RAKUS Co., Ltd. (3923) AI Stock Analysis

• Market Cap: ¥445.78B
• Dividend Yield: 0.37%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 47.3
• Beta (1Y): 1.14
• Revenue Growth: 25.22%
• EPS Growth: 70.77%
• Country: JP
• Employees: 2,561
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 360,666,600
• 10 Day Avg. Volume: 1,109,750
• 30 Day Avg. Volume: 1,271,623
• PEG Ratio: 0.50
• Price to Book (P/B): 16.49
• Price to Sales (P/S): 7.41
• P/FCF Ratio: 46.81
• 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: ¥3,060.00
• Price Target Upside: 153.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,398.00 ▲(15.92% Upside)

RAKUS Co., Ltd. scores well due to its strong financial performance, characterized by high growth and profitability, and a stable balance sheet. However, the stock's technical analysis presents mixed signals, and its high valuation suggests potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

RAKUS Co., Ltd. Business Overview & Revenue Model

Company Description

RAKUS Co., Ltd. (3923) is a Japanese IT company specializing in cloud-based services and software solutions aimed at enhancing business efficiency. The company operates primarily in the sectors of enterprise software and cloud computing, offering a range of products that include tools for business management, payroll, and other administrative functions. RAKUS is known for its user-friendly interfaces and scalable solutions that cater to small and medium-sized enterprises (SMEs).

How the Company Makes Money

RAKUS generates revenue through a subscription-based model for its software services, which provides a steady stream of income from customers who pay monthly or annually for access to their cloud applications. Key revenue streams include licensing fees for their software products, maintenance and support services, and additional consulting services for implementation and customization. The company has established significant partnerships with other technology firms and service providers to enhance its offerings and expand its market reach, contributing to its overall earnings.

RAKUS Co., Ltd. Financial Statement Overview

Summary

RAKUS Co., Ltd. demonstrates a strong financial position with high growth and profitability in its income statement, a stable and healthy balance sheet with low leverage, and robust cash flow generation. These metrics indicate a well-managed company with significant growth potential and strong operational performance.

Income Statement

RAKUS Co., Ltd. exhibits strong financial growth with a substantial revenue increase of 27.3% from the previous year, and a consistent upward trend over the past five years. The gross profit margin is robust at 74.3%, reflecting efficient cost management. Net profit margin stands at 16.4% for 2025, showing considerable profitability. EBIT and EBITDA margins at 20.8% and 23.2% respectively indicate solid operational efficiency. The company demonstrates a strong income statement performance with high growth and profitability metrics.

Balance Sheet

The balance sheet of RAKUS Co., Ltd. is strong with a low debt-to-equity ratio of 0.01, suggesting minimal leverage and financial risk. Return on Equity (ROE) is impressive at 36.4%, indicating effective use of equity to generate profits. An equity ratio of 69.4% highlights a solid capital structure with a high proportion of equity financing. The balance sheet reflects stability and financial health, though it could be further enhanced by optimizing asset utilization.

Cash Flow

RAKUS Co., Ltd. shows robust cash flow performance with a significant free cash flow growth rate of 74.6% year-over-year, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.13, indicating that the company's operations are generating healthy cash flows relative to its net income. The free cash flow to net income ratio is 0.97, further reflecting efficient cash conversion. Overall, the cash flow statement exhibits strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.77B	48.90B	38.41B	27.40B	20.63B	15.39B
Gross Profit	38.60B	36.31B	27.62B	18.78B	14.03B	10.36B
EBITDA	14.18B	11.35B	6.48B	2.23B	2.14B	4.55B
Net Income	9.47B	8.00B	4.18B	1.27B	1.08B	2.94B
Balance Sheet
Total Assets	28.42B	31.65B	21.23B	14.07B	11.70B	11.47B
Cash, Cash Equivalents and Short-Term Investments	10.26B	11.37B	7.01B	5.99B	4.86B	6.04B
Total Debt	0.00	216.00M	970.00M	36.00M	40.00M	0.00
Total Liabilities	6.77B	9.68B	7.89B	4.53B	3.08B	3.63B
Stockholders Equity	21.64B	21.98B	13.35B	9.55B	8.62B	7.84B
Cash Flow
Free Cash Flow	1.35B	7.74B	4.43B	1.54B	-436.00M	3.94B
Operating Cash Flow	1.69B	9.01B	5.29B	2.17B	-11.00M	4.27B
Investing Cash Flow	-674.00M	-3.46B	-4.86B	-699.00M	-877.00M	-432.52M
Financing Cash Flow	-401.50M	-1.18B	579.00M	-348.00M	-295.00M	-303.85M

