Sockets Inc. (3634) AI Stock Analysis

• Market Cap: ¥1.39B
• Dividend Yield: 0.53%
• Average Volume (3M): 23.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -0.79%
• EPS Growth: -129.45%
• Country: JP
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -19.02
• Shares Outstanding: 2,477,400
• 10 Day Avg. Volume: 3,120
• 30 Day Avg. Volume: 23,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 54 Neutral
• Price Target: ―

Sockets Inc. presents a mixed financial picture. The company's strong equity position and absence of debt are positives, but challenges in profitability and cash flow generation weigh heavily on its outlook. Technical indicators suggest stable but not strong market momentum, while valuation metrics point to concerns about overvaluation due to negative earnings.

Sockets Inc. Business Overview & Revenue Model

Company Description

Sockets Inc. (3634) is a technology company specializing in the development and distribution of innovative software solutions and electronic components. Operating within the tech industry, the company offers a range of products including integrated circuits, software development tools, and electronic connectors, catering to both consumer electronics and industrial applications.

How the Company Makes Money

Sockets Inc. generates revenue through the sale of its electronic components and software solutions. The company has established key partnerships with various electronics manufacturers and distributors, allowing it to reach a wide market. Revenue streams include direct sales of its proprietary products, licensing fees from software tools, and long-term supply contracts with major industry players. Additionally, Sockets Inc. benefits from providing custom engineering services and technical support to its clients, further contributing to its earnings.

Sockets Inc. Financial Statement Overview

Summary

Sockets Inc. demonstrates financial stability with no debt and a strong equity position. However, it struggles with profitability and cash flow generation, as indicated by negative revenue growth and profitability margins. The company needs to focus on improving operational efficiency and generating positive cash flows.

Income Statement

The company has faced declining revenues over the past year, with a revenue decrease of approximately 1.5%. Both Gross Profit Margin and Net Profit Margin are negative, indicating operational inefficiencies and a lack of profitability. The EBIT and EBITDA margins have also been negative, showing ongoing challenges in controlling operating costs.

Balance Sheet

The company maintains a strong equity position with no debt, indicated by a Debt-to-Equity Ratio of 0. The Equity Ratio stands at 72.73%, reflecting financial stability and resilience. However, the negative Return on Equity of -14.2% highlights profitability challenges.

Cash Flow

The Free Cash Flow is negative, but there has been a significant improvement in Operating Cash Flow compared to previous periods. The Operating Cash Flow to Net Income Ratio shows improvement, although Free Cash Flow to Net Income Ratio remains unfavorable, indicating challenges in generating free cash flow from operations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.04B	1.02B	994.61M	873.19M	994.29M
Gross Profit	475.93M	468.71M	506.26M	425.49M	469.92M
EBITDA	-138.50M	-79.15M	-27.82M	-83.17M	8.99M
Net Income	-139.13M	-100.26M	-26.89M	-150.24M	-51.44M
Balance Sheet
Total Assets	814.73M	970.85M	1.04B	1.05B	1.21B
Cash, Cash Equivalents and Short-Term Investments	464.96M	678.66M	722.56M	788.11M	793.97M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	262.48M	264.80M	224.33M	200.01M	203.76M
Stockholders Equity	552.25M	706.05M	813.05M	854.64M	1.00B
Cash Flow
Free Cash Flow	-151.98M	-15.73M	-55.59M	-23.87M	35.71M
Operating Cash Flow	-151.77M	-14.86M	-44.79M	-14.06M	57.28M
Investing Cash Flow	-54.59M	-21.63M	-13.40M	15.52M	-21.57M
Financing Cash Flow	-7.33M	-7.42M	-7.36M	-7.33M	-7.36M

Sockets Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 565.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3634, the sentiment is Negative. The current price of 565 is below the 20-day moving average (MA) of 569.20, above the 50-day MA of 560.26, and below the 200-day MA of 605.44, indicating a neutral trend. The MACD of 2.12 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3634.

Sockets Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6501	79 Outperform	¥19.55T	31.98	10.50%	1.03%	0.56%	5.36%
6701	77 Outperform	¥5.69T	31.86	8.97%	0.67%	-1.55%	17.21%
6981	76 Outperform	$3.95T	17.29	8.98%	2.77%	6.29%	30.60%
6752	74 Outperform	$3.57T	9.76	7.85%	2.61%	-0.45%	-17.53%
6758	73 Outperform	¥23.16T	20.08	14.32%	0.53%	-0.49%	19.71%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%
3634	54 Neutral	¥1.39B	―		0.53%	-0.79%	-129.45%