Core Concept Technologies Inc. (4371) AI Stock Analysis

• Market Cap: ¥16.75B
• Dividend Yield: N/A
• Average Volume (3M): 58.02K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.52
• Revenue Growth: 14.61%
• EPS Growth: 2.30%
• Country: JP
• Employees: 533
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.59
• Shares Outstanding: 17,574,400
• 10 Day Avg. Volume: 56,480
• 30 Day Avg. Volume: 58,020
• PEG Ratio: 0.98
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 19.74
• 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

• Rating: 71 Outperform
• Price Target: ¥1,075.00 ▲(15.22% Upside)

Core Concept Technologies Inc. demonstrates strong financial performance with robust revenue growth and prudent financial management, which significantly contributes to the overall score. The technical analysis indicates a bearish trend, which slightly dampens the score. Valuation is reasonable, but the lack of a dividend yield may be a drawback for some investors. Overall, the company is well-positioned in the Information Technology Services industry, but investors should monitor technical indicators closely.

Core Concept Technologies Inc. Business Overview & Revenue Model

Company Description

Core Concept Technologies Inc. provides digital transformation realization and IT human resources procurement support services in Japan. The company offers DX and development support services. It serves clients primarily in manufacturing and construction industries; and supports IT human resource procurement. Core Concept Technologies Inc. was incorporated in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

Core Concept Technologies Inc. generates revenue through multiple streams, primarily from software licenses, subscription services, and hardware sales. The company offers a tiered subscription model for its cloud-based applications, allowing customers to choose packages based on their usage and needs. Additionally, revenue is supplemented by the sale of proprietary hardware that integrates with its software solutions. Significant partnerships with major technology firms enhance its market reach and credibility, while also providing opportunities for joint ventures and co-development projects, contributing positively to its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.17B	19.17B	15.92B	12.11B	7.80B	5.53B
Gross Profit	5.29B	5.02B	4.32B	2.73B	1.80B	1.12B
EBITDA	2.29B	2.19B	1.88B	1.22B	610.22M	245.37M
Net Income	1.47B	1.44B	1.30B	836.83M	410.34M	124.79M
Balance Sheet
Total Assets	7.97B	8.01B	6.11B	5.11B	3.77B	2.18B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.20B	1.82B	2.20B	1.34B	307.34M
Total Debt	168.57M	906.72M	148.91M	172.39M	127.34M	422.35M
Total Liabilities	3.00B	3.81B	2.90B	2.27B	1.81B	1.47B
Stockholders Equity	4.96B	4.20B	3.21B	2.85B	1.96B	716.25M
Cash Flow
Free Cash Flow	0.00	834.87M	916.26M	799.11M	514.11M	-118.37M
Operating Cash Flow	0.00	983.05M	1.16B	883.68M	581.75M	136.29M
Investing Cash Flow	0.00	-970.75M	-429.12M	-118.55M	-67.14M	-112.81M
Financing Cash Flow	0.00	232.13M	-1.11B	92.38M	519.72M	-103.10M

Core Concept Technologies Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 933.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4371, the sentiment is Negative. The current price of 933 is below the 20-day moving average (MA) of 961.00, below the 50-day MA of 1043.50, and below the 200-day MA of 1110.01, indicating a neutral trend. The MACD of -19.46 indicates Negative momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6199	―	¥20.89B	12.01	―	0.86%	11.50%	11.23%
9658	―	¥34.58B	11.99	―	2.52%	16.54%	69.97%
4371	―	¥16.75B	11.18	―	―	14.61%	2.30%
6050	―	¥20.86B	20.09	―	1.93%	1.80%	-10.15%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	―	¥35.66B	135.78	―	―	-18.95%	―

Core Concept Technologies Inc. Corporate Events

Core Concept Technologies Reports Steady Growth in H1 2025 Financial Results

Core Concept Technologies Inc. reported its consolidated financial results for the first half of 2025, showing a year-on-year increase in net sales and profits. The company achieved net sales of 10,168 million yen, a 10.9% increase, and a profit attributable to owners of the parent of 762 million yen, up 3.6%. The financial results indicate a steady growth trajectory for the company, despite a slower growth rate compared to the previous year. The company also announced a forecasted dividend of 19 yen per share for the fiscal year ending December 31, 2025, reflecting confidence in its financial stability and future prospects.