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

• Market Cap: ¥137.65B
• Dividend Yield: 1.81%
• Average Volume (3M): 307.79K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.70
• Revenue Growth: 10.66%
• EPS Growth: 0.41%
• Country: JP
• Employees: 4,188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 47.17
• Shares Outstanding: 87,561,600
• 10 Day Avg. Volume: 270,930
• 30 Day Avg. Volume: 307,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,078.50
• Price Target Upside: 32.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥1,717.00 ▲(9.22% Upside)

SMS Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, contributing significantly to the overall score. Technical analysis indicates mixed momentum, while valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events limits additional insights.

SMS Co., Ltd. Business Overview & Revenue Model

Company Description

SMS 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 Money

SMS 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.95B	53.97B	45.67B	38.90B	35.96B
Gross Profit	50.04B	47.54B	40.10B	34.44B	32.00B
EBITDA	12.14B	13.27B	10.18B	8.80B	7.66B
Net Income	6.05B	7.23B	6.41B	5.41B	4.80B
Balance Sheet
Total Assets	76.54B	72.47B	65.10B	56.59B	49.44B
Cash, Cash Equivalents and Short-Term Investments	16.18B	18.24B	16.96B	14.64B	10.54B
Total Debt	8.05B	6.43B	8.33B	10.37B	13.52B
Total Liabilities	29.22B	28.19B	26.68B	26.59B	26.79B
Stockholders Equity	47.32B	44.28B	38.42B	29.99B	22.66B
Cash Flow
Free Cash Flow	5.38B	6.06B	5.59B	7.81B	4.73B
Operating Cash Flow	5.81B	9.77B	8.50B	9.82B	6.77B
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 Price: 1572.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1572 is below the 20-day moving average (MA) of 1593.95, above the 50-day MA of 1557.20, and above the 200-day MA of 1411.58, indicating a neutral trend. The MACD of 9.05 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 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
2175	72 Outperform	¥137.65B	19.41	―	1.81%	10.66%	0.41%
3939	72 Outperform	23.14B	22.52	23.99%	1.33%	13.39%	12.00%
6078	72 Outperform	44.14B	69.04	11.83%	1.60%	19.05%	-31.67%
4483	66 Neutral	288.96B	47.67	9.63%	0.36%	29.09%	87.01%
4480	60 Neutral	80.63B	55.48	13.85%	―	34.77%	-46.50%
3902	43 Neutral	23.55B	-32.19	―	1.08%	-0.58%	-260.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%