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Segue Group Co., Ltd.
(3968)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥700.00
▲(6.54% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by financial quality concerns—especially the sharp 2025 cash-flow reversal and increased leverage—despite strong recent revenue/profit rebound. Offsetting this, technicals are bullish with the stock above key moving averages and positive MACD, and valuation is supportive with a low P/E and a moderate dividend yield.
Positive Factors
Accelerating Revenue and Profit Recovery
Strong 2025 revenue growth after a near-flat 2024, combined with a more than doubling of net income, signals renewed demand and improved execution. This creates a stronger earnings base for continued expansion in cybersecurity and infrastructure services.
Negative Factors
Sharp Cash Flow Deterioration
The reversal from positive to deeply negative operating and free cash flow shows that recent earnings have not translated into cash. Persistent weak conversion could constrain investment, increase funding needs and expose the business to working-capital execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue and Profit Recovery
Strong 2025 revenue growth after a near-flat 2024, combined with a more than doubling of net income, signals renewed demand and improved execution. This creates a stronger earnings base for continued expansion in cybersecurity and infrastructure services.
Read all positive factors
Segue Group Co., Ltd. (3968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥23.55B
Dividend Yield2.44%
Average Volume (3M)150.76K
Price to Earnings (P/E)10.3
Beta (1Y)0.73
Revenue Growth52.56%
EPS Growth326.22%
CountryJP
Employees712
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)59.02
Shares Outstanding37,164,078
10 Day Avg. Volume268,970
30 Day Avg. Volume150,760
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)4.97
Price to Sales (P/S)0.83
P/FCF Ratio-6.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Segue Group Co., Ltd. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 2014, Segue Group Co.,Ltd. delivers a broad spectrum of IT infrastructure and network security solutions across Japan. The company's services encompass the design, implementation, operation, and ongoing maintenance ...
How the Company Makes Money
Segue Group’s earnings primarily come from (1) selling and implementing cybersecurity and IT infrastructure solutions and (2) providing ongoing operational support services. Key revenue streams typically include: (a) product/solution revenue from ...
Segue Group Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.47B | 25.07B | 18.72B | 17.44B | 13.62B | 12.04B |
| Gross Profit | 7.20B | 5.93B | 4.59B | 4.12B | 3.56B | 3.09B |
| EBITDA | 3.63B | 2.38B | 1.46B | 1.23B | 1.32B | 877.56M |
| Net Income | 1.93B | 1.19B | 507.69M | 660.51M | 743.32M | 454.76M |
Balance Sheet | ||||||
| Total Assets | 23.10B | 18.65B | 13.64B | 11.83B | 11.26B | 8.63B |
| Cash, Cash Equivalents and Short-Term Investments | 10.39B | 2.54B | 4.07B | 3.45B | 3.11B | 1.35B |
| Total Debt | 1.73B | 3.98B | 2.31B | 849.96M | 1.13B | 501.83M |
| Total Liabilities | 15.69B | 14.25B | 10.44B | 7.82B | 7.57B | 5.43B |
| Stockholders Equity | 7.20B | 4.19B | 3.04B | 4.00B | 3.67B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 197.52M | -3.01B | 1.59B | 1.28B | 1.03B | -275.52M |
| Operating Cash Flow | 231.80M | -2.81B | 1.76B | 1.59B | 1.13B | -151.11M |
| Investing Cash Flow | -52.42M | -90.10M | -991.28M | -658.99M | 84.18M | -254.92M |
| Financing Cash Flow | -192.52M | 1.24B | -335.04M | -669.10M | 453.88M | 17.11M |
Segue Group Co., Ltd. Technical Analysis
Positive
657.00
Price Trends
579.75
Positive
555.00
Positive
582.05
Positive
Market Momentum
11.02
Negative
70.35
Negative
73.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3968, the sentiment is Positive. The current price of 657 is above the 20-day moving average (MA) of 595.65, above the 50-day MA of 579.75, and above the 200-day MA of 582.05, indicating a bullish trend. The MACD of 11.02 indicates Negative momentum. The RSI at 70.35 is Negative, neither overbought nor oversold. The STOCH value of 73.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3968.
Segue Group Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥28.32B | 10.93 | ― | 1.21% | 5.65% | 7.73% | |
78 Outperform | ¥34.13B | 10.75 | ― | 3.39% | 11.79% | 55.44% | |
76 Outperform | ¥158.73B | 13.62 | ― | 3.30% | 10.67% | 23.70% | |
74 Outperform | ¥35.78B | 13.04 | ― | 3.40% | 5.05% | 7.82% | |
71 Outperform | ¥29.61B | 15.16 | ― | 2.83% | 15.42% | 27.86% | |
66 Neutral | ¥23.55B | 10.25 | ― | 1.72% | 52.56% | 326.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3968
Segue Group Co., Ltd.
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-7.83%
Segue Group Co., Ltd. Corporate Events
Segue Group Raises FY2026 Q2 Earnings Outlook
Aug 13, 2026
Segue Group Co., Ltd. has issued its supplementary materials for the second quarter of fiscal 2026, highlighting a revision of its earnings forecast, described as an upward revision. The document also outlines financial highlights, business perfor...
Segue Group Delivers Profit Surge and Lifts 2026 Forecast, Boosts Dividend
Aug 13, 2026
Segue Group Co., Ltd. reported a sharp improvement in its interim performance for the six months to June 30, 2026, with net sales climbing 59.1% year on year to ¥15.9 billion and profit attributable to owners of parent surging 238.1% to ¥...
Segue Group Lifts Full-Year Profit Outlook on Strong Recurring Revenue
Aug 13, 2026
Segue Group Co., Ltd. has raised its full-year consolidated earnings forecast for the fiscal year ending December 31, 2026, driven by stronger-than-expected performance in high-margin support services and its proprietary “RevoWorks” pr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.