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SMS Co., Ltd.
(2175)
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Rating:61Neutral
Price Target:
¥2,462.00
▲(61.87% Upside)
Action:Reiterated
Date:07/08/26
The score is driven primarily by mid-range fundamentals: strong and improving free cash flow and prior growth are offset by the 2026 earnings shock and reduced equity/asset base. Technicals add support via a strong uptrend, while valuation is constrained by a negative P/E and only a modest dividend yield.
Positive Factors
Robust free cash flow generation
Consistent positive operating and free cash flow — with a notable improvement in 2026 — provides durable liquidity and internal funding. This cash generation supports reinvestment in platforms, covers operating needs during earnings weakness, and preserves flexibility for capex, M&A or dividends over the medium term.
Negative Factors
2026 net loss despite operating profitability
A large 2026 net loss despite positive EBIT/EBITDA suggests significant below-the-line charges, impairments, or one-offs that weaken earnings quality. Such events erode predictability of reported profits, can consume reserves, and may recur if underlying asset issues or restructuring needs are unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow generation
Consistent positive operating and free cash flow — with a notable improvement in 2026 — provides durable liquidity and internal funding. This cash generation supports reinvestment in platforms, covers operating needs during earnings weakness, and preserves flexibility for capex, M&A or dividends over the medium term.
Read all positive factors
SMS Co., Ltd. (2175) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥213.04B
Dividend Yield1.21%
Average Volume (3M)367.91K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth6.21%
EPS Growth-347.81%
CountryJP
Employees4,660
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-174.15
Shares Outstanding87,561,600
10 Day Avg. Volume290,600
30 Day Avg. Volume367,910
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)5.07
Price to Sales (P/S)2.09
P/FCF Ratio15.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)77.71
Revenue Forecast (FY)¥71.14B
SMS Co., Ltd. Business Overview & Revenue Model
Company Description
SMS Co., Ltd. provides information infrastructure for the nursing care, medical care, career, healthcare, and elderly care field business areas in Japan and internationally. It operates an online community site for professionals or families engage...
How the Company Makes Money
SMS primarily generates revenue by operating online platforms and services that connect healthcare and nursing care employers with professionals and job seekers, and by providing sector-specific business support services. Key revenue streams inclu...
SMS Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 64.73B | 60.95B | 53.97B | 45.67B | 38.90B |
| Gross Profit | 52.75B | 50.04B | 44.09B | 37.20B | 31.96B |
| EBITDA | 11.41B | 10.15B | 11.73B | 10.18B | 8.80B |
| Net Income | -14.32B | 6.05B | 7.23B | 6.41B | 5.41B |
Balance Sheet | |||||
| Total Assets | 52.77B | 76.54B | 72.48B | 65.11B | 56.60B |
| Cash, Cash Equivalents and Short-Term Investments | 13.73B | 16.18B | 18.24B | 16.96B | 14.64B |
| Total Debt | 7.23B | 8.05B | 6.43B | 8.33B | 10.37B |
| Total Liabilities | 26.05B | 29.22B | 28.20B | 26.69B | 26.60B |
| Stockholders Equity | 26.72B | 47.32B | 44.28B | 38.42B | 29.99B |
Cash Flow | |||||
| Free Cash Flow | 8.65B | 5.38B | 9.33B | 8.22B | 9.61B |
| Operating Cash Flow | 8.80B | 5.81B | 9.77B | 8.50B | 9.82B |
| Investing Cash Flow | -4.13B | -4.07B | -3.74B | -3.76B | -2.08B |
| Financing Cash Flow | -7.35B | -4.15B | -5.02B | -3.04B | -3.99B |
SMS Co., Ltd. Technical Analysis
Positive
1521.00
Price Trends
2083.40
Positive
1890.28
Positive
1671.44
Positive
Market Momentum
124.46
Negative
66.58
Neutral
68.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2175, the sentiment is Positive. The current price of 1521 is below the 20-day moving average (MA) of 2276.70, below the 50-day MA of 2083.40, and below the 200-day MA of 1671.44, indicating a bullish trend. The MACD of 124.46 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2175.
SMS Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥1.30T | 26.63 | 12.15% | 1.01% | 23.33% | 21.65% | |
61 Neutral | ¥213.04B | -14.07 | ― | 2.09% | 6.21% | -347.81% | |
60 Neutral | ¥206.48B | 31.96 | ― | 0.43% | 20.95% | 13.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥67.76B | 67.45 | 5.76% | ― | 23.30% | -56.05% | |
43 Neutral | ¥2.00B | -3.79 | ― | ― | 18.86% | 38.80% |
* Healthcare Sector Average
JP:2175
SMS Co., Ltd.
2,433.00
1,035.93
74.15%
JP:2413
M3
1,919.00
33.19
1.76%
JP:4480
Medley
2,070.00
-1,040.00
-33.44%
JP:4438
Welby Inc.
237.00
-123.00
-34.17%
JP:4483
JMDC Inc.
3,155.00
-649.49
-17.07%
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.