SHIFT (3697) AI Stock Analysis

• Market Cap: €370.21B
• Dividend Yield: N/A
• Average Volume (3M): 3.42M
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.16
• Revenue Growth: 18.03%
• EPS Growth: 46.07%
• Country: JP
• Employees: 10,266
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.80
• Shares Outstanding: 267,500,670
• 10 Day Avg. Volume: 5,445,319
• 30 Day Avg. Volume: 3,416,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1,900.30
• Price Target Upside: 37.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: ¥1,726.00 ▲(24.62% Upside)

SHIFT, Inc. shows strong financial performance with robust revenue growth and profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation. These factors collectively result in a moderate stock score.

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 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 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.01B	110.63B	88.03B	64.87B	46.00B	28.71B
Gross Profit	40.00B	35.36B	29.94B	21.10B	13.91B	8.95B
EBITDA	15.27B	11.98B	11.89B	8.93B	5.81B	3.14B
Net Income	7.23B	5.13B	6.25B	4.97B	2.82B	1.65B
Balance Sheet
Total Assets	67.80B	62.72B	49.53B	40.23B	34.27B	19.82B
Cash, Cash Equivalents and Short-Term Investments	25.03B	20.87B	17.59B	12.92B	14.25B	6.52B
Total Debt	13.67B	9.58B	4.90B	3.53B	4.22B	4.59B
Total Liabilities	31.67B	28.20B	19.96B	14.22B	11.59B	9.04B
Stockholders Equity	36.13B	34.04B	29.12B	25.65B	22.40B	10.51B
Cash Flow
Free Cash Flow	3.49B	3.44B	8.99B	6.62B	4.32B	1.77B
Operating Cash Flow	4.04B	9.09B	10.25B	7.39B	4.76B	2.25B
Investing Cash Flow	-1.47B	-9.95B	-3.80B	-5.61B	-5.43B	-5.93B
Financing Cash Flow	1.48B	4.15B	-1.80B	-3.08B	8.29B	1.51B

SHIFT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1385.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1385 is below the 20-day moving average (MA) of 1481.87, below the 50-day MA of 1560.95, and below the 200-day MA of 1409.55, indicating a bearish trend. The MACD of -52.72 indicates Positive momentum. The RSI at 32.57 is Neutral, neither overbought nor oversold. The STOCH value of 18.63 is Positive, 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	73 Outperform	236.50B	21.22	17.50%	2.67%	7.09%	11.95%
4776	72 Outperform	156.22B	30.17	0.00%	0.88%	22.97%	107.52%
3697	66 Neutral	€370.21B	44.98	23.55%	―	18.03%	46.07%
4443	63 Neutral	242.71B	570.17	2.66%	―	27.52%	-55.62%
3994	56 Neutral	343.58B	-57.13	-16.91%	―	20.96%	-6.20%
4478	51 Neutral	216.48B	156.38	6.97%	―	30.83%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.