SHARINGTECHNOLOGY. INC (3989) AI Stock Analysis

• Market Cap: ¥24.77B
• Dividend Yield: 3.68%
• Average Volume (3M): 228.22K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.52
• Revenue Growth: 14.35%
• EPS Growth: -6.44%
• Country: JP
• Employees: 173
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 19.19
• Shares Outstanding: 24,429,800
• 10 Day Avg. Volume: 374,500
• 30 Day Avg. Volume: 228,220
• PEG Ratio: 2.21
• Price to Book (P/B): 5.26
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 9.06
• 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
• EPS Forecast (FY): 66.9
• Revenue Forecast (FY): ¥9.60B

• Rating: 70 Outperform
• Price Target: ¥1,067.00 ▼(-1.75% Downside)

The overall stock score is primarily driven by strong financial performance, with robust revenue growth and profitability. However, bearish technical indicators and a downward price trend weigh on the score. The stock's valuation is reasonable, with an attractive dividend yield, but the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.

Profitability

High gross profit margins demonstrate effective cost control and pricing power, contributing to sustainable profitability and competitive advantage.

Balance Sheet Health

A low debt-to-equity ratio indicates strong financial health, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to fund new projects or return capital to shareholders, potentially impacting future growth.

Net Profit Margin Decline

A decline in net profit margin, even if slight, may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Past High Leverage Risks

Historical high leverage, if not managed properly, can lead to financial strain, affecting the company's ability to invest in growth and maintain stability.

SHARINGTECHNOLOGY. INC Business Overview & Revenue Model

Company Description

Sharingtechnology, Inc. operates platforms for solving problems in daily life in Japan. The company operates Life 110, a platform that enables users to search, compare, and inquire about the most suitable specialists for users from approximately 150 service genres related to daily life in order to solve problems that occur in your daily life. It also operates a vertical media site to deliver useful information to users who are interested in a specific theme, which include 250 sites that solve daily problems that occur, such as Pet Funeral 110 and Replacement 110; mochiya, a platform to select and reserve living services by word of mouth; and Information media that disseminate information in easy-to-understand and easy-to-understand expressions in areas, such as finance and job changes. The company was founded in 2006 and is headquartered in Nagoya, Japan.

How the Company Makes Money

SHARINGTECHNOLOGY. INC generates revenue through a combination of service fees, subscription models, and transaction-based commissions. The company earns money by charging service providers a fee to list their offerings on its platforms, as well as taking a commission from each transaction facilitated through its systems. Additionally, it may offer premium subscriptions or advertising opportunities to enhance visibility and attract more customers for service providers. Key partnerships with industry players and technology providers further bolster its revenue streams, contributing to a robust earnings model.

SHARINGTECHNOLOGY. INC Financial Statement Overview

Summary

SHARINGTECHNOLOGY. INC demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is well-managed with low leverage, and cash flows are generally strong despite recent declines in free cash flow growth. The company should monitor cash flow trends and leverage to maintain its financial stability.

Income Statement

The company shows strong revenue growth with a TTM growth rate of 3.17%, indicating a positive trajectory. Gross profit margins are consistently high, above 91%, reflecting efficient cost management. The net profit margin is healthy at 18.44% TTM, although slightly lower than the previous year. EBIT and EBITDA margins are robust, indicating strong operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.10 TTM, showing prudent financial leverage. Return on equity is impressive at 39.44% TTM, demonstrating effective use of shareholder funds. The equity ratio is stable, indicating a strong capital structure. However, past high leverage could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement shows a slight decline in free cash flow growth at -4.39% TTM, which could be a concern if it continues. However, the operating cash flow to net income ratio is strong at 1.13 TTM, indicating good cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.27B	7.50B	6.23B	4.43B	3.53B	3.99B
Gross Profit	7.58B	6.87B	5.82B	4.26B	3.45B	3.96B
EBITDA	2.23B	2.01B	1.48B	715.90M	-685.99M	982.70M
Net Income	1.42B	1.49B	1.36B	472.68M	-1.12B	170.29M
Balance Sheet
Total Assets	7.05B	6.32B	4.13B	2.33B	3.08B	5.78B
Cash, Cash Equivalents and Short-Term Investments	4.94B	4.11B	1.85B	1.09B	1.84B	2.19B
Total Debt	345.62M	448.06M	664.14M	763.56M	2.28B	3.88B
Total Liabilities	2.30B	2.41B	1.94B	1.66B	2.89B	4.67B
Stockholders Equity	4.70B	3.89B	2.18B	669.87M	190.92M	1.11B
Cash Flow
Free Cash Flow	1.84B	2.26B	1.47B	705.38M	351.85M	765.32M
Operating Cash Flow	1.86B	2.27B	1.48B	725.25M	449.08M	1.30B
Investing Cash Flow	-39.40M	-14.17M	16.21M	5.48M	427.38M	-515.34M
Financing Cash Flow	-276.38M	572.00K	-597.93M	-1.52B	-1.32B	-709.74M

SHARINGTECHNOLOGY. INC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1086.00
• 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 1086 is above the 20-day moving average (MA) of 991.95, above the 50-day MA of 976.23, and above the 200-day MA of 1014.82, indicating a bullish trend. The MACD of 32.20 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 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
7047	79 Outperform	¥29.14B	12.94	―	0.12%	31.33%	34.22%
3901	77 Outperform	¥26.40B	17.12	―	2.80%	9.20%	2.32%
5139	75 Outperform	¥21.52B	21.22	―	―	28.90%	29.06%
2477	73 Outperform	¥20.84B	19.40	―	1.22%	8.09%	8.53%
5243	73 Outperform	¥26.17B	97.19	―	―	22.37%	655.34%
3989	70 Outperform	¥24.77B	16.96	―	3.68%	14.35%	-6.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%