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SHIFT, Inc. (JP:3697)
:3697

SHIFT (3697) AI Stock Analysis

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JP

SHIFT

(Frankfurt:3697)

Rating:74Outperform
Price Target:
¥1,980.00
▲(15.15%Upside)
SHIFT, Inc. is financially robust with strong revenue and profit margins, complemented by bullish technical indicators. The high P/E ratio suggests a premium valuation which might deter conservative investors. Monitoring overbought indicators is recommended.

SHIFT (3697) vs. iShares MSCI Japan ETF (EWJ)

SHIFT Business Overview & Revenue Model

Company DescriptionSHIFT, Inc. (3697) is a technology company specializing in software testing and quality assurance services. The company operates primarily in the IT services sector, offering a range of solutions that ensure the reliability and performance of software applications. SHIFT, Inc.'s core services include functional testing, performance testing, security testing, and automation services, catering to clients across various industries seeking to optimize their software development processes.
How the Company Makes MoneySHIFT, Inc. generates revenue primarily through its comprehensive suite of software testing services. The company earns money by providing testing solutions on a contractual basis, charging clients for the time and resources dedicated to ensuring the quality and functionality of their software products. Revenue streams include fees for individual testing projects, long-term service agreements, and subscription models for ongoing quality assurance support. The company may also engage in partnerships and collaborations with software development firms, enhancing its market presence and expanding its client base through strategic alliances.

SHIFT Financial Statement Overview

Summary
SHIFT, Inc. is performing well with strong revenue growth, solid profitability margins, and prudent balance sheet management. Attention to debt levels and cash conversion efficiency is advisable to maintain its strong financial position.
Income Statement
85
Very Positive
SHIFT, Inc. demonstrated strong revenue growth over the years, with a notable increase from 2019 to 2024. The gross profit margin is healthy, and the net profit margin has been stable, reflecting efficient cost management. However, there was a slight decline in EBIT, which warrants monitoring.
Balance Sheet
78
Positive
The company maintains a strong equity position with an increasing equity ratio, indicating financial stability. A low debt-to-equity ratio suggests prudent leverage management. However, the increase in total debt over recent years should be observed closely to ensure it doesn't impact financial flexibility.
Cash Flow
80
Positive
SHIFT, Inc. has consistently generated positive operating cash flow, supporting its operations and growth initiatives. The free cash flow has shown growth, although the free cash flow to net income ratio suggests room for improvement in converting profits to cash.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
115.73B110.63B88.03B64.87B46.00B28.71B
Gross Profit
37.58B35.36B29.94B21.10B13.91B8.95B
EBIT
12.24B10.54B11.56B6.91B3.99B2.35B
EBITDA
12.56B11.98B13.29B8.93B5.81B3.14B
Net Income Common Stockholders
6.60B5.13B6.25B4.97B2.82B1.65B
Balance SheetCash, Cash Equivalents and Short-Term Investments
24.40B20.87B17.59B12.92B14.25B6.52B
Total Assets
66.21B62.72B49.53B40.23B34.27B19.82B
Total Debt
12.83B9.58B4.90B3.53B4.22B4.59B
Net Debt
-11.58B-11.29B-12.69B-9.39B-10.03B-1.94B
Total Liabilities
30.61B28.20B19.96B14.22B11.59B9.04B
Stockholders Equity
35.08B34.04B29.12B25.65B22.40B10.51B
Cash FlowFree Cash Flow
0.003.44B8.99B6.62B4.32B1.77B
Operating Cash Flow
0.009.09B10.25B7.39B4.76B2.25B
Investing Cash Flow
0.00-9.95B-3.80B-5.61B-5.43B-5.93B
Financing Cash Flow
0.004.15B-1.80B-3.08B8.29B1.51B

SHIFT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1719.50
Price Trends
50DMA
1378.89
Positive
100DMA
1347.95
Positive
200DMA
1172.80
Positive
Market Momentum
MACD
108.08
Negative
RSI
71.10
Negative
STOCH
70.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3697, the sentiment is Positive. The current price of 1719.5 is above the 20-day moving average (MA) of 1598.72, above the 50-day MA of 1378.89, and above the 200-day MA of 1172.80, indicating a bullish trend. The MACD of 108.08 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 70.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3697.

SHIFT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥250.20B22.47
2.52%6.45%15.28%
74
Outperform
€465.24B68.9319.04%20.02%-5.47%
72
Outperform
¥144.52B34.00
0.95%16.68%43.49%
67
Neutral
¥259.20B124.71
29.19%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
53
Neutral
€257.94B-17.75%28.35%-2.49%
47
Neutral
¥228.24B
29.79%77.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3697
SHIFT
1,719.50
702.84
69.13%
JP:4443
Sansan, Inc.
2,086.00
458.00
28.13%
JP:4478
freee K.K.
3,845.00
1,487.00
63.06%
JP:4776
Cybozu, Inc.
3,170.00
1,325.00
71.82%
JP:9759
NSD Co., Ltd.
3,500.00
537.90
18.16%
JP:3994
Money Forward
4,676.00
-421.00
-8.26%

SHIFT Corporate Events

SHIFT Inc. Addresses Fraudulent Subsidy Applications at Subsidiary
Apr 10, 2025

SHIFT Inc. has uncovered fraudulent subsidy applications by its subsidiary, Infinic Inc., through an internal audit assisted by external experts. The director of Infinic has been dismissed, and the company is collaborating with local authorities to address the issue while implementing a compliance check system. The financial impact on SHIFT’s FY2025 statements is expected to be minimal.

SHIFT, Inc. Reports Strong Financial Growth for First Half of 2025
Apr 10, 2025

SHIFT, Inc. reported a significant increase in its consolidated financial results for the six months ending February 28, 2025, with net sales rising by 17.9% and operating profit surging by 72.1% compared to the previous year. The company’s strong performance reflects its strategic positioning in the software testing industry, with a notable impact on its profitability and market standing.

SHIFT Inc. Acquires Stake in Rise Consulting Group to Boost Market Position
Apr 4, 2025

SHIFT Inc. has announced the acquisition of a 33% stake in Rise Consulting Group, Inc., converting it into an equity-method affiliate, and has entered into a Business and Capital Alliance Agreement with Rise. This strategic move is expected to enhance SHIFT’s capabilities in upstream processes, expand its market reach, and increase its brand value in the consulting domain. The collaboration aims to broaden project opportunities, improve customer engagement, and support the company’s growth objectives.

SHIFT Inc. Announces Strategic Reorganization to Boost Growth
Mar 28, 2025

SHIFT Inc. announced a reorganization involving the merger of its subsidiary Careersystems Inc. into ALH Inc., and the transfer of CIMTECH Inc. shares to Baristride Group. This strategic move aims to enhance business synergies, streamline operations, and accelerate growth within the SHIFT Group by leveraging the strengths of its subsidiaries in app development and infrastructure services.

SHIFT Inc. Consolidates ERP Operations with Subsidiary Merger
Mar 28, 2025

SHIFT Inc. announced the absorption-type merger of its subsidiary, SHIFT Enterprise Consulting Inc., to consolidate and strengthen its ERP business within the main company. This strategic move aims to leverage SHIFT’s recruiting, sales, and technological capabilities to maximize business resources and increase corporate value, aligning with their growth strategy ‘SHIFT2000’.

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.