SHARINGTECHNOLOGY. INC (3989) AI Stock Analysis

• Market Cap: ¥25.17B
• Dividend Yield: 1.37%
• Average Volume (3M): 408.90K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.64
• Revenue Growth: 16.07%
• EPS Growth: 13.19%
• Country: JP
• Employees: 173
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): 11.59
• Shares Outstanding: 23,243,800
• 10 Day Avg. Volume: 354,850
• 30 Day Avg. Volume: 408,900
• PEG Ratio: -0.08
• Price to Book (P/B): 8.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.02
• 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: 75 Outperform
• Price Target: ¥1,191.00 ▲(8.77%Upside)

The company benefits from strong financial performance, with notable growth and profitability metrics, low leverage, and efficient cash management. While technical analysis shows mixed signals, the valuation is reasonable, supported by a fair P/E ratio and a modest dividend yield. These factors combined lead to a robust overall stock score.

SHARINGTECHNOLOGY. INC Business Overview & Revenue Model

Company Description

SharingTechnology Inc. (3989) is a Japan-based company primarily engaged in the provision of Internet services. The company specializes in developing platforms that connect consumers with various service providers across different sectors, such as real estate, accommodation, and lifestyle services. Its platforms facilitate easy access to a wide range of services by leveraging technology to streamline the search and selection process for end-users.

How the Company Makes Money

SharingTechnology Inc. generates revenue primarily through its online platform services, where it earns income by charging service providers listing fees and commission on successful transactions facilitated through its platforms. The company also engages in partnerships with various service providers, expanding its reach and enhancing its service offerings, which in turn drives more users to its platforms. Additional revenue streams may include premium listing options and advertising fees from service providers seeking greater visibility on the company's platforms.

SHARINGTECHNOLOGY. INC Financial Statement Overview

Summary

SHARINGTECHNOLOGY. INC exhibits a strong financial profile with robust growth and profitability indicators, supported by stable cash flows and a solid balance sheet. The company is well-positioned in the industry with low leverage, high margins, and efficient cash management, contributing to its overall financial health.

Income Statement

The company shows a strong financial performance with a significant revenue growth rate of 6.83% in the TTM compared to the previous period. The gross profit margin is impressive at 91.68%, and the net profit margin stands at 18.44%, indicating efficient cost management. EBIT and EBITDA margins are strong at 23.71% and 27.41%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a robust equity position with an equity ratio of 65.39%. The debt-to-equity ratio is low at 0.10, indicating low financial leverage, which reduces financial risk. Return on equity is healthy at 38.54%, demonstrating effective utilization of shareholder funds.

Cash Flow

The cash flow statement reveals strong cash generation capabilities, with a free cash flow growth rate of -14.85% due to a high base effect. The operating cash flow to net income ratio is 1.31, indicating good cash conversion, and the free cash flow to net income ratio is an impressive 1.30, highlighting efficient capital management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
8.02B	7.50B	6.23B	4.43B	3.53B	3.99B
	Gross Profit
7.35B	6.87B	5.82B	4.26B	3.45B	3.96B
	EBIT
1.90B	1.79B	1.24B	401.53M	-1.13B	364.79M
	EBITDA
2.20B	2.01B	1.48B	715.90M	-685.99M	982.70M
	Net Income Common Stockholders
1.48B	1.49B	1.36B	472.68M	-1.12B	360.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.81B	4.11B	1.85B	1.09B	1.84B	2.19B
	Total Assets
5.86B	6.32B	4.13B	2.33B	3.08B	5.78B
	Total Debt
379.09M	448.06M	664.14M	763.56M	2.28B	3.88B
	Net Debt
-3.43B	-3.66B	-1.19B	-194.09M	533.98M	1.69B
	Total Liabilities
2.00B	2.41B	1.94B	1.66B	2.89B	4.67B
	Stockholders Equity
3.83B	3.89B	2.18B	669.87M	190.92M	1.11B
Cash Flow		Free Cash Flow
1.92B	2.26B	1.47B	705.38M	351.85M	765.32M
	Operating Cash Flow
1.94B	2.27B	1.48B	725.25M	449.08M	1.30B
	Investing Cash Flow
-20.30M	-14.17M	16.21M	5.48M	427.38M	-515.34M
	Financing Cash Flow
-689.62M	572.00K	-597.93M	-1.52B	-1.32B	-709.74M

SHARINGTECHNOLOGY. INC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1095.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3989, the sentiment is Positive. The current price of 1095 is above the 20-day moving average (MA) of 1075.10, above the 50-day MA of 1076.98, and above the 200-day MA of 941.30, indicating a bullish trend. The MACD of 6.97 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 67.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3989.

SHARINGTECHNOLOGY. INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3901	77 Outperform	¥25.35B	16.37		2.50%	14.80%	14.01%
5139	75 Outperform	¥23.54B	25.15		―	21.20%	56.48%
3989	75 Outperform	¥25.17B	17.10		1.37%	16.07%	13.19%
7047	74 Outperform	¥24.35B	12.57		0.14%	32.14%	20.23%
2477	73 Outperform	¥20.06B	18.74		0.97%	8.97%	13.17%
5243	64 Neutral	¥25.62B	218.67		―	18.35%	―
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%