Want to see JP:2321 full AI Analyst Report?
Top Page
Softfront Holdings
(2321)
Select Model
Select Model
Rating:48Neutral
Price Target:
¥147.00
▼(-29.33% Downside)
Action:Reiterated
Date:07/03/26
The score is held down primarily by weak financial performance—ongoing losses and materially negative operating/free cash flow in FY2026—despite a strong, low-debt balance sheet. Technicals are mixed (short-term improvement but still below key longer-term averages), and valuation is constrained by negative earnings and no dividend yield data.
Positive Factors
Balance sheet strength
Near-zero debt and a materially larger equity base provide a durable financial cushion. This low leverage lowers refinancing and bankruptcy risk, giving management runway to fund operations, absorb losses, and pursue strategic initiatives without immediate external financing pressure over the next several months.
Negative Factors
Negative cash flow in FY2026
Meaningful negative operating and free cash flow materially erode liquidity and force management to use reserves or seek financing. Over a multi-month horizon this constrains discretionary spending, delays strategic investments, and raises the likelihood of dilution or covenant-driven restrictions if losses persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Near-zero debt and a materially larger equity base provide a durable financial cushion. This low leverage lowers refinancing and bankruptcy risk, giving management runway to fund operations, absorb losses, and pursue strategic initiatives without immediate external financing pressure over the next several months.
Read all positive factors
Softfront Holdings (2321) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.17B
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth16.57%
EPS Growth26.56%
CountryJP
Employees52
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.93
Shares Outstanding51,987,400
10 Day Avg. Volume563,920
30 Day Avg. Volume1,035,520
Financial Highlights & Ratios
PEG Ratio4.43
Price to Book (P/B)6.38
Price to Sales (P/S)12.08
P/FCF Ratio-48.29
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)N/A
Revenue Forecast (FY)N/A
Softfront Holdings Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, Softfront Holdings, established in 1997, specializes in providing communication software and related services across the country. The company's core activities encompass the creation and distribution of products and ...
How the Company Makes Money
null...
Softfront Holdings Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
76
Positive
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 960.06M | 823.60M | 889.51M | 763.83M | 377.80M |
| Gross Profit | 419.49M | 408.24M | 285.62M | 364.70M | 205.85M |
| EBITDA | -78.47M | -27.01M | -32.17M | 35.80M | 7.23M |
| Net Income | -99.47M | -81.17M | -317.02M | -59.41M | -29.06M |
Balance Sheet | |||||
| Total Assets | 2.21B | 1.71B | 515.45M | 2.02B | 819.70M |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.42B | 206.03M | 157.00M | 292.52M |
| Total Debt | 0.00 | 0.00 | 9.98M | 20.38M | 32.49M |
| Total Liabilities | 342.34M | 417.83M | 343.75M | 1.52B | 264.11M |
| Stockholders Equity | 1.82B | 1.23B | 132.35M | 424.97M | 484.16M |
Cash Flow | |||||
| Free Cash Flow | -240.08M | 40.30M | 33.37M | -123.80M | -44.30M |
| Operating Cash Flow | -219.95M | 60.68M | 64.94M | -44.86M | 9.16M |
| Investing Cash Flow | -76.74M | -14.41M | -29.91M | -78.46M | 39.82M |
| Financing Cash Flow | 581.64M | 1.17B | 14.00M | -12.19M | 26.36M |
Softfront Holdings Technical Analysis
Negative
208.00
Price Trends
148.92
Negative
194.85
Negative
198.64
Negative
Market Momentum
-1.75
Negative
47.13
Neutral
48.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2321, the sentiment is Negative. The current price of 208 is above the 20-day moving average (MA) of 135.35, above the 50-day MA of 148.92, and above the 200-day MA of 198.64, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2321.
Softfront Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥7.75B | 6.66 | ― | 1.20% | 6.05% | 8.00% | |
72 Outperform | ¥5.91B | 33.41 | ― | ― | 6.84% | -67.70% | |
70 Outperform | ¥26.69B | 12.09 | ― | 4.58% | 6.58% | 35.23% | |
67 Neutral | ¥10.38B | 9.54 | ― | 0.70% | 12.98% | 80.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥12.28B | 28.23 | ― | ― | 12.68% | ― | |
48 Neutral | ¥7.17B | -74.71 | ― | ― | 16.57% | 26.56% |
* Technology Sector Average
JP:2321
Softfront Holdings
144.00
30.00
26.32%
JP:4168
Yappli, Inc.
813.00
43.67
5.68%
JP:4448
Chatwork Co.Ltd.
297.00
-173.00
-36.81%
JP:5033
Nulab Inc.
926.00
56.00
6.44%
JP:5244
jig.jp co.,ltd.
185.00
-78.55
-29.81%
JP:9629
PCA Corporation
1,411.00
-295.51
-17.32%
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.