SHIFT (3697) AI Stock Analysis

• Market Cap: ¥239.05B
• Dividend Yield: N/A
• Average Volume (3M): 6.44M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.18
• Revenue Growth: 17.35%
• EPS Growth: 74.71%
• Country: JP
• Employees: 10,266
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 10.07
• Shares Outstanding: 267,500,670
• 10 Day Avg. Volume: 7,177,050
• 30 Day Avg. Volume: 6,442,629
• PEG Ratio: 0.58
• Price to Book (P/B): 9.47
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 27.41
• 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: ¥1,701.55
• Price Target Upside: 86.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥992.00 ▲(8.59% Upside)

SHIFT's overall stock score is driven primarily by its strong financial performance, which is offset by bearish technical indicators and moderate valuation. The company's robust revenue growth and cash flow generation are significant strengths, but current market momentum suggests caution. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A healthy balance sheet with low leverage suggests financial stability and the ability to fund future growth without excessive debt reliance.

Negative Factors

Profit Margin Improvement

While profitability is improving, further margin enhancement is crucial for maximizing shareholder value and ensuring competitive pricing strategies.

Debt Monitoring

Increasing debt levels, if not managed carefully, could strain financial resources and limit future strategic initiatives.

Profitability Margins

Improving profitability margins is essential for sustaining competitive advantage and ensuring long-term financial health.

SHIFT Business Overview & Revenue Model

Company Description

SHIFT Inc. provides software quality assurance and testing solutions in Japan. The company offers CAT, a software test management tool. It also provides software consulting services. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SHIFT generates revenue primarily through the sale of its software solutions, which are offered via subscription-based models and one-time licensing fees. The company also earns income from consulting services, where it assists organizations in implementing and optimizing its software products. Additional revenue streams include maintenance and support services, which ensure ongoing customer satisfaction and retention. SHIFT has established strategic partnerships with key industry players, enhancing its market reach and credibility, further contributing to its financial success.

SHIFT Financial Statement Overview

Summary

SHIFT, Inc. demonstrates strong revenue growth and solid profitability margins. The balance sheet is stable with prudent leverage management, though increasing debt and cash conversion efficiency need monitoring.

Income Statement

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

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

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	124.90B	129.82B	110.63B	88.03B	64.87B	46.00B
Gross Profit	42.69B	45.02B	35.36B	29.94B	20.21B	13.15B
EBITDA	16.69B	17.03B	11.98B	11.89B	8.93B	5.81B
Net Income	8.12B	8.94B	5.13B	6.25B	4.97B	2.82B
Balance Sheet
Total Assets	77.83B	77.00B	62.72B	49.53B	40.23B	34.27B
Cash, Cash Equivalents and Short-Term Investments	27.47B	23.73B	20.87B	17.59B	12.92B	14.25B
Total Debt	18.61B	12.04B	9.58B	4.90B	3.53B	4.22B
Total Liabilities	39.52B	35.97B	28.20B	19.96B	14.22B	11.59B
Stockholders Equity	38.31B	41.03B	34.04B	29.12B	25.65B	22.40B
Cash Flow
Free Cash Flow	3.49B	14.17B	3.44B	8.99B	6.62B	4.32B
Operating Cash Flow	4.04B	15.65B	9.09B	10.25B	7.39B	4.76B
Investing Cash Flow	-1.47B	-11.70B	-9.95B	-3.80B	-5.61B	-5.43B
Financing Cash Flow	1.48B	-1.19B	4.15B	-1.80B	-3.08B	8.29B

SHIFT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 913.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3697, the sentiment is Negative. The current price of 913.5 is below the 20-day moving average (MA) of 955.83, below the 50-day MA of 1053.75, and below the 200-day MA of 1356.97, indicating a bearish trend. The MACD of -41.82 indicates Negative momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3697.

SHIFT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9759	77 Outperform	¥254.19B	21.89	―	2.48%	9.10%	14.67%
4776	72 Outperform	¥128.00B	20.16	―	1.08%	26.47%	142.77%
3697	63 Neutral	¥239.05B	26.92	24.24%	―	17.35%	74.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	54 Neutral	¥213.73B	197.07	―	―	27.65%	96.11%
4478	51 Neutral	¥173.93B	125.67	―	―	31.57%	―
3994	41 Neutral	¥232.11B	-38.24	-19.16%	―	19.57%	-16.67%

SHIFT Corporate Events

SHIFT Inc. Forms Strategic Alliance with COMWARE to Boost ERP Capabilities

SHIFT Inc. has announced a capital and business alliance with COMWARE CO., LTD., acquiring 5.70% of its voting rights. This alliance aims to strengthen SHIFT’s SAP business by leveraging both companies’ human resources and technological strengths to address growing customer needs in the ERP industry, enhancing their market positioning and operational capabilities.

The most recent analyst rating on (JP:3697) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on SHIFT stock, see the JP:3697 Stock Forecast page.

SHIFT Inc. Amends Acquisition Terms with Infratop Inc.

SHIFT Inc. has announced amendments to its acquisition agreement with Infratop Inc., focusing on the transfer of training and human dispatching businesses. The changes involve transferring these businesses to Roppongi Kanri No.10 Co., Ltd., a subsidiary of DMM.com LLC, instead of forming a new company. This adjustment excludes Infratop’s generative AI business from the acquisition and revises the acquisition price, impacting SHIFT’s strategic positioning in the industry.

The most recent analyst rating on (JP:3697) stock is a Hold with a Yen1500.00 price target. To see the full list of analyst forecasts on SHIFT stock, see the JP:3697 Stock Forecast page.

SHIFT Inc. Forms Strategic Alliance with MEDIA DO to Boost Global Content Distribution

SHIFT Inc. has announced a capital and business alliance with MEDIA DO Co., Ltd., acquiring 3.08% of its voting rights. This partnership aims to leverage SHIFT’s expertise in software services to support MEDIA DO’s digital distribution businesses and enhance the global distribution of Japanese content. The collaboration is expected to strengthen SHIFT’s position in the international market and expand its business channels, promoting digital transformation and increasing global awareness of Japanese-origin content.

The most recent analyst rating on (JP:3697) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on SHIFT stock, see the JP:3697 Stock Forecast page.

SHIFT Inc. Revises Financial Forecast Upwards Amid Strong Performance

SHIFT Inc. has revised its financial forecast for the fiscal year ending August 31, 2025, projecting an increase in operating and ordinary profit due to a record-high gross profit margin. Despite maintaining the forecast for profit attributable to owners of the parent, the company shows strong progress in net sales and profits, reflecting effective measures in improving engineer utilization and stabilizing the top line.

The most recent analyst rating on (JP:3697) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on SHIFT stock, see the JP:3697 Stock Forecast page.

SHIFT, Inc. Reports Strong Financial Growth and Strategic Moves in 2025

SHIFT, Inc. reported significant financial growth for the nine months ending May 31, 2025, with net sales increasing by 17.6% and operating profit surging by 68.7% compared to the previous year. The company also finalized accounting treatments related to a business combination and conducted a 15-for-1 stock split, indicating strategic moves to enhance its market position and shareholder value.

The most recent analyst rating on (JP:3697) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on SHIFT stock, see the JP:3697 Stock Forecast page.