Shanon, Inc. (3976) AI Stock Analysis

• Market Cap: ¥2.41B
• Dividend Yield: N/A
• Average Volume (3M): 7.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 6.60%
• EPS Growth: 59.46%
• Country: JP
• Employees: 254
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 5,926,200
• 10 Day Avg. Volume: 13,510
• 30 Day Avg. Volume: 7,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥373.00
• Price Target Upside: -8.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥373.00 ▼(-8.13% Downside)

Shanon, Inc. exhibits strong revenue growth and positive cash flow trends, which are promising. However, significant financial challenges exist, including high leverage and unprofitability, reflected in the negative P/E ratio. The technical analysis suggests a bearish trend, adding to the risks. The overall score reflects these mixed factors, highlighting the need for careful consideration by potential investors.

Shanon, Inc. Business Overview & Revenue Model

Company Description

Shanon, Inc. (3976) is a technology company specializing in digital marketing solutions and software development. The company provides a range of services including digital advertising, data analytics, and customer relationship management software. Shanon, Inc. aims to help businesses enhance their digital presence and optimize their marketing strategies through innovative technology solutions.

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 revenue growth but struggles with profitability and financial stability. The strong gross profit margin offers potential for improvement, but high leverage and negative equity present significant risks. Positive cash flow trends are encouraging, suggesting a potential path to improvement.

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	3.25B	3.21B	2.93B	2.46B	2.20B	1.79B
Gross Profit	1.97B	1.93B	1.83B	1.59B	1.37B	1.10B
EBITDA	93.45M	122.87M	-180.97M	-147.51M	193.94M	161.83M
Net Income	-124.63M	-101.61M	-445.67M	-365.86M	107.89M	56.29M
Balance Sheet
Total Assets	1.71B	2.17B	2.02B	1.84B	1.69B	1.32B
Cash, Cash Equivalents and Short-Term Investments	621.30M	763.13M	400.86M	264.18M	491.14M	438.71M
Total Debt	200.70M	1.39B	1.13B	744.58M	564.42M	454.74M
Total Liabilities	853.43M	2.22B	1.98B	1.56B	1.04B	790.64M
Stockholders Equity	851.67M	-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: Positive
• Last Price: 406.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3976, the sentiment is Positive. The current price of 406 is above the 20-day moving average (MA) of 389.25, above the 50-day MA of 371.04, and below the 200-day MA of 417.90, indicating a bullish trend. The MACD of 12.53 indicates Negative momentum. The RSI at 76.80 is Negative, neither overbought nor oversold. The STOCH value of 85.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3976.

Shanon, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5577	70 Outperform	¥5.77B	172.59		―	-2.99%	-103.82%
3986	68 Neutral	¥2.19B	23.36		1.24%	-1.00%	-32.70%
Sector *	61 Neutral	$35.52B	8.84	-11.04%	1.87%	8.55%	-8.14%
4166	54 Neutral	¥2.16B	―		―	0.90%	65.04%
4052	52 Neutral	¥2.00B	15,811.97		―	0.69%	-386.13%
3976	51 Neutral	¥2.41B	―		―	6.60%	59.46%
4424	51 Neutral	¥2.00B	―		―	-24.70%	-129.02%