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Future Corporation (4722) AI Stock Analysis

JP:4722

Future Corporation

(TSE/TYO:4722)

Select Model
Rating:75Outperform
Price Target:JPY 2,732.00â–²(12.52% Upside)
Action:reiterated
Date:10/28/26

The company's strong financial health, marked by high profitability and a solid balance sheet, is the primary driver of the score. A positive long-term technical trend and fair valuation provide additional support. The recent dip in cash flow generation is a minor concern but does not overshadow the overall positive fundamentals.

Positive Factors
Steady Revenue GrowthThe multi-year revenue expansion indicates sustained business growth rather than reliance on a single reporting period. Continued top-line progress can support reinvestment, broaden the company’s earnings base, and provide a durable foundation for profitability over the next several quarters.
Negative Factors
Softer Cash ConversionThe decline in operating and free cash flow, together with cash covering less than all reported earnings, indicates weaker near-term cash conversion. If this persists, internally generated funds may provide less support for investment, debt management, and shareholder returns than accounting profit suggests.

Future Corporation (4722) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:4722+17.14%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 215.45B
Dividend Yield
1.94%
Average Volume (3M)
712.87K
Price to Earnings (P/E)
18.5
Beta (1Y)
0.38
Revenue Growth
8.07%
EPS Growth
13.51%
Country
Japan
Employees
3,624
Sector
General
Sector Strength
55
Industry
Information Technology Services

Future Corporation Business Overview & Revenue Model

Company Description

Future Corporation provides IT consulting and services primarily in Japan. The company also offers business innovation services, including digital marketing, IT education, e-commerce, and other fields. The company was formerly known as Future Archite...

Future Corporation Financial Statement Overview

Summary

Strong profitability with net margin around 15% and EBIT margin above 22%. Robust balance sheet with low debt-to-equity of 0.24 and high ROE of 18.7%. Cash flow remains positive but declined in 2025, with reduced coverage ratio, slightly tempering the overall financial strength.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

75Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue78.67B75.99B69.88B59.32B53.74B48.70B
Gross Profit35.95B34.69B33.70B28.81B26.66B22.55B
EBITDA21.12B20.85B17.43B15.01B13.47B10.33B
Net Income12.31B11.71B10.32B9.22B9.24B6.37B
Balance Sheet
Total Assets97.70B97.49B93.27B66.72B58.53B54.48B
Cash, Cash Equivalents and Short-Term Investments36.36B32.80B32.37B28.21B27.65B22.43B
Total Debt13.57B15.00B18.03B000
Total Liabilities31.26B34.73B37.78B15.33B13.70B12.68B
Stockholders Equity66.44B62.76B55.49B51.39B44.83B41.80B
Cash Flow
Free Cash Flow07.02B10.29B7.40B10.10B9.34B
Operating Cash Flow08.66B10.68B7.57B10.17B9.61B
Investing Cash Flow0-1.39B-20.41B-3.03B-1.01B-1.69B
Financing Cash Flow0-6.88B13.81B-3.90B-3.02B-2.50B

Future Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2428.00

Price Trends

50DMA2432.92Negative
100DMA2172.33Positive
200DMA1927.88Positive

Market Momentum

MACD3.31Positive
RSI59.11Neutral
STOCH17.86Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4722, the sentiment is Positive. The current price of 2428.00 is above the 20-day moving average (MA) of 2427.40, below the 50-day MA of 2432.92, and above the 200-day MA of 1927.88, indicating a neutral trend. The MACD of 3.31 indicates Positive momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4722.

Future Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4722 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2317JP:231783OutperformJPY 152.93B13.52―4.03%6.46%8.76%
JP:9682JP:968282OutperformJPY 182.36B16.7318.62%3.13%2.62%3.56%
JP:3923JP:392381OutperformJPY 394.08B16.25―0.63%16.71%161.67%
JP:4722JP:472275OutperformJPY 214.94B18.53―1.94%8.07%13.51%
JP:9715JP:971574OutperformJPY 137.71B12.009.06%3.81%5.92%-16.28%
JP:4725JP:472573OutperformJPY 33.35B9.3310.39%5.06%3.46%6.90%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-40%-20%0%JP:4722JP:9682JP:9715JP:4725JP:2317JP:3923Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4722 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4722Future Corporation2428.00311.4314.71%
JP:9682DTS Corporation1183.00-59.65-4.80%
JP:9715transcosmos 3675.00153.554.36%
JP:4725CAC Holdings Corporation1975.00-52.01-2.57%
JP:2317Systena Corporation422.00-88.08-17.27%
JP:3923RAKUS Co., Ltd.1112.00-129.38-10.42%

