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Ubicom Holdings. Inc.
(3937)
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Rating:79Outperform
Price Target:
¥1,380.00
▲(32.31% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial quality—high margins and a very low-debt balance sheet—supporting resilience despite a recent revenue contraction and some cash flow volatility. Technicals are supportive due to a strong trend above key moving averages, though overbought signals temper the outlook. Valuation is fair with a mid-teens P/E and a moderate dividend yield.
Positive Factors
Strong Profitability
High gross and operating margins indicate a profitable business with meaningful operating leverage. This profitability provides resilience against moderate demand pressure and supports reinvestment, dividends, and sustained earnings generation.
Negative Factors
Recent Revenue Contraction
The latest revenue decline signals weaker demand or execution momentum after several years of growth. If sustained, lower top-line expansion could limit operating leverage and eventually pressure the company’s strong margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
High gross and operating margins indicate a profitable business with meaningful operating leverage. This profitability provides resilience against moderate demand pressure and supports reinvestment, dividends, and sustained earnings generation.
Read all positive factors
Ubicom Holdings. Inc. (3937) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.15B
Dividend Yield2.03%
Average Volume (3M)34.03K
Price to Earnings (P/E)16.9
Beta (1Y)0.69
Revenue Growth-0.09%
EPS Growth-5.09%
CountryJP
Employees992
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)73.56
Shares Outstanding12,249,920
10 Day Avg. Volume31,240
30 Day Avg. Volume34,026
Financial Highlights & Ratios
PEG Ratio3.69
Price to Book (P/B)1.87
Price to Sales (P/S)1.88
P/FCF Ratio11.75
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)86.6
Revenue Forecast (FY)¥7.30B
Ubicom Holdings. Inc. Business Overview & Revenue Model
Company Description
Ubicom Holdings, Inc., established in Tokyo, Japan in 2005, delivers comprehensive information technology (IT) solutions primarily within Japan and across Asia. The company's diverse offerings encompass application development and testing, embedde...
How the Company Makes Money
Detailed, reliable information about Ubicom Holdings, Inc.’s revenue model, key revenue streams, and material partnerships is not available in the provided context; therefore it cannot be stated factually here. null...
Ubicom Holdings. Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.99B | 6.34B | 5.94B | 5.25B | 4.73B |
| Gross Profit | 2.53B | 2.51B | 2.25B | 2.05B | 2.00B |
| EBITDA | 1.48B | 1.51B | 1.25B | 1.17B | 1.14B |
| Net Income | 891.78M | 858.40M | 526.14M | 573.79M | 832.14M |
Balance Sheet | |||||
| Total Assets | 7.98B | 7.87B | 6.88B | 5.80B | 5.62B |
| Cash, Cash Equivalents and Short-Term Investments | 5.17B | 4.86B | 4.03B | 3.67B | 3.38B |
| Total Debt | 281.39M | 407.48M | 288.61M | 244.95M | 327.98M |
| Total Liabilities | 1.95B | 2.27B | 2.16B | 1.71B | 1.81B |
| Stockholders Equity | 6.03B | 5.60B | 4.72B | 4.09B | 3.81B |
Cash Flow | |||||
| Free Cash Flow | 957.60M | 903.52M | 609.43M | 775.23M | 842.36M |
| Operating Cash Flow | 984.07M | 930.83M | 726.90M | 820.66M | 874.14M |
| Investing Cash Flow | -57.87M | 18.80M | -272.76M | -110.51M | -202.88M |
| Financing Cash Flow | -627.05M | -126.43M | -155.02M | -447.49M | -151.54M |
Ubicom Holdings. Inc. Technical Analysis
Positive
1043.00
Price Trends
1036.44
Positive
999.66
Positive
995.01
Positive
Market Momentum
69.40
Negative
68.78
Neutral
72.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3937, the sentiment is Positive. The current price of 1043 is below the 20-day moving average (MA) of 1122.40, above the 50-day MA of 1036.44, and above the 200-day MA of 995.01, indicating a bullish trend. The MACD of 69.40 indicates Negative momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 72.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3937.
Ubicom Holdings. Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥15.15B | 16.90 | ― | 3.78% | -0.09% | -5.09% | |
77 Outperform | ¥15.75B | 15.15 | ― | 0.91% | 21.12% | 38.63% | |
68 Neutral | ¥6.84B | 15.34 | ― | ― | 23.42% | 457.78% | |
63 Neutral | ¥13.99B | 55.46 | ― | ― | 34.57% | 80.99% | |
58 Neutral | ¥4.71B | 47.92 | ― | ― | 20.67% | -37.51% | |
56 Neutral | ¥15.10B | 20.68 | ― | ― | 14.06% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Ubicom Holdings. Inc. Corporate Events
Ubicom Clarifies Segment Renaming in FY2026 Q1 Results
Aug 13, 2026
Ubicom Holdings has released its financial results materials for the first quarter of FY2026, covering the three months ended June 30, 2026, alongside updates on its business segments. The company clarified that its AI Technology Strategy Business...
Ubicom Holdings Posts Double-Digit Sales and Profit Growth in First Quarter, Keeps Full-Year Outlook Intact
Aug 13, 2026
Ubicom Holdings reported consolidated net sales of ¥1.74 billion for the three months ended June 30, 2026, up 17.5% year on year, with operating profit rising 30.9% to ¥410 million and ordinary profit up 25.0% to ¥395 million. Profi...
Ubicom Holdings Restructures Around AI With New Departments and Leadership Changes
Jun 24, 2026
Ubicom Holdings, Inc. is overhauling its internal structure to position artificial intelligence at the core of its business strategy, renaming its Technology Consulting Business Division as the AI Technology Strategy Department and reorganizing it...
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.