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Ubicom Holdings. Inc. (3937) AI Stock Analysis

JP:3937

Ubicom Holdings. Inc.

(TSE/TYO:3937)

Select Model
Rating:79Outperform
Price Target:JPY 1,232.00â–²(14.50% 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
High ProfitabilityStrong gross, operating, and net margins indicate effective monetization of the company’s software and IT-services activities. This profitability provides operating leverage, supports internal investment, and creates resilience if demand remains uneven over the next several quarters.
Negative Factors
Revenue ContractionThe latest revenue decline indicates that prior growth momentum has weakened and creates a more demanding base for future expansion. If softness persists, it could limit operating leverage, reduce the pace of earnings growth, and make the company more dependent on margin discipline.

Ubicom Holdings. Inc. (3937) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:3937+1.08%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 13.04B
Dividend Yield
2.32%
Average Volume (3M)
59.78K
Price to Earnings (P/E)
14.8
Beta (1Y)
0.75
Revenue Growth
-0.09%
EPS Growth
-5.09%
Country
Japan
Employees
992
Sector
General
Sector Strength
55
Industry
Software - Application

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, embedded s...

Ubicom Holdings. Inc. Financial Statement Overview

Summary

Strong profitability and operating leverage (FY2026 operating margin ~22%, net margin ~15%) and a very conservative balance sheet with low leverage (~4.7% debt-to-equity) support a high score. Offsetting factors are the FY2026 revenue decline (-4.2%) and uneven free cash flow momentum, despite good earnings-to-FCF conversion (~97% in FY2026).

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.25B5.99B6.34B5.94B5.25B4.73B
Gross Profit2.65B2.53B2.51B2.25B2.05B2.00B
EBITDA1.59B1.48B1.51B1.25B1.17B1.14B
Net Income884.03M891.78M858.40M526.14M573.79M832.14M
Balance Sheet
Total Assets8.35B7.98B7.87B6.88B5.80B5.62B
Cash, Cash Equivalents and Short-Term Investments4.68B5.17B4.86B4.03B3.67B3.38B
Total Debt667.29M281.39M407.48M288.61M244.95M327.98M
Total Liabilities2.51B1.95B2.27B2.16B1.71B1.81B
Stockholders Equity5.83B6.03B5.60B4.72B4.09B3.81B
Cash Flow
Free Cash Flow0957.60M903.52M609.43M775.23M842.36M
Operating Cash Flow0984.07M930.83M726.90M820.66M874.14M
Investing Cash Flow0-57.87M18.80M-272.76M-110.51M-202.88M
Financing Cash Flow0-627.05M-126.43M-155.02M-447.49M-151.54M

Ubicom Holdings. Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price1076.00

Price Trends

50DMA1164.00Negative
100DMA1078.51Negative
200DMA1021.68Positive

Market Momentum

MACD-16.83Positive
RSI39.18Neutral
STOCH17.97Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3937, the sentiment is Negative. The current price of 1076.00 is below the 20-day moving average (MA) of 1114.10, below the 50-day MA of 1164.00, and above the 200-day MA of 1021.68, indicating a neutral trend. The MACD of -16.83 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3937.

Ubicom Holdings. Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3937 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3937JP:393779OutperformJPY 13.18B14.76―2.32%-0.09%-5.09%
JP:4448JP:444872OutperformJPY 14.50B19.86――14.06%―
JP:5621JP:562172OutperformJPY 16.09B15.86―1.91%21.12%38.63%
JP:5586JP:558667NeutralJPY 12.94B51.10――34.57%80.99%
JP:4397JP:439761NeutralJPY 6.01B16.11――23.50%2.72%
JP:4484JP:448458NeutralJPY 4.48B45.92―0.72%20.67%-37.51%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-40%-20%0%JP:3937JP:4397JP:4448JP:4484JP:5586JP:5621Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3937 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3937Ubicom Holdings. Inc.1076.00-24.90-2.26%
JP:4397TeamSpirit, Inc.364.00-143.00-28.21%
JP:4448Chatwork Co.Ltd.340.00-53.00-13.49%
JP:4484Lancers, Inc.276.00-13.09-4.53%
JP:5586Laboro.AI, Inc.810.00-102.00-11.18%
JP:5621Human Technologies,Inc.1677.00-593.53-26.14%

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 is...

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. Profit a...

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