Synchro Food Co., Ltd. (3963) AI Stock Analysis

• Market Cap: ¥14.24B
• Dividend Yield: 2.05%
• Average Volume (3M): 159.46K
• Price to Earnings (P/E): 310.2
• Beta (1Y): 0.32
• Revenue Growth: 0.21%
• EPS Growth: -41.37%
• Country: JP
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.57
• Shares Outstanding: 29,123,000
• 10 Day Avg. Volume: 166,470
• 30 Day Avg. Volume: 159,460
• PEG Ratio: -2.47
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 33.05
• 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: 64 Neutral
• Price Target: ¥529.00 ▼(-25.39% Downside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

Overall score reflects strong underlying financial quality (high margins, solid profitability, and an essentially debt-free balance sheet) offset by weak technical momentum (price below key moving averages with negative MACD and weak RSI/Stoch) and a very high P/E multiple despite a moderate dividend yield.

Positive Factors

High profitability margins

Sustained very high gross and EBIT margins over multiple years indicate a scalable, low-variable-cost service model and durable pricing power. This margin profile supports strong internal cash generation, funds reinvestment and dividends, and provides a structural buffer during demand swings.

Minimal financial leverage

An essentially debt-free balance sheet materially reduces financial risk and interest burden, increasing operational resilience across cycles. It preserves strategic optionality for M&A, investment or shareholder returns without constraining cash flow, improving long-term stability.

Strong free cash flow conversion

FCF near parity with net income signals high earnings quality and reliable cash conversion, which supports sustainable dividends, capex and reinvestment. Consistent FCF generation underpins balance-sheet strength and gives management flexibility for long-term growth initiatives.

Negative Factors

Earnings volatility / EPS decline

A large negative EPS growth metric reflects meaningful earnings volatility and recent declines, which reduce predictability of profits and shareholder returns. Persistent EPS swings complicate planning, increase forecast risk, and can constrain long-run capital allocation decisions.

Weakened operating cash flow and conversion

A marked drop in operating cash flow and a fall in cash conversion in 2025 indicate working-capital or timing pressures that can impair free cash resilience. Lower OCF relative to earnings reduces financial flexibility and raises sensitivity to revenue slowdowns or margin compression.

Margins and ROE softening

Declining margins and a dip in ROE in 2025 suggest returns are moderating even as the equity base grows. This trend can lower capital efficiency, limit the pace of value-accretive reinvestment, and pressure sustainable returns to shareholders if it persists.

Synchro Food Co., Ltd. Business Overview & Revenue Model

Company Description

Synchro Food Co., Ltd. operates various media platforms for the restaurant industry. Its platforms include Restaurant.com, a support site for opening and operation of restaurant; Jobs@Restaurant.com, a restaurant job information site; Jobs@Interior Design, a job change site for the interior industry; Restaurant PR.com, an open information providing site for restaurants; Store Design.com, a matching site for store design companies; Izukuri Information.com, a purchase assessment site for unoccupied store properties; and Mobimaru, a kitchen car share matching site. The company was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Synchro Food Co., Ltd. generates revenue primarily through its online platforms that offer various services to the food and beverage industry. Key revenue streams include subscription fees from restaurant management and recruitment platforms, as well as fees for marketing and promotional services. The company also earns money through partnerships with food service providers and businesses seeking to optimize their operations and expand their customer base. By leveraging technology and data-driven insights, Synchro Food Co., Ltd. provides value-added services that help its clients improve operational efficiency and drive sales growth.

Synchro Food Co., Ltd. Financial Statement Overview

Summary

Strong profitability with high gross margins (~81%–87%) and solid EBIT margins (~23%–30%) over the last four years, plus robust revenue growth from 2022–2025. Balance sheet is very conservative with essentially no debt and healthy recent ROE (~12%–18%). Key risks are volatility (notably the 2021 downturn) and signs of 2025 margin/ROE softening alongside weaker operating cash flow and cash conversion.

Income Statement

Profitability is strong, with consistently high gross margins (~81%–87%) and solid operating profitability in the last four years (EBIT margin ~23%–30%). Revenue growth has been robust from 2022–2025 (positive each year, with a particularly strong 2025), indicating good demand momentum. The main weakness is volatility: the business saw a sharp downturn in 2021 (negative revenue growth and losses), and margins in 2025 are lower than 2023–2024, signaling some recent margin pressure despite higher sales.

Balance Sheet

The balance sheet looks very conservative with essentially no debt across the period (debt-to-equity at ~0), which materially reduces financial risk and supports resilience through cycles. Equity and assets have grown steadily from 2021 to 2025, reflecting ongoing balance-sheet strengthening. Return on equity is healthy in recent years (roughly 12%–18%), though it dipped in 2025 versus 2023–2024, implying returns are moderating even as the equity base expands.

