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

• Market Cap: ¥133.18B
• Dividend Yield: 1.87%
• Average Volume (3M): 284.47K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.79
• 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: 330,440
• 30 Day Avg. Volume: 284,473
• 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

• Rating: 66 Neutral
• Price Target: ¥1,642.00 ▲(7.96% Upside)

The overall stock score of 66 reflects SMS Co., Ltd.'s strong financial performance and reasonable valuation. However, technical indicators suggest potential short-term bearish momentum, which tempers the overall outlook. The absence of earnings call data and corporate events means these factors do not influence the score.

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 engaged in nursing care; a certification course information portal; and a housing information portal for seniors, as well as a home-delivered meal search site. The company also operates various sites that provide online community, mail order, and magazines/book services for nurses; services for pharmacists and pharmacies; hospital management and administrator services; and consulting services for national and local governments. In addition, it provides recruiting agent services, as well as recruiting ads services for professionals and operators in nursing and medical care fields. Further, the company offers medical-related services. SMS Co., Ltd. was incorporated in 2003 and is based in Tokyo, Japan.

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. 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	8.05B	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: Negative
• Last Price: 1521.00
• 50DMA: Negative
• 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 Negative. The current price of 1521 is below the 20-day moving average (MA) of 1571.75, below the 50-day MA of 1581.38, and above the 200-day MA of 1407.72, indicating a neutral trend. The MACD of -8.15 indicates Positive momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2175.

SMS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6078	73 Outperform	¥45.95B	73.27	―	1.53%	19.05%	-31.67%
4483	66 Neutral	¥307.20B	49.52	―	0.34%	29.09%	87.01%
2175	66 Neutral	¥133.18B	18.73	―	1.87%	10.66%	0.41%
3939	65 Neutral	¥22.00B	21.63	―	1.62%	13.39%	12.00%
4480	60 Neutral	€70.97B	48.83	8.00%	―	34.77%	-46.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3902	43 Neutral	¥17.67B	4,465.71	―	1.19%	-0.58%	-260.22%