Future Corporation Corporate Events

Future Corporation grows sales on AI-led DX demand despite profit drag from missing license fees

Oct 28, 2026

Future Corporation reported consolidated net sales of 58,441 million yen for the nine months to September 30, 2026, up 5.7% year-on-year, while operating profit fell 4.2% and profit attributable to owners of parent slipped 1.1%. The decline in profit...

Future Corporation Posts Higher Sales but Softer Profits as Equity Strengthens

Oct 28, 2026

Future Corporation reported consolidated net sales of ¥58.4 billion for the nine months ended September 30, 2026, up 5.7% year on year, while EBITDA, operating profit, and profit attributable to owners of parent all declined slightly. Basic earn...

Future Corporation to Cancel Nearly 7% of Outstanding Shares Ahead of Consolidation

Oct 28, 2026

Future Corporation has resolved to cancel 6,648,879 treasury shares, equivalent to 6.97% of its issued shares, reducing the total number of shares outstanding to 88,679,121. The cancellation covers all treasury shares held as of October 9, 2026, plus...

Future Corporation Sets Shareholder Vote as MBO Paves Way for TSE Delisting

Oct 28, 2026

Future Corporation’s board has resolved to convene an extraordinary general shareholders’ meeting on November 30, 2026 to seek approval for a share consolidation, amendments to its Articles of Incorporation and a reduction of capital. The...

Future Corporation Sets Record Date for EGM to Advance Share Consolidation After Partial MBO

Sep 24, 2026

Future Corporation has set October 9, 2026, as the record date to determine shareholders eligible to vote at an extraordinary shareholders’ meeting planned for late November 2026. The company will publish the record date notice electronically o...

Future Corporation Set for Ownership Shift as Key West Network’s Tender Offer Succeeds

Sep 11, 2026

Future Corporation has confirmed that the tender offer for its common shares by Key West Network Co., Ltd., conducted from July 30 to September 10, 2026, has been successfully completed, with the minimum number of shares to be purchased fully tendere...

Future Corporation’s AI-Driven IT Services Fuel Higher First-Half Profits

Jul 29, 2026

Future Corporation reported solid results for the six months to June 30, 2026, with net sales rising 7.5% to 38,322 million yen and operating profit up 3.8% to 7,379 million yen, while profit attributable to owners of parent climbed 13.0%. Despite in...

Future Corporation Delivers Strong First-Half Earnings but Signals Year-End Dividend Suspension

Jul 29, 2026

Future Corporation reported consolidated net sales of ¥38.3 billion for the six months ended June 30, 2026, up 7.5% year-on-year, with operating profit rising 3.8% to ¥7.38 billion and profit attributable to owners of parent climbing 13.0%...

Key West Network Moves to Tighten Control of Future Corporation with Tender Offer

Jul 29, 2026

Key West Network LLC, controlled by Future Corporation founder and chairman Yasufumi Kanemaru, has launched a tender offer to acquire additional common shares of Future Corporation, aiming to consolidate control over the Tokyo-listed company. Key Wes...

Future Corporation Scraps Year-End Dividend Ahead of MBO and Planned Delisting

Jul 29, 2026

Future Corporation has announced a significant change in its dividend policy for the fiscal year ending December 31, 2026, in connection with a management buyout led by Key West Network LLC. The board has endorsed the tender offer and recommended sha...

Future Corporation Backs Management Buyout and Move to Go Private

Jul 29, 2026

Future Corporation’s board has endorsed a management buyout led by Key West Network LLC, a related party that already controls a substantial stake through its managing member, DANA POINT Corporation PTE. LTD. and Chairman Yasufumi Kanemaru, sig...

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 28, 2026