Softcreate Holdings Corp. (3371) AI Stock Analysis

• Market Cap: ¥57.31B
• Dividend Yield: 2.59%
• Average Volume (3M): 26.37K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.63
• Revenue Growth: 10.46%
• EPS Growth: 8.98%
• Country: JP
• Employees: 963
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 41.21
• Shares Outstanding: 27,550,278
• 10 Day Avg. Volume: 18,950
• 30 Day Avg. Volume: 26,366
• PEG Ratio: 1.50
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 10.09
• 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: 77 Outperform
• Price Target: ―

Softcreate Holdings Corp. scores a solid 77, driven by strong financial performance, including robust revenue growth, profitability, and a no-debt position. The technical indicators suggest moderate potential for short-term upward price momentum, though caution is advised due to the nearing overbought conditions. The valuation appears fair, with a reasonable P/E ratio and an attractive dividend yield. No significant earnings call details or corporate events affected this analysis.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and provides flexibility for strategic investments, enhancing long-term stability.

Profitability

Strong profitability margins indicate efficient operations and cost management, supporting sustainable earnings and shareholder value.

Negative Factors

Cash Flow Data Limitations

Incomplete cash flow data can hinder accurate financial analysis, potentially obscuring cash management issues that may affect future operations.

Limited Cash Flow Insight

Lack of detailed cash flow data restricts visibility into cash generation and allocation, which is crucial for assessing financial health and strategic flexibility.

Market Volatility

Market volatility can impact investor confidence and stock performance, potentially affecting capital raising and strategic initiatives.

Softcreate Holdings Corp. Business Overview & Revenue Model

Company Description

Softcreate Holdings Corp. (3371) is a Japan-based company primarily engaged in the provision of information technology (IT) services. The company operates through several business segments, including IT Infrastructure, Solution, and Other. Softcreate Holdings offers a range of products and services, such as IT infrastructure management, cloud solutions, cybersecurity services, and IT consulting. Its clientele spans various industries, providing tailored solutions to meet the diverse technological needs of businesses.

How the Company Makes Money

Softcreate Holdings Corp. generates revenue through its multiple business segments, with IT Infrastructure being a significant contributor. The company earns income by providing IT infrastructure management services, which include system integration, managed services, and maintenance. Additionally, it offers cloud-based solutions that enable businesses to transition to scalable and flexible IT environments, thus driving subscription-based revenue. The cybersecurity services offered by Softcreate Holdings provide another revenue stream, as companies increasingly prioritize protecting their digital assets. Moreover, the company's IT consulting services cater to businesses seeking expert guidance on technology strategy and implementation, further adding to its earnings. Strategic partnerships with major technology vendors enhance its service offerings and expand its market reach, contributing to its overall revenue growth.

Softcreate Holdings Corp. Financial Statement Overview

Summary

Softcreate Holdings Corp. demonstrates strong financial performance with excellent revenue growth, profitability, and a robust balance sheet. The company's no-debt position and high equity ratio significantly reduce financial risk. Cash flow management is efficient, though additional data would enhance the analysis. The company is well-positioned within the Information Technology Services industry.

Income Statement

Softcreate Holdings Corp. has shown a strong revenue growth trajectory with a 22.8% increase from 2023 to TTM. The gross profit margin remains healthy at 41.3% for TTM, indicating efficient cost management. Net profit margin stands at 10.7%, reflecting solid profitability. The EBIT and EBITDA margins are robust at 16.8% and 19.8% respectively, underscoring strong operational performance. The company demonstrates consistent growth and profitability in the Information Technology Services industry.

Balance Sheet

The balance sheet of Softcreate Holdings Corp. is highly stable with zero total debt, highlighting a strong financial position. The equity ratio is impressive at 62.2% for TTM, indicating a well-capitalized structure. Return on equity (ROE) is also strong at 15.4%, showcasing effective utilization of shareholder funds. The company's balance sheet reflects exceptional financial health and low risk exposure.

Cash Flow

The cash flow analysis reveals a stable financial position with a substantial free cash flow of 5,164.3 million JPY in 2024. However, the TTM data lacks specific cash flow details, which limits a comprehensive analysis. The operating cash flow to net income ratio was 1.99 in 2024, indicating efficient conversion of income to cash. Overall, cash flow management appears effective, but more detailed TTM data would provide a clearer picture.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.74B	30.95B	27.91B	24.25B	21.23B	24.24B
Gross Profit	13.18B	12.86B	11.92B	10.32B	9.25B	7.79B
EBITDA	7.07B	6.99B	6.35B	5.22B	4.80B	4.06B
Net Income	3.54B	3.55B	3.26B	2.74B	2.36B	1.82B
Balance Sheet
Total Assets	34.67B	35.59B	31.30B	25.19B	22.79B	21.14B
Cash, Cash Equivalents and Short-Term Investments	15.22B	14.96B	13.51B	9.43B	9.32B	9.98B
Total Debt	1.86M	0.00	0.00	11.84M	48.91M	93.53M
Total Liabilities	9.79B	10.99B	9.65B	7.66B	7.60B	6.75B
Stockholders Equity	21.60B	21.38B	19.05B	15.33B	13.25B	12.73B
Cash Flow
Free Cash Flow	0.00	4.87B	5.16B	1.30B	3.09B	2.87B
Operating Cash Flow	0.00	5.00B	6.48B	2.57B	3.86B	3.30B
Investing Cash Flow	0.00	-1.98B	-1.39B	-1.33B	-1.70B	-406.19M
Financing Cash Flow	0.00	-1.56B	-1.02B	-1.13B	-2.53B	-407.67M

Softcreate Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2141.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3371, the sentiment is Positive. The current price of 2141 is above the 20-day moving average (MA) of 2105.80, below the 50-day MA of 2206.10, and above the 200-day MA of 2109.46, indicating a neutral trend. The MACD of -21.89 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3371.

Softcreate Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3371	77 Outperform	¥57.31B	14.65	―	2.59%	10.46%	8.98%
3844	73 Outperform	¥50.52B	15.40	17.50%	3.14%	5.62%	3.81%
4674	72 Outperform	¥60.44B	13.55	14.67%	3.24%	10.02%	16.48%
3916	72 Outperform	¥40.68B	17.60	―	2.56%	19.04%	30.67%
3636	71 Outperform	¥78.29B	12.19	―	3.30%	5.28%	28.90%
9739	68 Neutral	¥37.08B	10.83	―	3.38%	-0.10%	-19.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%