RAKUS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1206.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3923, the sentiment is Negative. The current price of 1206 is below the 20-day moving average (MA) of 1242.87, below the 50-day MA of 1290.68, and above the 200-day MA of 1132.81, indicating a neutral trend. The MACD of -21.12 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 12.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3923.

RAKUS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4722	73 Outperform	¥188.65B	18.46	―	2.04%	9.29%	1.18%
4812	73 Outperform	¥489.33B	29.20	―	1.45%	8.02%	20.57%
9746	72 Outperform	¥211.37B	19.19	―	2.67%	9.00%	3.63%
3923	71 Outperform	¥445.78B	47.25	―	0.37%	25.22%	70.77%
8056	64 Neutral	¥563.82B	21.71	―	1.95%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	46 Neutral	$151.83B	-13.95	-13.94%	1.67%	25.30%	-326.99%

RAKUS Co., Ltd. Corporate Events

RAKUS Co., Ltd. Reports Steady Growth in September Sales

RAKUS Co., Ltd. reported its monthly sales figures for September in FY2026, showing consistent growth across its cloud business and IT outsourcing services. The company’s cloud business, a significant revenue driver, demonstrated a steady increase in monthly recurring revenue, indicating strong market demand and positioning RAKUS as a competitive player in the cloud solutions industry.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen1358.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Reports August FY2026 Sales Figures

RAKUS Co., Ltd. reported its monthly sales figures for August in FY2026, showing a slight decrease in growth compared to previous months. The cloud business remains a significant contributor to sales, with Raku Raku Meisai experiencing the highest year-on-year growth. The preliminary figures indicate a strong market position, although they are subject to revision.

The most recent analyst rating on (JP:3923) stock is a Buy with a Yen3220.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Reports Strong July Sales Growth

RAKUS Co., Ltd. reported a consistent increase in its monthly sales for July 2025, with consolidated sales reaching 4,926 million yen, marking a year-on-year growth of 126.3%. The cloud business segment, a significant contributor to the company’s revenue, showed a robust performance with a 127.6% year-on-year increase in sales. These figures indicate strong market demand for RAKUS’s cloud solutions, potentially enhancing its competitive positioning in the industry.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2280.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Reports Strong Q1 2025 Financial Results

RAKUS Co., Ltd. reported significant growth in its financial performance for the three months ended June 30, 2025, with a 25.5% increase in net sales and a 70.8% rise in profit attributable to owners of the parent compared to the same period in the previous year. The company also revised its cash dividend forecast for the fiscal year ending March 31, 2026, indicating a potential impact on shareholder returns.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2280.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Forms Strategic Alliance with Plus Alpha Consulting

RAKUS Co., Ltd. has entered into a basic agreement for a business alliance with Plus Alpha Consulting Co., Ltd. to enhance sales opportunities and customer satisfaction through mutual support in sales, marketing, and technical collaboration. This alliance aims to deepen service penetration and improve productivity for their clients, leveraging RAKUS’s strong customer base and Plus Alpha’s talent management platform.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2280.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.

RAKUS Co., Ltd. Announces Stock Split and Dividend Revision

RAKUS Co., Ltd. has announced a 2-for-1 stock split to increase share liquidity and expand its investor base, effective October 1, 2025. The company will also amend its Articles of Incorporation to reflect the increased number of authorized shares and has revised its dividend guidance to align with the stock split, maintaining the pre-split dividend forecast.

The most recent analyst rating on (JP:3923) stock is a Hold with a Yen2280.00 price target. To see the full list of analyst forecasts on RAKUS Co., Ltd. stock, see the JP:3923 Stock Forecast page.