Sockets Inc. (JP:3634)
:3634
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Sockets Inc.
(3634)
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Rating:59Neutral
Price Target:
¥635.00
▼(-8.63% Downside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by improved 2026 financial performance and an exceptionally low-risk, debt-free balance sheet, but is held back by weak technical positioning (below major moving averages) and only moderate valuation support (P/E ~23 with ~1% yield).
Positive Factors
Debt-free balance sheet
A zero-debt capital structure materially reduces financial risk and preserves strategic optionality. With equity (~620M) vs assets (~908M) and ROE recovering to ~14% in 2026, the firm has a stronger buffer to withstand shocks and fund investments or M&A without high financing costs.
Negative Factors
Modest revenue growth
Low top-line growth constrains long-term scale benefits and leaves profitability dependent on cost control rather than market expansion. Persistently modest revenue growth limits margin-leverage opportunities, reduces room for share gains, and raises reliance on operational fixes to sustain returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt capital structure materially reduces financial risk and preserves strategic optionality. With equity (~620M) vs assets (~908M) and ROE recovering to ~14% in 2026, the firm has a stronger buffer to withstand shocks and fund investments or M&A without high financing costs.
Read all positive factors
Sockets Inc. (3634) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.46B
Dividend Yield0.42%
Average Volume (3M)6.35K
Price to Earnings (P/E)8.6
Beta (1Y)0.57
Revenue Growth1.95%
EPS GrowthN/A
CountryJP
Employees73
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)19.50
Shares Outstanding2,477,400
10 Day Avg. Volume2,380
30 Day Avg. Volume6,350
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)2.64
Price to Sales (P/S)1.55
P/FCF Ratio18.74
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
Sockets Inc. Business Overview & Revenue Model
Company Description
Sockets Inc. engages in the development and provision of services, applications, and database for Internet platforms. It offers data services, cross-media recommendation, emotional metadata analysis services, specialized search services, integral ...
Sockets Inc. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.04B | 1.02B | 994.61M | 873.19M |
| Gross Profit | 526.63M | 475.93M | 468.71M | 506.26M | 425.49M |
| EBITDA | 58.46M | -138.50M | -79.15M | -27.82M | -83.17M |
| Net Income | 86.59M | -139.13M | -100.26M | -26.89M | -150.24M |
Balance Sheet | |||||
| Total Assets | 907.62M | 814.73M | 970.85M | 1.45B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 600.19M | 464.96M | 678.66M | 722.56M | 788.11M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 287.75M | 262.48M | 264.80M | 634.85M | 200.01M |
| Stockholders Equity | 619.88M | 552.25M | 706.05M | 813.05M | 854.64M |
Cash Flow | |||||
| Free Cash Flow | 87.42M | -151.98M | -15.73M | -55.59M | -23.87M |
| Operating Cash Flow | 121.56M | -151.77M | -14.86M | -44.79M | -14.06M |
| Investing Cash Flow | 28.01M | -54.59M | -21.63M | -13.40M | 15.52M |
| Financing Cash Flow | -14.35M | -7.33M | -7.42M | -7.36M | -7.33M |
Sockets Inc. Technical Analysis
Negative
695.00
Price Trends
703.43
Negative
721.67
Negative
703.37
Negative
Market Momentum
-21.18
Positive
41.59
Neutral
3.57
Positive
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 695 is below the 20-day moving average (MA) of 707.20, below the 50-day MA of 703.43, and below the 200-day MA of 703.37, indicating a bearish trend. The MACD of -21.18 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 3.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3634.
Sockets Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥2.61B | 15.70 | ― | 2.59% | 4.72% | 19.42% | |
73 Outperform | ¥1.85B | 7.06 | ― | 2.76% | 14.84% | 84.02% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥5.07B | 2.37 | ― | 1.61% | 2.87% | -46.82% | |
59 Neutral | ¥1.46B | 8.58 | ― | 0.42% | 1.95% | ― | |
47 Neutral | ¥2.17B | -5.29 | ― | 4.29% | 30.40% | -776.14% | |
41 Neutral | ¥2.10B | -1.86 | ― | ― | -4.45% | -336.60% |
* Technology Sector Average
JP:3634
Sockets Inc.
590.00
42.51
7.76%
JP:3670
Kyoritsu Computer & Communication Co., Ltd.
1,520.00
2.41
0.16%
JP:3839
ODK Solutions Company, Ltd.
623.00
63.91
11.43%
JP:3970
Innovation, Inc.
797.00
-215.64
-21.29%
JP:4394
eXmotion Co., Ltd.
859.00
31.63
3.82%
JP:4814
Nextware Ltd.
167.00
11.00
7.05%
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.