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SHIFT, Inc. (JP:3697)
:3697
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SHIFT (3697) AI Stock Analysis

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JP:3697

SHIFT

(Frankfurt:3697)

Rating:58Neutral
Price Target:
¥1,626.00
▲(0.77%Upside)
SHIFT, Inc.'s solid financial performance is a strong positive factor, but the bearish technical indicators and potentially high valuation weigh down the overall score. Monitoring debt levels and improving cash conversion efficiency are necessary to sustain financial health.

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

SHIFT Business Overview & Revenue Model

Company DescriptionSHIFT Inc. (Ticker: 3697) is a Japan-based company primarily engaged in the provision of software testing services. The company offers comprehensive testing solutions across various industries, including finance, retail, telecommunications, and manufacturing. SHIFT's core services encompass test planning, design, execution, and automation, with a focus on enhancing the quality and reliability of software applications for its clients. It leverages its expertise in quality assurance to support businesses in optimizing their software development processes and reducing time-to-market.
How the Company Makes MoneySHIFT Inc. generates revenue primarily through its software testing services offered to a broad range of industries. The company's revenue model is based on charging clients for the testing services it provides, which can include manual and automated testing, as well as consulting and quality assurance support. Key revenue streams include service fees for test planning, execution, and automation projects. Additionally, SHIFT may engage in long-term contracts with clients, which can provide steady income streams. Strategic partnerships with technology firms and expansion into new industries also contribute to its financial growth by broadening its client base and service offerings.

SHIFT Financial Statement Overview

Summary
SHIFT, Inc. demonstrates strong financial health with notable revenue growth, solid profitability margins, and a stable balance sheet. However, attention is required on rising debt levels and cash conversion efficiency.
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue110.63B88.03B64.87B46.00B28.71B
Gross Profit35.36B29.94B21.10B13.91B8.95B
EBITDA11.98B13.29B8.93B5.81B3.14B
Net Income5.13B6.25B4.97B2.82B1.65B
Balance Sheet
Total Assets62.72B49.53B40.23B34.27B19.82B
Cash, Cash Equivalents and Short-Term Investments20.87B17.59B12.92B14.25B6.52B
Total Debt9.58B4.90B3.53B4.22B4.59B
Total Liabilities28.20B19.96B14.22B11.59B9.04B
Stockholders Equity34.04B29.12B25.65B22.40B10.51B
Cash Flow
Free Cash Flow3.44B8.99B6.62B4.32B1.77B
Operating Cash Flow9.09B10.25B7.39B4.76B2.25B
Investing Cash Flow-9.95B-3.80B-5.61B-5.43B-5.93B
Financing Cash Flow4.15B-1.80B-3.08B8.29B1.51B

SHIFT Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1613.50
Price Trends
50DMA
1659.35
Negative
100DMA
1445.89
Positive
200DMA
1306.10
Positive
Market Momentum
MACD
-25.31
Positive
RSI
43.94
Neutral
STOCH
46.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3697, the sentiment is Neutral. The current price of 1613.5 is below the 20-day moving average (MA) of 1659.22, below the 50-day MA of 1659.35, and above the 200-day MA of 1306.10, indicating a neutral trend. The MACD of -25.31 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3697.

SHIFT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥252.81B22.70
2.53%6.45%15.31%
72
Outperform
¥177.55B41.78
0.78%16.68%43.49%
68
Neutral
¥232.03B14.767.50%2.61%9.28%6.75%
66
Neutral
¥246.96B585.64
29.19%
58
Neutral
¥425.54B51.7023.55%18.03%46.07%
55
Neutral
€286.13B-18.26%20.96%-6.20%
47
Neutral
¥233.04B
29.79%77.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3697
SHIFT
1,592.00
858.67
117.09%
JP:4443
Sansan, Inc.
1,952.00
-295.00
-13.13%
JP:4478
freee K.K.
4,000.00
1,510.00
60.64%
JP:4776
Cybozu, Inc.
3,870.00
2,124.10
121.66%
JP:9759
NSD Co., Ltd.
3,442.00
469.72
15.80%
JP:3994
Money Forward
5,157.00
445.00
9.44%

SHIFT Corporate Events

SHIFT Inc. Amends Acquisition Terms with Infratop Inc.
Jul 11, 2025

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
Jul 10, 2025

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
Jul 9, 2025

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
Jul 9, 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.

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.Date of analysis: Jul 11, 2025