Comture (3844) AI Stock Analysis

• Market Cap: ¥53.30B
• Dividend Yield: 2.93%
• Average Volume (3M): 142.13K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.96
• Revenue Growth: 4.89%
• EPS Growth: 4.85%
• Country: JP
• Employees: 1,712
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 17.91
• Shares Outstanding: 32,241,600
• 10 Day Avg. Volume: 121,920
• 30 Day Avg. Volume: 142,126
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,896.45
• Price Target Upside: 13.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,896.00 ▲(13.40% Upside)

Comture's strong financial performance, characterized by consistent revenue growth and a robust balance sheet, is the primary driver of its stock score. The valuation is reasonable with a decent dividend yield, adding to the attractiveness. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Comture Business Overview & Revenue Model

Company Description

Comture (3844) is a technology company based in Japan that specializes in providing IT solutions and services. The company operates primarily in the fields of software development, system integration, and cloud computing. Comture offers a range of products including enterprise resource planning (ERP) systems, business intelligence tools, and customized software solutions for various industries such as finance, manufacturing, and retail.

How the Company Makes Money

Comture generates revenue through several key streams. Primarily, the company earns income by developing and selling software solutions and licenses, which cater to the specific needs of its clients. Additionally, Comture provides consulting and system integration services, helping businesses implement and maintain their IT infrastructure. The company also benefits from ongoing maintenance and support contracts, which provide a steady stream of recurring revenue. Significant partnerships with other technology providers enhance Comture's portfolio, allowing it to offer integrated solutions that attract a broader client base and contribute to its overall earnings.

Comture Financial Statement Overview

Summary

Comture exhibits strong financial health with consistent revenue growth, efficient operations, and a robust balance sheet. The company effectively manages its leverage, maintaining low debt levels. While cash flow generation is generally strong, there are signs of potential pressure in converting earnings to cash.

Income Statement

Comture has demonstrated consistent revenue growth with a 1.69% increase in the latest year, supported by stable gross and net profit margins. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is robust at 17.11%, reflecting effective use of shareholder funds. The equity ratio is solid, showcasing a strong capital structure.

Cash Flow

Comture's cash flow is stable, with a high free cash flow to net income ratio of 0.93, indicating efficient cash generation relative to profits. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting earnings to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.34B	36.34B	34.19B	29.06B	24.98B	20.87B
Gross Profit	8.32B	8.24B	7.85B	6.61B	6.09B	4.89B
EBITDA	5.21B	5.14B	5.05B	4.22B	4.10B	3.33B
Net Income	3.16B	3.16B	3.13B	2.69B	2.52B	2.08B
Balance Sheet
Total Assets	25.61B	25.61B	23.44B	21.74B	18.93B	16.48B
Cash, Cash Equivalents and Short-Term Investments	12.88B	12.88B	12.12B	10.20B	11.27B	8.25B
Total Debt	200.00M	200.00M	200.00M	700.00M	200.00M	570.04M
Total Liabilities	7.14B	7.14B	6.64B	6.64B	5.11B	4.13B
Stockholders Equity	18.47B	18.47B	16.80B	15.10B	13.82B	12.35B
Cash Flow
Free Cash Flow	0.00	2.98B	3.18B	1.83B	4.39B	1.31B
Operating Cash Flow	0.00	3.19B	3.42B	1.95B	4.42B	1.56B
Investing Cash Flow	0.00	-923.00M	449.00M	-1.71B	31.00M	-1.39B
Financing Cash Flow	0.00	-1.51B	-1.95B	-1.30B	-1.44B	-813.61M

Comture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1672.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3844, the sentiment is Negative. The current price of 1672 is below the 20-day moving average (MA) of 1691.50, below the 50-day MA of 1715.10, and below the 200-day MA of 1821.32, indicating a bearish trend. The MACD of -11.54 indicates Positive momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 14.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3844.

Comture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3371	77 Outperform	63.40B	16.90	0.00%	2.32%	11.92%	7.75%
3636	76 Outperform	83.28B	16.08	7.40%	3.04%	1.06%	-0.20%
4674	75 Outperform	68.41B	15.73	14.30%	2.46%	9.98%	13.52%
3844	73 Outperform	¥53.30B	16.33	18.34%	2.93%	4.89%	4.85%
3916	72 Outperform	40.04B	17.41	26.98%	2.51%	21.47%	30.65%
9739	68 Neutral	38.50B	10.56	0.00%	3.29%	<0.01%	-17.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Comture Corporate Events

Comture Corporation Announces Leadership Change

Comture Corporation has announced a change in its management structure, with the appointment of Koji Tarutani as the new Representative Director, effective after the 41st Ordinary General Meeting of Shareholders in June 2025. This strategic move is aimed at enhancing the company’s leadership and aligning with its future growth objectives, potentially impacting its market positioning and stakeholder relations.

COMTURE Acquires HIT to Boost Microsoft and AI Solutions

COMTURE Corporation has announced its acquisition of Human Interactive Technology Inc. (HIT) to enhance its Microsoft business and strengthen its position in the AI solutions market. This strategic move is expected to accelerate COMTURE’s growth by providing comprehensive solutions in infrastructure construction, system development, and AI services, thereby increasing corporate value.

Comture Corporation Reports Nine-Month Financial Results for 2024

Comture Corporation reported its consolidated financial results for the nine months ending December 31, 2024. The company achieved net sales of ¥26,863 million, marking a 6.1% increase year-on-year, though there was a slight decline in operating and ordinary profits. Despite the sales growth, comprehensive income experienced a minor decrease, and no significant revisions were made to the dividend or financial results forecast. The company also underwent a reorganization, with the absorption merger of its subsidiary, Software Creation Co., Ltd., which may influence its operational dynamics.