CAC Holdings Corporation (4725) AI Stock Analysis

• Market Cap: €36.89B
• Dividend Yield: 4.58%
• Average Volume (3M): 28.27K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.44
• Revenue Growth: -3.66%
• EPS Growth: 31.12%
• Country: JP
• Employees: 4,653
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 90.80
• Shares Outstanding: 20,541,400
• 10 Day Avg. Volume: 23,890
• 30 Day Avg. Volume: 28,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €2,210.01
• Price Target Upside: 0.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,209.00 ▲(0.64% Upside)

CAC Holdings Corporation's overall stock score is influenced significantly by its strong financial performance, which highlights growth and stability. The valuation is favorable, offering a good return with a strong dividend yield. However, technical analysis shows mixed signals, with some bearish indicators, which slightly moderates the overall score.

CAC Holdings Corporation Business Overview & Revenue Model

Company Description

CAC Holdings Corporation, through its subsidiaries, provides information technology (IT) services worldwide. The company offers systems development, integration, operation, and management services, as well as human resource BPO/BTO services; drug development support services; mainframe, open system, Web-based system, and IT management solutions; and system consulting, and software planning and development services, as well as develops various kinds of hardware and software for factories. It also provides system planning and design, system integration, helpdesk, IT infrastructure, warranty management, and contracted software development services, as well as develops and sells packaged software. The company was founded in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CAC Holdings Corporation primarily generates revenue through its IT services, which include system development and integration, IT infrastructure management, and business process outsourcing. The company's revenue streams are diversified across its service offerings, with significant contributions from consulting services and outsourcing contracts. By providing end-to-end IT solutions, CAC Holdings partners with businesses to enhance their operational efficiency and technological capabilities. Key factors contributing to its earnings include long-term contracts, repeat business from existing clients, and its strategic position in the growing IT services market.

CAC Holdings Corporation Financial Statement Overview

Summary

CAC Holdings Corporation demonstrates a solid financial footing with strong revenue growth, profitability, and cash flow generation. The company's low leverage and high equity ratio ensure financial stability, while effective cash flow management supports ongoing operational and strategic investments.

Income Statement

CAC Holdings Corporation shows a strong financial performance with consistent revenue growth, evidenced by a 3.02% increase from 2023 to 2024 and a notable improvement in both gross profit margin (26.06%) and net profit margin (5.95%) in 2024. The company also maintains solid EBIT (6.52%) and EBITDA (8.26%) margins, indicating efficient cost management and profitability.

Balance Sheet

The company has a robust balance sheet with a low debt-to-equity ratio of 0.06, reflecting minimal leverage and strong equity position. The return on equity is healthy at 8.29%, showcasing efficient utilization of shareholder funds. The equity ratio stands at 68.28%, indicating a stable financial structure with significant asset backing by equity.

Cash Flow

CAC Holdings exhibits a strong cash flow position with impressive free cash flow growth and an operating cash flow to net income ratio of 1.85, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.80, highlighting effective conversion of income into cash flow and ample liquidity for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.41B	52.06B	50.54B	47.97B	47.94B	48.54B
Gross Profit	13.71B	13.57B	12.29B	11.60B	11.90B	10.75B
EBITDA	5.34B	5.63B	4.75B	4.46B	4.76B	3.60B
Net Income	2.63B	3.10B	2.47B	2.09B	2.48B	1.67B
Balance Sheet
Total Assets	48.56B	54.73B	48.53B	44.21B	47.26B	44.56B
Cash, Cash Equivalents and Short-Term Investments	10.60B	13.78B	11.04B	13.79B	11.63B	10.13B
Total Debt	1.79B	2.07B	2.64B	2.96B	3.03B	3.07B
Total Liabilities	14.28B	17.02B	16.19B	14.92B	15.86B	18.33B
Stockholders Equity	33.85B	37.37B	31.94B	28.62B	30.77B	25.38B
Cash Flow
Free Cash Flow	0.00	5.58B	67.00M	2.38B	2.50B	608.00M
Operating Cash Flow	0.00	5.71B	594.00M	2.63B	2.90B	1.11B
Investing Cash Flow	0.00	-1.33B	1.25B	-591.00M	532.00M	1.34B
Financing Cash Flow	0.00	-2.85B	-2.07B	-1.71B	-2.93B	-1.70B

CAC Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4725, the sentiment is Positive. The current price of 2195 is above the 20-day moving average (MA) of 2124.75, above the 50-day MA of 2086.66, and above the 200-day MA of 1922.45, indicating a bullish trend. The MACD of 17.88 indicates Negative momentum. The RSI at 65.09 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4725.

CAC Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	80 Outperform	39.39B	14.94	―	3.30%	-5.91%	-1.55%
4709	75 Outperform	37.74B	15.62	17.63%	2.61%	12.33%	48.96%
4725	73 Outperform	€36.89B	10.88	10.08%	4.58%	-3.66%	31.12%
3916	72 Outperform	39.25B	17.82	26.98%	2.56%	21.47%	30.64%
9742	71 Outperform	40.33B	20.17	5.51%	2.73%	2.06%	83.15%
9739	68 Neutral	38.98B	10.68	―	3.25%	<0.01%	-17.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CAC Holdings Corporation Corporate Events

CAC Holdings to Record Extraordinary Income from Securities Sale

CAC Holdings Corporation has announced its decision to sell a portion of its investment securities, expecting to record extraordinary income from this sale in the second quarter of the fiscal year ending December 2025. The sale aims to improve asset efficiency and provide investment resources for the company’s growth, with an anticipated gain of approximately JPY 1.7 billion, though this is subject to market conditions.

CAC Holdings Restructures to Boost Digital Solutions Growth

CAC Holdings Corporation announced a strategic restructuring by transferring its New Business Development Division to a newly established subsidiary, CAC identity Corporation, as part of its CAC Vision 2030. This move is intended to enhance flexibility and dynamism in business strategies, ultimately aiming to accelerate the creation and growth of digital solutions and increase the corporate value of the CAC Group.