SMS Co., Ltd. (JP:2175)
:2175
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SMS Co., Ltd.
(2175)
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Rating:76Outperform
Price Target:
¥1,826.00
▲(20.05% Upside)
Action:UpgradedDate:01/23/26
The score is primarily supported by strong financial performance (healthy growth, high margins, and low leverage). Technicals are constructive but tempered by an overbought RSI indicating elevated pullback risk. Valuation is reasonable with a moderate P/E and a modest dividend yield.
Positive Factors
Margin Sustainability
Very high gross margin (82.09%) and solid net margin (9.93%) indicate durable pricing power and operational efficiency in messaging services. Sustained margins provide capacity to fund R&D and platform investment, supporting long-term competitiveness and cash returns.
Negative Factors
Free Cash Flow Decline
Free cash flow declined from 2024 to 2025 despite strong operating cash conversion (operating cash flow to net income ~0.96). If higher capex or working-capital needs persist, reduced FCF can limit reinvestment, dividend capacity, and balance sheet optionality over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
Very high gross margin (82.09%) and solid net margin (9.93%) indicate durable pricing power and operational efficiency in messaging services. Sustained margins provide capacity to fund R&D and platform investment, supporting long-term competitiveness and cash returns.
Read all positive factors
SMS Co., Ltd. (2175) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥148.85B
Dividend Yield2.09%
Average Volume (3M)367.91K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth7.27%
EPS Growth13.10%
CountryJP
Employees4,188
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-3.84
Shares Outstanding87,561,600
10 Day Avg. Volume290,600
30 Day Avg. Volume367,910
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)2.03
Price to Sales (P/S)1.58
P/FCF Ratio17.85
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)92.37
Revenue Forecast (FY)¥70.05B
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 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...
SMS Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.20B | 60.95B | 53.97B | 45.67B | 38.90B | 35.96B |
| Gross Profit | 51.00B | 50.04B | 44.09B | 37.20B | 31.96B | 29.82B |
| EBITDA | 10.91B | 10.15B | 11.73B | 10.18B | 8.80B | 7.66B |
| Net Income | 6.83B | 6.05B | 7.23B | 6.41B | 5.41B | 4.80B |
Balance Sheet | ||||||
| Total Assets | 72.33B | 76.54B | 72.48B | 65.11B | 56.60B | 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 | 28.20B | 26.69B | 26.60B | 26.78B |
| Stockholders Equity | 43.90B | 47.32B | 44.28B | 38.42B | 29.99B | 22.66B |
Cash Flow | ||||||
| Free Cash Flow | 3.09B | 5.38B | 9.33B | 8.22B | 9.61B | 6.39B |
| 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
Positive
1521.00
Price Trends
1678.10
Positive
1517.85
Positive
1504.25
Positive
Market Momentum
14.27
Negative
54.90
Neutral
83.51
Negative
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 1662.33, below the 50-day MA of 1678.10, and above the 200-day MA of 1504.25, indicating a bullish trend. The MACD of 14.27 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 83.51 is Negative, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥148.85B | -83.44 | ― | 2.09% | 7.27% | 13.10% | |
70 Outperform | ¥1.09T | 18.91 | 12.15% | 1.01% | 33.50% | 17.26% | |
63 Neutral | ¥65.71B | 228.03 | ― | 0.39% | 6.17% | -8918.66% | |
63 Neutral | ¥231.00B | 26.76 | ― | 0.43% | 20.55% | 48.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥68.06B | 77.03 | 5.76% | ― | 31.95% | -40.95% | |
44 Neutral | ¥2.66B | -4.28 | ― | ― | 16.19% | -4.42% |
* Healthcare Sector Average
JP:2175
SMS Co., Ltd.
1,704.00
634.09
59.27%
JP:2413
M3
1,564.00
-77.51
-4.72%
JP:4480
Medley
2,071.00
-1,204.00
-36.76%
JP:3902
Medical Data Vision Co.Ltd.
1,685.00
1,275.00
310.98%
JP:4438
Welby Inc.
320.00
14.00
4.58%
JP:4483
JMDC Inc.
3,590.00
557.75
18.39%
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.