Signpost Corporation (3996) AI Stock Analysis

• Market Cap: ¥4.03B
• Dividend Yield: N/A
• Average Volume (3M): 45.78K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.92
• Revenue Growth: -1.23%
• EPS Growth: 2.92%
• Country: JP
• Employees: 171
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): -1.92
• Shares Outstanding: 12,796,195
• 10 Day Avg. Volume: 83,510
• 30 Day Avg. Volume: 45,783
• PEG Ratio: -1.14
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥382.00
• Price Target Upside: 23.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥343.00 ▲(10.65%Upside)

Signpost Corporation's strong financial performance is a major driver of its stock score, highlighting robust profitability and cash flow. However, the technical analysis reveals bearish market sentiment, posing near-term risks. The valuation is reasonable, but the absence of a dividend yield may deter some investors.

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 robust profitability and cash generation. The company benefits from effective revenue growth and prudent financial leverage, although there is room for operational efficiency improvements and a more flexible capital structure.

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

Signpost Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 310.00
• 50DMA: Negative
• 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 310 is below the 20-day moving average (MA) of 317.75, below the 50-day MA of 330.44, and below the 200-day MA of 398.38, indicating a bearish trend. The MACD of -7.79 indicates Positive momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 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	71 Outperform	¥4.03B	19.57		―	-1.23%	2.92%
4386	71 Outperform	¥4.27B	8.75		3.37%	26.96%	100.15%
7060	66 Neutral	¥5.25B	105.76		1.96%	5.99%	―
3682	63 Neutral	¥4.04B	18.33		3.30%	9.26%	1.71%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
4260	61 Neutral	¥4.99B	108.15		―	-1.88%	-137.84%
2493	52 Neutral	¥4.02B	34.94		0.55%	18.43%	22.38%