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TRADE WORKS Co.,Ltd
(3997)
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Rating:59Neutral
Price Target:
¥385.00
▼(-16.67% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by constructive technical momentum (price above major moving averages with positive MACD) and improving fundamentals (revenue growth and better cash flow in 2025). Offsetting these positives are elevated valuation (high P/E, low yield) and still-fragile profitability with higher leverage versus prior years.
Positive Factors
Steady Revenue Growth
The sustained expansion of revenue indicates growing business scale and market demand. Continued top-line growth provides a foundation for operating leverage, product investment and improved profitability if the company can preserve execution quality.
Negative Factors
Thin Profit Margins
Very limited net profitability leaves little protection against cost increases, weaker demand or execution setbacks. Margin compression from earlier levels also indicates that revenue growth has not yet translated into durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
The sustained expansion of revenue indicates growing business scale and market demand. Continued top-line growth provides a foundation for operating leverage, product investment and improved profitability if the company can preserve execution quality.
Read all positive factors
TRADE WORKS Co.,Ltd (3997) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.05B
Dividend Yield0.51%
Average Volume (3M)207.56K
Price to Earnings (P/E)106.6
Beta (1Y)1.34
Revenue Growth19.65%
EPS GrowthN/A
CountryJP
Employees270
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.66
Shares Outstanding41,042,000
10 Day Avg. Volume142,230
30 Day Avg. Volume207,556
Financial Highlights & Ratios
PEG Ratio-2.33
Price to Book (P/B)9.91
Price to Sales (P/S)3.50
P/FCF Ratio63.52
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
TRADE WORKS Co.,Ltd Business Overview & Revenue Model
Company Description
Established in 1999 and headquartered in Tokyo, Japan, TRADE WORKS Co., Ltd. delivers sophisticated software solutions tailored for the financial sector, specifically supporting the securities, forex (FX) margin trading, and commodity futures indu...
How the Company Makes Money
null...
TRADE WORKS Co.,Ltd Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.63B | 5.05B | 4.59B | 3.75B | 3.27B | 2.55B |
| Gross Profit | 1.36B | 1.18B | 786.15M | 753.00M | 832.23M | 699.74M |
| EBITDA | 629.45M | 376.08M | 83.21M | 82.89M | 415.48M | 374.67M |
| Net Income | 143.74M | 56.89M | -151.69M | -53.00M | 200.30M | 189.97M |
Balance Sheet | ||||||
| Total Assets | 4.03B | 4.02B | 2.91B | 3.04B | 2.18B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 941.59M | 973.07M | 804.14M | 615.04M | 688.29M | 802.55M |
| Total Debt | 495.02M | 1.08B | 848.15M | 585.65M | 9.69M | 0.00 |
| Total Liabilities | 1.50B | 2.14B | 1.63B | 1.66B | 717.21M | 392.78M |
| Stockholders Equity | 2.52B | 1.78B | 1.28B | 1.39B | 1.46B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 278.13M | -12.87M | -217.00M | 390.02M | 24.21M |
| Operating Cash Flow | 0.00 | 312.10M | 278.45M | -207.00M | 399.77M | 53.23M |
| Investing Cash Flow | 0.00 | -845.98M | -397.30M | -404.75M | -252.60M | -78.58M |
| Financing Cash Flow | 0.00 | 702.80M | 307.94M | 514.00M | -261.42M | -8.10M |
TRADE WORKS Co.,Ltd Technical Analysis
Positive
462.00
Price Trends
365.94
Positive
369.77
Positive
402.15
Negative
Market Momentum
4.34
Negative
53.43
Neutral
78.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3997, the sentiment is Positive. The current price of 462 is above the 20-day moving average (MA) of 386.50, above the 50-day MA of 365.94, and above the 200-day MA of 402.15, indicating a neutral trend. The MACD of 4.34 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 78.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3997.
TRADE WORKS Co.,Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥26.64B | 9.26 | ― | 3.06% | 9.46% | 34.80% | |
75 Outperform | ¥24.55B | 14.25 | ― | 1.33% | 16.61% | 15.40% | |
73 Outperform | ¥30.48B | 11.66 | ― | 3.80% | 7.10% | 31.29% | |
71 Outperform | ¥29.76B | 15.55 | ― | 2.83% | 15.42% | 27.86% | |
59 Neutral | ¥16.05B | 106.55 | ― | 0.49% | 19.65% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ¥17.73B | -7.84 | ― | ― | 16.67% | 67.75% |
* General Sector Average
JP:3997
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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.