SMS Co., Ltd. (2175) AI Stock Analysis

• Market Cap: ¥116.02B
• Dividend Yield: 2.1%
• Average Volume (3M): 408.20K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.70
• Revenue Growth: 7.27%
• EPS Growth: 13.10%
• Country: JP
• Employees: 4,188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 13.12
• Shares Outstanding: 87,561,600
• 10 Day Avg. Volume: 450,790
• 30 Day Avg. Volume: 408,203
• PEG Ratio: -1.11
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 17.85
• 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: ¥2,220.00
• Price Target Upside: 45.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 85.1
• Revenue Forecast (FY): ¥65.45B

• Rating: 68 Neutral
• Price Target: ¥1,428.00 ▼(-6.11% Downside)

SMS Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, which significantly contributes to the overall score. However, the technical analysis indicates bearish momentum, which is a notable risk factor. The valuation is reasonable, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial health.

Profit Margins

High profit margins reflect efficient operations and strong pricing power, which can sustain profitability even in competitive markets.

Balance Sheet Health

A strong equity ratio and low debt levels enhance financial stability and provide flexibility for growth investments and strategic initiatives.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to invest in growth opportunities or return capital to shareholders, impacting long-term growth.

EBIT Margin Decline

A declining EBIT margin suggests rising operational costs, which could pressure profitability if not addressed, affecting future earnings.

Return on Equity

A decrease in return on equity could signal inefficiencies in generating shareholder returns, potentially impacting investor confidence.

SMS Co., Ltd. Business Overview & Revenue Model

Company Description

SMS Co., Ltd. (2175) is a leading provider of telecommunications and technology solutions, specializing in mobile messaging services, including SMS, MMS, and other related communication services. The company operates within the telecommunications sector, offering a suite of products designed to enhance mobile communication for both consumers and businesses. SMS Co., Ltd. focuses on delivering innovative messaging solutions that cater to various industries, enabling efficient communication and engagement.

How the Company Makes Money

SMS Co., Ltd. generates revenue primarily through the provision of mobile messaging services to businesses and consumers. The company's key revenue streams include transaction fees from SMS and MMS messages sent and received, subscription fees for value-added services such as bulk messaging and automated messaging systems, and partnerships with mobile network operators that facilitate the delivery of their messaging services. Additionally, SMS Co., Ltd. may earn income from advertising and promotional campaigns that leverage their messaging platform, as well as from strategic collaborations with other tech companies that enhance their service offerings.

SMS Co., Ltd. Financial Statement Overview

Summary

SMS Co., Ltd. presents a strong financial position with excellent revenue growth and profit margins. The company maintains a robust balance sheet with low leverage and solid equity ratios. While cash flows are generally healthy, attention to managing free cash flow could enhance financial flexibility.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.20B	60.95B	53.97B	45.67B	38.90B	35.96B
Gross Profit	52.99B	50.04B	47.54B	40.10B	34.44B	32.00B
EBITDA	11.50B	12.14B	13.27B	11.76B	10.27B	8.74B
Net Income	6.83B	6.05B	7.23B	6.41B	5.41B	4.80B
Balance Sheet
Total Assets	72.33B	76.54B	72.47B	65.10B	56.59B	49.44B
Cash, Cash Equivalents and Short-Term Investments	13.01B	16.18B	18.24B	16.96B	14.64B	10.54B
Total Debt	7.90B	8.18B	6.43B	8.33B	10.37B	13.52B
Total Liabilities	28.43B	29.22B	28.19B	26.68B	26.59B	26.79B
Stockholders Equity	43.90B	47.32B	44.28B	38.42B	29.99B	22.66B
Cash Flow
Free Cash Flow	3.09B	5.38B	6.06B	5.59B	7.81B	4.73B
Operating Cash Flow	3.19B	5.81B	9.77B	8.50B	9.82B	6.77B
Investing Cash Flow	-942.50M	-4.07B	-3.74B	-3.76B	-2.08B	-1.78B
Financing Cash Flow	-3.31B	-4.15B	-5.02B	-3.04B	-3.99B	-5.22B

SMS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1521.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1521 is above the 20-day moving average (MA) of 1343.15, above the 50-day MA of 1423.68, and above the 200-day MA of 1391.76, indicating a neutral trend. The MACD of -16.12 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3939	76 Outperform	¥25.94B	23.35	―	1.40%	9.85%	20.83%
2175	68 Neutral	¥116.02B	15.05	―	2.10%	7.27%	13.10%
4480	67 Neutral	€69.79B	48.02	8.79%	―	31.95%	-40.95%
6078	66 Neutral	¥46.95B	74.87	―	1.53%	18.40%	-31.90%
4483	61 Neutral	¥239.75B	38.97	―	0.43%	20.55%	48.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥17.43B	-23.82	―	1.41%	6.17%	-8918.66%