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Softfront Holdings (JP:2321)
:2321
Japanese Market
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Softfront Holdings (2321) AI Stock Analysis

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JP:2321

Softfront Holdings

(2321)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥185.00
▼(-11.06% Downside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by solid balance sheet positioning and improved recent cash generation, which reduce financial risk, but is held back by continued net losses and a revenue decline in 2025. Technicals are mixed with near-term weakness, and valuation is pressured due to the negative P/E.
Positive Factors
Low Leverage
Softfront's effectively no debt position and low leverage materially reduce refinancing and liquidity risk, giving management runway to fund operations or strategic initiatives from equity and cash. This durable balance sheet resilience supports operations across economic cycles and buys time for execution.
Negative Factors
Recurring Net Losses
Persistent net losses indicate the company has not yet converted top-line or margin gains into durable bottom-line profitability. Continued losses constrain retained earnings, limit ability to self-finance growth, and raise execution pressure to achieve consistent positive net income.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Softfront's effectively no debt position and low leverage materially reduce refinancing and liquidity risk, giving management runway to fund operations or strategic initiatives from equity and cash. This durable balance sheet resilience supports operations across economic cycles and buys time for execution.
Read all positive factors

Softfront Holdings (2321) vs. iShares MSCI Japan ETF (EWJ)

Softfront Holdings Business Overview & Revenue Model

Company Description
Softfront Holdings provides communication software and services in Japan. It is involved in the development and sale of products and services related to real-time communication using voice, video, messaging, and related commissioned development, a...
How the Company Makes Money
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Softfront Holdings Financial Statement Overview

Summary
Balance sheet strength and low leverage (including effectively no debt in 2025) plus recently positive operating cash flow and free cash flow support a mid-range score. Offsetting this, profitability is still weak with recurring net losses and negative returns, and revenue growth turned negative in 2025, limiting confidence in a durable turnaround.
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
61
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue862.44M823.60M889.51M763.83M377.80M310.10M
Gross Profit453.75M408.24M285.62M364.70M205.85M198.31M
EBITDA64.33M-27.01M-32.17M35.80M7.23M58.67M
Net Income-54.57M-81.17M-317.02M-59.41M-29.06M54.30M
Balance Sheet
Total Assets2.25B1.71B515.45M2.02B819.70M418.14M
Cash, Cash Equivalents and Short-Term Investments2.01B1.42B206.03M157.00M292.52M217.17M
Total Debt0.000.009.98M20.38M32.49M0.00
Total Liabilities290.32M417.83M343.75M1.52B264.11M212.96M
Stockholders Equity1.90B1.23B132.35M424.97M484.16M205.18M
Cash Flow
Free Cash Flow0.0040.30M33.37M-123.80M-44.30M2.54M
Operating Cash Flow0.0060.68M64.94M-44.86M9.16M47.24M
Investing Cash Flow0.00-14.41M-29.91M-78.46M39.82M-24.35M
Financing Cash Flow0.001.17B14.00M-12.19M26.36M12.60M

Softfront Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price208.00
Price Trends
50DMA
241.36
Negative
100DMA
223.36
Negative
200DMA
199.54
Negative
Market Momentum
MACD
-21.55
Positive
RSI
37.16
Neutral
STOCH
4.79
Positive
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 below the 20-day moving average (MA) of 209.75, below the 50-day MA of 241.36, and above the 200-day MA of 199.54, indicating a bearish trend. The MACD of -21.55 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 4.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2321.

Softfront Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥26.01B13.844.58%6.58%35.23%
67
Neutral
¥9.22B11.670.70%9.89%24.49%
66
Neutral
¥4.79B21.996.80%8.07%
65
Neutral
¥11.03B7.531.20%9.80%7.98%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
¥12.07B23.5912.50%
52
Neutral
¥9.25B-39.56-0.84%-1116.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2321
Softfront Holdings
178.00
84.00
89.36%
JP:4168
Yappli, Inc.
710.00
7.29
1.04%
JP:4448
Chatwork Co.Ltd.
283.00
-203.00
-41.77%
JP:5033
Nulab Inc.
738.00
-401.00
-35.21%
JP:5244
jig.jp co.,ltd.
259.00
17.16
7.10%
JP:9629
PCA Corporation
1,376.00
-335.23
-19.59%
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.Date of analysis: Mar 25, 2026