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CRI Middleware Co., Ltd.
(3698)
Select Model
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Rating:72Outperform
Price Target:
¥1,344.00
▲(22.40% Upside)
Action:Reiterated
Date:10/03/26
The score is driven primarily by solid financial performance—strong profitability improvements and low leverage—tempered by recent revenue softness and some free cash flow volatility. Technicals add support via a clear uptrend with moderate momentum, while valuation is reasonable with a mid-range P/E and a ~2.2% dividend yield.
Positive Factors
Low leverage and strong equity base
Prudent 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 decline
Recent 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong equity base
Prudent 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.
Read all positive factors
CRI Middleware Co., Ltd. (3698) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.72B
Dividend Yield2.23%
Average Volume (3M)5.75K
Price to Earnings (P/E)16.4
Beta (1Y)0.71
Revenue Growth0.55%
EPS Growth-16.78%
CountryJP
Employees173
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)73.98
Shares Outstanding5,578,150
10 Day Avg. Volume3,010
30 Day Avg. Volume5,750
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.82
Price to Sales (P/S)2.15
P/FCF Ratio8.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)105.2
Revenue Forecast (FY)¥4.70B
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 des...
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 inc...
CRI Middleware Co., Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.56B | 3.45B | 3.17B | 2.99B | 2.84B | 2.89B |
| Gross Profit | 2.21B | 2.07B | 1.72B | 1.73B | 1.35B | 1.46B |
| EBITDA | 581.50M | 683.21M | 522.10M | 477.65M | 235.87M | 413.06M |
| Net Income | 386.61M | 420.71M | 304.47M | 232.58M | -339.60M | 199.70M |
Balance Sheet | ||||||
| Total Assets | 4.81B | 5.84B | 5.36B | 5.16B | 5.02B | 5.53B |
| Cash, Cash Equivalents and Short-Term Investments | 3.13B | 4.24B | 3.63B | 3.49B | 3.32B | 3.89B |
| Total Debt | 0.00 | 1.00B | 1.00B | 1.00B | 1.00B | 1.00B |
| Total Liabilities | 600.38M | 1.74B | 1.59B | 1.61B | 1.48B | 1.57B |
| Stockholders Equity | 4.18B | 4.06B | 3.74B | 3.52B | 3.51B | 3.94B |
Cash Flow | ||||||
| Free Cash Flow | 831.41M | 831.41M | 292.67M | 483.39M | -64.67M | 500.31M |
| Operating Cash Flow | 849.68M | 849.68M | 328.33M | 495.42M | 23.32M | 546.15M |
| 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 | -97.01M | 32.07M |
CRI Middleware Co., Ltd. Technical Analysis
Positive
1098.00
Price Trends
1178.39
Positive
1139.67
Positive
1077.14
Positive
Market Momentum
9.63
Positive
54.58
Neutral
39.62
Neutral
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 1098 is below the 20-day moving average (MA) of 1202.22, below the 50-day MA of 1178.39, and above the 200-day MA of 1077.14, indicating a bullish trend. The MACD of 9.63 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 39.62 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥6.72B | 16.38 | ― | 2.23% | 0.55% | -16.78% | |
70 Outperform | ¥4.91B | 15.02 | ― | 3.86% | 5.77% | 41.35% | |
70 Outperform | ¥16.12B | 6.84 | ― | 0.90% | 16.24% | ― | |
68 Neutral | ¥5.44B | -26.99 | ― | 0.53% | -9.85% | -170.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | ¥6.88B | 12.50 | ― | 0.91% | 20.33% | 15.26% | |
52 Neutral | ¥2.17B | -3.87 | ― | ― | -53.59% | -71.56% |
* Communication Services Sector Average
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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.