Improving LeverageLeverage reduction to ~0.24 and a solid equity base (~¥6.2B) materially improve financial flexibility. Lower leverage reduces default risk, supports capital allocation for R&D or M&A, and gives management room to sustain operations through cyclical weakness without immediate refinancing pressure.

Stronger 2025 Cash GenerationA swing to positive operating and free cash flow in 2025, with FCF near net income, indicates improved cash quality. Reliable free cash flow supports reinvestment, servicing of obligations, and shareholder returns, and makes the business more resilient versus prior years of large outflows.

Recurring Revenue And PartnershipsA subscription pricing model and consulting services create recurring, predictable revenue streams while cloud and integrator partnerships broaden distribution. This structural mix supports sticky customer relationships, lower churn risk, and scalable upsell opportunities over the medium term.

Bears Say

Revenue DeclineA near-10% revenue drop in 2025 signals weakening demand or loss of contract volume. Persistent top-line erosion limits operating leverage, pressures margins and reinvestment capacity, and could force strategic trade-offs between customer retention, pricing, and cost containment over the coming quarters.

Margin CompressionMaterial margin deterioration indicates rising costs or pricing pressure that reduces the company's ability to convert revenue into sustainable profits. Compressed margins constrain cash generation and return on capital, making it harder to fund growth initiatives without improving pricing or operational efficiency.

Historic Cash Flow Volatility And ROE DeclineEpisodes of sizable cash outflows and a falling ROE versus earlier peaks point to volatile earnings quality and reduced capital efficiency. This volatility complicates forecasting, raises financing risk in downturns, and suggests management must restore consistent profitability to re‑earn investor confidence.

1724 FAQ

What was Synclayer Inc.’s price range in the past 12 months?

Synclayer Inc. lowest stock price was ¥543.00 and its highest was ¥752.00 in the past 12 months.

What is Synclayer Inc.’s market cap?

Synclayer Inc.’s market cap is ¥3.38B.

When is Synclayer Inc.’s upcoming earnings report date?

Synclayer Inc.’s upcoming earnings report date is May 20, 2026 which is in 87 days.

How were Synclayer Inc.’s earnings last quarter?

Synclayer Inc. released its earnings results on Feb 13, 2026. The company reported ¥22.36 earnings per share for the quarter, beating the consensus estimate of N/A by ¥22.36.

Is Synclayer Inc. overvalued?

According to Wall Street analysts Synclayer Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Synclayer Inc. pay dividends?

Synclayer Inc. pays a Semiannually dividend of ¥18 which represents an annual dividend yield of 3.94%. See more information on Synclayer Inc. dividends here

What is Synclayer Inc.’s EPS estimate?

Synclayer Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Synclayer Inc. have?

Synclayer Inc. has 4,943,780 shares outstanding.

What happened to Synclayer Inc.’s price movement after its last earnings report?

Synclayer Inc. reported an EPS of ¥22.36 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -4.093%.

Which hedge fund is a major shareholder of Synclayer Inc.?

Currently, no hedge funds are holding shares in JP:1724

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Synclayer Inc.

Synclayer Inc. provides system integration services for CATV network in Japan. Its services include system design, engineering, equipment procurement, network management, etc. The company also offers turn-key project construction for cable plant from headend to customer premise; and cable TV Internet solutions, including sales and support for CMTS and cable modems. In addition, it provides cable-networking for convention hall, office, MDU, and campus LAN applications. Further, the company offers ultra-high-speed data transfer and voice over Internet protocol services, as well as digital video transmission capacity for approximately 300 channels. Additionally, it provides fiber-to-the-home solution that offers gigabit data transfer, full streaming video, and RF multi-channel video broadcasting; and fiber-to-the-office solutions. The company was formerly known as Aichi Electronics Co., Ltd. and changed its name to Synclayer Inc. in July 2002. Synclayer Inc. was incorporated in 1962 and is headquartered in Nagoya, Japan.