Softmax Co., Ltd. (Japan) (3671) AI Stock Analysis

• Market Cap: ¥8.54B
• Dividend Yield: 8.09%
• Average Volume (3M): 140.46K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.44
• Revenue Growth: 32.95%
• EPS Growth: 45.22%
• Country: JP
• Employees: 220
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 7.43
• Shares Outstanding: 24,050,800
• 10 Day Avg. Volume: 144,320
• 30 Day Avg. Volume: 140,460
• PEG Ratio: 0.73
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 20.85
• 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: 62 Neutral
• Price Target: ¥376.00 ▲(12.57% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weakening financial trends in 2025 (revenue decline, margin pressure, softer operating cash flow, and higher leverage), partially offset by a reasonable valuation (P/E ~14) and dividend yield (~3%). Technical signals are neutral-to-weak, reinforcing near-term caution.

Positive Factors

Consistent Profitability

Softmax’s net margins (~8–9%) and low‑teens EBIT margin over multiple years indicate durable underlying profitability. Stable margins support reinvestment and shareholder returns, provide buffer versus cyclical shocks, and underpin medium‑term cash generation and return on capital.

Negative Factors

Sharp 2025 Revenue Decline

A 22% revenue drop in 2025 is a material deterioration in top‑line momentum. Sustained lower revenue erodes operating leverage, pressures gross and EBIT margins, and can materially reduce free cash flow and return metrics, limiting reinvestment capacity and strategic options over the medium term.

Softmax Co., Ltd. (Japan) Business Overview & Revenue Model

Company Description

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, med...

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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, med...

How the Company Makes Money

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Softmax Co., Ltd. (Japan) Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.94B	6.93B	5.43B	5.26B	5.05B	4.49B
Gross Profit	1.88B	1.86B	1.66B	1.55B	1.43B	1.44B
EBITDA	942.98M	784.12M	702.47M	621.88M	571.83M	612.45M
Net Income	646.32M	573.46M	480.15M	452.77M	419.39M	422.55M
Balance Sheet
Total Assets	7.04B	9.13B	7.54B	6.72B	6.55B	5.76B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.12B	3.45B	2.92B	2.85B	2.76B
Total Debt	1.00B	2.48B	1.41B	1.33B	1.35B	1.38B
Total Liabilities	3.38B	5.20B	4.02B	3.50B	3.61B	3.14B
Stockholders Equity	3.65B	3.93B	3.52B	3.22B	2.94B	2.62B
Cash Flow
Free Cash Flow	0.00	384.89M	625.84M	215.28M	163.96M	266.65M
Operating Cash Flow	0.00	388.95M	663.98M	232.54M	179.73M	284.30M
Investing Cash Flow	0.00	-1.17B	-92.76M	-11.61M	-4.75M	-1.01M
Financing Cash Flow	0.00	883.56M	-100.22M	-200.04M	-144.93M	-401.85M

Softmax Co., Ltd. (Japan) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 334.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3671, the sentiment is Positive. The current price of 334 is below the 20-day moving average (MA) of 335.90, above the 50-day MA of 330.58, and above the 200-day MA of 333.14, indicating a bullish trend. The MACD of 8.15 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 88.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3671.

Softmax Co., Ltd. (Japan) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9341	67 Neutral	¥10.40B	38.97	―	5.30%	0.09%	-48.79%
3902	63 Neutral	¥65.67B	228.03	―	0.39%	6.17%	-8918.66%
4483	63 Neutral	¥233.94B	26.76	―	0.43%	20.55%	48.62%
3671	62 Neutral	¥8.54B	13.99	―	8.09%	32.95%	45.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4480	51 Neutral	¥69.14B	77.03	5.76%	―	31.95%	-40.95%
4438	44 Neutral	¥2.79B	-4.28	―	―	16.19%	-4.42%