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FLECT Co.,Ltd. (4414) AI Stock Analysis
FLECT Co.,Ltd.
(TSE/TYO:4414)
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.
FLECT Co.,Ltd. (4414) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 6.69B
- Dividend Yield
- ―
- Average Volume (3M)
- 23.71K
- Price to Earnings (P/E)
- 11.4
- Beta (1Y)
- 0.79
- Revenue Growth
- 10.31%
- EPS Growth
- -3.84%
- Country
- Japan
- Employees
- 445
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 se...
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 (e.g...
FLECT Co.,Ltd. Financial Statement Overview
Summary
Strong multi-year revenue scaling and improved profitability (2026 gross margin ~47%, operating margin ~15%, EBITDA margin ~16%) with conservative leverage (debt/equity ~0.20). Main offsets are weaker cash conversion in 2026 (operating cash flow coverage ~0.31; free cash flow ~67% of net income) and slight net margin slippage vs 2025.
Income Statement
82Very PositiveBalance Sheet
78PositiveCash Flow
61Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.66B | 8.25B | 7.95B | 6.93B | 5.31B | 3.64B |
| Gross Profit | 4.04B | 3.91B | 3.54B | 3.00B | 2.05B | 1.61B |
| EBITDA | 1.26B | 1.31B | 1.18B | 871.12M | 343.06M | 318.42M |
| Net Income | 650.23M | 684.27M | 720.79M | 440.47M | 222.50M | 266.40M |
Balance Sheet | ||||||
| Total Assets | 3.53B | 3.70B | 4.20B | 4.01B | 2.88B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.14B | 2.13B | 1.58B | 1.16B | 1.64B |
| Total Debt | 433.18M | 450.12M | 517.87M | 585.29M | 633.11M | 691.24M |
| Total Liabilities | 1.24B | 1.46B | 1.48B | 2.02B | 1.35B | 1.40B |
| Stockholders Equity | 2.29B | 2.24B | 2.72B | 1.99B | 1.53B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 221.49M | 833.94M | 464.01M | -447.92M | 97.37M |
| Operating Cash Flow | 0 | 330.23M | 895.21M | 600.03M | -306.04M | 161.48M |
| Investing Cash Flow | 0 | -69.77M | -288.05M | -149.63M | -135.81M | -101.29M |
| Financing Cash Flow | 0 | -1.25B | -54.13M | -30.36M | -42.19M | 682.32M |
FLECT Co.,Ltd. Technical Analysis
Price Trends
Market Momentum
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 1262.00 is above the 20-day moving average (MA) of 1173.45, above the 50-day MA of 1135.80, and above the 200-day MA of 1214.07, indicating a bullish trend. The MACD of 35.43 indicates Negative momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 85.51 is Negative, 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
Overall Rating
JP:481186Outperform
JP:443074Outperform- JP:441470Outperform
JP:448868Neutral
JP:418066Neutral
JP:443462Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4811 | 86Outperform | JPY 10.78B | 15.76 | ― | 2.22% | 7.28% | -14.91% |
| JP:4430 | 74Outperform | JPY 8.30B | 8.47 | ― | 3.85% | 9.66% | 6.85% |
| JP:4414 | 70Outperform | JPY 6.69B | 11.41 | ― | ― | 10.31% | -3.84% |
| JP:4488 | 68Neutral | JPY 7.58B | 19.45 | ― | ― | 6.94% | ― |
| JP:4180 | 66Neutral | JPY 148.65B | 43.84 | ― | 0.16% | 28.35% | 8.72% |
| JP:4434 | 62Neutral | JPY 22.31B | 18.98 | ― | 1.43% | 23.79% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4414 | FLECT Co.,Ltd. | 1238.00 | -597.00 | -32.53% | |
| JP:4180 | Appier Group, Inc. | 1446.00 | 192.55 | 15.36% | |
| JP:4430 | TOKAI SOFT CO.,LTD. | 1688.00 | 13.98 | 0.84% | |
| JP:4434 | Serverworks Co., Ltd. | 2801.00 | 988.16 | 54.51% | |
| JP:4488 | AI inside, Inc. | 1949.00 | -1002.00 | -33.95% | |
| JP:4811 | DreamArts Corp. | 900.00 | -323.13 | -26.42% |
FLECT Co.,Ltd. Corporate Events
FLECT to Buy Back Shares for Extended Performance-Linked Incentive Trusts
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 shifts...
FLECT Posts Record Q1 Sales on AI Services, Sees Public-Sector Growth Ahead
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 coord...
FLECT Posts Strong Sales Growth but Profit Slump, Keeps No-Dividend Policy and Full-Year Guidance
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 millio...
FLECT Tightens Control Structure as CEO’s Vehicle and Treasury Buyback Shape Governance
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 of t...
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 29, 2026