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CHANGE Holdings,Inc. (JP:3962)
:3962
Japanese Market
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CHANGE Holdings,Inc. (3962) AI Stock Analysis

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JP:3962

CHANGE Holdings,Inc.

(3962)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥1,066.00
▲(11.62% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by solid financial performance—strong revenue expansion and healthy recent cash generation—tempered by margin compression and increased leverage. Valuation is a notable positive (low P/E and moderate dividend yield), while technicals are mixed with neutral-to-positive momentum but the price still below the 200-day average and a high Stochastic reading.
Positive Factors
Strong Revenue Expansion
The substantial multi-year increase in revenue indicates strong demand for the company’s DX and organizational-change services. Continued client adoption and expansion of transformation projects can support durable scale and market penetration over the next several quarters.
Negative Factors
Margin Compression
The decline in operating and net margins indicates that recent growth has become less profitable than earlier expansion. If delivery costs, staffing needs, or project mix remain unfavorable, sustained margin pressure could limit earnings growth even as revenue continues rising.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Expansion
The substantial multi-year increase in revenue indicates strong demand for the company’s DX and organizational-change services. Continued client adoption and expansion of transformation projects can support durable scale and market penetration over the next several quarters.
Read all positive factors

CHANGE Holdings,Inc. (3962) vs. iShares MSCI Japan ETF (EWJ)

CHANGE Holdings,Inc. Business Overview & Revenue Model

Company Description
Established in Tokyo, Japan, in 2003, Change Inc. provides IT human resources development and training services throughout Japan. The company offers educational programs that utilize core technologies and toolkits across a wide range of advanced d...
How the Company Makes Money
CHANGE Holdings primarily earns revenue by providing DX- and change-related professional services to clients. Key revenue streams include (1) consulting and project-based service fees for assessing client operations, designing transformation roadm...

CHANGE Holdings,Inc. Financial Statement Overview

Summary
Strong multi-year revenue growth and still-solid profitability (TTM gross margin ~54.5%, operating margin ~20.3%), supported by positive TTM operating cash flow (~¥8.5B) and free cash flow (~¥8.1B) with strong FCF-to-net-income conversion (~0.95x). Offsetting these positives are clear margin compression versus prior peaks, slightly lower recent net income, and a meaningful rise in leverage (debt-to-equity ~0.61 vs. ~0.09 in FY2023), which reduces balance-sheet flexibility.
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
71
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2023Sep 2021
Income Statement
Total Revenue53.81B52.83B46.39B37.02B20.02B20.28B
Gross Profit29.35B28.83B24.81B22.26B12.17B15.74B
EBITDA13.69B13.70B15.01B11.43B6.34B9.85B
Net Income6.57B6.94B7.53B4.26B3.86B6.19B
Balance Sheet
Total Assets99.17B105.61B104.79B93.83B52.94B42.73B
Cash, Cash Equivalents and Short-Term Investments24.44B26.18B30.18B38.40B25.10B31.79B
Total Debt27.58B29.12B34.47B24.02B3.41B1.68B
Total Liabilities45.73B50.82B55.12B43.90B13.61B7.22B
Stockholders Equity45.23B46.76B41.25B39.48B36.48B33.48B
Cash Flow
Free Cash Flow8.07B6.88B7.65B11.10B-3.06B3.29B
Operating Cash Flow8.46B7.25B7.84B12.20B-811.00M3.53B
Investing Cash Flow-3.16B-2.84B-14.08B-13.74B-7.68B-832.00M
Financing Cash Flow-8.73B-8.41B1.32B17.83B1.41B-193.00M

CHANGE Holdings,Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥119.06B20.072.32%10.11%16.32%
76
Outperform
¥29.78B37.8124.82%82.75%
72
Outperform
¥73.45B10.891.47%11.73%-0.05%
62
Neutral
¥32.56B36.673.99%-11.60%-43.23%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
¥103.59B77.431.71%2.05%4.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3962
CHANGE Holdings,Inc.
1,028.00
-127.09
-11.00%
JP:4819
Digital Garage
2,312.00
-1,273.32
-35.51%
JP:5574
ABEJA,Inc.
3,080.00
-295.00
-8.74%
JP:9640
Saison Technology Co.Ltd.
2,025.00
144.56
7.69%
JP:9889
JBCC Holdings Inc.
1,782.00
451.35
33.92%

CHANGE Holdings,Inc. Corporate Events

CHANGE Holdings Posts Solid Q1 Revenue Growth as DX and AI Businesses Advance
Aug 13, 2026
CHANGE Holdings, Inc. reported first-quarter fiscal 2027 revenue of ¥10.89 billion, up 9.9% year on year, driven by broad-based growth across its DX-related segments. Operating profit declined due to costs from a shareholder benefit program, ...
CHANGE Holdings Posts Profit Slump in Q1 but Keeps Full-Year Outlook and Higher Dividend Plan
Aug 13, 2026
CHANGE Holdings, Inc. reported first-quarter fiscal 2027 revenue of ¥10.89 billion, up 9.9% year on year, but operating profit fell 19.0% to ¥491 million and profit attributable to owners of the parent slumped 76.7% to ¥98 million, ...
CHANGE Holdings Reports Initial Progress on Share Buyback Program
Aug 5, 2026
CHANGE Holdings, Inc. reported progress on its ongoing share buyback program authorized by its board in May, detailing the purchase of 74,300 ordinary shares for about 66.7 million yen on the Tokyo Stock Exchange during July 2026. The buyback form...
CHANGE Holdings Reports No Share Buybacks in June Under Authorized Program
Jul 3, 2026
CHANGE Holdings, Inc. reported on the progress of its share buyback program authorized by its board in mid-May 2026, which allows for the purchase of up to 2.5 million ordinary shares, or about 3.59 percent of outstanding stock, for a total of up ...
CHANGE Holdings Clarifies Independence Despite Strong Ties with SBI Holdings
Jun 26, 2026
CHANGE Holdings has detailed its relationship with major shareholder SBI Holdings, which owns 37.12% of its voting shares via direct ownership and is listed on the Prime Market of the Tokyo Stock Exchange. Despite their capital and business allian...
CHANGE Holdings Reports No Treasury Share Purchases in May Despite Buyback Authorization
Jun 3, 2026
CHANGE Holdings, Inc. reported that, despite a board-approved program to repurchase up to 2.5 million ordinary shares for as much as 2 billion yen between May 15 and November 30, 2026, it did not buy back any shares during the May 15–31, 202...
CHANGE Holdings to Broaden Business Scope with Articles of Incorporation Amendment
May 21, 2026
CHANGE Holdings, Inc. plans to amend its Articles of Incorporation to expand its stated business objectives, reflecting preparations for future business expansion. The proposed additions cover logistics consignment and information processing, tran...
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