Silver Egg Technology Co., Ltd. (3961) AI Stock Analysis

• Market Cap: ¥1.88B
• Dividend Yield: N/A
• Average Volume (3M): 9.15K
• Price to Earnings (P/E): 7267.4
• Beta (1Y): 0.96
• Revenue Growth: -2.24%
• EPS Growth: -48.65%
• Country: JP
• Employees: 56
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): -2.91
• Shares Outstanding: 2,976,942
• 10 Day Avg. Volume: 16,550
• 30 Day Avg. Volume: 9,146
• PEG Ratio: -0.43
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.66
• 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: 61 Neutral
• Price Target: ―

Silver Egg Technology showcases strong financial health with no debt and robust cash flow, which is a significant strength. However, the stock is experiencing bearish technical indicators and appears overvalued based on the high P/E ratio. These factors combined result in a moderate overall score.

Silver Egg Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Silver Egg Technology Co., Ltd. (3961) is a technology company specializing in AI-driven recommendation engines. The company operates in the information technology sector, providing advanced machine learning and data analysis solutions to enhance customer experience and optimize business operations. Silver Egg Technology focuses on delivering personalized recommendations and data-driven insights across various industries, including e-commerce, retail, and digital marketing.

How the Company Makes Money

Silver Egg Technology Co., Ltd. generates revenue through the sale of its AI-powered recommendation engine services and related software solutions. The company offers its products to businesses seeking to enhance their customer engagement through personalized recommendations and data insights. The primary revenue streams include subscription fees for its software-as-a-service (SaaS) offerings, licensing fees for its technology, and professional services such as implementation, customization, and ongoing support. Significant partnerships with e-commerce platforms, retailers, and digital marketing firms also play a crucial role in expanding its customer base and driving sales. Additionally, the company may leverage strategic collaborations to integrate its technology with third-party platforms, further broadening its market reach.

Silver Egg Technology Co., Ltd. Financial Statement Overview

Summary

Silver Egg Technology shows strong financial stability with a high equity ratio and no debt, reducing financial risk. Revenue and profitability have slightly decreased, impacting net margins and ROE. Nevertheless, the company maintains robust cash flow generation, supporting its operational and financial flexibility.

Income Statement

The company shows stable revenue with a slight decline from the previous year, reflecting a -2.24% revenue growth. However, the gross profit margin is high at 100% due to negligible cost of goods sold, indicating operational efficiency. The net profit margin decreased to 2.47% in 2024 from 4.70% in 2023, signaling reduced profitability. EBITDA margin remains robust at 7.62%, showcasing strong operational cash flow generation capability.

Balance Sheet

Silver Egg Technology maintains a strong balance sheet with no debt, resulting in a debt-to-equity ratio of 0, which minimizes financial risk. The equity ratio is high at 93.34%, indicating solid financial health and low leverage. Return on equity has decreased to 2.13% in 2024, down from 4.29% in 2023, reflecting reduced profitability on shareholder investment.

Cash Flow

The company demonstrates positive free cash flow growth of 23.19% from 2023 to 2024, indicating improved cash generation capability. Operating cash flow to net income ratio is strong, signifying effective cash conversion. There is a healthy free cash flow to net income ratio, illustrating cash efficiency in operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	633.00K	1.23B	1.26B	1.24B	1.21B	1.23B
Gross Profit	-531.00K	978.63M	986.06M	968.05M	954.74M	951.79M
EBITDA	39.58M	93.69M	125.44M	118.00M	275.41M	225.25M
Net Income	4.24M	30.30M	59.10M	123.00M	202.70M	100.15M
Balance Sheet
Total Assets	1.38B	1.52B	1.51B	1.46B	1.28B	1.24B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.18B	1.10B	1.02B	939.55M	886.53M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	144.00M	101.29M	127.33M	144.65M	70.51M	233.57M
Stockholders Equity	1.24B	1.42B	1.38B	1.32B	1.21B	1.00B
Cash Flow
Free Cash Flow	0.00	92.28M	74.88M	80.94M	-8.40M	161.71M
Operating Cash Flow	0.00	102.74M	78.18M	95.29M	13.50M	202.95M
Investing Cash Flow	0.00	-25.03M	-2.58M	-14.35M	31.29M	-41.24M
Financing Cash Flow	0.00	4.94M	0.00	0.00	0.00	1.31M

Silver Egg Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 633.00
• 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:3961, the sentiment is Negative. The current price of 633 is below the 20-day moving average (MA) of 633.60, below the 50-day MA of 636.34, and below the 200-day MA of 703.45, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3961.

Silver Egg Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3923	76 Outperform	¥404.94B	50.84		0.20%	27.33%	91.27%
4385	75 Outperform	$418.51B	25.58	21.33%	―	3.01%	-2.84%
3697	74 Outperform	¥457.75B	68.04	19.04%	―	20.02%	-5.47%
Sector *	66 Neutral	¥372.81B	13.63	2.32%	2.51%	5.41%	-17.67%
3961	61 Neutral	¥1.88B	7,267.44		―	-2.24%	-48.65%
3994	55 Neutral	€270.54B	―	-17.75%	―	28.35%	-2.49%