SDS HOLDINGS Co.Ltd. (1711) AI Stock Analysis

• Market Cap: ¥3.05B
• Dividend Yield: N/A
• Average Volume (3M): 140.21K
• Price to Earnings (P/E): 56.9
• Beta (1Y): 1.36
• Revenue Growth: 3.63%
• EPS Growth: 7.60%
• Country: JP
• Employees: 18
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 1.04
• Shares Outstanding: 10,432,773
• 10 Day Avg. Volume: 60,020
• 30 Day Avg. Volume: 140,210
• PEG Ratio: -0.60
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -3.10
• 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: 50 Neutral
• Price Target: ¥306.00 ▲(21.91% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

Overall score is held down primarily by weak financial performance (ongoing losses, high leverage, and cash flow strain). Technical indicators are comparatively supportive with positive trend/momentum, but valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Revenue Growth Trend

Reported revenue growth of ~20% indicates expanding top-line activity and sustained customer uptake. Over a 2-6 month horizon this trend supports scale economics and gives management room to improve operating leverage if cost control and margin initiatives continue.

Industry Exposure — Renewable Utilities

Operating in Renewable Utilities provides structural demand tailwinds as global energy transition and electrification trends persist. This industry positioning supports longer-term revenue opportunities and potential policy-driven investment flows over months to years.

Stable Gross Margins / Asset Growth

Stable gross margins suggest the core business retains viable unit economics despite operating losses. Concurrent asset growth indicates capacity or investment to support future revenue, giving a foundation for margin recovery and operational scaling if SG&A and overhead are controlled.

Negative Factors

Persistent Net Losses

Consistent net losses undermine equity returns and constrain reinvestment capacity. Over a medium horizon these losses increase dependency on external funding, reduce retained earnings, and complicate execution of growth plans until profitability is achieved.

High Leverage / Low Equity Cushion

A high debt-to-equity ratio and low equity cushion limit financial flexibility and raise refinancing risk. In a capital-intensive utility context, elevated leverage increases interest burden and reduces ability to absorb revenue volatility or fund capex without dilutive or costly financing.

Negative Operating Cash Flow & Financing Reliance

Repeated negative operating cash flow and dependence on financing signal weak cash generation. This creates medium-term sustainability risk, heightens refinancing and liquidity pressures, and may force asset sales or equity issuance if operational cash conversion doesn't improve.

SDS HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

SDS HOLDINGS Co.,Ltd. engages in renewable energy, energy saving, and facility solution businesses in Japan. The company's renewable energy includes wind power, solar power, geothermal power, small and medium-sized hydropower, biomass, etc. It also engages in the survey, design, estimate, contract, and renovation works, including lighting and air conditioning, heat sources, power equipment, production equipment, waste processing equipment, equipment operation, maintenance, etc. for various facilities, such as food factories, hospitals and welfare facilities, and commercial facilities, as well as hotels, inns, accommodations. In addition, the company provides business continuity plan and hygiene management solutions. Further, it offers hazard analysis and critical control point, disappearing garbage disposal machine, disaster bulk, and disaster storage battery services. The company was formerly known as Shodensya Co., Ltd. and changed its name to SDS HOLDINGS Co.,Ltd. in June 2017. SDS HOLDINGS Co.,Ltd. was incorporated in 1986 and is headquartered in Tokyo, Japan.

SDS HOLDINGS Co.Ltd. Financial Statement Overview

Summary

Weak fundamentals driven by persistent net losses, declining EBIT/EBITDA margins, and inconsistent revenue growth. Balance sheet leverage is high with a low equity cushion, and cash flow is pressured with negative operating cash flow in several periods and reliance on financing inflows.

Income Statement

The company's income statement shows a challenging financial trajectory. Gross profit margins have been relatively stable, but the net income has consistently been negative, indicating a lack of profitability. Revenue has grown over the years, but the recent decline in EBIT and EBITDA margins suggests operational inefficiencies and rising costs. The revenue growth rate has been inconsistent, with significant fluctuations across the years.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage. The equity ratio is low, reflecting a limited cushion to absorb potential losses. However, the return on equity remains negative due to persistent net losses, suggesting challenges in generating returns for shareholders. The company's assets have grown, but so have its liabilities, maintaining a high leverage position.

Cash Flow

The cash flow statement highlights significant cash flow challenges. Operating cash flow has been negative in several periods, indicating operational difficulties in generating cash. The free cash flow to net income ratio is unfavorable, showing that the company is struggling to convert profits to cash. The company's reliance on financing activities to support cash flows is evident, as seen in the high financing cash inflows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.94B	4.04B	4.14B	3.40B	1.03B	844.45M
Gross Profit	531.35M	510.99M	536.28M	620.62M	173.33M	183.08M
EBITDA	53.87M	48.55M	72.85M	-104.26M	-260.34M	-252.48M
Net Income	-155.23M	-151.71M	-105.39M	-296.35M	-333.79M	-348.37M
Balance Sheet
Total Assets	4.80B	4.71B	3.79B	4.46B	921.66M	277.35M
Cash, Cash Equivalents and Short-Term Investments	209.82M	499.64M	656.75M	439.55M	469.08M	112.61M
Total Debt	3.74B	3.52B	2.60B	3.39B	0.00	0.00
Total Liabilities	4.09B	3.97B	3.01B	3.84B	325.05M	238.16M
Stockholders Equity	572.30M	607.85M	668.87M	521.26M	596.61M	39.18M
Cash Flow
Free Cash Flow	0.00	-858.10M	775.69M	-1.18B	-497.36M	-515.10M
Operating Cash Flow	0.00	-214.28M	924.63M	-717.61M	-485.25M	-515.00M
Investing Cash Flow	0.00	-973.33M	-150.12M	-657.52M	-13.17M	41.49M
Financing Cash Flow	0.00	1.00B	-552.80M	1.29B	854.89M	145.85M

SDS HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 251.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1711, the sentiment is Positive. The current price of 251 is below the 20-day moving average (MA) of 288.55, below the 50-day MA of 274.80, and below the 200-day MA of 268.62, indicating a bullish trend. The MACD of 6.46 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1711.

SDS HOLDINGS Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9513	82 Outperform	$733.47B	6.68	7.17%	3.22%	-1.56%	9.17%
1407	68 Neutral	¥71.14B	-69.59	―	4.59%	-6.23%	-19.98%
9517	66 Neutral	¥75.68B	5.57	―	1.79%	-15.80%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9514	60 Neutral	¥8.03B	11.52	―	2.29%	4.05%	38.64%
9519	53 Neutral	¥68.85B	48.38	7.71%	―	28.85%	-9.70%
1711	50 Neutral	¥3.05B	56.94	―	―	3.63%	7.60%