Signpost Corporation (3996) AI Stock Analysis

• Market Cap: ¥4.11B
• Dividend Yield: N/A
• Average Volume (3M): 23.48K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.90
• Revenue Growth: 3.20%
• EPS Growth: 99.69%
• Country: JP
• Employees: 171
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 7.41
• Shares Outstanding: 12,792,995
• 10 Day Avg. Volume: 28,540
• 30 Day Avg. Volume: 23,483
• PEG Ratio: 0.99
• Price to Book (P/B): 5.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.07
• 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: 65 Neutral
• Price Target: ¥357.00 ▲(12.97%Upside)

The overall stock score of 65 reflects strong financial performance and cash generation capabilities. However, technical indicators suggest bearish momentum, and the lack of a dividend yield limits its appeal for income investors. Opportunities exist to enhance operational efficiencies, which could improve future performance.

Signpost Corporation Business Overview & Revenue Model

Company Description

Signpost Corporation (3996) is a Japanese company operating in the technology sector, primarily focused on providing innovative solutions and services in the information technology space. The company is known for its advanced AI-driven platforms and systems designed to streamline operations and enhance customer experiences across various industries.

How the Company Makes Money

Signpost Corporation generates revenue through the development and deployment of its proprietary AI technology solutions. The company's key revenue streams include licensing fees from its software platforms, subscription services for ongoing access and support, and custom development projects tailored to specific client needs. Additionally, Signpost Corporation may engage in strategic partnerships with other technology firms to enhance its offerings and expand its market reach, contributing significantly to its earnings.

Signpost Corporation Financial Statement Overview

Summary

Signpost Corporation exhibits strong financial health with improvements in profitability and cash generation. The company posted a robust Free Cash Flow Growth Rate of 780.69% and a Net Profit Margin of 8.51%, indicating strong cash conversion and profitability. However, there is room for improvement in operational efficiency as indicated by the EBIT and EBITDA margins.

Income Statement

Signpost Corporation demonstrated strong revenue growth with a Revenue Growth Rate of 3.20% from the previous year. The Gross Profit Margin improved to 30.90%, and the Net Profit Margin increased significantly to 8.51%, indicating improved profitability. Despite these strengths, the company's EBIT Margin of 6.61% and EBITDA Margin of 6.59% suggest room for operational efficiency improvements.

Balance Sheet

The company maintains a solid financial position with a low Debt-to-Equity Ratio of 0.28, reflecting prudent financial leverage. The Return on Equity rose to 14.27%, showcasing effective equity utilization. However, the Equity Ratio of 62.23% indicates a high reliance on equity financing, potentially limiting capital flexibility.

Cash Flow

Signpost Corporation's cash flow performance is robust, with Free Cash Flow Growth Rate soaring by 780.69%. The Operating Cash Flow to Net Income Ratio is 1.23, indicating healthy cash generation relative to earnings. Additionally, the Free Cash Flow to Net Income Ratio of 1.21 underscores strong cash conversion capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.03B	3.02B	2.93B	2.57B	2.12B	2.04B
Gross Profit	899.11M	934.30M	802.94M	699.05M	588.69M	501.44M
EBITDA	250.05M	199.31M	81.39M	-119.46M	-279.63M	-723.66M
Net Income	297.67M	257.17M	128.78M	-132.64M	-291.85M	-786.86M
Balance Sheet
Total Assets	2.82B	2.90B	2.60B	2.40B	2.30B	2.15B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.72B	1.39B	1.33B	1.34B	1.12B
Total Debt	451.00M	511.63M	484.45M	438.75M	263.05M	380.89M
Total Liabilities	1.11B	1.09B	1.06B	979.04M	760.93M	840.30M
Stockholders Equity	1.71B	1.80B	1.55B	1.42B	1.54B	1.31B
Cash Flow
Free Cash Flow	0.00	312.34M	35.58M	-185.04M	-460.01M	-647.47M
Operating Cash Flow	0.00	316.80M	49.22M	-184.57M	-360.40M	-601.24M
Investing Cash Flow	0.00	-16.09M	-26.84M	-1.18M	202.75M	-360.74M
Financing Cash Flow	0.00	27.04M	41.95M	169.80M	390.22M	1.04B

Signpost Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 316.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3996, the sentiment is Negative. The current price of 316 is below the 20-day moving average (MA) of 333.45, below the 50-day MA of 337.82, and below the 200-day MA of 412.50, indicating a bearish trend. The MACD of -3.98 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3996.

Signpost Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4386	84 Outperform	¥4.21B	8.63		3.56%	26.96%	100.21%
7060	66 Neutral	¥5.07B	102.23		2.03%	5.99%	―
3996	65 Neutral	¥4.11B	15.71		―	3.20%	99.69%
3682	63 Neutral	¥4.12B	18.69		3.24%	9.26%	1.71%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%
4260	56 Neutral	¥4.60B	108.15		―	-1.88%	-137.84%
2493	52 Neutral	¥4.01B	34.86		0.55%	18.43%	22.38%