Segue Group Co., Ltd. (JP:3968)
:3968
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Segue Group Co., Ltd.
(3968)
Select Model
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Rating:55Neutral
Price Target:
¥501.00
▼(-23.74% Downside)
Action:ReiteratedDate:03/24/26
The score is primarily constrained by the sharp 2025 cash flow reversal and higher leverage, despite strong revenue growth and improving profitability. Technicals are bearish (below key moving averages with negative MACD), while valuation is moderately supportive due to a mid-range P/E and a solid dividend yield.
Positive Factors
Revenue Growth
Sustained ~23% revenue growth in 2025 indicates structural demand for Segue's IT services and successful commercial execution. Over 2-6 months this supports scalable top-line momentum, enhances pricing leverage, and creates room to invest in service capabilities and recurring contracts that underpin durable earnings.
Negative Factors
Cash Flow Reversal
A material 2025 cash-flow reversal undermines the conversion of reported earnings into spendable cash, increasing reliance on liquidity or external financing. Over the medium term this threatens funding for working capital, capex and dividends, and raises execution risk if negative flows persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained ~23% revenue growth in 2025 indicates structural demand for Segue's IT services and successful commercial execution. Over 2-6 months this supports scalable top-line momentum, enhances pricing leverage, and creates room to invest in service capabilities and recurring contracts that underpin durable earnings.
Read all positive factors
Segue Group Co., Ltd. (3968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥18.32B
Dividend Yield1.72%
Average Volume (3M)150.76K
Price to Earnings (P/E)17.5
Beta (1Y)0.78
Revenue Growth26.24%
EPS Growth29.73%
CountryJP
Employees709
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.66
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
Segue Group Co.,Ltd. provides design, construction, operation, and maintenance services related to IT infrastructure and network security products in Japan. It offers distribution; system integration; voice network, LAN environment, and BX environ...
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 | 20.31B | 25.07B | 18.72B | 17.44B | 13.62B | 12.04B |
| Gross Profit | 5.02B | 5.93B | 4.59B | 4.12B | 3.56B | 3.09B |
| EBITDA | 1.48B | 2.30B | 1.46B | 1.23B | 1.32B | 877.56M |
| Net Income | 475.76M | 1.19B | 507.69M | 660.51M | 743.32M | 454.76M |
Balance Sheet | ||||||
| Total Assets | 16.91B | 18.65B | 13.64B | 11.83B | 11.26B | 8.63B |
| Cash, Cash Equivalents and Short-Term Investments | 4.12B | 2.54B | 4.07B | 3.45B | 3.11B | 1.35B |
| Total Debt | 2.07B | 3.98B | 2.31B | 849.96M | 1.13B | 501.83M |
| Total Liabilities | 12.61B | 14.25B | 10.44B | 7.82B | 7.57B | 5.43B |
| Stockholders Equity | 4.15B | 4.19B | 3.04B | 4.00B | 3.67B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 396.00M | -3.01B | 1.59B | 1.28B | 1.03B | -275.52M |
| Operating Cash Flow | 464.00M | -2.81B | 1.76B | 1.59B | 1.13B | -151.11M |
| Investing Cash Flow | -105.00M | -90.10M | -991.28M | -658.99M | 84.18M | -254.92M |
| Financing Cash Flow | -386.00M | 1.24B | -335.04M | -669.10M | 453.88M | 17.11M |
Segue Group Co., Ltd. Technical Analysis
Neutral
657.00
Price Trends
529.62
Negative
610.93
Negative
595.08
Negative
Market Momentum
-6.93
Negative
53.24
Neutral
53.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3968, the sentiment is Neutral. The current price of 657 is above the 20-day moving average (MA) of 503.85, above the 50-day MA of 529.62, and above the 200-day MA of 595.08, indicating a neutral trend. The MACD of -6.93 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥151.12B | 14.81 | ― | 2.30% | 13.82% | 37.07% | |
72 Outperform | ¥30.11B | 13.94 | ― | 3.40% | 12.64% | 30.73% | |
71 Outperform | ¥21.74B | 11.39 | ― | 1.70% | 22.25% | 31.88% | |
69 Neutral | ¥27.99B | 9.67 | ― | 1.21% | 7.21% | 0.30% | |
69 Neutral | ¥30.87B | 13.32 | ― | 2.22% | 9.57% | 315.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥18.32B | 17.48 | ― | 1.72% | 26.24% | 29.73% |
* Technology Sector Average
JP:3968
Segue Group Co., Ltd.
504.00
11.85
2.41%
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240.78
9.20%
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System Support, Inc.
1,046.00
41.13
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ID Holdings Corporation
1,894.00
22.88
1.22%
Segue Group Co., Ltd. Corporate Events
Segue Group Finalizes Terms of Director Stock Option Compensation
Mar 2, 2026
Segue Group Co., Ltd. has finalized the previously undecided terms of a stock compensation-type stock option program for its directors, confirming the issuance of 41,618 stock acquisition rights, each corresponding to one share. The program alloca...
Segue Group’s Planned Third-Party Share Allotment Falls Through
Mar 2, 2026
Segue Group Co., Ltd. announced that a planned issuance of new shares via third-party allotment, which had been approved by its board of directors in January 2026, will not proceed as expected. The designated allottee notified the company on March...
Segue Group Sets New Records on Mega Government Project-Driven Profit Surge
Feb 13, 2026
Segue Group Co., Ltd. reported that it significantly surpassed previous record highs in net sales and all major profit metrics for the fiscal year ending December 2025. The strong performance was driven primarily by revenue recognition from a mega...
Segue Group Issues Stock Compensation-Type Options to Align Directors With Shareholders
Feb 13, 2026
Segue Group Co., Ltd. has approved the issuance of its 12th series of stock acquisition rights as stock compensation-type stock options to six directors, including both board members and Audit and Supervisory Committee members. The program, based ...
Segue Group Posts Profit Surge, Lifts Dividend and Forecasts Further Growth
Feb 13, 2026
Segue Group Co., Ltd. reported strong consolidated results for the fiscal year ended December 31, 2025, with net sales up 34.0% year on year to ¥25.1 billion and operating profit surging 157.5% to ¥1.85 billion. Profit attributable to ow...
Segue Group Sets Issue and Selling Prices for Public Offering and Secondary Share Sales
Feb 2, 2026
Segue Group Co., Ltd. has set the terms for a previously approved equity financing, fixing the issue price for a public offering of new shares at 516 yen per share, for total proceeds of approximately 2.37 billion yen, with a payment date of Febru...
Segue Group Revamps Shareholder Benefits, Launches Premium Points Program Through 2029
Jan 23, 2026
Segue Group Co., Ltd. has approved a comprehensive revision of its shareholder benefits plan, building on its existing digital gift framework to further incentivize medium- to long-term shareholding and improve stock liquidity. From the record dat...
Segue Group Lifts 2025 Earnings Forecast and Raises 2026 Medium-Term Targets on Strong Public-Sector Demand
Jan 23, 2026
Segue Group Co., Ltd. has raised its consolidated earnings forecast for the fiscal year ended December 31, 2025, projecting modestly higher net sales but substantially stronger profits, with operating profit expected to rise about 24% and profit a...
Segue Group to Raise Capital via Public Share Offering and CEO’s Secondary Sale
Jan 23, 2026
Segue Group Co., Ltd. has approved the issuance of 4.6 million new shares of common stock through a public offering, with pricing to be set in early February 2026 based on the Tokyo Stock Exchange closing price within a 0.90–1.00 range, and ...
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.