ODK Solutions Company, Ltd. (3839) AI Stock Analysis

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ODK Solutions Company, Ltd.

(TSE/TYO:3839)

Select Model

Rating:48Neutral

Price Target:JPY 615.00▼(-0.65% Downside)

Action:reiterated

Date:11/06/26

ODK Solutions scores below average overall. The main drag is weak profitability: thin net margins, low return on equity around 3-4%, and a projected drop in FY2026 net income even as revenue grows. This is compounded by a very demanding valuation, with a P/E near 86x that is difficult to justify for a low-growth business, only partly cushioned by a 1.6% dividend yield. Technicals are also unsupportive, with the share price below all key moving averages and a negative MACD. The principal offsets are a conservatively financed balance sheet with minimal debt and steadily growing equity, consistent low-to-mid single-digit revenue growth, and adequate cash generation — making this a stable but low-return holding rather than a growth opportunity.

Positive Factors

Revenue GrowthRevenue has grown steadily over several years, with low-to-mid single-digit recent growth. That resilience indicates ongoing demand and provides a stable base for operating scale, reinvestment, and continued business development even as earnings have become less consistent.

Negative Factors

Weakening ProfitabilityNet income fell meaningfully in 2026 versus 2025, while margins appear compressed from the stronger 2021 level. This weakening earnings conversion can reduce the benefits of revenue growth and makes future profitability less dependable over the next several quarters.

ODK Solutions Company, Ltd. (3839) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.08B
Dividend Yield: 1.62%
Average Volume (3M): 3,863
Price to Earnings (P/E): 86.0
Beta (1Y): 0.13
Revenue Growth: 1.74%
EPS Growth: -72.72%
Country: Japan
Employees: 204
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

ODK Solutions Company, Ltd. Business Overview & Revenue Model

Company Description

ODK Solutions Company, Ltd. provides information processing outsourcing services in Japan. The company provides entrance exam solutions, such as online application system and entrance examination outsourcing services; and operates UCARO, a university...

ODK Solutions Company, Ltd. Financial Statement Overview

Summary

ODK Solutions combines a low-risk balance sheet (score 62) with weak earnings quality (income statement 42) and uneven cash generation (cash flow 55). Revenue has grown steadily from ¥5.41B to ¥6.47B with ¥6.66B projected for FY2026, but net margins remain thin at 3-4.5% and FY2026 net income is forecast to fall to ¥140M despite higher sales, pointing to margin compression. Return on equity of roughly 3-4% is subpar, though leverage is minimal (D/E of 0.13x-0.22x) and equity has grown consistently. Free cash flow recovered strongly to ¥979M in FY2025 but has been erratic, including a negative year in FY2023.

Income Statement

42Neutral

Balance Sheet

62Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.58B	6.66B	6.47B	5.87B	5.57B	5.50B
Gross Profit	2.09B	2.13B	1.93B	1.85B	1.67B	1.61B
EBITDA	1.01B	1.20B	1.05B	944.33M	830.55M	752.91M
Net Income	58.55M	139.50M	263.37M	266.80M	236.61M	194.19M
Balance Sheet
Total Assets	7.86B	9.02B	9.25B	8.69B	8.62B	8.03B
Cash, Cash Equivalents and Short-Term Investments	3.55B	3.24B	3.27B	2.86B	2.81B	2.63B
Total Debt	690.82M	869.31M	1.14B	877.95M	1.26B	737.05M
Total Liabilities	1.84B	2.61B	2.95B	2.64B	2.82B	2.29B
Stockholders Equity	6.02B	6.41B	6.30B	6.06B	5.80B	5.73B
Cash Flow
Free Cash Flow	0	549.71M	978.94M	495.70M	-69.28M	326.15M
Operating Cash Flow	0	652.59M	1.00B	1.08B	539.42M	917.19M
Investing Cash Flow	0	-283.02M	-704.27M	-575.44M	-634.32M	-533.41M
Financing Cash Flow	0	-407.48M	121.37M	-458.21M	380.32M	-422.21M

ODK Solutions Company, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price619.00

Price Trends

50DMA626.82Negative

100DMA627.41Negative

200DMA623.93Negative

Market Momentum

MACD-2.09Positive

RSI44.75Neutral

STOCH20.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3839, the sentiment is Negative. The current price of 619.00 is below the 20-day moving average (MA) of 623.25, below the 50-day MA of 626.82, and below the 200-day MA of 623.93, indicating a bearish trend. The MACD of -2.09 indicates Positive momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 20.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3839.

ODK Solutions Company, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3839 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5576	84Outperform	JPY 7.01B	10.31	―	3.81%	20.58%	41.21%
JP:4396	81Outperform	JPY 27.12B	14.52	―	2.43%	11.87%	21.49%
JP:3988	74Outperform	JPY 5.80B	10.58	―	1.46%	11.55%	28.84%
JP:3940	71Outperform	JPY 5.98B	15.95	―	2.77%	-2.56%	-7.81%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3839	48Neutral	JPY 5.07B	85.97	―	1.62%	1.74%	-72.72%
JP:4813	37Underperform	JPY 12.56B	-9.22	―	―	24.78%	83.28%

* Technology Sector Average

Performance Comparison

JP:3839 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3839	ODK Solutions Company, Ltd.	619.00	18.35	3.06%
JP:3940	Nomura System Corporation Co., Ltd.	127.00	-4.70	-3.57%
JP:3988	SYS Holdings Co. Ltd.	549.00	-14.66	-2.60%
JP:4396	System Support, Inc.	1315.00	-48.60	-3.56%
JP:4813	Access Co., Ltd.	312.00	-262.00	-45.64%
JP:5576	O.B.System Inc.	3015.00	363.16	13.69%

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: Nov 05, 2026

ODK Solutions Company, Ltd. AI Stock Analysis