Skip to main content
TipRanks
Go Ultimate75% OFF

Recomm Co., Ltd. (3323) AI Stock Analysis

2 Followers
JP:3323

Recomm Co., Ltd.

(TSE/TYO:3323)

Select Model
Rating:53Neutral
Price Target:JPY 91.00â–²(12.35% Upside)
Action:reiterated
Date:08/11/26

The score is primarily constrained by weakening financial quality—negative operating/free cash flow and higher leverage despite strong revenue growth and positive (but thin) margins. Technicals are supportive in the short-to-medium term (price above key shorter moving averages and positive MACD), but the elevated RSI and price below the 200-day average limit the technical score. Valuation is middling due to a high P/E and modest yield.

Positive Factors
Revenue GrowthStrong top-line expansion indicates continued business growth and market demand over the measured period. If sustained, the larger revenue base can support operating leverage, strengthen scale, and provide greater capacity to reinvest in the company’s future development.
Negative Factors
Negative Cash FlowNegative operating and free cash flow materially reduce the company’s ability to fund operations and investment internally. The current weak run-rate increases reliance on external financing and makes sustained growth more difficult if cash conversion does not recover.

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

-30%-20%-10%0%10%20%30%40%JP:3323-6.74%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.58B
Dividend Yield
1.48%
Average Volume (3M)
828.47K
Price to Earnings (P/E)
28.8
Beta (1Y)
0.81
Revenue Growth
16.67%
EPS Growth
17.32%
Country
Japan
Employees
484
Sector
Communication Services
Sector Strength
60
Industry
Telecommunications Services

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 products...

How the Company Makes Money

Detailed, source-verified information on Recomm Co., Ltd. (3323)'s revenue model (e.g., primary revenue streams, pricing mechanisms, customer segments, and significant partnerships) was not available in this session. null

Recomm Co., Ltd. Financial Statement Overview

Summary

Strong TTM revenue growth (+16.23%) is offset by thin profitability (TTM operating margin ~3.3%, net margin ~1.5%), rising leverage (debt/equity ~1.29x), and a sharp deterioration in cash generation (TTM operating cash flow ~-0.9B and free cash flow ~-1.0B). The negative cash flow and higher debt materially increase financial risk.

Income Statement

61Positive

Balance Sheet

52Neutral

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue15.62B13.09B11.69B9.51B8.92B6.63B
Gross Profit3.48B2.95B2.70B2.29B2.46B2.31B
EBITDA821.14M695.98M240.64M343.91M545.94M532.65M
Net Income226.59M196.72M83.94M314.85M351.54M-316.52M
Balance Sheet
Total Assets16.94B12.70B12.65B10.84B9.24B8.25B
Cash, Cash Equivalents and Short-Term Investments2.67B2.68B2.98B2.63B2.71B2.99B
Total Debt7.55B4.86B4.83B3.51B2.48B2.13B
Total Liabilities10.52B7.29B7.35B5.89B4.60B4.07B
Stockholders Equity5.84B5.05B4.96B4.69B4.33B3.68B
Cash Flow
Free Cash Flow-1.05B259.31M787.38M-147.06M197.12M373.42M
Operating Cash Flow-907.18M472.01M841.61M-104.76M266.45M391.47M
Investing Cash Flow-898.93M-332.63M-1.35B-843.76M-536.57M-242.43M
Financing Cash Flow1.74B-443.06M816.51M876.37M-262.07M-558.73M

Recomm Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price81.00

Price Trends

50DMA89.65Negative
100DMA83.13Negative
200DMA85.87Negative

Market Momentum

MACD-2.71Positive
RSI38.38Neutral
STOCH35.12Neutral

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 81.00 is below the 20-day moving average (MA) of 85.90, below the 50-day MA of 89.65, and below the 200-day MA of 85.87, indicating a bearish trend. The MACD of -2.71 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.12 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

JP:3323 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9416JP:941676OutperformJPY 50.71B11.16―5.01%6.10%29.54%
JP:3834JP:383475OutperformJPY 15.38B12.69―4.67%1.98%-35.63%
JP:9445JP:944569NeutralJPY 8.50B10.13―4.59%3.75%-8.50%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
JP:9449JP:944956NeutralJPY 271.85B18.4314.57%2.16%6.44%8.66%
JP:9424JP:942454NeutralJPY 16.60B61.35――17.19%-74.05%
JP:3323JP:332353NeutralJPY 6.65B28.84―1.48%16.67%17.32%

* Communication Services Sector Average

Performance Comparison

-20%0%20%JP:3323JP:9449JP:3834JP:9416JP:9424JP:9445Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3323 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3323Recomm Co., Ltd.81.00-7.83-8.81%
JP:9449Gmo Internet3166.00-365.42-10.35%
JP:3834ASAHI Net, Inc.546.00-122.84-18.37%
JP:9416Vision, Inc. ( Japan)1037.00-174.12-14.38%
JP:9424Japan Communications Inc.101.00-49.00-32.67%
JP:9445Forval Telecom, Inc.523.00-23.57-4.31%

Recomm Co., Ltd. Corporate Events

Recomm Unveils FY 2026 Q3 Results and Strategic Outlook

Aug 7, 2026

Recomm Co., Ltd. has released materials for its FY 2026/9 third-quarter financial results briefing, outlining performance for the cumulative period and providing an overview of its current fiscal standing. The document also presents the company’s ful...

Recomm Posts Strong Q3 Earnings and Maintains Bullish FY 2026 Outlook

Aug 7, 2026

Recomm Co., Ltd. reported strong consolidated results for the third quarter of FY 2026/9, with revenue rising 25.5% year on year to ¥12.43 billion and operating profit climbing 62.8% to ¥463 million, supported by a 50.1% increase in EBITDA. Net incom...

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: Aug 11, 2026