SIOS Corp (3744) AI Stock Analysis

• Market Cap: ¥3.91B
• Dividend Yield: N/A
• Average Volume (3M): 39.75K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.94
• Revenue Growth: -7.31%
• EPS Growth: 287.94%
• Country: JP
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 9.74
• Shares Outstanding: 8,874,400
• 10 Day Avg. Volume: 32,170
• 30 Day Avg. Volume: 39,746
• PEG Ratio: -1.56
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 23.55
• 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: 57 Neutral
• Price Target: ¥461.00 ▼(-8.71% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is supported mainly by strong solvency (very low leverage) and a return to profitability, along with a moderate P/E. It is held back by weak technicals (price below key moving averages and negative MACD) and uneven cash generation, including a sharp cash flow step-down in 2025.

Positive Factors

Balance sheet strength

Very low and falling leverage gives SIOS durable financial flexibility. Low debt reduces refinancing risk, supports funding of product development, services expansion or opportunistic M&A, and provides a buffer in downturns, improving resilience over the medium term.

Return to profitability

Moving from losses to positive earnings in 2024–2025 creates an earnings base to support reinvestment and internal funding. Sustained profitability strengthens operating credibility and reduces reliance on external capital over the next several quarters to years.

Sticky enterprise software model

SIOS' LifeKeeper HA/DR software plus maintenance and professional services yields recurring, sticky revenue with high switching costs. Enterprise deployments and support contracts foster multi-year customer relationships and predictable service revenue.

Negative Factors

Thin operating margins

Very slim operating and net margins leave little room for cost inflation or pricing pressure. Thin margins constrain reinvestment capacity, make profitability sensitive to modest revenue swings, and limit the company's ability to scale earnings reliably.

Volatile cash generation

Sharp swings in operating and free cash flow undermine consistent funding for operations and growth. Volatility increases dependence on balance-sheet buffers, raises execution risk for service delivery and R&D, and complicates multi-quarter capital planning.

Earnings and ROE volatility

Wide swings in ROE and earnings reflect inconsistent execution and demand sensitivity. Such volatility reduces predictability of returns, complicates strategic allocation of capital, and raises investor and management risk around sustaining growth.

SIOS Corp Business Overview & Revenue Model

Company Description

SIOS Corporation engages in the open system infrastructure and application businesses. The company offers digital transformation services to transform products, services, and business models; LifeKeeper, a failover software product that automatically switches a failed primary server to a backup server; open-source solutions; and open-source software products. It also provides Gluegent Gate, which manages ID in the cloud; Gluegent Apps group scheduler that adds team calendar schedule management function to Google calendar; and support services for system development and implementation to educational and financial institutions, as well as develops, markets, and updates document management software applications. The company was formerly known as SIOS Technology, Inc. and changed its name to SIOS Corporation in October 2017. SIOS Corporation was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

SIOS Corp generates revenue primarily through the sale of its software products and services, which are offered on a subscription basis or as one-time licenses. Key revenue streams include software licenses, maintenance and support services, and consulting services related to cloud migration and data management. The company also benefits from strategic partnerships with major cloud service providers, which enhance its product offerings and expand its customer base. These partnerships often involve co-marketing agreements and joint solutions, contributing to increased sales and market penetration.

SIOS Corp Financial Statement Overview

Summary

Balance sheet strength is a clear positive (very low and improving leverage), and the company has returned to profitability in 2024–2025. Offsetting this, margins remain thin and cash flow consistency is a key risk after a sharp drop in operating/free cash flow in 2025 and a history of negative FCF.

Income Statement

Revenue growth has been positive most years, including 2025 (+4.5%), but the top line declined in 2025 versus 2024. Profitability has improved meaningfully from losses in 2022–2023 to positive earnings in 2024–2025, yet current margins remain thin (2025 net margin ~1.7% and operating margin ~2.1%). Gross margin is reasonably stable in the high-20s to low-30s, but the business still shows sensitivity to cost and operating swings given the sharp volatility in operating profit over the period.

Balance Sheet

Leverage is very conservative and improving, with debt-to-equity falling steadily to ~0.03 in 2025 (from ~0.31 in 2020), indicating a strong balance-sheet risk profile. Equity has also grown since 2023, supporting better financial flexibility. The main watch-out is that returns on equity have been volatile (negative in 2022–2023, strong in 2024), reflecting earnings instability rather than balance-sheet strain.

Cash Flow

Cash generation is mixed: free cash flow was strong in 2024, but both operating cash flow and free cash flow dropped sharply in 2025. Free cash flow in 2025 still roughly matched net income (about 0.94x), suggesting earnings quality is reasonable, but the overall cash conversion from revenue is low and volatile across years, including negative free cash flow in 2022–2023. This variability raises execution and working-capital sensitivity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.24B	19.06B	20.56B	15.89B	14.42B	15.73B
Gross Profit	5.24B	5.29B	5.33B	5.22B	4.67B	4.88B
EBITDA	728.09M	458.04M	647.78M	-31.24M	-437.77M	488.81M
Net Income	447.38M	320.13M	351.00M	-18.88M	-639.79M	367.75M
Balance Sheet
Total Assets	7.54B	8.66B	8.09B	6.71B	6.02B	6.65B
Cash, Cash Equivalents and Short-Term Investments	3.34B	3.59B	3.68B	2.60B	2.51B	3.15B
Total Debt	73.10M	47.24M	102.30M	181.22M	222.95M	314.85M
Total Liabilities	5.91B	6.81B	6.55B	5.52B	4.78B	4.75B
Stockholders Equity	1.63B	1.86B	1.54B	1.19B	1.24B	1.90B
Cash Flow
Free Cash Flow	0.00	185.93M	857.00M	-13.01M	-432.52M	543.56M
Operating Cash Flow	0.00	198.64M	865.53M	28.49M	-370.38M	587.14M
Investing Cash Flow	0.00	-208.79M	298.01M	188.13M	-107.72M	58.01M
Financing Cash Flow	0.00	-70.98M	-127.98M	-157.72M	-245.87M	-267.44M

SIOS Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 505.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3744, the sentiment is Negative. The current price of 505 is above the 20-day moving average (MA) of 493.55, above the 50-day MA of 498.46, and above the 200-day MA of 474.95, indicating a bearish trend. The MACD of -10.36 indicates Positive momentum. The RSI at 35.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3744.

SIOS Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3648	74 Outperform	¥21.00B	11.79	―	2.40%	21.57%	129.44%
2307	70 Outperform	¥15.39B	9.32	―	3.14%	3.58%	0.23%
4826	70 Outperform	¥31.96B	14.65	―	2.83%	4.51%	75.35%
3826	64 Neutral	¥5.30B	9.17	―	2.28%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3744	57 Neutral	¥3.91B	13.67	―	―	-7.31%	287.94%
7527	47 Neutral	¥4.66B	-18.61	―	―	-40.57%	83.14%