of 2326.70, below the 50-day MA of 2331.10, and above the 200-day MA of 2133.42, indicating a neutral trend. The MACD of -19.26 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.59 is Neutral, 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
9691	82 Outperform	¥13.86B	8.06	―	1.11%	26.73%	127.63%
9692	73 Outperform	¥74.93B	17.01	―	2.68%	9.65%	2.79%
4828	73 Outperform	¥70.71B	18.12	32.57%	2.31%	9.79%	42.15%
9928	70 Outperform	¥49.39B	12.82	―	3.09%	4.32%	-6.09%
4746	69 Neutral	¥71.42B	14.26	―	3.38%	0.12%	15.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4826	61 Neutral	¥29.27B	17.89	―	3.17%	4.53%	59.88%

Computer Engineering & Consulting Ltd. Corporate Events

Computer Engineering & Consulting Ltd. Completes Treasury Share Acquisition

Computer Engineering & Consulting Ltd. has completed the acquisition of 117,500 shares of its common stock from the market, as part of a resolution by its Board of Directors. This acquisition, which was conducted on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 1,200,000 shares by October 2025, indicating a strategic move to manage its capital structure and potentially enhance shareholder value.

Computer Engineering & Consulting Ltd. Reports Q1 Financial Results with Modest Sales Growth

Computer Engineering & Consulting Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending January 31, 2026. The company experienced a modest increase in net sales by 2.0% compared to the previous year, although operating and ordinary income saw declines of 7.0% and 5.1%, respectively. Despite these challenges, the company maintains a strong equity ratio of 76.3%. The financial forecast for the full year anticipates a 7.6% increase in net sales, indicating a positive outlook for future growth.

Computer Engineering & Consulting Ltd. Advances Treasury Share Acquisition Plan

Computer Engineering & Consulting Ltd. has acquired 264,400 shares of its common stock from the market, amounting to 599,076,500 yen, as part of a larger plan approved by its Board of Directors to purchase up to 1,200,000 shares. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.