SocialWire Co., Ltd. (3929) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: N/A
• Average Volume (3M): 59.61K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.89
• Revenue Growth: -20.82%
• EPS Growth: N/A
• Country: JP
• Employees: 170
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): 1.22
• Shares Outstanding: 11,844,800
• 10 Day Avg. Volume: 21,020
• 30 Day Avg. Volume: 59,610
• PEG Ratio: <0.01
• Price to Book (P/B): 7.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.70
• 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: 71 Outperform
• Price Target: ¥273.00 ▲(15.19%Upside)

SocialWire Co., Ltd. exhibits a positive trajectory driven by financial recovery and encouraging technical indicators. The stock's valuation is reasonable, supporting its potential for growth. However, revenue challenges remain a concern.

SocialWire Co., Ltd. Business Overview & Revenue Model

Company Description

SocialWire Co., Ltd. is a Japan-based company specializing in social media marketing and media monitoring services. It operates primarily in the technology and digital marketing sectors, offering a range of products and services designed to help businesses enhance their online presence and engagement. The company provides tools and platforms that enable clients to monitor, analyze, and optimize their social media strategies effectively.

How the Company Makes Money

SocialWire Co., Ltd. generates revenue primarily through subscription-based services and licensing fees for its digital marketing and media monitoring platforms. Clients pay for access to these platforms, which provide valuable insights into social media trends, audience engagement, and brand performance. Additionally, the company may earn revenue through consulting services, offering expert advice and strategic planning for businesses aiming to improve their digital marketing efforts. Partnerships with other technology firms and media companies can also contribute to its earnings by expanding its service offerings and client base.

SocialWire Co., Ltd. Financial Statement Overview

Summary

SocialWire Co., Ltd. is experiencing financial recovery with improved profitability margins, a robust balance sheet with low leverage, and strong cash flow management. However, the significant revenue decline poses challenges.

Income Statement

SocialWire Co., Ltd. has experienced mixed revenue trends with a significant decline in the latest period, showing a revenue growth rate of -20.87% from 2024 to 2025. Gross profit margin remains strong at 63.46% in 2025, indicating efficient production processes, but the net profit margin has improved to 5.85% from negative values in prior years, reflecting significant volatility in net income. The company has shown improvements in EBIT and EBITDA margins, with EBIT margin at 4.72% and EBITDA margin at 11.80% in 2025, up from negative figures in 2024, indicating a recovery in operational efficiency.

Balance Sheet

The company's balance sheet indicates a stable financial structure with a debt-to-equity ratio at 0.13, showing low leverage and increased financial flexibility. Return on equity has improved to 11.02% in 2025 from negative values, displaying enhanced profitability relative to shareholder equity. The equity ratio of 61.17% suggests a solid equity base relative to total assets, reinforcing the company's financial stability and potential for long-term growth.

Cash Flow

SocialWire Co., Ltd. has demonstrated strong cash flow management with a free cash flow to net income ratio of 0.88, indicating efficient conversion of net income into free cash flow. The operating cash flow to net income ratio is 0.93, showing that the company generates substantial operating cash relative to net income. However, the free cash flow growth rate is not applicable due to previous negative values, but the positive free cash flow in 2025 marks a notable recovery.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.97B	2.91B	3.67B	4.77B	4.63B	4.57B
	Gross Profit
1.90B	1.84B	1.90B	1.96B	2.16B	2.06B
	EBIT
163.52M	136.98M	-2.86M	-211.75M	164.07M	125.31M
	EBITDA
328.62M	342.92M	131.27M	206.00M	523.34M	380.22M
	Net Income Common Stockholders
126.30M	170.04M	-146.42M	-876.87M	28.67M	-143.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36B	1.41B	354.31M	1.01B	898.72M	942.91M
	Total Assets
2.41B	2.52B	1.34B	4.72B	4.98B	5.17B
	Total Debt
212.00M	194.20M	454.69M	2.41B	1.98B	2.23B
	Net Debt
-1.15B	-1.22B	100.38M	1.40B	1.08B	1.28B
	Total Liabilities
929.00M	945.86M	1.25B	4.51B	3.91B	4.09B
	Stockholders Equity
1.48B	1.54B	78.42M	198.83M	1.05B	1.07B
Cash Flow		Free Cash Flow
0.00	148.93M	-51.94M	-266.32M	296.13M	280.64M
	Operating Cash Flow
0.00	158.66M	126.30M	100.03M	557.51M	659.13M
	Investing Cash Flow
0.00	-188.56M	1.18B	-414.10M	-260.97M	-817.23M
	Financing Cash Flow
0.00	1.10B	-1.98B	413.85M	-353.30M	164.00M

SocialWire Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 237.00
• 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:3929, the sentiment is Neutral. The current price of 237 is below the 20-day moving average (MA) of 246.40, above the 50-day MA of 235.76, and above the 200-day MA of 227.07, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 3.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3929.

SocialWire Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4308	80 Outperform	¥9.25B	16.79		3.76%	4.74%	84.68%
4347	74 Outperform	¥13.55B	40.35		2.12%	9.55%	-50.01%
3929	71 Outperform	¥2.77B	14.25		―	-20.82%	―
4650	67 Neutral	¥2.56B	27.30		―	12.50%	-20.45%
5125	66 Neutral	¥2.49B	11.35		―	-4.07%	-45.34%
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
3686	47 Neutral	¥6.33B	―		―	16.03%	-27.98%