Toukei Computer Co., Ltd. (4746) AI Stock Analysis

Toukei Computer Co., Ltd.

(TSE/TYO:4746)

Select Model

Rating:68Neutral

Price Target:JPY 2,126.00▲(13.15% Upside)

Action:downgraded

Date:09/30/26

The overall score of 68 reflects a strong fundamental foundation offset by significant technical headwinds. The company's financial performance is excellent, marked by a debt-free balance sheet, expanding margins, and robust cash flow. However, the stock's technical indicators are flashing major warning signs with deeply overbought RSI and Stochastic readings, which heavily penalizes the score. The high dividend yield is a positive factor, but the elevated P/E ratio tempers the valuation appeal.

Positive Factors

Expanding profitabilityThe sustained expansion in gross and net margins indicates stronger profitability across the business, not merely higher sales. High operating margins provide resilience, support reinvestment in system integration capabilities, and create a durable base for earnings generation over coming quarters.

Negative Factors

Uneven revenue growthPositive revenue growth has not followed a consistent trajectory, including a nearly flat period in 2024. This uneven top-line performance can make capacity planning and earnings expansion less predictable, particularly if new system integration projects do not develop steadily.

Toukei Computer Co., Ltd. (4746) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 141.24B
Dividend Yield: 10.06%
Average Volume (3M): 295.40K
Price to Earnings (P/E): 24.2
Beta (1Y): 0.75
Revenue Growth: 8.82%
EPS Growth: 17.68%
Country: Japan
Employees: 820
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

Toukei Computer Co., Ltd. Business Overview & Revenue Model

Company Description

Toukei Computer Co., Ltd., together with its subsidiaries, engages in the system design, development, and operation of solutions for various industries and businesses in Japan. It operates through Information Processing/Software Development Work, Equ...

How the Company Makes Money

Toukei Computer generates revenue primarily by providing IT services to customers on a contract basis. Key revenue streams typically include: (1) system integration and custom software development fees, earned through fixed-price and/or time-and-mate...

Toukei Computer Co., Ltd. Financial Statement Overview

Summary

Exceptional financial health. The income statement shows strong margin expansion (gross margin 45.3%, net margin 25.8%) and consistent revenue growth. The balance sheet is pristine with zero debt and a nearly doubled equity base. Cash flow is robust, with operating cash flow exceeding net income and free cash flow surging 75% in the latest year.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.79B	20.84B	19.63B	19.56B	17.61B	16.78B
Gross Profit	9.87B	9.43B	8.49B	7.68B	7.20B	6.52B
EBITDA	8.11B	8.37B	6.98B	6.23B	5.29B	4.70B
Net Income	5.81B	5.37B	4.50B	3.97B	3.41B	3.01B
Balance Sheet
Total Assets	72.80B	63.24B	49.72B	41.67B	35.45B	34.76B
Cash, Cash Equivalents and Short-Term Investments	2.29B	3.18B	2.51B	3.48B	3.77B	2.49B
Total Debt	0	0	0	0	0	0
Total Liabilities	14.67B	12.72B	9.40B	7.61B	6.14B	6.27B
Stockholders Equity	58.13B	50.52B	40.32B	34.06B	29.31B	28.49B
Cash Flow
Free Cash Flow	0	6.01B	3.42B	4.47B	4.09B	4.47B
Operating Cash Flow	0	6.40B	3.74B	5.04B	4.47B	4.91B
Investing Cash Flow	0	-3.56B	-1.70B	-3.60B	-1.84B	-1.63B
Financing Cash Flow	0	-2.22B	-2.88B	-1.66B	-1.40B	-2.88B

Toukei Computer Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1879.00

Price Trends

50DMA1875.83Positive

100DMA1546.34Positive

200DMA1300.96Positive

Market Momentum

MACD41.72Positive

RSI47.51Neutral

STOCH28.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4746, the sentiment is Neutral. The current price of 1879.00 is below the 20-day moving average (MA) of 2035.55, above the 50-day MA of 1875.83, and above the 200-day MA of 1300.96, indicating a neutral trend. The MACD of 41.72 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4746.

Toukei Computer Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4746 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4432	82Outperform	JPY 124.76B	17.00	―	2.94%	14.67%	39.11%
JP:4828	82Outperform	JPY 77.08B	16.02	30.58%	3.66%	15.67%	23.19%
JP:4746	68Neutral	JPY 145.64B	24.25	―	10.06%	8.82%	17.68%
JP:3994	68Neutral	JPY 380.33B	69.34	12.28%	―	34.69%	―
JP:3905	67Neutral	JPY 74.65B	7.98	―	―	1178.31%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4478	58Neutral	JPY 275.02B	252.75	―	―	27.57%	-21.74%

* Technology Sector Average

Performance Comparison

JP:4746 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4746	Toukei Computer Co., Ltd.	1959.00	1005.37	105.43%
JP:4828	Business Engineering Corporation	1285.00	75.80	6.27%
JP:3994	Money Forward, Inc.	6855.00	2444.00	55.41%
JP:3905	Datasection, Inc.	1950.00	-171.00	-8.06%
JP:4432	WingArc1st Inc.	3605.00	341.14	10.45%
JP:4478	freee K.K.	4600.00	1255.00	37.52%

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: Sep 30, 2026

Toukei Computer Co., Ltd. AI Stock Analysis