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CRI Middleware Co., Ltd. (3698) AI Stock Analysis

JP:3698

CRI Middleware Co., Ltd.

(TSE/TYO:3698)

Select Model
Rating:75Outperform
Price Target:JPY 1,364.00â–²(12.63% Upside)
Action:reiterated
Date:10/03/26

The company's financial health is the primary driver, with stellar cash flow and a robust balance sheet. This is complemented by a steady technical uptrend and a fair valuation. The main risk is the recent revenue decline, which prevents a higher score.

Positive Factors
Low leverage and strong equity basePrudent leverage reduces financial strain and preserves flexibility to invest in product development, platform expansion, and customer support. A strong equity base also improves resilience through business cycles, supporting the company’s ability to fund operations without relying heavily on additional borrowing.
Negative Factors
Recent revenue declineRecent revenue softness creates uncertainty about the pace of customer adoption and new project activity over the next several quarters. If the decline persists, it could reduce operating leverage and limit the resources available for product investment, platform expansion, and sustained earnings growth.

CRI Middleware Co., Ltd. (3698) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:3698-4.75%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.41B
Dividend Yield
2.20%
Average Volume (3M)
6,208
Price to Earnings (P/E)
16.6
Beta (1Y)
0.68
Revenue Growth
0.55%
EPS Growth
-16.78%
Country
Japan
Employees
173
Sector
Communication Services
Sector Strength
60
Industry
Electronic Gaming & Multimedia

CRI Middleware Co., Ltd. Business Overview & Revenue Model

Company Description

CRI Middleware Co., Ltd., established in Tokyo, Japan in 1983, specializes in delivering advanced audio and video technology solutions to the gaming sector. The company's key offerings include ADX, an audio middleware designed to empower sound design...

How the Company Makes Money

CRI Middleware primarily makes money by licensing its proprietary middleware to customers (notably game developers/publishers and other companies that need embedded audio/video playback and related functionality). Key revenue streams typically includ...

CRI Middleware Co., Ltd. Financial Statement Overview

Summary

Strong profitability recovery and exceptional cash flow generation, supported by a conservative balance sheet. Margin expansion is notable, though a recent 2.6% revenue decline introduces some uncertainty.

Income Statement

70Positive

Balance Sheet

85Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue3.56B3.45B3.17B2.99B2.84B2.89B
Gross Profit2.21B2.07B1.72B1.73B1.35B1.46B
EBITDA581.50M683.21M522.10M477.65M235.87M413.06M
Net Income386.61M420.71M304.47M232.58M-339.60M199.70M
Balance Sheet
Total Assets4.81B5.84B5.36B5.16B5.02B5.53B
Cash, Cash Equivalents and Short-Term Investments3.13B4.24B3.63B3.49B3.32B3.89B
Total Debt01.00B1.00B1.00B1.00B1.00B
Total Liabilities600.38M1.74B1.59B1.61B1.48B1.57B
Stockholders Equity4.18B4.06B3.74B3.52B3.51B3.94B
Cash Flow
Free Cash Flow831.41M831.41M292.67M483.39M-64.67M500.31M
Operating Cash Flow849.68M849.68M328.33M495.42M23.32M546.15M
Investing Cash Flow-135.08M-135.08M-9.12M-209.43M-527.02M-39.88M
Financing Cash Flow-104.50M-104.50M-77.87M-215.38M-97.01M32.07M

CRI Middleware Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1211.00

Price Trends

50DMA1204.86Positive
100DMA1174.55Positive
200DMA1086.81Positive

Market Momentum

MACD5.37Positive
RSI53.95Neutral
STOCH64.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3698, the sentiment is Positive. The current price of 1211.00 is below the 20-day moving average (MA) of 1222.35, above the 50-day MA of 1204.86, and above the 200-day MA of 1086.81, indicating a bullish trend. The MACD of 5.37 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3698.

CRI Middleware Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

JP:3698 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3698JP:369875OutperformJPY 6.70B16.59―2.20%0.55%-16.78%
JP:4728JP:472867NeutralJPY 4.74B6.60―4.00%-4.82%186.71%
JP:3793JP:379366NeutralJPY 13.16B4.24――4.52%―
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
JP:3904JP:390459NeutralJPY 6.41B11.60―0.98%20.33%15.26%
JP:3907JP:390751NeutralJPY 3.35B-13.88―0.82%-6.31%-176.88%
JP:5240JP:524039UnderperformJPY 1.76B-3.21――-53.59%-71.56%

* Communication Services Sector Average

Performance Comparison

0%50%100%150%200%JP:3698JP:3793JP:3904JP:3907JP:4728JP:5240Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3698 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3698CRI Middleware Co., Ltd.1211.00-76.96-5.98%
JP:3793Drecom Co., Ltd.444.00-14.00-3.06%
JP:3904KAYAC, Inc.399.00-27.73-6.50%
JP:3907Silicon Studio Corp.1193.00315.9636.03%
JP:4728Tose Co., Ltd.625.0012.111.98%
JP:5240monoAI technology Co.,Ltd.162.00-46.00-22.12%
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: Oct 03, 2026