Stable Profitability MarginsConsistent net margins near 8–9% and EBIT in the low-teens across multiple years indicate a resilient profit model and structural cost controls. This durability supports predictable earnings and earnings quality, helping the business absorb cyclical volatility over the next 2–6 months.

High Free Cash Flow ConversionVery strong FCF conversion versus net income shows reported profits translate into cash, supporting dividends, any necessary capex, and potential debt paydown. Reliable cash generation strengthens financial flexibility and resilience to medium-term shocks.

Historically Healthy ROE And Scale GrowthMid-teens ROE and expanding asset/equity base reflect effective capital allocation and business scale. Persistent above-average returns suggest sustainable competitive advantages or operational efficiency that support medium-term profitability and reinvestment capacity.

Bears Say

Sharp 2025 Revenue DeclineA 22% revenue drop in the most recent year signals meaningful demand or contract loss that can structurally impair growth momentum. If persistent, revenue contraction pressures operating leverage, investment plans, and the company’s ability to maintain prior margin and cash generation levels.

Rising Financial LeverageA material step-up in leverage reduces financial flexibility and raises interest exposure, limiting room to maneuver if revenues or margins remain weak. Higher debt amplifies downside risk and could force tighter capital allocation over the medium term.

Deteriorating Operating Cash FlowA sharp fall in operating cash flow reduces internal funding capacity and increases reliance on external financing. Lower OCF relative to revenue undermines the strong FCF conversion story if the trend continues, constraining dividends, capex, and debt reduction plans.

3671 FAQ

What was Softmax Co., Ltd. (Japan)’s price range in the past 12 months?

Softmax Co., Ltd. (Japan) lowest stock price was ¥182.50 and its highest was ¥442.00 in the past 12 months.

What is Softmax Co., Ltd. (Japan)’s market cap?

Softmax Co., Ltd. (Japan)’s market cap is ¥7.77B.

When is Softmax Co., Ltd. (Japan)’s upcoming earnings report date?

Softmax Co., Ltd. (Japan)’s upcoming earnings report date is May 18, 2026 which is in 71 days.

How were Softmax Co., Ltd. (Japan)’s earnings last quarter?

Softmax Co., Ltd. (Japan) released its earnings results on Feb 12, 2026. The company reported ¥7.43 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.43.

Is Softmax Co., Ltd. (Japan) overvalued?

According to Wall Street analysts Softmax Co., Ltd. (Japan)’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Softmax Co., Ltd. (Japan) pay dividends?

Softmax Co., Ltd. (Japan) pays a Annually dividend of ¥10 which represents an annual dividend yield of 8.09%. See more information on Softmax Co., Ltd. (Japan) dividends here

What is Softmax Co., Ltd. (Japan)’s EPS estimate?

Softmax Co., Ltd. (Japan)’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Softmax Co., Ltd. (Japan) have?

Softmax Co., Ltd. (Japan) has 24,050,800 shares outstanding.

What happened to Softmax Co., Ltd. (Japan)’s price movement after its last earnings report?

Softmax Co., Ltd. (Japan) reported an EPS of ¥7.43 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.54%.

Which hedge fund is a major shareholder of Softmax Co., Ltd. (Japan)?

Currently, no hedge funds are holding shares in JP:3671

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Softmax Co., Ltd. (Japan)

Softmax Co., Ltd develops, sales, introduction, and maintenance of corporate systems. It is also involved in medical information system development. The company also offers web based electronic medical record system, web based ordering system, medical accounting, radiology information, rehabilitation department system, health check-up system, nursing work management system, and surgical department system. Softmax Co., Ltd was incorporated in 1974 and is headquartered in Tokyo, Japan.