SERAKU Co., Ltd. (6199) AI Stock Analysis

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SERAKU Co., Ltd.

(TSE/TYO:6199)

Select Model

Rating:76Outperform

Price Target:JPY 1,752.00▲(16.64% Upside)

Action:reiterated

Date:10/17/26

The company's fortress-like balance sheet and exceptional revenue growth are the primary drivers of the score. The low P/E ratio further enhances the attractiveness. The main risk is the overbought technical condition, which tempers the near-term outlook despite strong fundamentals.

Positive Factors

Near-zero debt and financial flexibilityAn effectively debt-free balance sheet gives SERAKU substantial financial flexibility as it funds hiring, training, technology investment, and customer delivery. Minimal leverage also reduces interest burden and refinancing exposure, helping the company remain resilient through changes in demand.

Negative Factors

Uneven cash conversion and volatile free cash flowVolatile cash conversion makes reported earnings less predictable as a source of internally generated funding. Even with positive free cash flow overall, swings in operating cash and annual free cash flow can complicate hiring, investment, and capital-allocation planning.

SERAKU Co., Ltd. (6199) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 19.77B
Dividend Yield: 1.16%
Average Volume (3M): 26.19K
Price to Earnings (P/E): 10.7
Beta (1Y): 0.31
Revenue Growth: 2.99%
EPS Growth: 10.48%
Country: Japan
Employees: 3,276
Sector: General
Sector Strength: 55
Industry: Information Technology Services

SERAKU Co., Ltd. Business Overview & Revenue Model

Company Description

SERAKU Co., Ltd. operates as internet system integrator in Japan. It offers digital transformation services, including cloud technologies and cybersecurity for protecting the information assets of companies, IoT service, AI and data science, robotic...

How the Company Makes Money

SERAKU primarily makes money by providing IT engineers and project teams to customer organizations and charging fees for their work. The core revenue stream is recurring service revenue generated from long- and short-term client engagements where SER...

SERAKU Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (+49.5% YoY) and expanding margins are paired with a pristine, debt-free balance sheet and high returns on equity (~18-20%). Cash flow is robust, though operating cash flow lagging net income is a minor concern. Overall financial health is excellent.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	25.52B	25.52B	24.78B	22.22B	20.86B	17.86B
Gross Profit	6.94B	6.94B	6.38B	5.70B	5.18B	3.90B
EBITDA	2.96B	2.95B	2.68B	2.37B	2.20B	1.48B
Net Income	1.85B	1.85B	1.71B	1.58B	1.47B	966.00M
Balance Sheet
Total Assets	14.57B	14.57B	13.33B	12.05B	11.25B	9.62B
Cash, Cash Equivalents and Short-Term Investments	8.63B	8.63B	7.77B	6.90B	6.87B	5.66B
Total Debt	0	0	27.86M	85.67M	245.92M	752.18M
Total Liabilities	4.42B	4.42B	4.42B	4.29B	4.35B	4.10B
Stockholders Equity	10.15B	10.15B	8.90B	7.76B	6.90B	5.52B
Cash Flow
Free Cash Flow	0	1.61B	1.50B	1.16B	1.97B	638.80M
Operating Cash Flow	0	1.81B	2.05B	1.36B	2.03B	704.48M
Investing Cash Flow	0	-200.68M	-650.75M	-404.10M	-195.68M	-176.95M
Financing Cash Flow	0	-640.10M	-634.65M	-923.34M	-625.81M	-328.88M

SERAKU Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1502.00

Price Trends

50DMA1422.76Positive

100DMA1345.03Positive

200DMA1378.75Positive

Market Momentum

MACD32.28Positive

RSI52.72Neutral

STOCH33.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6199, the sentiment is Neutral. The current price of 1502.00 is below the 20-day moving average (MA) of 1508.40, above the 50-day MA of 1422.76, and above the 200-day MA of 1378.75, indicating a neutral trend. The MACD of 32.28 indicates Positive momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6199.

SERAKU Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6199 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4396	81Outperform	JPY 27.12B	14.52	―	2.43%	11.87%	21.49%
JP:6199	76Outperform	JPY 20.39B	10.69	―	1.16%	2.99%	10.48%
JP:3984	76Outperform	JPY 21.67B	12.84	―	1.82%	15.59%	6.88%
JP:3393	71Outperform	JPY 30.97B	11.08	―	5.06%	9.16%	41.23%
JP:5574	65Neutral	JPY 20.85B	18.82	―	―	27.68%	126.99%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4813	37Underperform	JPY 12.56B	-9.22	―	―	24.78%	83.28%

* General Sector Average

Performance Comparison

JP:6199 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6199	SERAKU Co., Ltd.	1502.00	1.95	0.13%
JP:3393	Startia Holdings,Inc.	3125.00	618.53	24.68%
JP:3984	User Local, Inc.	1318.00	-583.06	-30.67%
JP:4396	System Support, Inc.	1315.00	-48.60	-3.56%
JP:4813	Access Co., Ltd.	312.00	-262.00	-45.64%
JP:5574	ABEJA,Inc.	2015.00	-723.00	-26.41%

SERAKU Co., Ltd. Corporate Events

Seraku Posts Higher Profits and Dividends, Projects Double-Digit Sales Growth

Oct 15, 2026

Seraku Co., Ltd. reported for the fiscal year ended August 31, 2026 that net sales increased 3.0% to ¥25,517 million and operating profit rose 12.3%, with profit attributable to owners of parent up 8.5%, reflecting improved margins and solid cash gen...

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 17, 2026

SERAKU Co., Ltd. AI Stock Analysis