Soliton Systems KK (JP:3040)
:3040
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Soliton Systems KK
(3040)
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Rating:82Outperform
Price Target:
¥2,653.00
▲(29.67% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by strong fundamentals—improving margins and an exceptionally low-debt balance sheet with solid ROE—supported by attractive valuation (low P/E and a meaningful dividend). Technicals are positive but overbought signals (RSI/Stoch) temper the score due to elevated near-term pullback risk.
Positive Factors
Conservative balance sheet
Very low debt-to-equity (~0.7% in 2025) and a rising equity base materially reduce financial risk, providing flexibility for capital allocation. This conservatism supports investment, cushions downturns, and preserves optionality for M&A or R&D without pressuring cash flow.
Negative Factors
Choppy revenue trajectory
Top-line inconsistency—multi-year declines followed by a modest rebound—reduces predictability of growth and makes capacity planning and strategic investment harder. Persistent uneven revenue undermines scale economics and raises execution risk for long-term expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low debt-to-equity (~0.7% in 2025) and a rising equity base materially reduce financial risk, providing flexibility for capital allocation. This conservatism supports investment, cushions downturns, and preserves optionality for M&A or R&D without pressuring cash flow.
Read all positive factors
Soliton Systems KK (3040) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥40.52B
Dividend Yield3.09%
Average Volume (3M)114.60K
Price to Earnings (P/E)15.7
Beta (1Y)0.88
Revenue Growth9.27%
EPS Growth48.93%
CountryJP
Employees678
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)92.63
Shares Outstanding19,738,888
10 Day Avg. Volume100,740
30 Day Avg. Volume114,603
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)2.88
Price to Sales (P/S)1.93
P/FCF Ratio11.11
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
Soliton Systems KK Business Overview & Revenue Model
Company Description
Operating both within Japan and on an international scale, Soliton Systems K.K. is a technology firm specializing in IT security, remote live broadcasting, and embedded system solutions. Its comprehensive portfolio of cybersecurity offerings inclu...
How the Company Makes Money
Soliton Systems makes money primarily by selling its own software and related IT solutions and by providing associated services. Key revenue streams include: (1) product revenue from licensing/sales of proprietary software and security/network sol...
Soliton Systems KK Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.77B | 19.76B | 18.61B | 19.06B | 19.76B | 17.39B |
| Gross Profit | 8.39B | 9.24B | 8.29B | 8.56B | 7.63B | 7.82B |
| EBITDA | 2.34B | 3.26B | 2.52B | 3.12B | 2.77B | 2.98B |
| Net Income | 1.72B | 2.30B | 1.72B | 1.94B | 1.59B | 1.87B |
Balance Sheet | ||||||
| Total Assets | 23.25B | 26.23B | 23.29B | 22.63B | 19.26B | 17.32B |
| Cash, Cash Equivalents and Short-Term Investments | 15.38B | 16.86B | 14.69B | 13.39B | 10.20B | 8.45B |
| Total Debt | 171.00M | 97.00M | 191.00M | 133.00M | 157.00M | 157.00M |
| Total Liabilities | 11.15B | 12.97B | 11.00B | 11.49B | 9.65B | 8.84B |
| Stockholders Equity | 12.08B | 13.25B | 12.27B | 11.12B | 9.60B | 8.46B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.43B | 1.84B | 3.55B | 2.20B | 2.03B |
| Operating Cash Flow | 0.00 | 3.60B | 2.04B | 3.64B | 2.30B | 2.11B |
| Investing Cash Flow | 0.00 | -10.17B | -237.00M | -57.00M | -309.00M | -495.00M |
| Financing Cash Flow | 0.00 | -1.27B | -507.00M | -397.00M | -252.00M | -481.00M |
Soliton Systems KK Technical Analysis
Positive
2046.00
Price Trends
1964.28
Positive
1932.52
Positive
1817.87
Positive
Market Momentum
39.00
Positive
61.97
Neutral
62.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3040, the sentiment is Positive. The current price of 2046 is below the 20-day moving average (MA) of 2144.40, above the 50-day MA of 1964.28, and above the 200-day MA of 1817.87, indicating a bullish trend. The MACD of 39.00 indicates Positive momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 62.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3040.
Soliton Systems KK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥40.52B | 15.72 | 19.71% | 3.09% | 9.27% | 48.93% | |
75 Outperform | ¥17.32B | 19.14 | ― | 0.17% | 29.37% | 66.06% | |
73 Outperform | ¥23.44B | 21.20 | ― | ― | 10.88% | -5.32% | |
70 Outperform | ¥49.76B | 32.89 | ― | 0.90% | 25.23% | 46.99% | |
68 Neutral | ¥33.64B | 22.09 | ― | 0.39% | 22.45% | 23.34% | |
67 Neutral | ¥45.28B | 71.41 | ― | ― | 38.15% | 78.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3040
Soliton Systems KK
2,024.00
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Soliton Systems KK Corporate Events
Soliton Systems to Grant Restricted Stock from Treasury Shares to Boost Employee Retention
May 21, 2026
Soliton Systems K.K. has approved the disposal of 9,900 treasury shares as restricted stock compensation for 16 employees, priced at ¥2,061 per share for a total of ¥20.4 million, with the payment date set for June 18, 2026. The restrict...
Soliton Systems Posts Strong Q1 Profit Surge and Lifts Annual Dividend Outlook
May 13, 2026
Soliton Systems reported strong results for the three months ended March 31, 2026, with net sales rising 12.7% year on year to ¥5,165 million and profit attributable to owners of parent jumping 71.1% to ¥685 million, reflecting sharply i...
Soliton Systems Affirms Independence Despite Major Stake by Affiliated Asset Firm
Mar 31, 2026
Soliton Systems has disclosed that Yugen Kaisha Zen-Noboks, a personal asset management company of representative director Nobuo Kamata, holds 46.4% of its voting rights and is classified as an other affiliated company. Despite this significant st...
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.