Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥21.75B
• Dividend Yield: N/A
• Average Volume (3M): 110.31K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.22
• Revenue Growth: 17.91%
• EPS Growth: 1.59%
• Country: JP
• Employees: 533
• Sector: Technology
• Sector Strength: 76
• Industry: Information Technology Services
• EPS (TTM): 24.92
• Shares Outstanding: 17,491,600
• 10 Day Avg. Volume: 159,050
• 30 Day Avg. Volume: 110,313
• PEG Ratio: -10.08
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Core Concept Technologies Inc. demonstrates strong financial performance with significant revenue growth and efficient operations. The stock shows potential undervaluation with a low P/E ratio, although caution is advised due to mixed technical indicators suggesting possible overbought conditions. The absence of recent earnings call data or corporate events limits insights into upcoming strategic directions.

Core Concept Technologies Inc. Business Overview & Revenue Model

Company Description

Core Concept Technologies Inc. (4371) is a technology service provider engaged in offering comprehensive IT solutions and services. The company specializes in software development, IT consulting, and managed services, catering to various industries such as finance, healthcare, manufacturing, and telecommunications. With a focus on innovation and customer-centric solutions, Core Concept Technologies Inc. helps businesses optimize their operations through cutting-edge technology and strategic IT support.

How the Company Makes Money

Core Concept Technologies Inc. generates revenue through a diverse set of income streams primarily centered around its IT services and solutions. The company earns money by providing software development services, which include custom application development and software integration solutions tailored to client needs. Additionally, it offers IT consulting services, helping organizations design and implement effective IT strategies. Managed services, such as cloud computing, network management, and IT infrastructure support, constitute another vital revenue stream. The company may also engage in strategic partnerships with technology vendors, enhancing its service offerings and expanding its market reach. These partnerships can contribute to revenue through collaborative projects and reseller agreements, enabling Core Concept Technologies Inc. to leverage external expertise and resources to deliver enhanced value to its clients.

Core Concept Technologies Inc. Financial Statement Overview

Summary

Core Concept Technologies Inc. exhibits strong financial health with robust revenue and profit growth, efficient operations, and prudent financial management. The company's balance sheet is solid with low leverage and strong equity financing. While cash flow generation remains positive, attention should be given to maintaining growth in free cash flow.

Income Statement

Core Concept Technologies Inc. demonstrates a strong financial performance with consistent revenue growth, increasing from ¥4.77 billion in 2019 to ¥19.17 billion in 2024. The gross profit margin has improved significantly, highlighting efficient cost management. The net profit margin has also increased, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, underlining robust operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is strong, suggesting a high proportion of assets financed by equity, which reduces financial risk. Return on equity has improved significantly, reflecting better utilization of shareholder funds. However, the increase in total liabilities should be monitored for potential risks.

Cash Flow

Operating cash flow to net income ratio is positive, indicating good cash generation from operations. Free cash flow has been consistently positive, supporting the company's ability to invest and meet financial obligations. However, the decline in free cash flow growth rate in recent years suggests a need for caution in managing cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.17B	15.92B	12.11B	7.80B	5.53B
	Gross Profit
5.02B	4.32B	2.73B	1.80B	1.12B
	EBIT
2.01B	1.74B	1.12B	546.17M	180.77M
	EBITDA
2.19B	1.88B	1.20B	610.22M	245.37M
	Net Income Common Stockholders
1.44B	1.30B	836.83M	410.34M	124.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.20B	1.82B	2.20B	1.34B	307.34M
	Total Assets
8.01B	6.11B	5.11B	3.77B	2.18B
	Total Debt
906.72M	148.91M	172.39M	127.34M	422.35M
	Net Debt
-1.16B	-1.67B	-2.03B	-1.21B	115.01M
	Total Liabilities
3.81B	2.90B	2.27B	1.81B	1.47B
	Stockholders Equity
4.20B	3.21B	2.85B	1.96B	716.25M
Cash Flow		Free Cash Flow
834.87M	916.26M	799.11M	514.11M	-118.37M
	Operating Cash Flow
983.05M	1.16B	883.68M	581.75M	136.29M
	Investing Cash Flow
-970.75M	-429.12M	-118.55M	-67.14M	-112.81M
	Financing Cash Flow
232.13M	-1.11B	92.38M	519.72M	-103.10M

Core Concept Technologies Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1271.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4371, the sentiment is Positive. The current price of 1271 is above the 20-day moving average (MA) of 1076.55, above the 50-day MA of 1061.00, and above the 200-day MA of 1270.01, indicating a bullish trend. The MACD of 58.80 indicates Negative momentum. The RSI at 74.19 is Negative, neither overbought nor oversold. The STOCH value of 87.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4371.

Core Concept Technologies Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4371	76 Outperform	¥21.75B	14.78		―	17.91%	1.59%
4307	75 Outperform	$3.41T	36.66	22.20%	1.01%	3.84%	19.26%
9719	74 Outperform	¥1.34T	29.74		1.66%	24.10%	11.27%
9749	73 Outperform	€637.47B	33.20	13.64%	0.43%	6.92%	25.38%
4676	72 Outperform	$655.99B	14.53	-2.38%	1.88%	1.70%	-4.29%
4828	68 Neutral	€50.27B	15.08	27.18%	2.43%	4.12%	9.06%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.77%

Core Concept Technologies Inc. Corporate Events

Core Concept Technologies Reports Strong Q1 2025 Financial Results

Core Concept Technologies Inc. reported a 13.6% increase in net sales for the first quarter of 2025, reaching 5,039 million yen, with operating profit and ordinary profit also seeing moderate growth. The company’s financial position strengthened with an improved equity capital ratio of 60.4%, indicating solid financial health. The forecast for the full fiscal year 2025 shows continued growth expectations, with net sales projected to rise by 13.7% and operating profit by 14.6%.

Core Concept Technologies Enhances Executive System for Agility

Core Concept Technologies Inc. announced changes to its executive officer system to streamline operations and enhance oversight. The company plans to reduce the number of directors, increase the ratio of outside directors, and separate supervisory and execution functions, aiming for more agile decision-making and business operations.