Revenue GrowthSustained high top-line growth (36% reported) demonstrates durable demand expansion and successful client acquisition in the core advertising business. Over 2-6 months this supports reinvestment, scale benefits, and revenue resilience even if margins fluctuate.

Cash Conversion / Free Cash FlowRobust cash generation and efficient conversion of earnings into cash (OCF/Net Income 2.22) provide durable financial flexibility: funds capex, deleveraging, or shareholder returns and cushions operations against cyclical ad spending variability.

High Gross Profit MarginA 77.9% gross margin indicates structural pricing power or low direct costs in service delivery. This long-term buffer helps absorb SG&A or client mix shifts, supporting operating leverage potential as revenue scales further.

Bears Say

Net Margin CompressionA sharp fall in net margin to 7.82% signals persistent profitability pressures from higher operating costs or pricing erosion. Over months this erodes retained earnings, limits reinvestment capacity and magnifies sensitivity to revenue slowdowns.

High LeverageDebt-to-equity of 2.04 denotes substantial reliance on borrowing. Structurally, elevated leverage raises refinancing and interest risks, constrains strategic flexibility, and intensifies downside if margins or cash flows weaken.

Reduced Return On EquityDeclining ROE to 22.06% reflects lower efficiency converting capital into profits, likely tied to margin compression and higher financial costs. Persisting this trend would weaken shareholder returns and signal operational or capital structure issues.

6031 FAQ

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

Scigineer Inc. lowest stock price was ¥250.00 and its highest was ¥456.00 in the past 12 months.

What is Scigineer Inc.’s market cap?

Scigineer Inc.’s market cap is ¥5.66B.

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

Scigineer Inc.’s upcoming earnings report date is Nov 18, 2026 which is in 274 days.

How were Scigineer Inc.’s earnings last quarter?

Currently, no data Available

Is Scigineer Inc. overvalued?

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

Does Scigineer Inc. pay dividends?

Scigineer Inc. pays a Annually dividend of ¥4.4 which represents an annual dividend yield of 2.3%. See more information on Scigineer Inc. dividends here

What is Scigineer Inc.’s EPS estimate?

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

How many shares outstanding does Scigineer Inc. have?

Scigineer Inc. has 25,768,600 shares outstanding.

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

Currently, no data Available

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

Currently, no hedge funds are holding shares in JP:6031

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

Scigineer Inc.

Scigineer Inc. engages in the Internet media and Internet advertising agency businesses in Japan. It is involved in the planning and development of computer systems, and Internet and Web; sale and maintenance of information systems; research and development in the fields of computer science and artificial intelligence; and provision of consulting and management services. Scigineer Inc.was incorporated in 2005 and is headquartered in Tokyo, Japan.