Signpost Corporation (3996) AI Stock Analysis

• Market Cap: ¥4.13B
• Dividend Yield: N/A
• Average Volume (3M): 41.16K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.90
• Revenue Growth: -1.23%
• EPS Growth: 2.92%
• Country: JP
• Employees: 171
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): -1.92
• Shares Outstanding: 12,796,195
• 10 Day Avg. Volume: 63,890
• 30 Day Avg. Volume: 41,156
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥381.00
• Price Target Upside: 17.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥381.00 ▲(17.59% Upside)

Signpost Corporation's strong financial performance is the primary driver of its stock score, supported by robust profitability and cash flow metrics. Technical analysis indicates a mild upward trend, although valuation metrics suggest the stock is fairly priced. The absence of earnings call data and corporate events limits additional insights.

Signpost Corporation Business Overview & Revenue Model

Company Description

Signpost Corporation (3996) is a technology company that specializes in providing innovative AI-based solutions aimed at enhancing customer engagement and operational efficiency for businesses across various sectors. The company focuses on developing and deploying customer interaction platforms and data analytics tools designed to optimize business processes and improve customer experience.

How the Company Makes Money

Signpost Corporation generates revenue primarily through the sale of its software solutions and subscription-based services. The company's key revenue streams include licensing fees for its AI-powered platforms, subscription fees for ongoing access and support, and consulting services offered to businesses looking to integrate Signpost's solutions into their operations. The company also partners with other technology firms to expand its market reach and enhance its product offerings, contributing to its earnings.

Signpost Corporation Financial Statement Overview

Summary

Signpost Corporation exhibits strong financial health with significant improvements in profitability and cash generation. The company demonstrates effective revenue growth and prudent financial leverage, positioning it well for future expansion. However, there are opportunities to enhance operational efficiencies and optimize capital structure for even greater flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	3.02B	2.93B	2.57B	2.12B	2.04B
Gross Profit	934.68M	934.30M	802.94M	699.05M	588.69M	501.44M
EBITDA	199.41M	199.31M	81.39M	-119.46M	-279.63M	-723.66M
Net Income	257.48M	257.17M	128.78M	-132.64M	-291.85M	-786.86M
Balance Sheet
Total Assets	2.90B	2.90B	2.60B	2.40B	2.30B	2.15B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.72B	1.39B	1.33B	1.34B	1.12B
Total Debt	511.63M	511.63M	484.45M	438.75M	263.05M	380.89M
Total Liabilities	1.09B	1.09B	1.06B	979.04M	760.93M	840.30M
Stockholders Equity	1.80B	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: 324.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 324 is above the 20-day moving average (MA) of 322.70, above the 50-day MA of 318.16, and below the 200-day MA of 371.15, indicating a neutral trend. The MACD of 1.80 indicates Positive momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, 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
3996	76 Outperform	¥4.13B	20.13		―	-1.23%	2.92%
4386	75 Outperform	¥4.52B	9.77		3.20%	27.51%	68.04%
7060	66 Neutral	¥6.64B	63.34		1.60%	8.86%	―
3682	63 Neutral	¥4.04B	18.42		3.28%	2.04%	-3.43%
2493	62 Neutral	¥4.13B	35.94		0.53%	18.43%	22.38%
Sector *	61 Neutral	$36.58B	11.16	-10.39%	1.86%	8.71%	-7.09%
4260	44 Neutral	¥4.30B	108.15		―	-4.94%	-135.39%