rakumo Inc. (4060) AI Stock Analysis

rakumo Inc.

(TSE/TYO:4060)

Select Model

Rating:76Outperform

Price Target:JPY 1,316.00▲(18.99% Upside)

Action:upgraded

Date:08/17/26

The overall score of 76 reflects rakumo Inc.'s strong financial performance (77) and positive technical trends (78), while valuation (72) is fair. Key strengths include consistent revenue growth, robust cash flow, and a bullish price trend. Risks include increased leverage and an overbought stochastic signal, but the company's fundamentals support a favorable outlook.

Positive Factors

Accelerating Revenue GrowthConsistent multi-year growth, with stronger expansion in 2025, indicates sustained customer adoption and increasing demand for rakumo’s cloud productivity services. This provides a durable foundation for recurring revenue growth over the next several quarters.

Negative Factors

Higher Financial LeverageThe sharp increase in debt relative to equity makes the capital structure more aggressive than in prior years. Although profitability remains healthy, higher leverage reduces financial flexibility and could constrain investment capacity if operating conditions weaken.

rakumo Inc. (4060) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.63B
Dividend Yield: 0.79%
Average Volume (3M): 6,893
Price to Earnings (P/E): 24.6
Beta (1Y): 0.53
Revenue Growth: 37.13%
EPS Growth: -7.58%
Country: Japan
Employees: 124
Sector: Technology
Sector Strength: 61
Industry: Software - Application

rakumo Inc. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, rakumo Inc. specializes in creating and distributing cloud-based enhancement tools. Among its primary offerings is "rakumo for Google Workspace," a comprehensive suite of cloud-based applications designed to augment Goo...

How the Company Makes Money

The company primarily makes money by selling its cloud software as subscription (SaaS) services. Revenue is generated from recurring usage fees paid by corporate customers for access to rakumo’s Google Workspace–integrated products, typically priced...

rakumo Inc. Financial Statement Overview

Summary

Combining the Income Statement (85), Balance Sheet (70), and Cash Flow (75) scores yields a financial performance score of 77. The company shows strong revenue growth, solid profitability, and robust cash generation, though increased leverage introduces moderate risk.

Income Statement

85Very Positive

Balance Sheet

70Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.12B	1.83B	1.44B	1.30B	1.10B	963.78M
Gross Profit	1.49B	1.29B	951.21M	831.79M	697.03M	599.50M
EBITDA	702.37M	588.25M	480.90M	373.34M	266.51M	240.27M
Net Income	269.49M	272.31M	253.03M	196.43M	184.55M	188.75M
Balance Sheet
Total Assets	4.53B	4.17B	3.04B	2.67B	1.78B	1.52B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.82B	2.28B	1.89B	1.44B	1.29B
Total Debt	1.16B	1.22B	500.00M	510.00M	50.00M	64.98M
Total Liabilities	2.54B	2.28B	1.40B	1.31B	625.84M	571.03M
Stockholders Equity	1.99B	1.89B	1.63B	1.37B	1.15B	947.95M
Cash Flow
Free Cash Flow	0	507.96M	459.03M	346.51M	273.02M	282.58M
Operating Cash Flow	0	510.98M	463.42M	351.73M	275.03M	286.07M
Investing Cash Flow	0	-1.58B	-70.78M	-357.87M	-92.27M	-53.42M
Financing Cash Flow	0	606.49M	-3.70M	455.61M	-47.29M	11.22M

rakumo Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price1106.00

Price Trends

50DMA1189.92Negative

100DMA1150.36Negative

200DMA1118.65Positive

Market Momentum

MACD-15.95Positive

RSI42.17Neutral

STOCH25.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4060, the sentiment is Negative. The current price of 1106.00 is below the 20-day moving average (MA) of 1172.70, below the 50-day MA of 1189.92, and below the 200-day MA of 1118.65, indicating a neutral trend. The MACD of -15.95 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4060.

rakumo Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4060 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4168	78Outperform	JPY 9.55B	8.46	―	1.97%	12.61%	49.51%
JP:4060	76Outperform	JPY 6.63B	24.56	―	0.79%	37.13%	-7.58%
JP:4448	72Outperform	JPY 14.50B	19.86	―	―	14.06%	―
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4397	61Neutral	JPY 6.01B	16.11	―	―	23.50%	2.72%
JP:3976	59Neutral	JPY 2.51B	5.17	―	―	-13.15%	―

* Technology Sector Average

Performance Comparison

JP:4060 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4060	rakumo Inc.	1136.00	30.04	2.72%
JP:3976	Shanon, Inc.	424.00	22.00	5.47%
JP:4168	Yappli, Inc.	735.00	-197.23	-21.16%
JP:4397	TeamSpirit, Inc.	364.00	-143.00	-28.21%
JP:4448	Chatwork Co.Ltd.	340.00	-53.00	-13.49%
JP:5033	Nulab Inc.	1228.00	465.00	60.94%

rakumo Inc. Corporate Events

Rakumo Delivers Strong Revenue Growth and Hikes Dividend Outlook for 2026

Aug 14, 2026

Rakumo Inc. reported strong topline growth for the six months ended June 30, 2026, with net sales rising 36.5% year-on-year to ¥1,096 million and adjusted EBITA up 33.7%, although profit attributable to owners of the parent fell slightly by 1.9%...

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

rakumo Inc. AI Stock Analysis