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Kakaku.com Inc (JP:2371)
:2371

Kakaku (2371) AI Stock Analysis

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JP

Kakaku

(OTC:2371)

76Outperform
Kakaku's stock score reflects its strong financial performance, which is the most significant factor, driven by revenue growth and robust profitability metrics. While the technical analysis suggests caution due to the bearish trend, the reasonable valuation offsets some of these concerns. Overall, the company's solid financial foundation and fair valuation position it well in the industry, despite short-term technical challenges.

Kakaku (2371) vs. S&P 500 (SPY)

Kakaku Business Overview & Revenue Model

Company DescriptionKakaku.com, Inc. is a leading Japanese company specializing in providing comprehensive online platforms that cater to a variety of consumer needs. The company operates several businesses, including price comparison services, user-generated reviews, and community-based content on its flagship website, Kakaku.com. It also manages other popular online platforms, such as Tabelog, a restaurant review and reservation service, and other niche services in travel, real estate, and entertainment sectors.
How the Company Makes MoneyKakaku.com, Inc. generates revenue primarily through advertising and affiliate marketing on its various platforms. The company charges fees for listing products and services, as well as for premium placements and advertisements, allowing businesses to reach its large user base. In addition to these advertising revenues, Kakaku.com also earns commission fees from transactions facilitated through its platforms, such as restaurant reservations made via Tabelog. Partnerships with e-commerce sites and other service providers also contribute to Kakaku's earnings, enabling it to offer a broad range of consumer-focused services.

Kakaku Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
74.94B66.93B60.82B51.72B51.08B60.98B
Gross Profit
16.50B44.02B60.82B51.72B33.58B41.97B
EBIT
16.50B25.82B23.95B19.15B18.30B27.22B
EBITDA
33.63B29.76B26.98B24.30B21.58B29.84B
Net Income Common Stockholders
20.52B18.09B16.15B14.29B11.76B18.35B
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.71B38.14B36.98B34.55B35.57B29.58B
Total Assets
17.55B83.31B78.56B70.48B70.96B63.32B
Total Debt
0.005.18B5.96B6.60B8.26B8.37B
Net Debt
-12.71B-32.53B-30.50B-27.70B-26.63B-21.13B
Total Liabilities
7.45B31.62B30.42B22.31B23.82B20.01B
Stockholders Equity
9.97B51.38B47.86B47.96B46.88B42.91B
Cash FlowFree Cash Flow
26.70B17.44B20.40B14.26B15.09B21.29B
Operating Cash Flow
27.88B19.52B22.40B16.03B17.29B24.00B
Investing Cash Flow
-2.93B-2.21B-2.68B-1.31B-2.18B-3.96B
Financing Cash Flow
-11.25B-16.08B-17.57B-15.31B-9.72B-16.95B

Kakaku Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2549.50
Price Trends
50DMA
2227.06
Positive
100DMA
2288.59
Positive
200DMA
2273.65
Positive
Market Momentum
MACD
84.88
Negative
RSI
68.82
Neutral
STOCH
91.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2371, the sentiment is Positive. The current price of 2549.5 is above the 20-day moving average (MA) of 2227.21, above the 50-day MA of 2227.06, and above the 200-day MA of 2273.65, indicating a bullish trend. The MACD of 84.88 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 91.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2371.

Kakaku Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$504.92B24.7738.59%2.20%15.40%30.51%
73
Outperform
$1.24T25.6956.67%2.31%8.23%18.31%
71
Outperform
¥3.88T34.36
1.26%6.51%-0.45%
65
Neutral
$383.64B21.138.31%1.15%8.46%
65
Neutral
¥593.81B27.2614.49%1.45%9.13%120.85%
58
Neutral
$13.15B6.73-2.46%3.87%2.36%-36.74%
46
Neutral
$1.63T-18.23%10.04%57.36%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2371
Kakaku
2,570.50
799.27
45.13%
JP:4689
LY Corporation
552.70
181.30
48.82%
JP:2432
DeNA Co
3,559.00
1,979.67
125.35%
JP:4755
Rakuten
770.20
3.40
0.44%
JP:4751
CyberAgent
1,173.00
152.96
15.00%
JP:3092
ZOZO
1,441.50
336.77
30.48%

