Kufu Company Inc. (4376) AI Stock Analysis

• Market Cap: ¥10.72B
• Dividend Yield: N/A
• Average Volume (3M): 214.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -13.85%
• EPS Growth: 70.00%
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -1.70
• Shares Outstanding: 59,887,596
• 10 Day Avg. Volume: 54,170
• 30 Day Avg. Volume: 214,300
• PEG Ratio: -1.16
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.06
• P/FCF Ratio: -17.13
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ¥176.00 ▲(3.53% Upside)

The overall stock score of 47 reflects significant financial challenges, with declining revenue and negative cash flows being the most impactful factors. Technical analysis indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Kufu Company Inc. Business Overview & Revenue Model

Company Description

Kufu Company Inc. (4376) is a leading provider in the technology sector, specializing in innovative software solutions designed to enhance business efficiency and productivity. The company operates primarily in the enterprise software market, offering a range of products including project management tools, collaboration platforms, and data analytics services tailored for various industries. Kufu Company Inc. focuses on delivering cutting-edge technology that empowers organizations to streamline their operations and drive growth.

How the Company Makes Money

Kufu Company Inc. generates revenue through a multi-faceted business model that includes subscription-based services, licensing fees, and professional consulting engagements. The primary revenue stream comes from its subscription services, where clients pay recurring fees for access to its software solutions, which are often offered as Software-as-a-Service (SaaS). Additionally, Kufu earns significant income from licensing its technology to other businesses and providing customized solutions tailored to client needs. The company also engages in strategic partnerships with other tech firms and industry leaders, expanding its market reach and enhancing its product offerings, which contribute to its overall revenue growth.

Kufu Company Inc. Financial Statement Overview

Summary

Kufu Company Inc. faces significant financial challenges, with declining revenue and profitability, coupled with negative cash flows. While the balance sheet remains relatively stable, the income statement and cash flow metrics suggest operational inefficiencies and liquidity concerns that need addressing to improve financial health.

Income Statement

The income statement shows a declining trend in revenue from 2023 to 2024, with a significant drop of 24.1%. Gross profit margin decreased from 47.8% in 2023 to 52.3% in 2024, indicating a reduction in cost efficiency. Net profit margin also declined from 2.7% to 2.0%, reflecting reduced profitability. The EBIT and EBITDA margins have similarly decreased, suggesting operational challenges.

Balance Sheet

The balance sheet indicates a stable equity position with a debt-to-equity ratio of 0.33 in 2024, showing manageable leverage. The equity ratio improved slightly to 56.8%, indicating a solid equity base. However, the return on equity decreased to 2.9% from 5.4%, reflecting lower profitability on equity.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow, turning negative in 2024. Operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	13.97B	15.54B	20.49B	18.63B	4.55B	4.49B
Gross Profit	7.64B	8.12B	9.80B	9.21B	2.78B	2.56B
EBITDA	1.42B	1.75B	2.77B	2.11B	319.29M	465.78M
Net Income	-8.00M	308.00M	548.00M	452.00M	-94.78M	16.39M
Balance Sheet
Total Assets	18.45B	18.88B	20.97B	21.33B	6.37B	5.84B
Cash, Cash Equivalents and Short-Term Investments	8.78B	9.20B	10.74B	10.25B	1.99B	1.97B
Total Debt	3.16B	3.55B	5.35B	5.86B	1.36B	182.46M
Total Liabilities	6.74B	6.71B	9.38B	9.67B	1.94B	959.99M
Stockholders Equity	10.13B	10.72B	10.08B	10.19B	4.34B	4.76B
Cash Flow
Free Cash Flow	-268.00M	-962.00M	4.20B	1.29B	-703.13M	284.32M
Operating Cash Flow	-230.00M	-196.00M	4.75B	1.55B	-569.86M	367.73M
Investing Cash Flow	-702.00M	-498.00M	-886.00M	-1.04B	-222.16M	-2.44B
Financing Cash Flow	-189.00M	-1.19B	-1.75B	-1.04B	811.49M	-23.61M

Kufu Company Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4376, the sentiment is Negative. The current price of 170 is below the 20-day moving average (MA) of 174.85, below the 50-day MA of 175.68, and below the 200-day MA of 188.20, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4376.

Kufu Company Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5869	―	¥12.54B	11.73	―	4.95%	―	―
7318	―	¥23.17B	9.75	―	―	48.34%	395.14%
9325	―	¥12.49B	13.06	―	2.20%	18.27%	-4.07%
4346	―	¥13.37B	12.80	―	3.01%	21.32%	377.20%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4376	―	¥10.72B	―	―	―	-13.85%	70.00%

Kufu Company Inc. Corporate Events

Kufu Company Holdings Reports Decline in Financial Performance

Kufu Company Holdings Inc. reported a decline in financial performance for the nine months ending June 30, 2025, with net sales and operating profit decreasing significantly compared to the previous year. The company faces challenges with reduced profitability and a slight decrease in total assets, impacting its financial stability and market position.