Free Cash Flow StrengthSubstantially higher free cash flow and strong cash conversion (FCF/net income ~1.30, OCF/net income ~1.38) provide durable funding for capex, R&D, dividends or debt reduction, increasing financial flexibility and resilience across planning horizons of several months to years.

Improving Profitability MarginsSustained margin expansion across gross, EBIT and net margins indicates better pricing, cost control or more efficient operations. These structural improvements enhance free cash generation and recurring profitability, supporting long-term investment and competitive positioning in healthcare IT services.

Solid Balance Sheet And ROEModerate leverage and a strong equity base coupled with a mid-teens ROE reflect prudent capital structure and effective capital deployment. This durable financial strength supports strategic initiatives, limits financing risk, and provides capacity for future M&A or product investment.

Bears Say

Modest Revenue GrowthLow single-digit top-line growth constrains scale advantages and long-term earnings upside for a healthcare IT firm where scale and network effects drive adoption. Without faster revenue expansion, margin gains and cash generation may be harder to accelerate over the medium term.

Limited EBITDA ImprovementModest EBITDA margin progress and rising non-operating costs suggest operating leverage is not fully realized. Persistent non-op expenses can erode cash available for reinvestment and reduce the durability of profitability improvements unless management addresses underlying cost drivers.

Liabilities Reduction NeededAlthough leverage is moderate, the balance sheet note on liability reduction highlights structural risk. Lowering liabilities would improve liquidity and the credit profile, reducing financial vulnerability and enabling steadier investment in product development and regulatory compliance over time.

3671 FAQ

What was Softmax Co., Ltd. (Japan)’s price range in the past 12 months?

Softmax Co., Ltd. (Japan) lowest stock price was ¥182.50 and its highest was ¥442.00 in the past 12 months.

What is Softmax Co., Ltd. (Japan)’s market cap?

Softmax Co., Ltd. (Japan)’s market cap is ¥8.06B.

When is Softmax Co., Ltd. (Japan)’s upcoming earnings report date?

Softmax Co., Ltd. (Japan)’s upcoming earnings report date is May 18, 2026 which is in 91 days.

How were Softmax Co., Ltd. (Japan)’s earnings last quarter?

Softmax Co., Ltd. (Japan) released its earnings results on Feb 12, 2026. The company reported ¥7.43 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.43.

Is Softmax Co., Ltd. (Japan) overvalued?

According to Wall Street analysts Softmax Co., Ltd. (Japan)’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Softmax Co., Ltd. (Japan) pay dividends?

Softmax Co., Ltd. (Japan) pays a Annually dividend of ¥10 which represents an annual dividend yield of 8.09%. See more information on Softmax Co., Ltd. (Japan) dividends here

What is Softmax Co., Ltd. (Japan)’s EPS estimate?

Softmax Co., Ltd. (Japan)’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Softmax Co., Ltd. (Japan) have?

Softmax Co., Ltd. (Japan) has 24,050,800 shares outstanding.

What happened to Softmax Co., Ltd. (Japan)’s price movement after its last earnings report?

Softmax Co., Ltd. (Japan) reported an EPS of ¥7.43 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.54%.

Which hedge fund is a major shareholder of Softmax Co., Ltd. (Japan)?

Currently, no hedge funds are holding shares in JP:3671

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

Softmax Co., Ltd. (Japan)

Softmax Co., Ltd develops, sales, introduction, and maintenance of corporate systems. It is also involved in medical information system development. The company also offers web based electronic medical record system, web based ordering system, medical accounting, radiology information, rehabilitation department system, health check-up system, nursing work management system, and surgical department system. Softmax Co., Ltd was incorporated in 1974 and is headquartered in Tokyo, Japan.