Cash Flow

Free cash flow is consistently positive from 2022–2025 and closely tracks net income (free cash flow to net income ~0.97–1.00), which is a quality signal for earnings. However, operating cash flow weakened meaningfully in 2025 versus 2024 (down from 742M to 439M) and cash conversion versus earnings also softened in 2025 (operating cash flow to net income ~0.57), suggesting more working-capital or timing drag. Cash flow was also negative in 2021, reinforcing that cash generation can fluctuate in weaker periods.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.88B	3.95B	3.60B	2.93B	1.96B	1.19B
Gross Profit	3.15B	3.24B	3.02B	2.54B	1.69B	962.86M
EBITDA	880.86M	1.00B	1.08B	899.74M	458.61M	-167.38M
Net Income	580.86M	659.26M	704.95M	628.36M	339.69M	-177.79M
Balance Sheet
Total Assets	5.29B	6.13B	5.07B	4.27B	3.40B	2.73B
Cash, Cash Equivalents and Short-Term Investments	4.63B	5.00B	4.19B	3.93B	3.09B	2.34B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	701.05M	804.56M	778.59M	740.07M	531.78M	226.66M
Stockholders Equity	4.59B	5.33B	4.29B	3.53B	2.87B	2.51B
Cash Flow
Free Cash Flow	0.00	436.83M	721.80M	831.77M	744.07M	-410.38M
Operating Cash Flow	0.00	439.09M	742.20M	850.37M	744.39M	-405.98M
Investing Cash Flow	0.00	-10.58M	-530.54M	-4.72M	119.74M	-28.04M
Financing Cash Flow	0.00	374.95M	49.07M	0.00	0.00	-51.15M

Synchro Food Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 709.00
• 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:3963, the sentiment is Negative. The current price of 709 is above the 20-day moving average (MA) of 542.60, above the 50-day MA of 613.12, and above the 200-day MA of 601.30, indicating a bearish trend. The MACD of -28.53 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3963.

Synchro Food Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.29B	6.60	―	3.62%	7.07%	79.18%
3551	80 Outperform	¥10.40B	2.00	―	2.83%	2.55%	44.60%
9307	78 Outperform	¥16.43B	15.74	―	1.49%	1.23%	0.12%
9324	66 Neutral	¥71.51B	12.14	―	2.18%	12.03%	30.12%
9322	65 Neutral	¥22.06B	30.65	―	1.13%	3.37%	9.00%
3963	64 Neutral	¥14.24B	310.15	―	2.05%	0.21%	-41.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Synchro Food Co., Ltd. Corporate Events

Synchro Food Highlights Data-Driven Platform Vision for Food and Drink Industry

Synchro Food Co., Ltd., a platform-focused provider for the food and drink industry, develops data-driven digital services that help restaurant and food-service entrepreneurs launch, manage, and grow their businesses. The company’s market focus spans Japan and overseas, aiming to support industry participants with simple, speedy, and innovative solutions while nurturing an internal culture that enables employees to grow and fully engage in this mission.

In its latest briefing materials, the company reiterates a vision of spreading happiness derived from dining experiences by establishing a comprehensive platform for challengers in the food and drink business. Synchro Food underscores its commitment to creating new value based on accumulated data, offering multiple options for industry players, and strengthening its organizational environment so staff can better support customer challenges and sustain long-term service innovation.

The most recent analyst rating on (JP:3963) stock is a Hold with a Yen618.00 price target. To see the full list of analyst forecasts on Synchro Food Co., Ltd. stock, see the JP:3963 Stock Forecast page.

Synchro Food Posts Profit Slump Despite Strong Sales Growth and Balance Sheet Expansion

Synchro Food Co., Ltd., a Tokyo-listed digital services provider for the food-service sector, reported a sharp profit decline for the nine months ended December 31, 2025, despite solid top-line growth. Net sales rose 23.8% year on year to 3.62 billion yen, but operating profit fell 43.2% to 477 million yen and profit attributable to owners of parent dropped 59.4% to 225 million yen, reflecting increased costs and the impact of recent consolidation moves.

Total assets nearly doubled to 11.55 billion yen as of December 31, 2025, while the equity ratio weakened to 40.7% from 86.9%, partly due to the inclusion of Horizon 14 Co., Ltd. and ideal inc. in the consolidated group. The company kept its full-year forecast unchanged, projecting a 41.7% sales increase to 5.6 billion yen but a decline in full-year profit, and it plans to maintain a year-end dividend of 15 yen per share, signaling a commitment to shareholder returns amid margin pressure and balance sheet expansion.

The most recent analyst rating on (JP:3963) stock is a Hold with a Yen618.00 price target. To see the full list of analyst forecasts on Synchro Food Co., Ltd. stock, see the JP:3963 Stock Forecast page.