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Ubicom Holdings. Inc. (3937) AI Stock Analysis
Ubicom Holdings. Inc.
(TSE/TYO:3937)
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.
Ubicom Holdings. Inc. (3937) vs. iShares MSCI Japan ETF (EWJ)
- 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
78PositiveBalance Sheet
90Very PositiveCash Flow
74Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.25B | 5.99B | 6.34B | 5.94B | 5.25B | 4.73B |
| Gross Profit | 2.65B | 2.53B | 2.51B | 2.25B | 2.05B | 2.00B |
| EBITDA | 1.59B | 1.48B | 1.51B | 1.25B | 1.17B | 1.14B |
| Net Income | 884.03M | 891.78M | 858.40M | 526.14M | 573.79M | 832.14M |
Balance Sheet | ||||||
| Total Assets | 8.35B | 7.98B | 7.87B | 6.88B | 5.80B | 5.62B |
| Cash, Cash Equivalents and Short-Term Investments | 4.68B | 5.17B | 4.86B | 4.03B | 3.67B | 3.38B |
| Total Debt | 667.29M | 281.39M | 407.48M | 288.61M | 244.95M | 327.98M |
| Total Liabilities | 2.51B | 1.95B | 2.27B | 2.16B | 1.71B | 1.81B |
| Stockholders Equity | 5.83B | 6.03B | 5.60B | 4.72B | 4.09B | 3.81B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 957.60M | 903.52M | 609.43M | 775.23M | 842.36M |
| Operating Cash Flow | 0 | 984.07M | 930.83M | 726.90M | 820.66M | 874.14M |
| Investing Cash Flow | 0 | -57.87M | 18.80M | -272.76M | -110.51M | -202.88M |
| Financing Cash Flow | 0 | -627.05M | -126.43M | -155.02M | -447.49M | -151.54M |
Ubicom Holdings. Inc. Technical Analysis
Price Trends
Market Momentum
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
- JP:393779Outperform
JP:444872Outperform
JP:562172Outperform
JP:558667Neutral
JP:439761Neutral
JP:448458Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3937 | 79Outperform | JPY 13.18B | 14.76 | ― | 2.32% | -0.09% | -5.09% |
| JP:4448 | 72Outperform | JPY 14.50B | 19.86 | ― | ― | 14.06% | ― |
| JP:5621 | 72Outperform | JPY 16.09B | 15.86 | ― | 1.91% | 21.12% | 38.63% |
| JP:5586 | 67Neutral | JPY 12.94B | 51.10 | ― | ― | 34.57% | 80.99% |
| JP:4397 | 61Neutral | JPY 6.01B | 16.11 | ― | ― | 23.50% | 2.72% |
| JP:4484 | 58Neutral | JPY 4.48B | 45.92 | ― | 0.72% | 20.67% | -37.51% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3937 | Ubicom Holdings. Inc. | 1076.00 | -24.90 | -2.26% | |
| JP:4397 | TeamSpirit, Inc. | 364.00 | -143.00 | -28.21% | |
| JP:4448 | Chatwork Co.Ltd. | 340.00 | -53.00 | -13.49% | |
| JP:4484 | Lancers, Inc. | 276.00 | -13.09 | -4.53% | |
| JP:5586 | Laboro.AI, Inc. | 810.00 | -102.00 | -11.18% | |
| JP:5621 | Human Technologies,Inc. | 1677.00 | -593.53 | -26.14% |
Ubicom Holdings. Inc. Corporate Events
Ubicom Clarifies Segment Renaming in FY2026 Q1 Results
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
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...
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