ULS Group (3798) AI Stock Analysis

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ULS Group

(TSE/TYO:3798)

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Rating:79Outperform

Price Target:JPY 601.00▲(22.65% Upside)

Action:reiterated

Date:08/17/26

ULS Group earns a strong overall score largely driven by its impeccable fundamental quality, highlighted by rapid cash-generative growth, a debt-free balance sheet, and a highly attractive valuation. While the underlying business is exceptionally strong, near-term technical indicators reflect bearish price momentum, suggesting a disconnect between the company's fundamental strength and its current market trend.

Positive Factors

Sustained Revenue and Profit GrowthStrong multi-year sales expansion alongside rising profit indicates durable demand and continued market adoption. This supports operating scale and provides a foundation for further earnings growth over the next several quarters.

Negative Factors

Margin VariabilityMargin fluctuations indicate that profitability remains sensitive to business mix and operating costs. If this variability persists as the company grows, revenue gains may not translate consistently into equivalent earnings expansion.

ULS Group (3798) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 140.88M
Dividend Yield: 1.49%
Average Volume (3M): 281.29K
Price to Earnings (P/E): 13.2
Beta (1Y): 0.39
Revenue Growth: 17.31%
EPS Growth: 21.17%
Country: Japan
Employees: 820
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

ULS Group Business Overview & Revenue Model

Company Description

Established in 2000, ULS Group, Inc. is a Japanese company headquartered in Tokyo, specializing in the provision of IT consulting and diverse technological solutions.

ULS Group Financial Statement Overview

Summary

Outstanding financial health characterized by top-line revenue doubling since 2021, a pristine zero-debt balance sheet, and robust free cash flow generation. The company is scaling highly efficiently while maintaining stable profit margins and eliminating financial leverage risk.

Income Statement

88Very Positive

Balance Sheet

96Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	16.60B	16.60B	13.20B	10.38B	8.52B	7.37B
Gross Profit	6.61B	6.61B	5.32B	3.86B	3.36B	2.93B
EBITDA	3.20B	3.20B	2.72B	1.85B	1.80B	1.66B
Net Income	2.03B	2.03B	1.64B	1.13B	1.23B	998.56M
Balance Sheet
Total Assets	15.72B	15.72B	13.60B	11.04B	9.59B	8.80B
Cash, Cash Equivalents and Short-Term Investments	8.46B	8.46B	7.14B	6.02B	5.60B	5.47B
Total Debt	0	0	0	0	0	0
Total Liabilities	3.15B	3.15B	3.12B	2.19B	1.82B	1.60B
Stockholders Equity	12.23B	12.23B	10.18B	8.60B	7.57B	7.02B
Cash Flow
Free Cash Flow	0	1.60B	1.50B	692.00M	686.87M	514.42M
Operating Cash Flow	0	1.99B	1.59B	756.00M	837.24M	568.39M
Investing Cash Flow	0	-531.00M	-222.00M	-98.00M	45.11M	-85.85M
Financing Cash Flow	0	-140.00M	-249.00M	-239.00M	-752.42M	-169.67M

ULS Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3798 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3916	86Outperform	JPY 31.33B	14.41	―	3.66%	5.74%	-3.58%
JP:4396	81Outperform	JPY 27.33B	14.49	―	2.40%	11.87%	21.49%
JP:4072	81Outperform	JPY 33.96B	12.18	―	3.16%	4.92%	-14.52%
JP:4725	79Outperform	JPY 33.04B	9.06	10.39%	5.22%	7.46%	2.94%
JP:3798	79Outperform	JPY 31.30B	13.17	17.02%	1.49%	17.31%	21.17%
JP:3393	71Outperform	JPY 30.97B	11.37	―	4.93%	9.16%	41.23%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:3798 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3798	ULS Group	490.00	-120.55	-19.74%
JP:4725	CAC Holdings Corporation	1917.00	-41.72	-2.13%
JP:3393	Startia Holdings,Inc.	3205.00	728.82	29.43%
JP:3916	Digital Information Technologies Corp.	1024.00	-225.10	-18.02%
JP:4072	Densan System Holdings Co. Ltd.	3160.00	-515.80	-14.03%
JP:4396	System Support, Inc.	1336.00	-46.58	-3.37%

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

ULS Group AI Stock Analysis