Silicon Studio Corp. (3907) AI Stock Analysis

• Market Cap: ¥2.34B
• Dividend Yield: N/A
• Average Volume (3M): 228.42K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.27
• Revenue Growth: -2.54%
• EPS Growth: -6.52%
• Country: JP
• Employees: 262
• Sector: Communication Services
• Sector Strength: 87
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 38.33
• Shares Outstanding: 2,973,900
• 10 Day Avg. Volume: 81,050
• 30 Day Avg. Volume: 228,420
• PEG Ratio: -0.04
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.25
• 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

• Rating: 60 Neutral
• Price Target: ¥864.00 ▲(6.40%Upside)

The overall stock score is primarily influenced by mixed financial performance, with strong balance sheet metrics but declining revenue and profitability. Technical analysis shows neutral trends with no clear momentum, while valuation is fair but lacks dividend yield benefits. Cash flow concerns could impact future growth.

Silicon Studio Corp. Business Overview & Revenue Model

Company Description

Silicon Studio Corp. (3907) is a Japanese company specializing in the development and provision of high-quality digital content tools and solutions. The company operates primarily in the fields of computer graphics, game development, and related software technologies. It offers a range of products including game engines, middleware solutions, and graphics rendering tools, serving both entertainment and enterprise sectors.

How the Company Makes Money

Silicon Studio Corp. generates revenue through the sale of its proprietary software products, licensing of its game development tools and middleware, and providing consulting services to businesses in need of digital content solutions. Key revenue streams include licensing fees from its game engines and middleware solutions, as well as consulting fees. The company collaborates with game developers, entertainment companies, and other industries requiring advanced digital content production capabilities, which significantly contributes to its earnings.

Silicon Studio Corp. Financial Statement Overview

Summary

Silicon Studio Corp. demonstrates a mixed financial performance. The income statement shows declining revenues and profitability margins, with a low net profit margin of 1.97%. Despite a strong balance sheet with low leverage (debt-to-equity ratio at 0.15), cash flow concerns are notable due to a sharp decline in free cash flow from JPY 93 million to JPY 4 million, impacting future investment potential.

Income Statement

Silicon Studio Corp. has experienced a decline in revenue from 2023 to 2024, with a revenue growth rate of -3.07%. The gross profit margin for 2024 is 42.96%, indicating a solid ability to cover production costs. However, the net profit margin dropped to 1.97%, highlighting reduced profitability. EBIT and EBITDA margins are also relatively low at 3.24% and 4.01%, respectively, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 59.06%, suggesting financial stability. The debt-to-equity ratio is low at 0.15, indicating conservative leverage. However, the return on equity has decreased to 5.00%, which may concern investors about the efficiency in generating returns from equity.

Cash Flow

Silicon Studio Corp. shows a sharp decline in free cash flow growth, falling from JPY 93 million in 2023 to JPY 4 million in 2024. The operating cash flow to net income ratio is 1.06, indicating a reasonable conversion of net income to cash. However, a significant drop in free cash flow to net income ratio to 0.05 reflects potential issues in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.41B	4.55B	4.51B	3.99B	4.13B
Gross Profit	1.90B	1.95B	2.00B	1.45B	1.51B
EBITDA	177.00M	281.00M	456.00M	9.00M	169.00M
Net Income	87.00M	200.00M	254.00M	-101.00M	16.00M
Balance Sheet
Total Assets	2.94B	3.16B	3.44B	2.82B	2.64B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.51B	1.70B	1.08B	932.00M
Total Debt	265.00M	436.00M	579.00M	567.00M	465.00M
Total Liabilities	1.21B	1.40B	1.74B	1.46B	1.19B
Stockholders Equity	1.74B	1.76B	1.70B	1.36B	1.45B
Cash Flow
Free Cash Flow	4.00M	93.00M	527.00M	-29.00M	-87.00M
Operating Cash Flow	92.00M	121.00M	566.00M	107.00M	28.00M
Investing Cash Flow	-82.00M	-8.00M	-8.00M	-125.00M	-122.00M
Financing Cash Flow	-276.00M	-289.00M	93.00M	120.00M	122.00M

Silicon Studio Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 812.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3907, the sentiment is Neutral. The current price of 812 is below the 20-day moving average (MA) of 896.95, above the 50-day MA of 780.84, and above the 200-day MA of 772.82, indicating a neutral trend. The MACD of 9.14 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 1.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3907.

Silicon Studio Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3928	64 Neutral	¥2.11B	10.91		―	0.08%	43.63%
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
3907	60 Neutral	¥2.34B	21.13		―	-2.54%	-6.52%
3657	54 Neutral	¥12.66B	―		4.47%	10.47%	63.47%
3639	50 Neutral	¥1.68B	25.21		―	-19.71%	―
3911	50 Neutral	¥11.44B	31.00		―	<0.01%	―
3672	41 Neutral	¥2.60B	―		―	-22.25%	-14.77%