Shanon, Inc. (JP:3976)
:3976
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Shanon, Inc.
(3976)
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Rating:69Neutral
Price Target:
¥574.00
▲(56.40% Upside)
Action:Reiterated
Date:05/29/26
The score is driven mainly by improving financial performance led by strong recent cash generation and better operating results, alongside a strong technical uptrend. Valuation is also supportive due to a very low P/E. The key constraint is that revenue momentum weakened in 2025 and net profitability is still not consistently positive, with prior balance sheet instability warranting confirmation of durability.
Positive Factors
High gross margins
Sustained 60–66% gross margins signal durable product pricing and cost structure advantages in application software. High margins provide operating leverage that can translate modest revenue into meaningful operating profits over time, supporting long‑term margin sustainability if revenue stabilizes.
Negative Factors
Revenue decline and volatility
A ~9% revenue drop in 2025, plus historical volatility, undermines the durability of margin and profit improvements. Persistent top‑line weakness reduces scale benefits, strains revenue-driven investment priorities, and means operating gains must be preserved even as demand or market share recovers.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained 60–66% gross margins signal durable product pricing and cost structure advantages in application software. High margins provide operating leverage that can translate modest revenue into meaningful operating profits over time, supporting long‑term margin sustainability if revenue stabilizes.
Read all positive factors
Shanon, Inc. (3976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.11B
Dividend YieldN/A
Average Volume (3M)1.90K
Price to Earnings (P/E)12.6
Beta (1Y)0.45
Revenue Growth-13.29%
EPS GrowthN/A
CountryJP
Employees254
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-34.65
Shares Outstanding5,926,200
10 Day Avg. Volume1,690
30 Day Avg. Volume1,900
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)2.20
Price to Sales (P/S)0.79
P/FCF Ratio4.39
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
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 ...
Shanon, Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
71
Positive
| Breakdown | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.75B | 3.21B | 2.93B | 2.46B | 2.20B |
| Gross Profit | 1.81B | 1.93B | 1.83B | 1.59B | 1.37B |
| EBITDA | 270.92M | 157.24M | -42.03M | -154.10M | 149.16M |
| Net Income | -23.72M | -101.61M | -445.67M | -365.86M | 107.89M |
Balance Sheet | |||||
| Total Assets | 2.00B | 2.17B | 2.02B | 1.84B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 763.13M | 400.86M | 264.18M | 491.14M |
| Total Debt | 97.13M | 1.39B | 1.13B | 744.58M | 564.42M |
| Total Liabilities | 1.01B | 2.22B | 1.98B | 1.56B | 1.04B |
| Stockholders Equity | 986.29M | -52.54M | 39.53M | 285.41M | 645.90M |
Cash Flow | |||||
| Free Cash Flow | 494.24M | 225.46M | -151.04M | -25.43M | 177.68M |
| Operating Cash Flow | 593.83M | 226.62M | -148.76M | -3.92M | 183.72M |
| Investing Cash Flow | -61.11M | -160.54M | -260.58M | -283.58M | -245.38M |
| Financing Cash Flow | -287.04M | 295.04M | 545.35M | 57.51M | 110.63M |
Shanon, Inc. Technical Analysis
Positive
367.00
Price Trends
400.20
Positive
387.82
Positive
390.31
Positive
Market Momentum
32.05
Negative
65.26
Neutral
80.62
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 367 is below the 20-day moving average (MA) of 430.55, below the 50-day MA of 400.20, and below the 200-day MA of 390.31, indicating a bullish trend. The MACD of 32.05 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 80.62 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥3.11B | 12.59 | ― | ― | -13.29% | ― | |
67 Neutral | ¥9.42B | 8.57 | ― | 0.70% | 12.98% | 80.52% | |
64 Neutral | ¥31.72B | 15.34 | ― | ― | 32.07% | 349.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥15.47B | 20.39 | ― | ― | 15.58% | ― | |
51 Neutral | ¥29.40B | 28.07 | ― | ― | 18.09% | -50.60% | |
45 Neutral | ¥3.46B | 127.76 | ― | ― | 17.00% | ― |
* Technology Sector Average
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Shanon, Inc. Corporate Events
Shanon Swings to Profit and Strengthens Balance Sheet in First Quarter 2026
May 18, 2026
Shanon reported consolidated results for the three months ended March 31, 2026, showing net sales of ¥744 million and profit attributable to owners of parent of ¥159 million, reversing the prior-year loss. The company’s equity rati...
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.