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Ray Corporation (JP:4317)
:4317
Japanese Market
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Ray Corporation (4317) AI Stock Analysis

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JP:4317

Ray Corporation

(4317)

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Outperform 83 (OpenAI - 5.2)
Rating:83Outperform
Price Target:
¥600.00
▼(-7.26% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial strength (notably low leverage and improved profitability) and very compelling valuation (low P/E and ~4% dividend yield). Technicals are supportive but somewhat stretched (high Stoch and elevated RSI), which modestly tempers the overall rating.
Positive Factors
Low leverage and conservative capital structure
Very low and falling leverage provides durable financial flexibility: the company can fund operations, capex or dividends without stress, withstand downturns, and pursue opportunistic investments or buybacks. This conservatism supports long-term solvency and strategic optionality.
Negative Factors
Uneven cash conversion
FCF materially below net income and declining conversion signals earnings don't consistently translate into cash. That undermines sustainable reinvestment and dividends if the pattern continues, making capital planning and the endurance of margins more uncertain over cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and conservative capital structure
Very low and falling leverage provides durable financial flexibility: the company can fund operations, capex or dividends without stress, withstand downturns, and pursue opportunistic investments or buybacks. This conservatism supports long-term solvency and strategic optionality.
Read all positive factors

Ray Corporation (4317) vs. iShares MSCI Japan ETF (EWJ)

Ray Corporation Business Overview & Revenue Model

Company Description
Operating within Japan, Ray Corporation specializes in video content creation. The company's comprehensive services encompass the production of television commercials, event and promotional videos, digital content, and physical media such as DVD a...

Ray Corporation Financial Statement Overview

Summary
Strong recent improvement in profitability and scale (revenue up 13.83% YoY, higher margins, net income up to 1.30B). Balance sheet is a major strength with very low and improving leverage (debt-to-equity ~0.07) and solid ROE (~16.8%). Main risk is volatility in results and weaker cash conversion consistency (FCF ~41% of net income; uneven cash flow timing).
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
BreakdownFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue13.42B10.46B11.22B12.45B11.05B
Gross Profit4.94B3.55B3.79B4.15B3.65B
EBITDA2.59B1.57B1.68B1.69B1.38B
Net Income1.30B745.58M818.49M715.54M419.47M
Balance Sheet
Total Assets10.91B9.12B9.42B9.58B9.79B
Cash, Cash Equivalents and Short-Term Investments3.06B2.87B2.83B3.14B3.61B
Total Debt563.51M769.43M1.02B1.29B1.97B
Total Liabilities3.13B2.33B2.86B3.54B4.32B
Stockholders Equity7.77B6.80B6.55B6.05B5.47B
Cash Flow
Free Cash Flow954.99M844.33M384.55M551.79M941.86M
Operating Cash Flow2.34B1.69B1.05B721.29M1.03B
Investing Cash Flow-1.51B-836.28M-668.97M-170.41M-49.13M
Financing Cash Flow-637.58M-813.04M-686.68M-1.02B-388.49M

Ray Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price647.00
Price Trends
50DMA
511.72
Positive
100DMA
509.02
Positive
200DMA
581.38
Negative
Market Momentum
MACD
16.21
Positive
RSI
71.43
Negative
STOCH
77.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4317, the sentiment is Positive. The current price of 647 is above the 20-day moving average (MA) of 551.80, above the 50-day MA of 511.72, and above the 200-day MA of 581.38, indicating a neutral trend. The MACD of 16.21 indicates Positive momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 77.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4317.

Ray Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥8.01B6.002.36%23.16%30.68%
72
Outperform
¥8.98B16.463.92%3.36%-0.60%
71
Outperform
¥8.34B30.832.41%22.46%-68.41%
67
Neutral
¥12.06B13.781.96%0.73%129.90%
63
Neutral
¥11.67B64.720.24%7.61%58.34%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
41
Neutral
¥2.61B-3.82-24.70%-80.94%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4317
Ray Corporation
580.00
-6.09
-1.04%
JP:3686
DLE, Inc.
60.00
-82.00
-57.75%
JP:4308
J-Stream Inc.
360.00
6.59
1.87%
JP:4347
Broadmedia Corporation
1,665.00
6.07
0.37%
JP:4772
Stream Media Corporation
73.00
-43.78
-37.49%
JP:9636
Kin-Ei Corp.
4,195.00
154.55
3.83%
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 06, 2026