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Shanon, Inc. (JP:3976)
:3976
Japanese Market
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Shanon, Inc. (3976) AI Stock Analysis

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JP:3976

Shanon, Inc.

(3976)

Rating:51Neutral
Price Target:
¥373.00
▲(0.27%Upside)
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. (3976) vs. iShares MSCI Japan ETF (EWJ)

Shanon, Inc. Business Overview & Revenue Model

Company DescriptionShanon, 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 MoneyShanon, 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
55
Neutral
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
40
Negative
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.21B2.93B2.46B2.20B1.79B
Gross Profit1.93B1.83B1.59B1.37B1.10B
EBITDA122.87M-180.97M-146.19M193.94M161.83M
Net Income-101.61M-445.67M-365.86M107.89M56.29M
Balance Sheet
Total Assets2.17B2.02B1.84B1.69B1.32B
Cash, Cash Equivalents and Short-Term Investments763.13M400.86M264.18M491.14M438.71M
Total Debt1.39B1.13B744.58M564.42M454.74M
Total Liabilities2.22B1.98B1.56B1.04B790.64M
Stockholders Equity-52.54M39.53M285.41M645.90M533.34M
Cash Flow
Free Cash Flow81.11M-354.93M-250.03M-11.89M104.24M
Operating Cash Flow226.62M-148.76M-3.92M183.72M235.08M
Investing Cash Flow-160.54M-260.58M-283.58M-246.88M-151.24M
Financing Cash Flow295.04M545.35M57.51M112.13M177.03M

Shanon, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price372.00
Price Trends
50DMA
362.10
Positive
100DMA
375.02
Negative
200DMA
416.94
Negative
Market Momentum
MACD
3.50
Negative
RSI
54.94
Neutral
STOCH
49.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3976, the sentiment is Neutral. The current price of 372 is above the 20-day moving average (MA) of 355.70, above the 50-day MA of 362.10, and below the 200-day MA of 416.94, indicating a neutral trend. The MACD of 3.50 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3976.

Shanon, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥2.86B172.59
4.15%-93.75%
68
Neutral
¥2.15B27.57
1.29%-3.26%-57.17%
58
Neutral
€2.95B11.44-8.77%2.73%4.97%-52.21%
52
Neutral
¥2.20B16,025.64
16.45%
51
Neutral
¥2.17B
6.60%59.46%
51
Neutral
¥1.93B
-20.17%-455.68%
50
Neutral
¥2.05B
-11.56%50.90%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3976
Shanon, Inc.
368.00
-47.00
-11.33%
JP:3986
bBreak Systems Co. Ltd.
1,395.00
-116.52
-7.71%
JP:4052
Ficha, Inc.
375.00
-252.00
-40.19%
JP:4166
Cacco, Inc.
747.00
-5.00
-0.66%
JP:4424
Amazia, Inc.
294.00
-205.00
-41.08%
JP:5577
Aidemy Inc.
717.00
-649.00
-47.51%
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.Date of analysis: Jul 15, 2025