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CORREC CO., LTD.
(6578)
Select Model
Select Model
Rating:58Neutral
Price Target:
¥506.00
▲(27.14% Upside)
Action:Reiterated
Date:10/15/26
Overall score is driven primarily by mixed financial performance (revenue contraction, compressed profitability, and weaker 2026 operating cash flow alongside a still equity-backed balance sheet but rising debt). Technical indicators are modestly supportive with positive momentum, though near-term readings look extended. Valuation is constrained by a negative P/E, with only limited support from the ~1.85% dividend yield.
Positive Factors
Equity-Supported Balance Sheet
The stable equity base provides an important financial buffer while the company works through weaker earnings. This support can help preserve operating continuity and fund business needs, giving management more flexibility than a balance sheet primarily dependent on external financing.
Negative Factors
Revenue Contraction
Repeated revenue contraction signals that the company is facing difficulty sustaining its earlier growth trajectory. A shrinking top line can reduce operating leverage, weaken customer or market momentum, and make it harder to restore margins unless the business can re-establish consistent demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Equity-Supported Balance Sheet
The stable equity base provides an important financial buffer while the company works through weaker earnings. This support can help preserve operating continuity and fund business needs, giving management more flexibility than a balance sheet primarily dependent on external financing.
Read all positive factors
CORREC CO., LTD. (6578) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.59B
Dividend Yield1.86%
Average Volume (3M)3.02K
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-6.19%
EPS Growth-562.39%
CountryJP
Employees358
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)5.48
Shares Outstanding7,422,400
10 Day Avg. Volume2,840
30 Day Avg. Volume3,016
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)3.08
Price to Sales (P/S)0.49
P/FCF Ratio41.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CORREC CO., LTD. Business Overview & Revenue Model
Company Description
CORREC Co., Ltd., together with its subsidiaries, engages in the engages in sales agency work in Japan. It operates through energy segment, outsourcing, and media platform segments. The company is involved in chat real estate service for finding a...
CORREC CO., LTD. Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 08, 2027
Earnings Call Sentiment Positive
The call was strongly positive, led by 22% consolidated revenue growth, accelerating Search and Cloud performance, a 63% increase in Cloud revenue, a nearly doubled $462 billion Cloud backlog, expanding margins and substantial AI product and customer adoption. The main challenges were compute constraints, higher infrastructure-related costs and expenses, increased capital requirements, a 4% decline in network advertising revenue, the Other Bets operating loss and the expected Wiz-related Cloud margin headwind. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Consolidated Revenue and Profit Growth
Alphabet reported consolidated revenue of $109.9 billion, up 22% year over year, or 19% in constant currency. Operating income increased 30% to $39.7 billion, operating margin was 36.1%, net income increased 81% to $62.6 billion, and earnings per share increased 82% to $5.11. This was the eleventh consecutive quarter of double-digit revenue growth.
Negative Updates
Network Advertising Revenue Decline
Network advertising revenue was $7 billion, down 4% year over year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Revenue and Profit Growth
Alphabet reported consolidated revenue of $109.9 billion, up 22% year over year, or 19% in constant currency. Operating income increased 30% to $39.7 billion, operating margin was 36.1%, net income increased 81% to $62.6 billion, and earnings per share increased 82% to $5.11. This was the eleventh consecutive quarter of double-digit revenue growth.
Read all positive updates
Company Guidance
For Q2 2026, at current spot rates, Alphabet expects an FX tailwind of approximately 1 percentage point to consolidated revenue, compared to a 3 percentage points FX tailwinds in the first quarter; it expects to begin recognizing a small percent of TPU hardware revenues later this year, with the vast majority of revenues to be realized in 2027, and says TPU hardware sales will fluctuate from quarter to quarter depending on when TPUs are shipped to customers. Wiz is expected to create a low single digit percentage point headwind to Cloud's operating margin for the remainder of 2026. Full year 2026 CapEx guidance was updated to 180 billion to 1$90 billion, up from 175 billion to 185 billion, and Alphabet expects its 2027 CapEx to significantly increase compared to 2026; just over 50% of Google Cloud's $462 billion backlog is expected to be recognized as revenue over the next 24 months.CORREC CO., LTD. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.69B | 6.47B | 3.94B | 4.12B | 4.82B |
| Gross Profit | 5.35B | 4.39B | 3.43B | 3.85B | 4.62B |
| EBITDA | 82.36M | 177.01M | 156.01M | 292.85M | -62.03M |
| Net Income | 40.25M | 19.94M | 88.79M | 201.76M | -371.05M |
Balance Sheet | |||||
| Total Assets | 3.07B | 2.94B | 2.38B | 1.82B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.56B | 1.41B | 1.05B | 1.04B |
| Total Debt | 733.90M | 792.78M | 640.00M | 316.67M | 341.66M |
| Total Liabilities | 2.00B | 1.86B | 1.27B | 807.81M | 1.05B |
| Stockholders Equity | 1.07B | 1.08B | 1.10B | 1.01B | 876.70M |
Cash Flow | |||||
| Free Cash Flow | 79.26M | 170.12M | 162.68M | -41.42M | -646.53M |
| Operating Cash Flow | 88.97M | 174.61M | 175.05M | -41.21M | -644.53M |
| Investing Cash Flow | -93.19M | -131.46M | -33.65M | 22.11M | -63.13M |
| Financing Cash Flow | -98.62M | 105.84M | 323.95M | -23.70M | 119.13M |
CORREC CO., LTD. Technical Analysis
Positive
398.00
Price Trends
483.28
Positive
476.30
Positive
455.45
Positive
Market Momentum
1.74
Negative
52.59
Neutral
27.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6578, the sentiment is Positive. The current price of 398 is below the 20-day moving average (MA) of 483.25, below the 50-day MA of 483.28, and below the 200-day MA of 455.45, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6578.
CORREC CO., LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥1.63T | 40.04 | ― | 1.04% | 32.48% | 24.82% | |
81 Outperform | ¥23.05B | 19.73 | ― | 4.08% | 13.97% | 21.04% | |
77 Outperform | ¥27.99B | 12.60 | ― | 1.93% | ― | ― | |
75 Outperform | ¥13.41B | 15.01 | ― | 2.12% | 3.02% | 8.27% | |
68 Neutral | ¥33.48B | 12.01 | ― | 4.38% | 20.39% | 40.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥3.59B | -115.24 | ― | 1.86% | -6.19% | -562.39% |
* Industrials Sector Average
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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.