Softcreate Holdings Corp. (3371) AI Stock Analysis

• Market Cap: ¥55.81B
• Dividend Yield: 2.82%
• Average Volume (3M): 23.00K
• Price to Earnings (P/E): 13.4
• 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): 42.36
• Shares Outstanding: 27,550,278
• 10 Day Avg. Volume: 31,410
• 30 Day Avg. Volume: 23,000
• 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: 82 Outperform
• Price Target: ¥2,531.00 ▲(18.22% Upside)

The score is driven primarily by strong financial quality (consistent growth, solid profitability, and virtually no leverage). Technicals are supportive but somewhat stretched near-term, and valuation looks reasonable with a mid-teens P/E and a ~2.7% dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates strong market demand and effective business strategies, enhancing long-term sustainability.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and increases flexibility for future investments and growth opportunities.

Strategic Acquisition

Acquiring MGRe, Inc. could expand service offerings and strengthen market position, supporting long-term profitability and competitive edge.

Negative Factors

Margin Pressure

Slight margin decline suggests cost pressures, which could impact profitability if not managed, affecting long-term financial performance.

Choppy Cash Flow

Inconsistent cash flow can hinder financial planning and investment capacity, potentially affecting long-term business stability.

Cash Conversion Issues

Weak cash conversion may limit liquidity, affecting the company's ability to reinvest in growth and manage operational needs effectively.

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

Strong fundamentals supported by steady multi-year revenue growth, healthy operating and net margins, and an exceptionally conservative balance sheet with effectively no debt. Key watch-outs are slightly softer margins versus the prior year and choppy operating cash flow/cash conversion.

Income Statement

Revenue shows a solid multi-year upward trend (¥23.8B in 2020 to ¥31.0B in 2025), with growth re-accelerating most recently. Profitability is strong for the sector, with consistently healthy operating and net margins (2025 net margin ~11.5% and operating margin ~18.6%). A mild watch-out is that gross and operating margins have eased slightly versus the prior year, suggesting some incremental cost pressure even as earnings continue to grow.

Balance Sheet

The balance sheet is very conservatively positioned with effectively no debt (2024–2025 debt at zero; only de minimis debt in earlier years), which materially lowers financial risk. Equity has grown meaningfully over time alongside rising assets, supporting balance-sheet flexibility. Returns on equity are consistently strong (mid-to-high teens), though a slight dip in 2025 versus 2024 indicates returns are stable but not accelerating.

Cash Flow

Cash generation is generally solid: free cash flow is high and in 2025 is nearly equal to net income (free cash flow to net income ~0.97), indicating good earnings quality. However, operating cash flow has been choppy year-to-year (down in 2023, rebound in 2024, lower again in 2025), and cash conversion from operating profit is not consistently strong (2025 operating cash flow relative to operating profit is meaningfully lower than 2024).

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	2.37M	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: Negative
• Last Price: 2141.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3371, the sentiment is Negative. The current price of 2141 is above the 20-day moving average (MA) of 2138.75, above the 50-day MA of 2120.56, and below the 200-day MA of 2143.72, indicating a bearish trend. The MACD of -18.47 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 29.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	82 Outperform	¥55.81B	13.41	―	2.82%	10.46%	8.98%
9739	76 Outperform	¥36.71B	10.74	―	3.38%	-0.10%	-19.50%
3636	75 Outperform	¥76.39B	12.18	―	3.28%	5.28%	28.90%
3844	73 Outperform	¥50.27B	15.72	17.50%	2.88%	5.62%	3.81%
4674	72 Outperform	¥64.64B	15.16	14.67%	2.91%	10.02%	16.48%
3916	72 Outperform	¥36.90B	16.52	―	2.45%	19.04%	30.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Softcreate Holdings Corp. Corporate Events

Softcreate Holdings Corp. Explores Acquisition of MGRe, Inc.

Softcreate Holdings Corp. is considering acquiring approximately 80% of MGRe, Inc.’s issued stock to enhance its e-commerce solutions business. MGRe, Inc. specializes in developing and operating the ‘MGRe’ application marketing platform, which supports mobile application development and marketing. This acquisition is expected to expand Softcreate’s service offerings and business areas, potentially strengthening its market position and profitability.

Softcreate Holdings Corp. Reports Positive Semi-Annual Financial Results

Softcreate Holdings Corp. reported its consolidated financial results for the six months ending September 30, 2025, showing a positive performance with an increase in net sales and profits compared to the previous year. The company’s strategic initiatives have led to an 8.8% rise in net sales and a 10.3% increase in ordinary profit, indicating strong operational efficiency and market positioning.

Softcreate Holdings Announces Subsidiary Merger to Boost E-commerce

Softcreate Holdings Corp. announced a merger between its subsidiaries, visumo Co. and Revico Co., with visumo as the surviving entity. This strategic move aims to strengthen the company’s e-commerce business foundation and enhance operational efficiency, potentially impacting its market positioning and stakeholder interests.