Shanon, Inc. (3976) AI Stock Analysis

• Market Cap: ¥2.03B
• Dividend Yield: N/A
• Average Volume (3M): 6.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 6.60%
• EPS Growth: 59.46%
• Country: JP
• Employees: 254
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 5,926,200
• 10 Day Avg. Volume: 7,450
• 30 Day Avg. Volume: 6,090
• PEG Ratio: 0.02
• Price to Book (P/B): 10.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.88
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ¥366.00 ▲(7.02%Upside)

Shanon, Inc. faces significant challenges with profitability and financial stability that are reflected in its valuation. Technical indicators show bearish trends, further impacting the stock score. The company's positive cash flow is a potential sign of improvement but is outweighed by high leverage and negative equity.

Shanon, Inc. Business Overview & Revenue Model

Company Description

Shanon, Inc. (3976) is a Japanese company that specializes in providing digital marketing solutions and customer relationship management (CRM) systems. The company focuses on helping businesses enhance their marketing strategies through the use of technology and data-driven insights. Shanon, Inc. offers a range of services including marketing automation, event management solutions, and customer engagement tools, catering primarily to clients in various industries seeking to improve their marketing efficacy and brand outreach.

How the Company Makes Money

Shanon, Inc. makes money through a combination of subscription-based services and customized solutions for its clients. The company generates revenue by providing its digital marketing and CRM platforms, which businesses subscribe to on a recurring basis. Additionally, Shanon, Inc. offers bespoke services and consulting to tailor their solutions to the specific needs of their clients, thereby creating additional revenue streams. Strategic partnerships with other technology providers and a focus on innovation in marketing technology further bolster their earnings by expanding their market reach and enhancing their service offerings.

Shanon, Inc. Financial Statement Overview

Summary

Shanon, Inc. has shown revenue growth and strong gross profit margins, but negative net income and high leverage pose significant risks. Positive cash flow trends offer some optimism for future 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	3.17B	3.21B	2.93B	2.46B	2.20B	1.79B
Gross Profit	1.90B	1.93B	1.83B	1.59B	1.37B	1.10B
EBITDA	77.41M	122.87M	-180.97M	-146.19M	193.94M	161.83M
Net Income	-121.69M	-101.61M	-445.67M	-365.86M	107.89M	56.29M
Balance Sheet
Total Assets	2.44B	2.17B	2.02B	1.84B	1.69B	1.32B
Cash, Cash Equivalents and Short-Term Investments	843.05M	763.13M	400.86M	264.18M	491.14M	438.71M
Total Debt	1.49B	1.39B	1.13B	744.58M	564.42M	454.74M
Total Liabilities	2.52B	2.22B	1.98B	1.56B	1.04B	790.64M
Stockholders Equity	-86.40M	-52.54M	39.53M	285.41M	645.90M	533.34M
Cash Flow
Free Cash Flow	142.61M	81.11M	-354.93M	-250.03M	-11.89M	104.24M
Operating Cash Flow	142.61M	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: 342.00
• 50DMA: Negative
• 100DMA: Negative
• 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 342 is below the 20-day moving average (MA) of 357.55, below the 50-day MA of 367.68, and below the 200-day MA of 419.54, indicating a bearish trend. The MACD of -8.50 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 32.66 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
5577	70 Outperform	¥3.33B	150.23		―	4.15%	-93.75%
3986	68 Neutral	¥2.14B	27.65		1.29%	-3.26%	-57.17%
4052	52 Neutral	¥2.25B	16,581.20		―	16.45%	―
4424	51 Neutral	¥1.95B	―		―	-20.17%	-455.68%
4166	50 Neutral	¥2.04B	―		―	-11.56%	50.90%
Sector *	49 Neutral	C$2.92B	2.03	-80.91%	2.68%	12.55%	-24.32%
3976	49 Neutral	¥2.03B	―		―	6.60%	59.46%