Kakaku Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: 5.09% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and profit growth, particularly in Tabelog and Kyujin Box, with improvements seen in several segments. However, challenges such as declines in Shopping and Advertising revenue, as well as underperformance in Tabelog's inbound reservation service, presented some concerns. Overall, the positive outcomes were more prominent than the challenges faced.
Highlights
Significant Revenue and Profit Growth
Revenue for Q1 was JPY 17.713 billion, up 15.3% Y-o-Y, and operating profit was JPY 6.977 billion, up 34.9% Y-o-Y.
Strong Performance in Tabelog
Tabelog reported a Y-o-Y revenue growth of 19.2% and segment income growth of 31.8%.
Kyujin Box User and Revenue Growth
Kyujin Box posted a 36.3% Y-o-Y increase in revenue and a 15.3% increase in segment income, with monthly user numbers exceeding forecasts.
Improvement in Kakaku.com Services Business
The services business grew 21.6% Y-o-Y, contributing to the 8.4% revenue and 11.4% segment income growth for Kakaku.com.
Growth in Incubation Segment Income
Incubation segment income increased by 49.3% Y-o-Y, despite a 1.8% decline in revenue.
Lowlights
Decline in Shopping and Advertising Revenue
Kakaku.com's Shopping business declined by 3% Y-o-Y, and the Advertising business continues to face challenges.
Underperformance of Tabelog's Inbound Reservation Service
The number of reservations for Tabelog's inbound reservation service was lower than expected at about 1,600 per day.
Weak Revenue Per User in Kyujin Box
Revenue per user for Kyujin Box was slightly weak, just under 17% Y-o-Y, due to a slowdown in job postings.
Company Guidance
During the Q1 2025 earnings call, Kakaku.com reported a revenue of JPY 17.713 billion, reflecting a 15.3% year-over-year increase, while operating profit rose by 34.9% to JPY 6.977 billion. The segment-wise performance showed Kakaku.com achieving an 8.4% increase in revenue and an 11.4% rise in segment income, Tabelog reported a 19.2% increase in revenue and a 31.8% boost in segment income, and Kyujin Box saw a 36.3% growth in revenue with a 15.3% increase in segment income. The Incubation segment experienced a 1.8% decline in revenue but a significant 49.3% surge in segment income. The company maintained stable fixed expenses while controlling variable expenses and made strategic changes in segment classifications, including the integration of the Finance business into the Kakaku.com segment and restructuring Tabelog's restaurant promotion business into three new segments. The call also outlined future growth strategies, such as leveraging partnerships with Digital Garage and KDDI to enhance fintech and data analysis capabilities, and expanding Tabelog's inbound reservation services, which currently averages 1,600 reservations per day, for travelers visiting Japan.

Kakaku Corporate Events

Kakaku.com Announces Disposal of Treasury Shares for Executive Remuneration
Mar 26, 2025

Kakaku.com, Inc. has announced the disposal of 48,619 treasury shares as restricted share remuneration for its executive officers, with a disposal value set at 2,236.5 yen per share. This move, determined by the board on March 19, 2025, aims to align executive compensation with shareholder interests by using the Tokyo Stock Exchange closing price to avoid arbitrary pricing, reflecting a strategic approach to executive remuneration.

Kakaku.com Announces Disposal of Treasury Shares as Part of Strategic Initiatives
Mar 19, 2025

Kakaku.com, Inc. has announced a resolution to dispose of 48,619 treasury shares as restricted shares remuneration to its executive officers. This move is part of a broader strategy to align the interests of its executives with shareholders and enhance corporate value. The disposal is set to occur on April 24, 2025, with a disposal value of 2,236.5 yen per share, subject to market conditions. The announcement coincides with other strategic initiatives, including the acquisition of LiPLUS Holdings and a transition to a company with an Audit & Supervisory Committee, potentially impacting the company’s stock price and shareholder interests.

Kakaku.com to Enhance Governance with New Supervisory Committee
Mar 19, 2025

Kakaku.com, Inc. announced its decision to transition to a Company with an Audit & Supervisory Committee, pending approval at its upcoming Annual General Meeting in June 2025. This move is intended to strengthen the board’s supervisory function and improve corporate governance, thereby enhancing corporate value.

Kakaku.com Raises Earnings Forecast Amid Strong Business Performance
Mar 19, 2025

Kakaku.com has revised its earnings forecast for the fiscal year ending March 31, 2025, due to stronger-than-expected performance in its Tabelog and Kyujin Box businesses. The company anticipates higher revenue and profits than initially projected, reflecting a positive trend in its operational performance.

Kakaku.com Unveils Medium-Term Management Plan for FY26/3-FY30/3
Mar 19, 2025

Kakaku.com, Inc. has announced the formulation of a Medium-Term Management Plan covering the fiscal years from 2026 to 2030. This strategic plan, approved by the Board of Directors, aims to guide the company’s growth and operational strategies over the next five years, potentially impacting its market positioning and stakeholder interests.

Kakaku.com Expands into Household Services with LiPLUS Acquisition
Mar 19, 2025

Kakaku.com, Inc. has announced the acquisition of shares in LiPLUS Holdings Inc., making it a subsidiary. This strategic move aims to enhance corporate value by integrating LiPLUS’s platform, which connects users with household service professionals, into Kakaku’s offerings. The acquisition is expected to drive business growth in the household services market by leveraging digital marketing expertise and expanding service categories.

Kakaku.com Restructures for Enhanced Growth and Innovation
Feb 19, 2025

Kakaku.com, Inc. has announced organizational changes and executive appointments effective April 1, 2025, aimed at enhancing business operations and growth. The company is restructuring into a four-company framework and promoting executives to key roles to better align corporate functions and drive innovation across its core businesses.

Kakaku.com Announces Increased Year-End Dividend with Special Payout
Feb 6, 2025

Kakaku.com, Inc. announced a revision of its year-end dividend forecast for the fiscal year ending March 31, 2025, highlighting a special dividend. The total dividend per share will be increased to 80 yen, which includes an ordinary dividend of 50 yen and a special dividend of 30 yen. This decision underscores the company’s commitment to returning profits to shareholders, reflecting strong business performance and prudent management of resources.

Kakaku.com Reports Strong Earnings Growth in Q3 FY2025
Feb 6, 2025

Kakaku.com announced its consolidated earnings for the third quarter of the fiscal year ending March 31, 2025, reporting significant growth across key financial metrics. The company witnessed a 16.5% increase in revenue and a 20.6% rise in operating profit compared to the previous year. This financial performance reflects Kakaku’s robust market positioning and potential for continued growth, as indicated by its forecasted revenue and profit increases for the full fiscal year.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.