SORACOM,INC. (147A) AI Stock Analysis

• Market Cap: ¥44.24B
• Dividend Yield: N/A
• Average Volume (3M): 151.79K
• Price to Earnings (P/E): 43.8
• Beta (1Y): 1.18
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 6.08
• Shares Outstanding: 45,325,240
• 10 Day Avg. Volume: 153,610
• 30 Day Avg. Volume: 151,790
• PEG Ratio: -3.07
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 4.54
• P/FCF Ratio: -54.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥1,285.00 ▲(44.22% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

The overall stock score of 62 reflects strong financial performance with robust revenue growth and a stable balance sheet. However, liquidity issues and high valuation concerns weigh down the score. Technical indicators suggest the stock is overbought, indicating potential for a price correction.

Positive Factors

Revenue Growth / Recurring Model

SORACOM's recurring subscription-based IoT connectivity business is delivering durable top-line expansion (TTM revenue growth 13.44%). Steady device additions and usage-driven billing create repeatable revenues that support long-term scaling, product investment, and network effects in IoT markets.

High Gross Margin

A 56% gross margin signals an efficient cost structure in core connectivity and platform services, providing structural cushion to absorb SG&A and R&D. High product-level profitability supports reinvestment in platform features and partnerships, helping sustain competitive differentiation over time.

Strong Balance Sheet / Low Leverage

Extremely low leverage and a high equity ratio give SORACOM lasting financial flexibility to fund growth, weather industry cycles, pursue strategic partnerships or M&A, and avoid refinancing risk. A conservative capital structure supports long-term strategic optionality.

Negative Factors

Negative Operating & Free Cash Flow

Persistent negative operating and free cash flow indicate the business is not converting revenue into cash sustainably. Over months this pressures liquidity, may require external financing, and constrains the firm's ability to self-fund capex, R&D, or margin-improving initiatives.

Declining Net Profit Margin

A sharp fall in net margin signals rising costs, pricing pressure, or higher operating expenses relative to revenue. If sustained, lower net profitability will reduce retained earnings, limit reinvestment capacity, and weaken long-term returns despite strong gross margins.

Low and Falling ROE

A modest and declining ROE points to inefficiency in converting equity into profits. Over a multi-month horizon this undermines shareholder returns and suggests operational leverage or profitability issues that must be addressed to justify continued equity capital deployment.

SORACOM,INC. Business Overview & Revenue Model

Company Description

SORACOM, Inc. is a global provider of cloud-based IoT (Internet of Things) connectivity solutions, focusing on simplifying the way devices connect to the internet. Operating primarily in the telecommunications and technology sectors, SORACOM offers a range of services including cellular connectivity, device management, and data analytics, enabling businesses to deploy and manage IoT devices efficiently. Their core products encompass various IoT SIM cards, APIs, and management platforms that allow seamless integration and scalability for IoT applications.

How the Company Makes Money

SORACOM generates revenue primarily through its subscription-based model for IoT connectivity services. The company charges customers based on the number of devices connected and the amount of data used, creating a recurring revenue stream. Additional revenue comes from value-added services such as data analytics, device management tools, and support services. SORACOM also benefits from strategic partnerships with telecommunications carriers and technology companies, which enhance its service offerings and expand its customer base, contributing to its overall earnings.

SORACOM,INC. Financial Statement Overview

Summary

SORACOM, INC. demonstrates strong revenue growth and a stable balance sheet with low leverage and high equity. However, the declining net profit margin and negative cash flow highlight areas of concern, particularly in liquidity management and profitability efficiency.

Income Statement

SORACOM, INC. shows strong revenue growth with an impressive TTM (Trailing-Twelve-Months) revenue growth rate of 13.44%. The company maintains a solid gross profit margin of 56%, reflecting efficient cost management. However, the net profit margin has decreased from 6.12% in 2024 to 3.92% in 2025, indicating lower profitability. EBIT and EBITDA margins are stable, but the decline in net income could be a concern for future profitability.

Balance Sheet

The balance sheet is robust, with a very low debt-to-equity ratio of 0.09, indicating minimal leverage risk. The equity ratio stands strong at 76.96%, showcasing financial stability. Return on Equity (ROE) is moderate at 3.42%, showing a decline from the previous year, which signals potential efficiency issues in generating profits from equity.

Cash Flow

The cash flow situation presents challenges, with a negative free cash flow and operating cash flow, reflecting potential liquidity issues. The free cash flow to net income ratio is negative, showing cash flow struggles despite generated income. The negative operating cash flow to net income ratio indicates that operating activities are not currently generating sufficient cash.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.33B	8.99B	7.93B	6.30B	5.45B
Gross Profit	5.14B	5.03B	4.49B	3.27B	2.73B
EBITDA	808.61M	547.89M	732.19M	244.67M	531.49M
Net Income	463.21M	352.71M	485.56M	70.87M	337.15M
Balance Sheet
Total Assets	12.88B	13.40B	10.92B	5.66B	5.63B
Cash, Cash Equivalents and Short-Term Investments	9.22B	8.92B	7.70B	3.53B	1.62B
Total Debt	884.73M	950.17M	37.17M	32.58M	52.31M
Total Liabilities	2.43B	3.05B	2.51B	1.70B	1.79B
Stockholders Equity	10.42B	10.32B	8.40B	3.96B	3.84B
Cash Flow
Free Cash Flow	0.00	-746.08M	283.86M	-359.15M	130.85M
Operating Cash Flow	0.00	-728.67M	456.24M	-222.69M	219.09M
Investing Cash Flow	0.00	-474.99M	-170.57M	2.01B	-1.15B
Financing Cash Flow	0.00	2.45B	3.79B	29.88M	-8.19M

SORACOM,INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 891.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:147A, the sentiment is Negative. The current price of 891 is below the 20-day moving average (MA) of 1107.25, below the 50-day MA of 1171.70, and below the 200-day MA of 999.76, indicating a bearish trend. The MACD of -39.79 indicates Positive momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 4.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:147A.

SORACOM,INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3040	73 Outperform	¥34.37B	14.98	19.71%	3.09%	3.44%	79.35%
3915	68 Neutral	¥23.86B	15.44	―	―	17.93%	91.21%
3694	68 Neutral	¥25.13B	20.09	―	―	6.33%	14.82%
147A	62 Neutral	¥44.24B	43.76	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥14.24B	-41.77	―	―	―	―
3778	52 Neutral	¥116.70B	156.88	―	0.14%	36.42%	28.23%