SHARINGTECHNOLOGY. INC (3989) AI Stock Analysis

• Market Cap: ¥24.40B
• Dividend Yield: 1.52%
• Average Volume (3M): 316.44K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.58
• Revenue Growth: 16.07%
• EPS Growth: 13.19%
• Country: JP
• Employees: 173
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 11.59
• Shares Outstanding: 24,424,400
• 10 Day Avg. Volume: 274,260
• 30 Day Avg. Volume: 316,436
• 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: 74 Outperform
• Price Target: ¥1,150.00 ▲(16.63%Upside)

The stock's strong financial performance is the most significant factor, supported by solid profitability and low leverage. However, the technical analysis indicates bearish momentum, which weighs on the overall score. The reasonable valuation provides a balanced view, contributing positively to the overall attractiveness of the stock.

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
EBITDA	2.20B	2.01B	1.48B	715.90M	-685.99M	982.70M
Net Income	1.48B	1.49B	1.36B	472.68M	-1.12B	360.86M
Balance Sheet
Total Assets	5.86B	6.32B	4.13B	2.33B	3.08B	5.78B
Cash, Cash Equivalents and Short-Term Investments	3.81B	4.11B	1.85B	1.09B	1.84B	2.19B
Total Debt	379.09M	448.06M	664.14M	763.56M	2.28B	3.88B
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: Neutral
• Last Price: 986.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3989, the sentiment is Neutral. The current price of 986 is below the 20-day moving average (MA) of 1055.30, below the 50-day MA of 1078.50, and above the 200-day MA of 958.34, indicating a neutral trend. The MACD of -27.67 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 10.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥24.96B	16.12		2.54%	14.80%	14.01%
7047	76 Outperform	¥24.92B	12.85		0.14%	32.14%	20.23%
5139	75 Outperform	¥19.97B	21.34		―	21.20%	56.48%
3989	74 Outperform	¥24.40B	15.77		1.52%	16.07%	13.19%
2477	73 Outperform	¥19.77B	18.47		1.31%	8.97%	13.17%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
5243	61 Neutral	¥23.44B	199.57		―	18.35%	―