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Recomm Co., Ltd. (JP:3323)
:3323
Japanese Market
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Recomm Co., Ltd. (3323) AI Stock Analysis

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JP:3323

Recomm Co., Ltd.

(3323)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
¥72.00
▼(-8.86% Downside)
Action:Reiterated
Date:06/18/26
The score is held down primarily by weak financial quality—especially negative operating and free cash flow in TTM alongside rising leverage and compressed margins. Technicals add pressure with the stock trading below key longer-term moving averages and a negative MACD. Valuation is also a headwind due to the very high P/E with only a modest dividend yield.
Positive Factors
Revenue Growth
Steady TTM revenue growth (~4.8%) indicates persistent demand and an established market position. Over a 2–6 month horizon this supports predictable top-line performance, helps absorb fixed costs, and provides a foundation for margin recovery or targeted reinvestment to drive longer-term cash flow improvement.
Negative Factors
Negative Cash Generation
Sustained negative operating and free cash flow is a major structural weakness. It forces reliance on external funding, limits the ability to invest in network or service upgrades, increases refinancing risk, and reduces headroom to absorb shocks—threatening solvency and strategic flexibility over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Steady TTM revenue growth (~4.8%) indicates persistent demand and an established market position. Over a 2–6 month horizon this supports predictable top-line performance, helps absorb fixed costs, and provides a foundation for margin recovery or targeted reinvestment to drive longer-term cash flow improvement.
Read all positive factors

Recomm Co., Ltd. (3323) vs. iShares MSCI Japan ETF (EWJ)

Recomm Co., Ltd. Business Overview & Revenue Model

Company Description
Established in Tokyo, Japan, in 1994, Recomm Co., Ltd. is an international and domestic provider specializing in the lease and direct sale of information and communication technology (ICT) equipment. Their offerings encompass a wide array of produ...
How the Company Makes Money
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Recomm Co., Ltd. Financial Statement Overview

Summary
Revenue is still growing (TTM up ~4.8%), but profitability has weakened materially (net margin ~1.0% vs ~3–4% in FY2022–FY2023) and leverage has risen (debt-to-equity ~1.04). Most importantly, cash generation has deteriorated sharply with negative operating cash flow (-140M) and negative free cash flow (-382M) in TTM, increasing funding and execution risk.
Income Statement
54
Neutral
Balance Sheet
56
Neutral
Cash Flow
33
Negative
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue13.44B13.09B11.69B9.51B8.92B6.63B
Gross Profit3.00B2.95B2.70B2.29B2.46B2.31B
EBITDA526.14M695.98M240.64M343.91M545.94M532.65M
Net Income64.38M196.72M83.94M314.85M351.54M-316.52M
Balance Sheet
Total Assets15.30B12.70B12.65B10.84B9.24B8.25B
Cash, Cash Equivalents and Short-Term Investments2.43B2.68B2.98B2.63B2.71B2.99B
Total Debt6.44B4.86B4.83B3.51B2.48B2.13B
Total Liabilities9.32B7.29B7.35B5.89B4.60B4.07B
Stockholders Equity5.49B5.05B4.96B4.69B4.33B3.68B
Cash Flow
Free Cash Flow-382.45M259.31M787.38M-147.06M197.12M373.42M
Operating Cash Flow-140.20M472.01M841.61M-104.76M266.45M391.47M
Investing Cash Flow-900.30M-332.63M-1.35B-843.76M-536.57M-242.43M
Financing Cash Flow907.09M-443.06M816.51M876.37M-262.07M-558.73M

Recomm Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price79.00
Price Trends
50DMA
77.14
Negative
100DMA
86.99
Negative
200DMA
93.65
Negative
Market Momentum
MACD
-1.63
Negative
RSI
44.90
Neutral
STOCH
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3323, the sentiment is Negative. The current price of 79 is above the 20-day moving average (MA) of 71.20, above the 50-day MA of 77.14, and below the 200-day MA of 93.65, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3323.

Recomm Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥16.94B12.213.53%3.36%-23.59%
73
Outperform
¥48.30B10.842.63%8.01%29.66%
65
Neutral
¥8.86B8.993.85%-6.67%34.46%
63
Neutral
¥17.85B23.3125.92%-10.51%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
56
Neutral
¥339.36B19.5017.97%1.36%5.57%31.99%
42
Neutral
¥5.80B88.861.23%4.93%-41.56%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3323
Recomm Co., Ltd.
71.00
-10.94
-13.35%
JP:9449
GMO Internet
3,283.00
-287.13
-8.04%
JP:3834
ASAHI Net, Inc.
606.00
-61.26
-9.18%
JP:9416
Vision, Inc. ( Japan)
986.00
-137.48
-12.24%
JP:9424
Japan Communications Inc.
107.00
-53.00
-33.13%
JP:9445
Forval Telecom, Inc.
529.00
29.80
5.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2026