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Zuken Inc. (6947) AI Stock Analysis

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JP:6947

Zuken Inc.

(TSE/TYO:6947)

Select Model
Rating:84.1Outperform
Price Target:JPY 6,309.00▲(20.86% 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
Revenue and Profit GrowthRevenue increased from 28.8B in FY2021 to 43.1B in FY2026, while net income rose from 2.1B to 5.4B and net margin improved to about 12.8% in FY2025. This indicates broader earnings capacity and supports continued investment.
Negative Factors
Historical Cash-Flow VolatilityAlthough recent cash generation is strong, the FY2022 weakness and negative free-cash-flow growth show that conversion has not been consistently stable across periods. This creates a durable execution risk because reported earnings may not always translate into equally reliable funding capacity.

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

-10%0%10%20%30%40%JP:6947+20.65%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 110.02B
Dividend Yield
4.31%
Average Volume (3M)
66.14K
Price to Earnings (P/E)
17.1
Beta (1Y)
0.47
Revenue Growth
15.21%
EPS Growth
16.28%
Country
Japan
Employees
1,656
Sector
Technology
Sector Strength
61
Industry
Software - Application

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, in...

How the Company Makes Money

Zuken primarily makes money by licensing and maintaining its engineering software products and by providing related services. Key revenue streams typically include: (1) Software license revenue, earned when customers purchase rights to use Zuken’s ED...

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

86Very Positive

Balance Sheet

94Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue43.10B43.10B40.74B38.47B35.07B31.50B
Gross Profit29.56B28.86B27.19B26.14B23.94B21.79B
EBITDA7.73B6.77B8.32B6.43B5.43B7.02B
Net Income5.40B5.40B5.23B3.87B3.20B3.00B
Balance Sheet
Total Assets67.63B67.63B63.27B63.88B62.50B59.11B
Cash, Cash Equivalents and Short-Term Investments36.08B36.08B34.92B35.15B35.21B33.89B
Total Debt00115.78M98.50M112.35M71.73M
Total Liabilities26.35B26.35B23.33B22.86B21.14B20.49B
Stockholders Equity41.28B41.28B39.95B40.45B40.88B38.24B
Cash Flow
Free Cash Flow05.71B4.58B4.22B2.02B530.04M
Operating Cash Flow06.13B4.86B4.88B2.88B1.25B
Investing Cash Flow0-757.99M1.08B-1.64B-747.37M4.70B
Financing Cash Flow0-5.21B-5.96B-5.22B-1.02B-765.90M

Zuken Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price5220.00

Price Trends

50DMA5223.26Negative
100DMA4952.85Positive
200DMA4701.79Positive

Market Momentum

MACD-63.19Positive
RSI46.31Neutral
STOCH35.24Neutral

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 5220.00 is below the 20-day moving average (MA) of 5405.50, below the 50-day MA of 5223.26, and above the 200-day MA of 4701.79, indicating a neutral trend. The MACD of -63.19 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.24 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

JP:6947 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6947JP:694784OutperformJPY 114.27B17.12―4.31%15.21%16.28%
JP:4828JP:482882OutperformJPY 74.98B14.8830.58%3.82%11.71%19.03%
JP:9790JP:979079OutperformJPY 64.30B14.2314.95%2.43%6.17%32.06%
JP:4323JP:432371OutperformJPY 42.07B19.25―2.78%6.05%-21.43%
JP:4719JP:471966NeutralJPY 43.45B11.408.49%4.65%4.46%12.25%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:7527JP:752743NeutralJPY 4.76B145.16――16.20%―

* Technology Sector Average

Performance Comparison

-40%-20%0%20%JP:6947JP:9790JP:4828JP:4719JP:4323JP:7527Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6947 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6947Zuken Inc.5220.00807.6918.31%
JP:9790Fukui Computer Holdings 3005.0073.652.51%
JP:4828Business Engineering Corporation1231.00-186.49-13.16%
JP:4719Alpha Systems Inc.3120.00-806.54-20.54%
JP:4323Japan System Techniques Co., Ltd.1763.00-501.95-22.16%
JP:7527SystemSoft Corporation45.00-25.00-35.71%

Zuken Inc. Corporate Events

Zuken Reports Cyberattack on German Subsidiary, Probes Financial Impact

Oct 28, 2026

Zuken Inc. has disclosed that its German consolidated subsidiary, Zuken GmbH, was hit by a cyberattack on October 23, 2026, disrupting some server-based systems. The subsidiary and its units moved quickly to contain the breach, and the parent company...

Zuken Chairman Reduces Stake After Intra-Family Share Transfer

Oct 19, 2026

Zuken Inc. announced a change in its major shareholder structure after Chairman and Representative Director Makoto Kaneko gifted part of his personal shareholding in the company to a relative. The transfer reduced Kaneko’s stake from 10.58% to 9.63%...

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% to ¥1.33 billi...

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