Shanon, Inc. (3976) AI Stock Analysis

• Market Cap: ¥2.34B
• Dividend Yield: N/A
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -4.52%
• EPS Growth: 2.56%
• Country: JP
• Employees: 254
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.56
• Shares Outstanding: 5,926,200
• 10 Day Avg. Volume: 3,250
• 30 Day Avg. Volume: 6,900
• PEG Ratio: 0.16
• Price to Book (P/B): -24.50
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 15.87
• 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: ¥401.00
• Price Target Upside: 1.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥401.00 ▲(1.52% Upside)

Shanon, Inc.'s overall stock score is primarily influenced by its financial performance, which shows growth potential but is hindered by profitability and leverage issues. Technical analysis suggests mixed signals with some potential for bullish momentum. Valuation remains a concern due to negative earnings.

Shanon, Inc. Business Overview & Revenue Model

Company Description

SHANON Inc. provides cloud solutions for corporate marketing issues. It offers cloud planning and development for marketing, as well as consulting and outsourcing services related to marketing. The company was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shanon, Inc. generates revenue primarily through its digital marketing services and software solutions. The company earns income by offering subscription-based software products for customer relationship management and data analytics. Additionally, Shanon, Inc. provides digital advertising services, where it earns money by managing marketing campaigns for clients. Key revenue streams include subscription fees, service fees for digital marketing campaigns, and potential partnerships with other technology firms to expand service offerings.

Shanon, Inc. Financial Statement Overview

Summary

Shanon, Inc. shows positive revenue growth and a strong gross profit margin, but struggles with profitability and financial stability due to negative net income and high leverage. Positive cash flow trends are encouraging, but significant risks remain with negative equity.

Income Statement

Shanon, Inc. has shown a positive revenue growth rate over the years, with the most recent year showing a 9.3% increase in revenue. However, the company has been struggling with profitability, as evidenced by negative net income and EBIT in recent years. Gross profit margin is relatively strong at around 60.2%, but the net profit margin remains negative. Improving operational efficiency and cost management could help enhance profitability.

Balance Sheet

The company's balance sheet shows significant leverage, with a negative stockholders' equity position, indicating that liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, which is a concern. Equity ratio is also negative, signaling potential financial instability. Improving equity through retained earnings or capital infusion is critical for financial health.

Cash Flow

Shanon, Inc. has shown improvement in cash flow management, with a positive free cash flow of 81.1 million JPY in the most recent year. The operating cash flow to net income ratio indicates stronger cash generation relative to net losses. Continued focus on cash flow generation and reducing capital expenditures can support financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.16B	3.21B	2.93B	2.46B	2.20B	1.79B
Gross Profit	1.95B	1.93B	1.83B	1.59B	1.37B	1.10B
EBITDA	58.66M	122.87M	-180.97M	-147.51M	193.94M	161.83M
Net Income	-164.79M	-101.61M	-445.67M	-365.86M	107.89M	56.29M
Balance Sheet
Total Assets	1.70B	2.17B	2.02B	1.84B	1.69B	1.32B
Cash, Cash Equivalents and Short-Term Investments	737.66M	763.13M	400.86M	264.18M	491.14M	438.71M
Total Debt	170.48M	1.39B	1.13B	744.58M	564.42M	454.74M
Total Liabilities	846.84M	2.22B	1.98B	1.56B	1.04B	790.64M
Stockholders Equity	851.98M	-52.54M	39.53M	285.41M	645.90M	533.34M
Cash Flow
Free Cash Flow	0.00	81.11M	-354.93M	-250.03M	-11.89M	104.24M
Operating Cash Flow	0.00	226.62M	-148.76M	-3.92M	183.72M	235.08M
Investing Cash Flow	0.00	-160.54M	-260.58M	-283.58M	-246.88M	-151.24M
Financing Cash Flow	0.00	295.04M	545.35M	57.51M	112.13M	177.03M

Shanon, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 395.00
• 50DMA: Negative
• 100DMA: Positive
• 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:3976, the sentiment is Negative. The current price of 395 is below the 20-day moving average (MA) of 404.55, below the 50-day MA of 398.36, and below the 200-day MA of 407.77, indicating a bearish trend. The MACD of 1.13 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3976.

Shanon, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3986	68 Neutral	¥2.19B	23.58	―	1.26%	-1.00%	-32.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3976	53 Neutral	¥2.34B	―	―	―	-4.52%	2.56%
4052	52 Neutral	¥1.93B	15,811.97	―	―	0.69%	-386.26%
5577	52 Neutral	¥5.80B	172.59	―	―	-4.84%	-161.59%
4424	51 Neutral	¥1.78B	―	―	―	-24.70%	-129.02%
4166	42 Neutral	¥1.96B	―	―	―	0.90%	65.04%