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CORREC CO., LTD. (6578) AI Stock Analysis
CORREC CO., LTD.
(TSE/TYO:6578)
The overall score reflects a stark contrast between exceptionally strong earnings call guidance and weak fundamental profitability. The company's massive AI-driven top-line growth and bullish technical momentum are highly positive, but significant risks remain due to severe margin compression, rising debt, and a negative P/E ratio. Investors must weigh the stellar operational growth narrative against the immediate need for structural cost management.
CORREC CO., LTD. (6578) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 3.52B
- Dividend Yield
- 1.83%
- Average Volume (3M)
- 5,491
- Price to Earnings (P/E)
- -114.3
- Beta (1Y)
- 0.34
- Revenue Growth
- -6.19%
- EPS Growth
- -562.39%
- Country
- Japan
- Employees
- 358
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
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 ro...
CORREC CO., LTD. Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
The company shows impressive top-line growth and high-quality free cash flow that exceeds net income. However, overall financial health is severely dragged down by razor-thin profit margins (0.6%), stagnant equity, and a rising debt-to-equity ratio.
Income Statement
45NeutralBalance Sheet
55NeutralCash Flow
60Neutral| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.69B | 6.69B | 6.47B | 3.94B | 4.12B | 4.82B |
| Gross Profit | 5.31B | 5.35B | 4.39B | 3.43B | 3.85B | 4.62B |
| EBITDA | 82.36M | 82.36M | 177.01M | 156.01M | 292.85M | -62.03M |
| Net Income | 40.25M | 40.25M | 19.94M | 88.79M | 201.76M | -371.05M |
Balance Sheet | ||||||
| Total Assets | 3.07B | 3.07B | 2.94B | 2.38B | 1.82B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.46B | 1.56B | 1.41B | 1.05B | 1.04B |
| Total Debt | 733.90M | 733.90M | 792.78M | 640.00M | 316.67M | 341.66M |
| Total Liabilities | 2.00B | 2.00B | 1.86B | 1.27B | 807.81M | 1.05B |
| Stockholders Equity | 1.07B | 1.07B | 1.08B | 1.10B | 1.01B | 876.70M |
Cash Flow | ||||||
| Free Cash Flow | 0 | 79.26M | 170.12M | 162.68M | -41.42M | -646.53M |
| Operating Cash Flow | 0 | 88.97M | 174.61M | 175.05M | -41.21M | -644.53M |
| Investing Cash Flow | 0 | -93.19M | -131.46M | -33.65M | 22.11M | -63.13M |
| Financing Cash Flow | 0 | -98.62M | 105.84M | 323.95M | -23.70M | 119.13M |
CORREC CO., LTD. Technical Analysis
Price Trends
Market Momentum
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 492.00 is above the 20-day moving average (MA) of 484.25, above the 50-day MA of 480.40, and above the 200-day MA of 459.54, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, 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
Overall Rating
JP:703386Outperform
JP:964482.4Outperform
JP:653280Outperform
JP:479267Neutral- JP:657864Neutral
JP:603563Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:7033 | 86Outperform | JPY 27.07B | 11.80 | ― | 1.99% | ― | ― |
| JP:9644 | 82Outperform | JPY 22.14B | 19.10 | ― | 4.12% | 13.97% | 21.04% |
| JP:6532 | 80Outperform | JPY 1.74T | 41.02 | ― | 0.94% | 32.48% | 24.82% |
| JP:4792 | 67Neutral | JPY 31.56B | 10.84 | ― | 4.62% | 13.80% | 12.02% |
| JP:6578 | 64Neutral | JPY 3.61B | -114.28 | ― | 1.83% | -6.19% | -562.39% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| JP:6035 | 63Neutral | JPY 12.91B | 12.52 | ― | 2.16% | 8.89% | 29.56% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6578 | CORREC CO., LTD. | 492.00 | 224.76 | 84.11% | |
| JP:4792 | YAMADA Consulting Group Co., Ltd. | 1666.00 | -1.98 | -0.12% | |
| JP:6035 | IR Japan Holdings Ltd. | 742.00 | -47.41 | -6.01% | |
| JP:6532 | BayCurrent Consulting, Inc. | 12270.00 | 5569.38 | 83.12% | |
| JP:7033 | Management Solutions Co., Ltd. | 1680.00 | 376.93 | 28.93% | |
| JP:9644 | TANABE CONSULTING GROUP CO. LTD | 679.00 | 19.62 | 2.98% |
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 15, 2026