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SMS Co., Ltd. (JP:2175)
:2175
Japanese Market
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SMS Co., Ltd. (2175) AI Stock Analysis

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JP:2175

SMS Co., Ltd.

(2175)

Rating:73Outperform
Price Target:
¥1,636.00
▲(1.49% Upside)
SMS Co., Ltd. holds a strong financial position with consistent growth and solid margins. Positive technical indicators support a stable outlook, although valuation metrics suggest the stock is fairly valued. No earnings call or corporate events data was available to influence this assessment.

SMS Co., Ltd. (2175) vs. iShares MSCI Japan ETF (EWJ)

SMS Co., Ltd. Business Overview & Revenue Model

Company DescriptionSMS Co., Ltd. (2175) is a Japanese company focused on the provision of human resources and information services, primarily catering to the healthcare, welfare, and nursing care sectors. The company offers recruitment, staffing, and training services, alongside operating various online platforms that provide information and support for professionals in these sectors.
How the Company Makes MoneySMS Co., Ltd. generates revenue through a multi-faceted business model that includes recruitment and staffing services, where they charge fees to healthcare and welfare facilities for successful job placements and staffing solutions. Additionally, the company operates subscription-based online platforms that deliver industry-specific information and resources, earning revenue from membership fees, advertising, and partnerships with organizations within the healthcare and welfare sectors. The company also benefits from training programs, which provide educational content and certifications to professionals, further diversifying its income streams.

SMS Co., Ltd. Financial Statement Overview

Summary
SMS Co., Ltd. exhibits strong financial performance with notable revenue growth, high profit margins, and a solid balance sheet. However, a slight decline in EBIT margin and free cash flow indicates potential areas for improvement.
Income Statement
85
Very Positive
SMS Co., Ltd. has demonstrated strong and consistent revenue growth over the years, with a notable increase of 12.93% from 2024 to 2025. The company maintains robust profitability with a high gross profit margin of 82.09% and a net profit margin of 9.93% for 2025. However, there was a slight decline in EBIT margin, indicating potential cost management challenges.
Balance Sheet
78
Positive
The company exhibits a healthy balance sheet with a strong equity ratio of 61.83% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.17, reflecting prudent financial leverage. Return on equity is solid at 12.79%, though slightly decreased from the previous year, suggesting some room for improvement in generating shareholder returns.
Cash Flow
74
Positive
SMS Co., Ltd. shows positive cash flow trends with a substantial operating cash flow to net income ratio of 0.96, indicating efficient cash generation from operations. However, there was a decline in free cash flow from 2024 to 2025, suggesting increased capital expenditures or cash management issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue60.95B53.97B45.67B38.90B35.96B
Gross Profit50.04B47.54B40.10B34.44B32.00B
EBITDA12.14B13.27B10.18B8.80B7.66B
Net Income6.05B7.23B6.41B5.41B4.80B
Balance Sheet
Total Assets76.54B72.47B65.10B56.59B49.44B
Cash, Cash Equivalents and Short-Term Investments16.18B18.24B16.96B14.64B10.54B
Total Debt8.05B6.43B8.33B10.37B13.52B
Total Liabilities29.22B28.19B26.68B26.59B26.79B
Stockholders Equity47.32B44.28B38.42B29.99B22.66B
Cash Flow
Free Cash Flow5.38B6.06B5.59B7.81B4.73B
Operating Cash Flow5.81B9.77B8.50B9.82B6.77B
Investing Cash Flow-4.07B-3.74B-3.76B-2.08B-1.78B
Financing Cash Flow-4.15B-5.02B-3.04B-3.99B-5.22B

SMS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1612.00
Price Trends
50DMA
1517.60
Positive
100DMA
1420.48
Positive
200DMA
1410.87
Positive
Market Momentum
MACD
15.13
Positive
RSI
51.97
Neutral
STOCH
34.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2175, the sentiment is Neutral. The current price of 1612 is above the 20-day moving average (MA) of 1581.10, above the 50-day MA of 1517.60, and above the 200-day MA of 1410.87, indicating a neutral trend. The MACD of 15.13 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2175.

SMS Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥141.15B19.27
1.80%10.66%0.41%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
€459.53M52.348.00%
72
Outperform
¥24.71B23.64
1.28%13.39%12.00%
66
Neutral
¥276.67B44.46
0.37%29.09%87.01%
66
Neutral
¥41.08B65.93
1.71%19.05%-31.67%
43
Neutral
¥22.38B4,465.71
1.13%-0.58%-260.22%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2175
SMS Co., Ltd.
1,602.50
-495.09
-23.60%
DE:3YV
Medley
14.20
-8.40
-37.17%
JP:3902
Medical Data Vision Co.Ltd.
597.00
81.00
15.70%
JP:3939
Kanamic Network Co., LTD.
519.00
-5.67
-1.08%
JP:4483
JMDC Inc.
4,279.00
-281.48
-6.17%
JP:6078
Value HR Co., Ltd.
1,530.00
-58.00
-3.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025