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Cluster Technology Co., Ltd.
(4240)
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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)
Market Cap
¥1.85B
Dividend Yield1.85%
Average Volume (3M)28.24K
Price to Earnings (P/E)18.0
Beta (1Y)1.07
Revenue Growth14.78%
EPS Growth-20.71%
CountryJP
Employees76
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)22.04
Shares Outstanding5,692,800
10 Day Avg. Volume23,290
30 Day Avg. Volume28,243
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)1.20
Price to Sales (P/S)1.62
P/FCF Ratio16.40
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
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
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Cluster Technology Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.02B | 918.99M | 925.05M | 905.98M |
| Gross Profit | 537.73M | 427.51M | 386.86M | 364.41M | 380.31M |
| EBITDA | 232.36M | 152.65M | 116.37M | 110.00M | 124.82M |
| Net Income | 125.47M | 100.66M | 57.36M | 59.29M | 114.97M |
Balance Sheet | |||||
| Total Assets | 2.02B | 1.84B | 1.74B | 1.71B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 989.05M | 892.84M | 875.78M | 946.24M |
| Total Debt | 8.15M | 10.80M | 13.39M | 11.73M | 14.01M |
| Total Liabilities | 270.30M | 184.39M | 192.05M | 211.65M | 201.26M |
| Stockholders Equity | 1.75B | 1.65B | 1.55B | 1.49B | 1.43B |
Cash Flow | |||||
| Free Cash Flow | 128.42M | 113.22M | 21.78M | -62.38M | 77.43M |
| Operating Cash Flow | 217.00M | 148.56M | 118.41M | 27.41M | 120.80M |
| Investing Cash Flow | 100.75M | -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
Neutral
315.00
Price Trends
317.22
Positive
343.80
Negative
347.09
Negative
Market Momentum
2.81
Negative
52.38
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥147.25B | 20.22 | ― | 3.23% | 12.39% | 22.44% | |
74 Outperform | ¥1.85B | 17.97 | ― | 1.91% | 14.78% | -20.71% | |
71 Outperform | ¥19.53B | 19.81 | ― | 2.93% | 2.51% | 0.17% | |
69 Neutral | ¥229.33B | 25.03 | 31.69% | 1.27% | 45.04% | 85.49% | |
69 Neutral | ¥9.26B | 9.85 | ― | 2.45% | 14.65% | 88.54% | |
63 Neutral | ¥364.06B | 23.27 | ― | 1.61% | -18.36% | -19.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4240
Cluster Technology Co., Ltd.
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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.