Segue Group Co., Ltd. (JP:3968)
:3968
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Segue Group Co., Ltd.
(3968)
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Rating:60Neutral
Price Target:
¥580.00
▼(-11.72% Downside)
Action:Reiterated
Date:05/15/26
The score is primarily constrained by the sharp 2025 cash flow deterioration and higher leverage despite strong recent revenue growth and profit rebound. Technicals are supportive but appear overextended, while valuation is reasonable with a modest dividend but not compelling enough to offset cash-conversion risk.
Positive Factors
Revenue Growth
A very large recent revenue increase reflects expanding client demand and successful service adoption. Durable high top-line growth improves scale economics, funds reinvestment in offerings and sales capacity, and supports multi-quarter expansion of recurring maintenance and consulting revenue.
Negative Factors
Severe Cash-Flow Deterioration
Earnings not converting to cash in 2025 is a structural red flag: negative operating and free cash flow forces reliance on cash reserves or external funding, elevating liquidity and execution risk and potentially constraining investment, working capital management, and debt servicing over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A very large recent revenue increase reflects expanding client demand and successful service adoption. Durable high top-line growth improves scale economics, funds reinvestment in offerings and sales capacity, and supports multi-quarter expansion of recurring maintenance and consulting revenue.
Read all positive factors
Segue Group Co., Ltd. (3968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥20.86B
Dividend Yield1.72%
Average Volume (3M)150.76K
Price to Earnings (P/E)5.0
Beta (1Y)0.74
Revenue Growth58.85%
EPS Growth1630.07%
CountryJP
Employees709
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)15.07
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...
How the Company Makes Money
Segue Group Co., Ltd. generates revenue by providing IT solutions and services, including network infrastructure setup, IT system integration, and cybersecurity solutions. The company primarily earns money through the sale of hardware and software...
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
Positive
657.00
Price Trends
531.06
Positive
548.77
Positive
600.22
Negative
Market Momentum
12.64
Negative
55.11
Neutral
35.54
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 549.90, above the 50-day MA of 531.06, and above the 200-day MA of 600.22, indicating a neutral trend. The MACD of 12.64 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥34.22B | 8.19 | ― | 3.40% | 8.54% | 20.57% | |
75 Outperform | ¥26.43B | 10.52 | ― | 1.21% | 5.85% | 5.71% | |
71 Outperform | ¥153.65B | 13.05 | ― | 2.30% | 12.89% | 36.13% | |
71 Outperform | ¥21.57B | 10.82 | ― | 1.70% | 15.21% | 12.50% | |
69 Neutral | ¥31.39B | 8.54 | ― | 2.22% | 12.35% | 56.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥20.86B | 5.00 | ― | 1.72% | 58.85% | 1630.07% |
* Technology Sector Average
JP:3968
Segue Group Co., Ltd.
569.00
73.91
14.93%
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1,016.00
-204.06
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1,015.00
-22.68
-2.19%
Segue Group Co., Ltd. Corporate Events
Segue Group Issues Partial Correction to Q1 FY12 2026 Financial Materials
May 13, 2026
Segue Group Co., Ltd. disclosed that it has identified an error in its Supplementary Explanation Materials for the first quarter of FY12 2026 financial results, released on May 13, 2026. The company has issued a partial correction and provided rev...
Segue Group Issues FY2026 Q1 Supplementary Financial Materials
May 13, 2026
Segue Group Co., Ltd. has published its supplementary explanation materials for the first quarter of fiscal 2026, covering the three months of its financial year ending December 2026. The document outlines financial highlights, business performanc...
Segue Group Delivers Strong Q1 Rebound and Plans Higher 2026 Dividend
May 13, 2026
Segue Group Co., Ltd. reported a sharp rebound in performance for the three months ended March 31, 2026, with net sales surging 91.8% year on year to ¥9.18 billion and profit attributable to owners of parent jumping more than fivefold to ...
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...
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.