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Zuken Inc. (JP:6947)
:6947
Japanese Market
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Zuken Inc. (6947) AI Stock Analysis

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JP:6947

Zuken Inc.

(6947)

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Outperform 84 (OpenAI - 5.2)
Rating:84Outperform
Price Target:
¥5,853.00
▲(13.21% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance—especially the near-debt-free balance sheet, improving profitability, and much stronger recent cash generation. Technicals add support with a clear uptrend and positive momentum, while valuation is fair with a moderate dividend yield, but not notably cheap.
Positive Factors
Consistent Revenue and Profit Growth
Sustained revenue expansion alongside stronger net income indicates broadening customer adoption and operating leverage. This supports Zuken’s ability to reinvest in EDA products, deepen enterprise relationships, and grow earnings over the medium term.
Negative Factors
Historical Cash-Flow Volatility
Although recent cash generation is strong, the earlier weakness indicates that conversion can vary across reporting periods. Such volatility may reflect working-capital or investment cycles and creates uncertainty around how consistently reported earnings will translate into distributable cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue and Profit Growth
Sustained revenue expansion alongside stronger net income indicates broadening customer adoption and operating leverage. This supports Zuken’s ability to reinvest in EDA products, deepen enterprise relationships, and grow earnings over the medium term.
Read all positive factors

Zuken Inc. (6947) vs. iShares MSCI Japan ETF (EWJ)

Zuken Inc. Business Overview & Revenue Model

Company Description
Zuken Inc., a Japanese software firm headquartered in Yokohama and founded in 1976, specializes in delivering advanced design solutions. The company's offerings facilitate the creation and management of complex printed circuit board (PCB) designs,...
How the Company Makes Money
Zuken primarily makes money by selling and supporting software and related services for electrical and electronic product development. Key revenue streams typically include: (1) software license and/or subscription fees from its EDA products (e.g....

Zuken Inc. Financial Statement Overview

Summary
Strong overall financial quality: consistent multi-year revenue growth and meaningful net income and margin improvement, backed by an exceptionally conservative, near-debt-free balance sheet. Cash flow and free cash flow have accelerated sharply in the last 2–3 years, though earlier cash generation volatility is the main consistency risk.
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue43.10B40.74B38.47B35.07B31.50B
Gross Profit28.86B27.19B26.14B23.94B21.79B
EBITDA6.77B8.32B6.43B5.43B7.02B
Net Income5.40B5.23B3.87B3.20B3.00B
Balance Sheet
Total Assets67.63B63.27B63.88B62.50B59.11B
Cash, Cash Equivalents and Short-Term Investments36.08B34.92B35.15B35.21B33.89B
Total Debt0.00115.78M98.50M112.35M71.73M
Total Liabilities26.35B23.33B22.86B21.14B20.49B
Stockholders Equity41.28B39.95B40.45B40.88B38.24B
Cash Flow
Free Cash Flow5.71B4.58B4.22B2.02B530.04M
Operating Cash Flow6.13B4.86B4.88B2.88B1.25B
Investing Cash Flow-757.99M1.08B-1.64B-747.37M4.70B
Financing Cash Flow-5.21B-5.96B-5.22B-1.02B-765.90M

Zuken Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5170.00
Price Trends
50DMA
4738.10
Positive
100DMA
4647.55
Positive
200DMA
4600.50
Positive
Market Momentum
MACD
68.28
Positive
RSI
60.63
Neutral
STOCH
65.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6947, the sentiment is Positive. The current price of 5170 is above the 20-day moving average (MA) of 4909.25, above the 50-day MA of 4738.10, and above the 200-day MA of 4600.50, indicating a bullish trend. The MACD of 68.28 indicates Positive momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6947.

Zuken Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥110.71B17.802.03%11.83%18.80%
82
Outperform
¥84.88B17.3332.68%3.53%15.67%23.19%
82
Outperform
¥47.45B12.558.47%2.73%5.27%11.84%
76
Outperform
¥64.09B14.7513.96%2.24%10.47%-0.07%
76
Outperform
¥47.57B19.621.50%9.28%-6.81%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
40
Underperform
¥5.61B170.97-0.48%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6947
Zuken Inc.
5,010.00
249.53
5.24%
JP:9790
Fukui Computer Holdings
3,115.00
-124.14
-3.83%
JP:4828
Business Engineering Corporation
1,390.00
194.62
16.28%
JP:4719
Alpha Systems Inc.
3,375.00
-208.64
-5.82%
JP:4323
Japan System Techniques Co., Ltd.
1,916.00
-75.55
-3.79%
JP:7527
SystemSoft Corporation
53.00
-7.00
-11.67%

Zuken Inc. Corporate Events

Zuken Delivers Strong Q1 Earnings and Confirms Full-Year Outlook
Aug 5, 2026
Zuken Inc. reported a strong start to fiscal 2026, with first-quarter net sales climbing 28.2% year-on-year to ¥11.69 billion and operating profit nearly doubling to ¥1.57 billion. Profit attributable to owners of the parent rose 89.5% t...
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: Aug 17, 2026