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FLECT Co.,Ltd.
(4414)
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Rating:70Outperform
Price Target:
¥1,277.00
▲(6.86% Upside)
Action:Upgraded
Date:08/29/26
The score is primarily supported by strong financial performance (scaled revenues, solid operating profitability, and low leverage), tempered by weaker and less consistent cash-flow conversion in 2026. Technical indicators are mixed with negative MACD and price below the 200-day average, while valuation is a positive contributor due to the low P/E.
Positive Factors
Scaled revenue and profitability
The multi-year expansion in revenue, combined with healthy gross and operating margins, indicates that FLECT has built meaningful delivery scale and a profitable digital-transformation services platform.
Negative Factors
Weak latest cash conversion
The latest gap between accounting profit and cash generation raises execution and working-capital concerns. If persistent, weaker conversion could constrain reinvestment and make earnings quality less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled revenue and profitability
The multi-year expansion in revenue, combined with healthy gross and operating margins, indicates that FLECT has built meaningful delivery scale and a profitable digital-transformation services platform.
Read all positive factors
FLECT Co.,Ltd. (4414) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.78B
Dividend YieldN/A
Average Volume (3M)29.06K
Price to Earnings (P/E)10.7
Beta (1Y)0.85
Revenue Growth10.31%
EPS Growth-3.84%
CountryJP
Employees445
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)113.17
Shares Outstanding6,199,520
10 Day Avg. Volume24,060
30 Day Avg. Volume29,056
Financial Highlights & Ratios
PEG Ratio-1.82
Price to Book (P/B)2.65
Price to Sales (P/S)0.72
P/FCF Ratio26.72
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)138.3
Revenue Forecast (FY)¥10.40B
FLECT Co.,Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, FLECT Co., Ltd. was established in 2005 and is dedicated to delivering multi-cloud integration solutions vital for digital transformation (DX) initiatives throughout the country. The company's professional DX support...
How the Company Makes Money
FLECT primarily makes money by providing professional services to corporate customers. Key revenue streams include: (1) Consulting and project delivery fees: revenue from advising clients on digital strategy and executing implementation projects (...
FLECT Co.,Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.25B | 7.95B | 6.93B | 5.31B | 3.64B |
| Gross Profit | 3.91B | 3.54B | 3.00B | 2.05B | 1.61B |
| EBITDA | 1.31B | 1.18B | 871.12M | 343.06M | 318.42M |
| Net Income | 684.27M | 720.79M | 440.47M | 222.50M | 266.40M |
Balance Sheet | |||||
| Total Assets | 3.70B | 4.20B | 4.01B | 2.88B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 2.13B | 1.58B | 1.16B | 1.64B |
| Total Debt | 450.12M | 517.87M | 585.29M | 633.11M | 691.24M |
| Total Liabilities | 1.46B | 1.48B | 2.02B | 1.35B | 1.40B |
| Stockholders Equity | 2.24B | 2.72B | 1.99B | 1.53B | 1.29B |
Cash Flow | |||||
| Free Cash Flow | 221.49M | 833.94M | 464.01M | -447.92M | 97.37M |
| Operating Cash Flow | 330.23M | 895.21M | 600.03M | -306.04M | 161.48M |
| Investing Cash Flow | -69.77M | -288.05M | -149.63M | -135.81M | -101.29M |
| Financing Cash Flow | -1.25B | -54.13M | -30.36M | -42.19M | 682.32M |
FLECT Co.,Ltd. Technical Analysis
Positive
1195.00
Price Trends
1157.22
Positive
1124.78
Positive
1341.89
Negative
Market Momentum
-6.52
Negative
61.76
Neutral
70.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4414, the sentiment is Positive. The current price of 1195 is above the 20-day moving average (MA) of 1172.70, above the 50-day MA of 1157.22, and below the 200-day MA of 1341.89, indicating a neutral trend. The MACD of -6.52 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4414.
FLECT Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | ¥10.09B | 15.56 | ― | 1.01% | 7.28% | -14.91% | |
82 Outperform | ¥8.38B | 8.74 | ― | 3.06% | 15.03% | 17.34% | |
70 Outperform | ¥6.78B | 10.70 | ― | ― | 10.31% | -3.84% | |
70 Outperform | ¥133.49B | 40.05 | ― | 0.18% | 28.35% | 8.72% | |
63 Neutral | ¥19.53B | -50.87 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥8.41B | 22.59 | ― | ― | 6.94% | ― |
* Technology Sector Average
JP:4414
FLECT Co.,Ltd.
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-40.15%
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FLECT Co.,Ltd. Corporate Events
FLECT to Buy Back Shares for Extended Performance-Linked Incentive Trusts
Aug 13, 2026
FLECT Co., Ltd. has resolved to acquire its own common shares through existing BIP and ESOP trust structures as part of a previously announced revision to its share-based compensation plan. The move extends the trust periods to August 2028 and shi...
FLECT Posts Record Q1 Sales on AI Services, Sees Public-Sector Growth Ahead
Aug 13, 2026
FLECT Co., Ltd. reported record-high net sales of 2,221 million yen for the first quarter of the fiscal year ending March 2027, a 22.8% year-on-year increase driven by expanded AI total services to existing customers. These services bundle data co...
FLECT Posts Strong Sales Growth but Profit Slump, Keeps No-Dividend Policy and Full-Year Guidance
Aug 13, 2026
FLECT Co., Ltd. reported non-consolidated net sales of ¥2,221 million for the quarter ended June 30, 2026, a 22.8% year-on-year increase, while operating profit fell 45.3% to ¥64 million and quarterly profit dropped 47.3% to ¥37 mil...
FLECT Tightens Control Structure as CEO’s Vehicle and Treasury Buyback Shape Governance
Jun 22, 2026
FLECT Co., Ltd. disclosed that KURO LLC., its controlling shareholder and an asset management company wholly owned by CEO Koji Kurokawa, holds 53.54% of the company’s voting rights as of March 31, 2026. This confirms that effective control o...
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.