CDS Co., Ltd. (2169) AI Stock Analysis

• Market Cap: ¥12.34B
• Dividend Yield: 3.92%
• Average Volume (3M): 3.94K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.14
• Revenue Growth: 4.05%
• EPS Growth: -0.90%
• Country: JP
• Employees: 706
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.71
• Shares Outstanding: 6,924,400
• 10 Day Avg. Volume: 2,430
• 30 Day Avg. Volume: 3,936
• PEG Ratio: 2.02
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 13.82
• 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: 78 Outperform
• Price Target: ¥2,006.00 ▲(11.63% Upside)

CDS Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust balance sheet and effective cash management support its growth trajectory. Technical indicators are neutral, suggesting stable price trends. The absence of earnings call data and corporate events does not impact the overall score.

CDS Co., Ltd. Business Overview & Revenue Model

Company Description

CDS Co., Ltd. engages in the documentation, engineering, and IT solutions for engineering businesses in Japan. The company handles a range of document media based on technical information, as well as provides associated services. It offers technical documentation, training documentation, multilingual translated documents, instruction and service manuals, digital manuals, and part guides, as well as documents in paper and digital form. The company also provides robot system development, including development and sale of robot applications; 3D-CG animation; 3D CAD design/modeling; digital catalogs; and other services for the logistics, agricultural, and manufacturing sectors. In addition, it offers IT solutions, including development, construction, operation, and training in various systems; planning, design, construction, and operation of IT infrastructure; system integration; hardware maintenance; and outsourced analysis for manufacturing businesses in the automotive, aerospace, industrial machinery mechatronics, distribution and logistics, energy, and education sectors. Further, the company engages in the database construction, e-learning content creation, and other information processing operations; and documentation system construction. CDS Co., Ltd. was founded in 1980 and is headquartered in Okazaki, Japan.

How the Company Makes Money

CDS Co., Ltd. generates revenue primarily through the sale of its data management and analytics services, which includes software licensing, subscription fees, and consulting services. Key revenue streams include recurring income from long-term contracts with enterprise clients, project-based fees for custom solutions, and maintenance and support services. Additionally, the company has established strategic partnerships with leading technology firms, which enhance its service offerings and market reach, contributing significantly to its revenue growth. Factors such as the increasing demand for data-driven decision-making and the expansion of cloud services are also pivotal in boosting its earnings.

CDS Co., Ltd. Financial Statement Overview

Summary

CDS Co., Ltd. presents a well-rounded financial profile with strong income statement performance, a robust balance sheet, and solid cash flow generation. The company has demonstrated consistent revenue growth and profitability, supported by a healthy capital structure and effective cash management.

Income Statement

CDS Co., Ltd. shows strong financial performance in the income statement with a solid gross profit margin of approximately 31.7% and a net profit margin of about 10.0% for the most recent year. The company has demonstrated consistent revenue growth, with a notable 7.9% increase from the previous year, indicating a positive growth trajectory. EBIT and EBITDA margins are also healthy, reflecting operational efficiency. However, future growth could face challenges due to market saturation or increased competition.

Balance Sheet

The balance sheet of CDS Co., Ltd. is robust, with a low debt-to-equity ratio of 0.07, indicating conservative leverage and strong financial health. Return on equity is impressive at approximately 11.8%, reflecting effective use of equity capital. The equity ratio of 78.1% underscores a solid capital structure with a strong equity base. The company's balance sheet shows resilience and stability, providing a buffer against market volatility.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth rate of 37.2%, highlighting effective cash management and operational efficiency. The operating cash flow to net income ratio is 0.94, indicating that the company generates substantial cash relative to its net income. The free cash flow to net income ratio is 0.85, reflecting effective conversion of income to cash. Despite strong cash flow metrics, careful capital allocation is vital to sustain long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.16B	10.49B	9.72B	9.66B	8.37B	7.90B
Gross Profit	3.10B	3.32B	3.20B	3.20B	2.63B	2.40B
EBITDA	1.45B	1.66B	1.64B	1.71B	1.47B	1.28B
Net Income	914.50M	1.06B	998.75M	1.01B	828.88M	693.09M
Balance Sheet
Total Assets	11.30B	11.39B	10.77B	9.73B	9.40B	8.32B
Cash, Cash Equivalents and Short-Term Investments	5.20B	4.18B	3.85B	3.19B	2.54B	1.82B
Total Debt	270.00M	600.00M	700.00M	270.00M	750.00M	470.00M
Total Liabilities	2.38B	2.49B	2.48B	2.04B	2.32B	1.74B
Stockholders Equity	8.92B	8.90B	8.29B	7.69B	7.08B	6.59B
Cash Flow
Free Cash Flow	0.00	893.78M	651.36M	1.54B	527.47M	597.73M
Operating Cash Flow	0.00	990.70M	716.13M	1.63B	568.30M	1.04B
Investing Cash Flow	0.00	-116.18M	-68.90M	-106.18M	211.82M	-515.75M
Financing Cash Flow	0.00	-564.32M	7.50M	-895.81M	-61.16M	-561.09M

CDS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1797.00
• 50DMA: Positive
• 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:2169, the sentiment is Positive. The current price of 1797 is below the 20-day moving average (MA) of 1800.85, above the 50-day MA of 1795.12, and above the 200-day MA of 1768.19, indicating a bullish trend. The MACD of 2.64 indicates Positive momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2169.

CDS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3937	81 Outperform	¥13.60B	14.45	―	3.60%	2.47%	46.51%
4299	79 Outperform	¥14.18B	11.69	―	3.76%	3.96%	-3.68%
2169	78 Outperform	¥12.34B	13.49	―	3.92%	4.05%	-0.90%
3804	77 Outperform	¥12.62B	18.03	―	1.37%	8.45%	19.01%
3800	68 Neutral	¥13.90B	19.33	―	3.66%	-1.03%	-3.19%
5248	63 Neutral	¥10.46B	23.58	―	―	29.65%	300.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%