Sobal Corporation (2186) AI Stock Analysis

• Market Cap: ¥7.09B
• Dividend Yield: 3.65%
• Average Volume (3M): 5.27K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 889
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 16.76
• Shares Outstanding: 8,167,498
• 10 Day Avg. Volume: 2,520
• 30 Day Avg. Volume: 5,270
• PEG Ratio: -1.04
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 8.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥990.00 ▲(8.43% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by strong financial stability (notably the debt-free balance sheet) and generally solid cash generation, partially offset by margin compression and some cash-flow variability. Technical indicators are mildly bearish/sideways, while valuation is supportive due to a reasonable P/E and a relatively high dividend yield.

Sobal Corporation Business Overview & Revenue Model

Company Description

Sobal Corporation engages in the development of embedded software for digital appliances in Japan. The company researches and develops wireless communication technologies; offers various engineering services, including worker dispatching, trustee business, and contract work; technical skills; and manual production services. It also provides firmware and device drivers for digital cameras, video and signage products, televisions, liquid-crystal projectors, various recorders, switchers, digital complex machines, laser and ink-jet printers, sublimation and label printers, scanners, handy terminals, and embedded browsers. In addition, the company offers application software, such as video editing and delivery, poster creation supporting, document and print management, and car navigation software, as well as graphic library and various simulators; and Web application services for answering machines, portal sites, medical information transmission systems, and various internal systems, as well as employment support for schools. Further, the company provides hardware products, which include image filter, display, and analysis circuits, as well as various arithmetic circuits. Sobal Corporation was incorporated in 1983 and is headquartered in Tokyo, Japan.

How the Company Makes Money

null

Sobal Corporation Financial Statement Overview

Summary

Financials are solid overall: a very conservative, debt-free balance sheet (88) and generally good cash conversion (72) support stability. Offsetting factors include margin compression from 2023 highs (net margin ~5% in 2025) and cash-flow volatility (notably weak OCF in 2024), despite a clear revenue re-acceleration in 2025 (income statement 66).

Income Statement

Revenue has been broadly flat from 2022–2024, followed by a clear re-acceleration in 2025 (annual report) with strong growth. Profitability is positive, but margins have compressed versus the 2023 peak, with net margin declining from the mid/high-single-digits to ~5% in 2025. Overall, the business shows solid profitability and a strong recent growth inflection, tempered by margin volatility and uneven earnings trajectory.

Balance Sheet

The balance sheet is very conservative with zero debt across all periods, reducing financial risk and improving resilience. Equity has steadily grown over time, and returns on equity have remained healthy (roughly ~10%–17%), though down from the 2023 high. Strength is clearly balance-sheet stability; the main watch-out is that profitability (and therefore return on equity) has softened from peak levels.

Cash Flow

Cash generation is generally strong relative to earnings, with free cash flow closely tracking net income in most years (near ~1x). However, cash flow has been volatile: operating cash flow was unusually weak in 2024, then rebounded sharply in 2025 (annual report). Overall quality of earnings looks good on conversion over time, but year-to-year variability keeps this from scoring higher.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	8.80B	8.68B	8.17B	8.16B	8.16B	7.53B
Gross Profit	1.64B	1.65B	1.61B	1.62B	1.56B	1.18B
EBITDA	627.98M	654.64M	686.22M	656.78M	618.70M	273.61M
Net Income	412.17M	432.19M	513.56M	683.22M	447.16M	378.56M
Balance Sheet
Total Assets	5.60B	5.69B	5.10B	5.18B	4.65B	4.28B
Cash, Cash Equivalents and Short-Term Investments	3.36B	3.80B	2.95B	3.13B	2.46B	2.29B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.19B	1.35B	933.78M	1.27B	1.22B	1.05B
Stockholders Equity	4.42B	4.34B	4.16B	3.91B	3.43B	3.23B
Cash Flow
Free Cash Flow	0.00	825.99M	78.72M	515.75M	419.87M	356.06M
Operating Cash Flow	0.00	844.11M	95.99M	525.46M	430.86M	369.44M
Investing Cash Flow	0.00	270.67M	-17.27M	400.46M	-10.72M	-13.38M
Financing Cash Flow	0.00	-259.14M	-258.63M	-262.37M	-250.55M	-242.81M

Sobal Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.02B	21.40	―	0.57%	21.03%	32.29%
2186	69 Neutral	¥7.09B	13.59	―	3.65%	―	―
4397	68 Neutral	¥6.79B	27.15	―	―	11.32%	―
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4015	57 Neutral	¥7.22B	37.46	―	―	49.33%	104.72%
4484	55 Neutral	¥4.99B	29.81	―	―	4.36%	-0.02%