Ricksoft Co., Ltd. (4429) AI Stock Analysis

Ricksoft Co., Ltd.

(TSE/TYO:4429)

Select Model

Rating:66Neutral

Price Target:JPY 854.00▲(22.35% Upside)

Action:reiterated

Date:10/16/26

The company's greatest strength is its rock-solid, debt-free balance sheet, which provides significant financial flexibility. This is the primary factor supporting the score. However, the investment case is tempered by a clear trend of declining profit margins and slowing growth, which introduces uncertainty about future earnings power. Technicals are moderately positive, with the stock in an uptrend, though the elevated RSI warrants caution. The low P/E ratio offers some valuation support, but the absence of a dividend is a minor drawback.

Positive Factors

Debt-free balance sheetA debt-free capital structure reduces interest-rate sensitivity and financial risk while preserving flexibility to invest in products, services, and customer expansion. Rising equity and assets also provide greater resilience if operating conditions weaken over the next several quarters.

Negative Factors

Margin compressionProfitability is not keeping pace with top-line expansion, suggesting that higher cost intensity is absorbing part of the benefit from growth. Continued margin pressure would reduce earnings conversion, constrain internal funding for investment, and make future growth less valuable to shareholders.

Ricksoft Co., Ltd. (4429) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.19B
Dividend Yield: ―
Average Volume (3M): 4,171
Price to Earnings (P/E): 10.6
Beta (1Y): 0.26
Revenue Growth: 15.75%
EPS Growth: 3.63%
Country: Japan
Employees: 136
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Ricksoft Co., Ltd. Business Overview & Revenue Model

Company Description

Ricksoft Co., Ltd. engages in the provision of IT services in Japan. It offers Professional Services, such as research and analysis, design, construction, operation, and application; Step-Up Agile with Jira, an enterprise Agile services; D-Accel plat...

How the Company Makes Money

Ricksoft makes money primarily through a mix of (1) product revenue and (2) services revenue. Product revenue consists of sales of software licenses and subscriptions for Ricksoft-developed add-ons and tools that integrate with platforms like Atlassi...

Ricksoft Co., Ltd. Financial Statement Overview

Summary

Mixed financials: a pristine, debt-free balance sheet (Score 85) provides a strong foundation, but this is offset by declining margins and slowing revenue growth on the income statement (Score 35). Solid but volatile cash flow generation (Score 70) adds stability. The overall financial picture is one of low risk but weakening profitability.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	11.41B	10.89B	9.04B	7.49B	5.62B	4.31B
Gross Profit	2.36B	2.37B	2.37B	2.24B	1.86B	1.53B
EBITDA	471.57M	415.16M	505.29M	375.80M	586.41M	480.20M
Net Income	300.16M	263.79M	355.52M	269.02M	423.88M	326.93M
Balance Sheet
Total Assets	9.41B	9.63B	6.69B	5.97B	4.58B	2.94B
Cash, Cash Equivalents and Short-Term Investments	3.72B	3.94B	3.30B	3.16B	3.07B	2.09B
Total Debt	0	0	0	0	0	0
Total Liabilities	5.93B	6.32B	3.66B	3.20B	2.10B	683.56M
Stockholders Equity	3.48B	3.32B	3.03B	2.77B	2.47B	2.26B
Cash Flow
Free Cash Flow	0	686.52M	297.77M	85.77M	968.04M	110.01M
Operating Cash Flow	0	697.07M	377.30M	100.27M	977.86M	161.14M
Investing Cash Flow	0	-34.67M	-140.07M	-36.51M	-27.39M	-46.79M
Financing Cash Flow	0	0	-91.30M	7.41M	18.10M	22.74M

Ricksoft Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price698.00

Price Trends

50DMA730.50Negative

100DMA719.12Negative

200DMA815.11Negative

Market Momentum

MACD-3.24Positive

RSI42.00Neutral

STOCH2.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4429, the sentiment is Negative. The current price of 698.00 is below the 20-day moving average (MA) of 735.30, below the 50-day MA of 730.50, and below the 200-day MA of 815.11, indicating a bearish trend. The MACD of -3.24 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 2.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4429.

Ricksoft Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4429 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3826	82Outperform	JPY 5.26B	11.55	―	2.73%	13.99%	-36.97%
JP:4060	72Outperform	JPY 6.63B	24.56	―	0.79%	37.13%	-7.58%
JP:4448	72Outperform	JPY 14.50B	19.86	―	―	14.06%	―
JP:4429	66Neutral	JPY 3.22B	10.62	―	―	15.75%	3.63%
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4074	52Neutral	JPY 6.28B	-27.73	―	―	-8.74%	-144.28%

* Technology Sector Average

Performance Comparison

JP:4429 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4429	Ricksoft Co., Ltd.	698.00	-250.00	-26.37%
JP:3826	System Integrator Corp.	469.00	16.85	3.73%
JP:4060	rakumo Inc.	1106.00	0.04	<0.01%
JP:4074	LaKeel,Inc	808.00	-216.00	-21.09%
JP:4448	Chatwork Co.Ltd.	331.00	-62.00	-15.78%
JP:5033	Nulab Inc.	1220.00	457.00	59.90%

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.

Date of analysis: Oct 16, 2026

Ricksoft Co., Ltd. AI Stock Analysis