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User Local, Inc.
(3984)
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Rating:75Outperform
Price Target:
¥1,653.00
▼(-8.42% Downside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by very strong financial performance (high margins, no debt, and strong cash generation). This is partially offset by weak technical conditions (price below major moving averages with negative momentum indicators). Valuation is supportive with a reasonable P/E and a modest dividend yield.
Positive Factors
High Profitability & Margins
Sustained net margins near 27%–31% indicate durable pricing power and operating efficiency. High margins provide recurring internal funding for R&D, product improvements and shareholder returns, cushioning growth volatility and supporting long-term return on equity.
Negative Factors
Slowing Revenue Growth
A deceleration in top-line growth reduces the base for margin leverage and future earnings expansion. If persistent, slower revenue growth forces reliance on margin improvement or share buybacks to sustain EPS growth, increasing execution risk for long-term investor returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Sustained net margins near 27%–31% indicate durable pricing power and operating efficiency. High margins provide recurring internal funding for R&D, product improvements and shareholder returns, cushioning growth volatility and supporting long-term return on equity.
Read all positive factors
User Local, Inc. (3984) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.50B
Dividend Yield1.56%
Average Volume (3M)63.91K
Price to Earnings (P/E)15.0
Beta (1Y)0.72
Revenue Growth16.61%
EPS Growth15.40%
CountryJP
Employees112
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)102.64
Shares Outstanding16,161,800
10 Day Avg. Volume50,620
30 Day Avg. Volume63,906
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)2.77
Price to Sales (P/S)4.90
P/FCF Ratio11.94
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)N/A
Revenue Forecast (FY)N/A
User Local, Inc. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 2005, User Local, Inc. is a technology company dedicated to developing sophisticated analytical instruments for web developers and marketing specialists. The firm's primary focus lies in the research and development...
User Local, Inc. Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.34B | 4.58B | 3.91B | 3.29B | 2.68B |
| Gross Profit | 4.76B | 4.12B | 3.57B | 3.05B | 2.48B |
| EBITDA | 2.26B | 2.01B | 1.76B | 1.38B | 1.10B |
| Net Income | 1.63B | 1.43B | 1.19B | 954.35M | 721.89M |
Balance Sheet | |||||
| Total Assets | 11.18B | 9.97B | 8.84B | 7.21B | 6.24B |
| Cash, Cash Equivalents and Short-Term Investments | 9.75B | 8.55B | 7.68B | 6.37B | 5.32B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.73B | 1.27B | 1.11B | 871.51M | 700.50M |
| Stockholders Equity | 9.45B | 8.70B | 7.72B | 6.34B | 5.54B |
Cash Flow | |||||
| Free Cash Flow | 2.19B | 1.55B | 1.53B | 1.29B | 869.30M |
| Operating Cash Flow | 2.24B | 1.81B | 1.55B | 1.31B | 911.55M |
| Investing Cash Flow | 37.16M | -260.31M | -198.80M | -28.03M | -120.50M |
| Financing Cash Flow | -1.07B | -676.70M | -36.68M | -238.22M | -167.26M |
User Local, Inc. Technical Analysis
Negative
1805.00
Price Trends
1704.39
Negative
1671.97
Negative
1727.40
Negative
Market Momentum
-54.36
Positive
37.41
Neutral
40.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3984, the sentiment is Negative. The current price of 1805 is above the 20-day moving average (MA) of 1643.45, above the 50-day MA of 1704.39, and above the 200-day MA of 1727.40, indicating a bearish trend. The MACD of -54.36 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 40.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3984.
User Local, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥28.38B | 36.49 | ― | ― | 24.82% | 82.75% | |
75 Outperform | ¥24.50B | 14.96 | ― | 1.33% | 16.61% | 15.40% | |
74 Outperform | ¥36.08B | 13.12 | ― | 3.40% | 5.05% | 7.82% | |
63 Neutral | ¥25.64B | 17.06 | ― | 2.51% | -0.57% | -25.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ¥24.87B | 41.00 | ― | ― | 27.44% | 131.69% |
* General Sector Average
JP:3984
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User Local, Inc. Corporate Events
User Local Completes Share Buyback of 500,000 Shares
Aug 7, 2026
User Local, Inc. has completed a share buyback program authorized by its board of directors in February 2026, repurchasing a total of 500,000 shares for approximately 832.28 million yen. The final tranche, executed between August 1 and August 5, 2...
User Local outlines FY2026 results and FY2027 outlook in briefing materials
Aug 6, 2026
User Local, Inc. released materials for its FY2026 financial results briefing, outlining performance for the second quarter and providing an overview of its business profile. The document indicates the company will detail financial results for FY2...
User Local lifts dividend on solid earnings and cash growth
Aug 6, 2026
User Local reported strong results for the fiscal year ended June 30, 2026, with net sales rising 16.6% to ¥5.34 billion and operating profit increasing 11.4% to ¥2.20 billion, while net profit climbed 14.4% to ¥1.63 billion, suppor...
User Local Nears Completion of ¥1 Billion Share Buyback Program
Aug 4, 2026
User Local, Inc. reported the latest status of its treasury stock buyback, disclosing that it repurchased 97,900 common shares for approximately 173.9 million yen on the Tokyo Stock Exchange between July 1 and July 31, 2026. This activity forms pa...
User Local Steps Up Share Buybacks Under Board-Approved Program
Jul 2, 2026
User Local, Inc. reported that it repurchased 79,900 shares of its common stock for about 143 million yen on the Tokyo Stock Exchange between June 1 and June 30, 2026. The buyback forms part of a broader board-approved program that allows up to 50...
User Local Completes Restricted Stock Treasury Share Disposal with Minor Revision
Jun 9, 2026
User Local, Inc. has completed the payment process for the disposal of treasury shares used as restricted stock compensation for employees, following a resolution by its board in early May. The company slightly reduced the number of shares allotte...
User Local Advances Share Buyback, Acquires Over 300,000 Shares to Date
Jun 2, 2026
User Local, Inc. has reported progress on its ongoing share buyback program, purchasing 90,800 shares of its common stock for a total of ¥156.2 million on the Tokyo Stock Exchange between May 1 and May 31, 2026. These purchases are being exec...
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.