Kyoritsu Computer & Communication Co., Ltd. (3670) AI Stock Analysis

0 Followers

Kyoritsu Computer & Communication Co., Ltd.

(TSE/TYO:3670)

Select Model

Rating:80Outperform

Price Target:JPY 2,017.00▲(21.95% Upside)

Action:reiterated

Date:08/17/26

The overall score of 80 reflects strong financial fundamentals and an attractive valuation, tempered by mixed technical signals. The debt-free balance sheet and robust cash flow provide a solid foundation, while the low P/E and high dividend yield suggest upside potential. Near-term price momentum is positive but the stock still trades below its long-term average, indicating some caution.

Positive Factors

Debt-free balance sheetMinimal leverage reduces interest and refinancing risk, while steady equity growth strengthens the capital base. This gives the company financial flexibility to sustain operations, invest in service capabilities, and withstand uneven demand.

Negative Factors

Uneven revenue trajectoryHistorical top-line volatility makes the latest growth rebound less predictable. Uneven project demand or customer spending could limit visibility, making it harder to assess whether recent profitability improvements can persist.

Kyoritsu Computer & Communication Co., Ltd. (3670) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.98B
Dividend Yield: 3.93%
Average Volume (3M): 1,086
Price to Earnings (P/E): 6.3
Beta (1Y): 0.34
Revenue Growth: 7.22%
EPS Growth: -7.86%
Country: Japan
Employees: 177
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Kyoritsu Computer & Communication Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoritsu Computer & Communication Co.,Ltd., established in Tokyo, Japan, in 1964, delivers comprehensive management information solutions primarily to corporate clients across various sectors in Japan. The company, which changed its name from Kyorits...

How the Company Makes Money

Kyoritsu Computer & Communication Co., Ltd. primarily makes money by delivering ICT services to customers under (1) project-based contracts and (2) ongoing service/maintenance arrangements. Revenue is generated from fees for system development and in...

Kyoritsu Computer & Communication Co., Ltd. Financial Statement Overview

Summary

The company demonstrates solid financial health with improving profitability (gross margin up to 41.4%, net margin 6.2%), a pristine debt-free balance sheet, and strong cash flow generation. Revenue volatility and a past negative cash flow year slightly offset these strengths, leading to a composite score of 84 based on income statement (78), balance sheet (92), and cash flow (82) metrics.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.12B	5.14B	4.48B	5.47B	4.91B	4.93B
Gross Profit	500.49M	2.13B	1.77B	1.88B	1.77B	1.76B
EBITDA	96.27M	519.74M	304.96M	416.29M	238.41M	239.07M
Net Income	67.40M	316.19M	171.82M	258.17M	115.42M	106.51M
Balance Sheet
Total Assets	3.47B	3.76B	3.20B	3.28B	2.85B	2.93B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.76B	1.33B	1.22B	616.59M	946.92M
Total Debt	0	0	5.63M	19.49M	20.11M	47.97M
Total Liabilities	1.11B	1.39B	1.08B	1.27B	1.03B	1.12B
Stockholders Equity	2.36B	2.37B	2.12B	2.01B	1.82B	1.82B
Cash Flow
Free Cash Flow	0	502.41M	191.27M	610.50M	-213.05M	98.22M
Operating Cash Flow	0	521.99M	220.97M	644.78M	-192.07M	141.83M
Investing Cash Flow	0	-589.53M	-30.38M	-46.74M	17.24M	-56.14M
Financing Cash Flow	0	-71.53M	-79.79M	-80.12M	-78.87M	-80.27M

Kyoritsu Computer & Communication Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1654.00

Price Trends

50DMA1681.40Negative

100DMA1703.87Negative

200DMA1780.05Negative

Market Momentum

MACD-6.31Negative

RSI35.38Neutral

STOCH0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3670, the sentiment is Negative. The current price of 1654.00 is below the 20-day moving average (MA) of 1654.00, below the 50-day MA of 1681.40, and below the 200-day MA of 1780.05, indicating a bearish trend. The MACD of -6.31 indicates Negative momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3670.

Kyoritsu Computer & Communication Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3670 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4396	81Outperform	JPY 27.12B	14.52	―	2.43%	11.87%	21.49%
JP:3670	80Outperform	JPY 1.98B	6.30	―	3.93%	7.22%	-7.86%
JP:4421	75Outperform	JPY 2.69B	12.02	―	3.11%	5.77%	-7.65%
JP:4076	73Outperform	JPY 5.19B	9.12	―	3.44%	9.70%	7.03%
JP:3940	71Outperform	JPY 5.98B	15.95	―	2.77%	-2.56%	-7.81%
JP:3625	65Neutral	JPY 4.59B	9.25	―	1.25%	5.28%	-2.22%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:3670 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3670	Kyoritsu Computer & Communication Co., Ltd.	1654.00	-310.74	-15.82%
JP:3625	Techfirm Holdings, Inc.	640.00	-74.57	-10.44%
JP:3940	Nomura System Corporation Co., Ltd.	127.00	-4.70	-3.57%
JP:4076	CNS Co.,Ltd.	1771.00	223.51	14.44%
JP:4396	System Support, Inc.	1315.00	-48.60	-3.56%
JP:4421	D.I.System Co.,Ltd.	899.00	-55.00	-5.76%

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 17, 2026

Kyoritsu Computer & Communication Co., Ltd. AI Stock Analysis