SHARINGTECHNOLOGY. INC (3989) AI Stock Analysis

• Market Cap: ¥28.59B
• Dividend Yield: 3.37%
• Average Volume (3M): 228.22K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.49
• Revenue Growth: 14.35%
• EPS Growth: -6.62%
• Country: JP
• Employees: 173
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 15.29
• Shares Outstanding: 24,429,800
• 10 Day Avg. Volume: 374,500
• 30 Day Avg. Volume: 228,220
• PEG Ratio: -2.79
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 14.52
• 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): ¥9.80B

• Rating: 73 Outperform
• Price Target: ¥1,342.00 ▲(14.02% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (high profitability and a strengthened, low-leverage balance sheet), supported by a reasonable P/E and a solid dividend yield. These positives are offset by weak technical momentum (below key short-term moving averages with negative MACD and a low RSI), which raises near-term timing risk.

Positive Factors

High profitability and margins

The company reports very high gross profitability and healthy operating and net margins, implying durable unit economics and pricing power. Strong margins support internal reinvestment, dividend capacity, and buffer against cyclical revenue swings, improving long-term cash conversion and resilience.

Conservative, strengthened balance sheet

Leverage is conservative and equity has grown substantially versus earlier elevated levels, giving the company financial flexibility. A low-debt capital structure reduces refinancing risk, enables opportunistic investment or buybacks, and strengthens the firm's ability to navigate downturns over months to years.

Solid operating and free cash flow

Strong TTM operating cash flow and free cash flow that represent a large portion of net income indicate high earnings quality and reliable cash conversion. Consistent cash generation supports dividends, capex and deleveraging, and underpins the firm's long-term funding and capital allocation flexibility.

Negative Factors

Decelerating revenue growth

Revenue growth has slowed to single digits (TTM +3.9%) after stronger growth in prior years, suggesting the business is maturing or facing tougher competition. Persistently lower top-line momentum can constrain future earnings expansion and make returns more dependent on margin improvements or buybacks.

Negative free cash flow growth trend

Although levels of cash flow are strong, recent free cash flow growth is negative, signaling softer cash momentum. If the decline persists it will reduce headroom for investment, dividends and debt reduction, limiting strategic options and increasing sensitivity to operational or working-capital shocks.

Margin compression and shrinking asset base

Reported margin compression together with a decline in total assets and a retreat from unusually high ROE peaks point to structural pressures. A shrinking asset base and falling returns can signal lower scale or one-off adjustments, challenging sustainable profitability unless addressed strategically.

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

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SHARINGTECHNOLOGY. INC Financial Statement Overview

Summary

Strong overall fundamentals: solid profitability and a much-improved, conservative balance sheet (Income Statement 86, Balance Sheet 90). Cash generation remains healthy (Cash Flow 78), but softer recent free-cash-flow momentum and decelerating revenue growth temper the score.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up 3.9% and profitability remains strong, with very high gross profitability and healthy operating and net margins. Over the past several years the company has shown a sharp turnaround from losses (2021) to solid profits (2022–TTM). The main weakness is decelerating growth versus the high-growth years (2022–2024) and some margin compression from 2024 to TTM, which suggests the business is moving into a more mature or competitive phase.

Balance Sheet

Leverage is conservative with low debt relative to equity in the latest periods, a major improvement from 2021–2022 when leverage was elevated. Equity has grown substantially over time, supporting a stronger capital base. Returns on equity are high (including TTM), which is a positive signal on capital efficiency; however, ROE has come down from unusually high prior peaks, and total assets declined from 2025 annual to TTM, which is worth monitoring for balance sheet stability.

Cash Flow

Cash generation is solid: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both strong and free cash flow is a large portion of net income, indicating good earnings quality. That said, free cash flow growth is negative in TTM and slightly negative in the latest annual period, pointing to softer cash momentum versus 2023–2024. Operating cash flow is roughly in line with net income rather than materially above it, which is fine but not a standout buffer if working capital swings turn unfavorable.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	8.91B	8.58B	7.50B	6.23B	4.43B	3.53B
Gross Profit	8.14B	7.85B	6.87B	5.82B	4.26B	3.45B
EBITDA	2.28B	2.27B	2.01B	1.48B	715.90M	-685.99M
Net Income	1.45B	1.41B	1.49B	1.36B	472.68M	-1.12B
Balance Sheet
Total Assets	6.63B	7.54B	6.46B	4.13B	2.34B	3.09B
Cash, Cash Equivalents and Short-Term Investments	4.63B	5.43B	4.11B	1.85B	957.65M	1.74B
Total Debt	337.48M	311.75M	448.06M	664.14M	763.56M	2.28B
Total Liabilities	2.02B	2.34B	2.55B	1.94B	1.67B	2.90B
Stockholders Equity	4.57B	5.16B	3.89B	2.18B	669.87M	190.92M
Cash Flow
Free Cash Flow	1.58B	1.64B	2.26B	1.47B	705.38M	351.85M
Operating Cash Flow	1.96B	1.98B	2.27B	1.48B	725.25M	449.08M
Investing Cash Flow	-403.75M	-366.24M	-14.17M	16.21M	5.48M	427.38M
Financing Cash Flow	-902.85M	-293.90M	572.00K	-597.93M	-1.52B	-1.32B

SHARINGTECHNOLOGY. INC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1177.00
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 1177 is below the 20-day moving average (MA) of 1214.60, below the 50-day MA of 1186.44, and above the 200-day MA of 1084.40, indicating a neutral trend. The MACD of 14.65 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 8.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3989.

SHARINGTECHNOLOGY. INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3922	77 Outperform	¥28.40B	12.43	―	0.38%	18.02%	46.43%
3989	73 Outperform	¥28.59B	19.37	―	3.37%	14.35%	-6.62%
2120	72 Outperform	¥26.95B	7.57	22.37%	5.66%	-18.39%	―
7082	65 Neutral	¥7.02B	18.99	―	―	3.38%	47.24%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4176	58 Neutral	¥6.61B	27.11	―	―	42.83%	26.89%
5243	54 Neutral	¥40.08B	58.36	―	―	22.37%	655.34%