Strong Balance Sheet And Low LeverageA high equity ratio and near-zero leverage provide durable financial flexibility: the company can fund operations, invest in product development or marketing, and withstand cyclical ad spend swings without relying on external debt. Positive ROE shows capital is being deployed profitably as profitability recovers.

Robust Cash GenerationA dramatic rise in free cash flow and strong operating cash conversion underpin long-term strategic optionality. Sustainable cash generation supports reinvestment in adtech R&D, customer success, and potential buybacks or M&A, improving resilience across business cycles and reducing refinancing risk.

Recovery In Revenue And MarginsA meaningful revenue rebound with improving gross and operating margins signals that the firm's DSP and service offerings are regaining traction and operational efficiency is improving. If sustained, this trend supports scalable profitability and stronger cash flow generation over the medium term.

Bears Say

Historical Revenue VolatilityPast swings in revenue and earlier losses indicate the business is sensitive to client behavior, campaign dynamics, or product adoption cycles. Such volatility hampers multi-quarter planning, makes forecasting cash flows harder, and raises execution risk even as recent metrics improve.

Low Absolute Profitability MarginsModerate gross margins and a thin net margin limit the firm's cushion against rising costs or pricing pressure. Low absolute profitability reduces reinvestment capacity and increases reliance on volume growth or efficiency gains to deliver durable returns, heightening operational risk if growth slows.

Exposure To Advertiser Demand CyclicalityRevenue closely tied to advertiser budgets makes the business vulnerable to macro downturns, seasonal shifts, or strategic reallocations by major advertisers. This structural dependence increases earnings cyclicality and can quickly reverse gains in revenue or margins during market contractions.

6185 FAQ

What was SMN Corporation’s price range in the past 12 months?

SMN Corporation lowest stock price was ¥312.00 and its highest was ¥520.00 in the past 12 months.

What is SMN Corporation’s market cap?

SMN Corporation’s market cap is ¥6.23B.

When is SMN Corporation’s upcoming earnings report date?

SMN Corporation’s upcoming earnings report date is Apr 24, 2026 which is in 63 days.

How were SMN Corporation’s earnings last quarter?

SMN Corporation released its earnings results on Jan 30, 2026. The company reported ¥4.65 earnings per share for the quarter, beating the consensus estimate of N/A by ¥4.65.

Is SMN Corporation overvalued?

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

Does SMN Corporation pay dividends?

SMN Corporation does not currently pay dividends.

What is SMN Corporation’s EPS estimate?

SMN Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does SMN Corporation have?

SMN Corporation has 14,777,555 shares outstanding.

What happened to SMN Corporation’s price movement after its last earnings report?

SMN Corporation reported an EPS of ¥4.65 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.862%.

Which hedge fund is a major shareholder of SMN Corporation?

Currently, no hedge funds are holding shares in JP:6185

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

SMN Corporation

SMN Corporation engages in digital marketing business in Japan and internationally. The company offers VALIS-Engine, an AI engine; Logicad, a demand side platform; and VALIS-Cockpit, a marketing analytics tool. It also provides data collection and analysis, advertising management, and content-based marketing solutions for agencies and advertisers; and creates and distributes ad content for SSPs and media outlets. In addition, the company offers marketing solutions to support advertisation on the web portal of ISP So-Net. The company was incorporated in 2000 and is headquartered in Tokyo, Japan. SMN Corporation is a subsidiary of Sony Network Communications Inc.