tiprankstipranks
Cluster Technology Co., Ltd. (JP:4240)
:4240
Japanese Market
Want to see JP:4240 full AI Analyst Report?

Cluster Technology Co., Ltd. (4240) AI Stock Analysis

0 Followers

Top Page

JP:4240

Cluster Technology Co., Ltd.

(4240)

Select Model
Select Model
Select Model
Outperform 74 (OpenAI - Gpt-5.6Sol)
Rating:74Outperform
Price Target:
¥363.00
▲(15.24% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial performance—especially accelerating growth, expanding operating margins, and an ultra-low-debt balance sheet. The main constraints are mixed technicals (short-term strength but still below longer-term moving averages) and only moderate cash conversion, while valuation looks broadly reasonable and does not materially change the outlook.
Positive Factors
Revenue and Margin Expansion
Accelerating revenue and expanding operating margins indicate stronger demand and improved operating leverage. If sustained, this combination can support earnings growth and strengthen the company’s competitive position over the next several quarters.
Negative Factors
Uneven Cash Conversion
Cash generation remains below accounting profitability, suggesting working-capital requirements or reinvestment needs. Persistently weak conversion could limit funding flexibility and make reported earnings less reliable as a source of durable liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Accelerating revenue and expanding operating margins indicate stronger demand and improved operating leverage. If sustained, this combination can support earnings growth and strengthen the company’s competitive position over the next several quarters.
Read all positive factors

Cluster Technology Co., Ltd. (4240) vs. iShares MSCI Japan ETF (EWJ)

Cluster Technology Co., Ltd. Business Overview & Revenue Model

Company Description
Cluster Technology Co.,Ltd., established in 1991 and based in Osaka, Japan, specializes in the production and sale of diverse resin composite materials throughout the country. Their offerings include Epohard, a resin composite formulated with inor...
How the Company Makes Money
null...

Cluster Technology Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals: accelerating revenue growth (+16.9% in 2026) and higher operating margin (~12.6% in 2026) support improved earnings, while the balance sheet is exceptionally conservative (debt-to-equity ~0.005). Offsetting factors are moderate ROE (~7.2%) and uneven cash conversion (operating cash flow below net income in 2026; free cash flow ~0.59 of net income), which can add volatility.
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.30B1.02B918.99M925.05M905.98M
Gross Profit537.73M427.51M386.86M364.41M380.31M
EBITDA232.36M152.65M116.37M110.00M124.82M
Net Income125.47M100.66M57.36M59.29M114.97M
Balance Sheet
Total Assets2.02B1.84B1.74B1.71B1.64B
Cash, Cash Equivalents and Short-Term Investments1.09B989.05M892.84M875.78M946.24M
Total Debt8.15M10.80M13.39M11.73M14.01M
Total Liabilities270.30M184.39M192.05M211.65M201.26M
Stockholders Equity1.75B1.65B1.55B1.49B1.43B
Cash Flow
Free Cash Flow128.42M113.22M21.78M-62.38M77.43M
Operating Cash Flow217.00M148.56M118.41M27.41M120.80M
Investing Cash Flow100.75M-49.76M-98.95M-95.59M-43.51M
Financing Cash Flow-24.99M-2.59M-2.40M-2.27M-2.23M

Cluster Technology Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price315.00
Price Trends
50DMA
317.22
Positive
100DMA
343.80
Negative
200DMA
347.09
Negative
Market Momentum
MACD
2.81
Negative
RSI
52.38
Neutral
STOCH
47.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4240, the sentiment is Neutral. The current price of 315 is below the 20-day moving average (MA) of 319.10, below the 50-day MA of 317.22, and below the 200-day MA of 347.09, indicating a neutral trend. The MACD of 2.81 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4240.

Cluster Technology Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥147.25B20.223.23%12.39%22.44%
74
Outperform
¥1.85B17.971.91%14.78%-20.71%
71
Outperform
¥19.53B19.812.93%2.51%0.17%
69
Neutral
¥229.33B25.0331.69%1.27%45.04%85.49%
69
Neutral
¥9.26B9.852.45%14.65%88.54%
63
Neutral
¥364.06B23.271.61%-18.36%-19.56%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4240
Cluster Technology Co., Ltd.
321.00
-50.08
-13.50%
JP:6777
Santec Corporation
19,140.00
11,346.80
145.60%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
765.00
110.54
16.89%
JP:6858
Ono Sokki Co., Ltd.
822.00
268.06
48.39%
JP:6866
Hioki E.E.Corporation
10,720.00
4,804.27
81.21%
JP:6951
JEOL Ltd.
7,125.00
2,531.14
55.10%

Cluster Technology Co., Ltd. Corporate Events

Cluster Technology Q1 Profits Slump Despite Strong Balance Sheet
Aug 12, 2026
Cluster Technology Co., Ltd. reported a decline in performance for the first quarter of the fiscal year ending March 2027, with net sales falling 7.5% year on year to ¥290 million and operating profit dropping 59.4% to ¥18 million. Ordin...
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 19, 2026