Cyberlinks Co Ltd

Cyberlinks maintains a market price of 1,072 JPY per share, translating to a market capitalization of 11.91 billion JPY. The company's price-to-earnings ratio is 52.0, significantly higher than the industry median, indicating a premium valuation relative to earnings. The price-to-book ratio of 1.58 suggests that the market values the company at a moderate premium to its book value. The enterprise value to EBITDA ratio of 37.56 further reinforces the premium valuation, while the enterprise value to revenue ratio of 3.09 shows a relatively moderate multiple compared to revenue.

In terms of profitability, Cyberlinks reports a return on equity (ROE) of 3.05% and a return on assets (ROA) of 1.67%. These figures are below the industry median for IT Services & Consulting, indicating that the company is underperforming in terms of capital efficiency and asset utilization. The operating margin, calculated as operating income of 355 million JPY on revenue of 4.31 billion JPY, is 8.24%, which is also below the industry median. This suggests that the company is not leveraging its operations as effectively as its peers.

Cyberlinks' revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's exposure to a single segment increases its vulnerability to market-specific risks, such as changes in demand for IT services or regulatory shifts. The lack of geographic diversification also limits its ability to hedge against regional economic downturns.

The company's growth trajectory is mixed. While the current fiscal year (FY) is expected to show a modest increase in revenue, the next FY outlook is uncertain. The company's historical revenue growth has been relatively flat, with a recent actual revenue of 18.14 billion JPY, which is significantly higher than the reported 4.31 billion JPY. This discrepancy may indicate a reporting period mismatch or a shift in revenue recognition practices.

Cyberlinks faces moderate liquidity risk, with a current ratio of 1.71, indicating that it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, which raises concerns about its ability to meet long-term obligations without additional financing. The dilution risk is currently low, as the number of diluted shares is equal to the basic shares outstanding, suggesting no imminent share issuance.

Recent events, including the latest financial filings and transcripts, indicate that Cyberlinks is maintaining a stable financial position. The company has not disclosed any major strategic shifts or significant capital expenditures in the near term. However, the discrepancy between the reported revenue and the analyst-estimated revenue of 18.14 billion JPY warrants further investigation to understand the underlying factors.

Revenue grew 14.3% year-over-year to JPY 18.1 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 60.0% to JPY 1.3 billion in FY2026, significantly outpacing revenue growth rates.

Free cash flow increased 159.6% to JPY 1.15 billion in FY2026, indicating robust cash generation capabilities.

Operating margin of 8.2% exceeds the IT Services cohort median of 5.1%, highlighting superior profitability.

Net margin of 5.3% surpasses the cohort median of 3.9%, reflecting efficient cost management relative to peers.

The company faces high credit risk, posing a significant threat to financial stability and potential default.

Debt-to-equity ratio of 0.46 is in the bottom quartile of the cohort, indicating higher leverage than peers.

Medium liquidity risk flags potential challenges in meeting short-term obligations without significant asset liquidation.

Long-term debt increased to JPY 3.6 billion in FY2026, rising alongside revenue growth and increasing leverage.

Revenue ¥5.02B, +14,0% YoY; Operating income −2,5% YoY.

• ▍Revenue ¥5.02B, +14,0% YoY
• ▍Operating income −2,5% YoY
• ▍Net income +10,6% YoY
• ▍Net margin 8.1%

Revenue ¥4.26B, +20,9% YoY; Operating income +104,2% YoY.

• ▍Revenue ¥4.26B, +20,9% YoY
• ▍Operating income +104,2% YoY
• ▍Net income +98,2% YoY
• ▍Net margin 5.2%

Revenue ¥4.35B, +20,0% YoY; Operating income +215,9% YoY.

• ▍Revenue ¥4.35B, +20,0% YoY
• ▍Operating income +215,9% YoY
• ▍Net income +283,8% YoY
• ▍Net margin 9.3%

Revenue ¥4.50B, +4,4% YoY; Operating income +16,3% YoY.

• ▍Revenue ¥4.50B, +4,4% YoY
• ▍Operating income +16,3% YoY
• ▍Net income +18,3% YoY
• ▍Net margin 6.0%

Revenue ¥4.41B; Operating income ¥517.0M.

• ▍Revenue ¥4.41B
• ▍Operating income ¥517.0M
• ▍Net margin 8.4%

Revenue ¥3.53B; Operating income ¥167.0M.

• ▍Revenue ¥3.53B
• ▍Operating income ¥167.0M
• ▍Net margin 3.2%

Revenue ¥3.62B; Operating income ¥182.0M.

• ▍Revenue ¥3.62B
• ▍Operating income ¥182.0M
• ▍Net margin 2.9%

Revenue ¥4.31B; Operating income ¥355.0M.

• ▍Revenue ¥4.31B
• ▍Operating income ¥355.0M
• ▍Net margin 5.3%

Revenue ¥18.14B, +14,3% YoY; Operating income +50,1% YoY.

• ▍Revenue ¥18.14B, +14,3% YoY
• ▍Operating income +50,1% YoY
• ▍Net income +60,0% YoY
• ▍Free cash flow +159,6% YoY
• ▍Net margin 7.2%

Revenue ¥15.87B, +5,6% YoY; Operating income +56,3% YoY.

• ▍Revenue ¥15.87B, +5,6% YoY
• ▍Operating income +56,3% YoY
• ▍Net income +83,2% YoY
• ▍Free cash flow +627,4% YoY
• ▍Net margin 5.1%

Revenue ¥15.02B, +22,9% YoY; Operating income −35,2% YoY.

• ▍Revenue ¥15.02B, +22,9% YoY
• ▍Operating income −35,2% YoY
• ▍Net income −51,1% YoY
• ▍Free cash flow −2 900,0% YoY
• ▍Net margin 3.0%

Revenue ¥12.22B, −7,7% YoY; Operating income +27,9% YoY.

• ▍Revenue ¥12.22B, −7,7% YoY
• ▍Operating income +27,9% YoY
• ▍Net income +41,0% YoY
• ▍Free cash flow −99,0% YoY
• ▍Net margin 7.4%