Kubotek Corporation (7709) AI Stock Analysis

• Market Cap: ¥2.59B
• Dividend Yield: N/A
• Average Volume (3M): 39.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 6.75%
• EPS Growth: -17.60%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 3.57
• Shares Outstanding: 13,830,000
• 10 Day Avg. Volume: 28,360
• 30 Day Avg. Volume: 39,476
• PEG Ratio: 0.51
• Price to Book (P/B): 13.35
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -9.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ¥197.00 ▲(1.55% Upside)

Kubotek Corporation's overall stock score is primarily impacted by its challenging financial performance, marked by unprofitability and negative cash flows. The technical analysis suggests a bearish trend, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low stock score, indicating significant risks and challenges ahead.

Kubotek Corporation Business Overview & Revenue Model

Company Description

Kubotek Corporation is a technology company specializing in the development of software solutions for the design and manufacturing sectors. The company primarily operates in the engineering and design software market, providing innovative tools that enhance product development processes. Its core offerings include CAD (Computer-Aided Design) software, data management solutions, and 3D modeling tools, aimed at improving efficiency and collaboration in engineering workflows.

How the Company Makes Money

Kubotek Corporation generates revenue primarily through the sale of its software solutions and licenses. This includes one-time licensing fees as well as recurring revenue from subscription models for ongoing access to its software products. Additionally, the company offers training and support services, which contribute to its revenue streams. Strategic partnerships with other technology firms and integration of its software with third-party applications further enhance its market reach and drive sales. The company may also engage in custom software development projects for specific clients, adding to its earnings.

Kubotek Corporation Financial Statement Overview

Summary

Kubotek Corporation is facing significant financial hurdles, characterized by unprofitability despite revenue growth, high leverage, and negative cash flows. While there are positive trends in revenue and some balance sheet improvements, the company's overall financial health is precarious. Addressing operational inefficiencies and cash flow generation is critical for stabilization and growth.

Income Statement

Kubotek Corporation's income statement reveals a challenging financial trajectory. The company has experienced substantial revenue growth in the past year, but it remains unprofitable with persistent negative net income and EBIT. The gross profit margin is relatively healthy, yet the negative EBIT and net profit margins suggest inefficiencies or high operating costs. Overall, while revenue is growing, profitability remains a significant concern.

Balance Sheet

The balance sheet shows a mixed picture of financial health. The debt-to-equity ratio has improved, indicating better leverage management, but the company still carries a significant amount of debt relative to equity. The equity ratio remains low, reflecting a high level of liabilities. While Kubotek has reduced liabilities over the past year, the balance sheet stability is moderate, with room for improvement in financial robustness.

Cash Flow

Kubotek's cash flow statement highlights substantial challenges. The operating cash flow has turned negative, and free cash flow has significantly declined, indicating cash management issues. The ratios of operating and free cash flow to net income are concerning, showing cash flow underperformance relative to reported losses. The ability to generate positive cash flows needs urgent attention for improved financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	1.66B	1.31B	1.22B	1.02B	1.07B
Gross Profit	707.07M	680.33M	535.40M	455.40M	407.64M	432.73M
EBITDA	67.60M	51.36M	-57.00M	-44.68M	70.64M	71.59M
Net Income	-185.46M	-200.89M	-273.17M	-204.85M	-121.58M	-116.52M
Balance Sheet
Total Assets	1.60B	1.74B	2.35B	1.58B	2.09B	2.53B
Cash, Cash Equivalents and Short-Term Investments	383.18M	438.70M	1.16B	849.22M	1.41B	1.78B
Total Debt	231.26M	251.60M	512.01M	408.74M	624.40M	937.68M
Total Liabilities	1.33B	1.53B	1.92B	861.11M	1.12B	1.41B
Stockholders Equity	267.90M	202.21M	435.30M	720.18M	976.69M	1.12B
Cash Flow
Free Cash Flow	0.00	-277.08M	229.14M	-382.05M	-129.33M	59.52M
Operating Cash Flow	0.00	-195.42M	455.88M	-146.23M	51.28M	232.43M
Investing Cash Flow	0.00	-251.06M	-226.70M	-228.20M	-179.23M	-166.60M
Financing Cash Flow	0.00	-248.66M	75.34M	-215.66M	-258.04M	-164.19M

Kubotek Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 194.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7709, the sentiment is Neutral. The current price of 194 is above the 20-day moving average (MA) of 190.90, below the 50-day MA of 197.16, and below the 200-day MA of 203.69, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7709.

Kubotek Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	―	¥3.52B	10.73	―	2.72%	33.70%	36.99%
6803	―	¥2.77B	13.17	―	0.94%	2.27%	―
6840	―	¥2.98B	19.66	―	―	21.30%	-15.27%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7709	―	¥2.59B	―	―	―	6.75%	-17.60%
6836	―	¥4.96B	862.25	―	―	17.90%	―
6731	―	¥4.30B	―	―	―	-11.45%	66.36%