rakumo Inc. (4060) AI Stock Analysis

• Market Cap: ¥6.99B
• Dividend Yield: 0.5%
• Average Volume (3M): 35.58K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.64
• Revenue Growth: 10.95%
• EPS Growth: 39.53%
• Country: JP
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.92
• Shares Outstanding: 5,817,500
• 10 Day Avg. Volume: 27,940
• 30 Day Avg. Volume: 35,580
• PEG Ratio: 0.73
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 11.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,093.00
• Price Target Upside: -5.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,093.00 ▼(-5.04% Downside)

The overall stock score of 77 reflects rakumo Inc.'s strong financial performance, supported by solid revenue growth and profitability, and a fair valuation. While the technical indicators show bullish momentum, the overbought RSI suggests caution. The absence of earnings call and corporate event data limits additional context.

rakumo Inc. Business Overview & Revenue Model

Company Description

rakumo Inc. (4060) is a leading provider of cloud-based business solutions, primarily focusing on enhancing workplace productivity and collaboration. The company operates in the technology sector, offering a suite of software applications that facilitate efficient communication, project management, and data sharing among teams. Its core products include cloud-based workflow automation tools, document management systems, and collaboration platforms designed to streamline business operations across various industries.

How the Company Makes Money

rakumo Inc. generates revenue through a subscription-based model, offering tiered pricing plans for its software solutions. This model allows businesses to pay a recurring fee for access to its applications, which are regularly updated with new features. Key revenue streams include monthly and annual subscription fees from its diverse customer base, which ranges from small businesses to large enterprises. Additionally, the company may benefit from strategic partnerships with other tech firms to integrate its services, thus expanding its market reach and enhancing its product offerings. Furthermore, rakumo Inc. may also earn revenue through professional services such as training and support, which assist clients in maximizing the use of its tools.

rakumo Inc. Financial Statement Overview

Summary

rakumo Inc. exhibits strong financial performance, characterized by significant revenue growth, improved profit margins, and robust cash flow generation. The balance sheet is healthy with low leverage, indicating financial stability. Continued focus on growth and efficient cost management is essential.

Income Statement

rakumo Inc. has demonstrated strong revenue growth over the years, with a significant increase in total revenue from 2019 to 2024. The Gross Profit Margin and Net Profit Margin have consistently improved, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, further supporting the company's profitability. However, maintaining momentum in revenue and profit growth is essential for sustaining high performance.

Balance Sheet

The balance sheet showcases a healthy financial position with a strong equity base and low debt levels, as evidenced by a favorable Debt-to-Equity Ratio. The Equity Ratio is high, reflecting financial stability. Return on Equity (ROE) has grown, driven by increasing net income. Nevertheless, vigilance on managing liabilities and optimizing asset utilization remains crucial.

Cash Flow

rakumo Inc. has shown a consistent increase in Free Cash Flow, indicative of improving operational efficiency and cash generation capacity. The Operating Cash Flow to Net Income Ratio signifies strong cash generation relative to profits. The Free Cash Flow to Net Income Ratio further underscores effective cash management. Sustaining cash flow growth and reinvestment capabilities will be vital for future expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.44B	1.30B	1.10B	963.78M	822.42M
Gross Profit	1.06B	951.21M	831.79M	697.03M	599.50M	480.68M
EBITDA	528.22M	487.16M	373.35M	266.51M	240.27M	157.10M
Net Income	290.59M	253.03M	196.43M	184.55M	188.75M	125.22M
Balance Sheet
Total Assets	3.31B	3.04B	2.67B	1.78B	1.52B	1.25B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.28B	1.89B	1.44B	1.29B	1.04B
Total Debt	500.00M	500.00M	510.00M	50.00M	64.98M	84.99M
Total Liabilities	1.56B	1.40B	1.31B	624.11M	569.14M	533.89M
Stockholders Equity	1.74B	1.63B	1.37B	1.15B	947.95M	717.15M
Cash Flow
Free Cash Flow	0.00	459.39M	293.39M	226.79M	232.65M	206.40M
Operating Cash Flow	0.00	463.42M	351.73M	275.03M	286.07M	258.90M
Investing Cash Flow	0.00	-70.78M	-357.87M	-92.27M	-53.42M	-52.50M
Financing Cash Flow	0.00	-3.70M	455.61M	-47.29M	11.22M	501.12M

rakumo Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1151.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4060, the sentiment is Neutral. The current price of 1151 is below the 20-day moving average (MA) of 1231.80, below the 50-day MA of 1197.58, and above the 200-day MA of 948.91, indicating a neutral trend. The MACD of -7.20 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4060.

rakumo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	78 Outperform	¥4.73B	10.63	―	1.33%	39.66%	57.28%
4060	77 Outperform	¥6.99B	24.00	―	0.50%	10.95%	39.53%
3841	77 Outperform	¥5.16B	24.57	―	2.99%	2.53%	-32.88%
4492	73 Outperform	¥5.62B	14.42	―	3.71%	11.30%	-21.37%
4829	66 Neutral	¥4.32B	178.26	―	2.68%	-4.90%	-85.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3936	46 Neutral	¥5.94B	―	―	―	33.37%	53.98%

rakumo Inc. Corporate Events

rakumo Inc. Reports Strong Financial Growth in First Half of 2025

rakumo Inc. reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 15.1% and profits attributable to owners of the parent increasing by 34.6% compared to the previous year. The company’s strong results reflect its successful operational strategies and market positioning, indicating positive implications for stakeholders and potential growth in the technology sector.