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Signpost Corporation (JP:3996)
:3996
Japanese Market

Signpost Corporation (3996) AI Stock Analysis

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JP:3996

Signpost Corporation

(3996)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
¥248.00
▼(-7.81% Downside)
Action:DowngradedDate:03/05/26
The score is primarily supported by strong financial performance—especially profitability improvement and exceptional free-cash-flow strength with low leverage. This is meaningfully offset by weak technicals (price below all key moving averages with negative MACD and near-oversold momentum) and a relatively expensive valuation (P/E 38.31 with no dividend yield provided).
Positive Factors
Cash generation
Exceptionally strong free cash flow growth and cash conversion indicate sustainable internal funding for operations, product development, or debt reduction. Durable FCF strength reduces refinancing risk and supports reinvestment or strategic initiatives without reliance on external capital.
Negative Factors
Operating efficiency
Relatively low EBIT/EBITDA margins point to operational inefficiencies or high fixed/variable costs in service delivery. Over time this constrains scalability and profitability, making earnings more sensitive to revenue swings and limiting room to invest while maintaining healthy margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Exceptionally strong free cash flow growth and cash conversion indicate sustainable internal funding for operations, product development, or debt reduction. Durable FCF strength reduces refinancing risk and supports reinvestment or strategic initiatives without reliance on external capital.
Read all positive factors

Signpost Corporation (3996) vs. iShares MSCI Japan ETF (EWJ)

Signpost Corporation Business Overview & Revenue Model

Company Description
Signpost Corporation provides information technology related services for the customers primarily in the financial industry and public institutions. It offers financial consulting services, including information strategy, systemization concept, an...
How the Company Makes Money
Signpost Corporation generates revenue through a subscription-based model, offering various tiers of service that cater to the needs of different business sizes and marketing budgets. Key revenue streams include monthly subscriptions for its digit...

Signpost Corporation Financial Statement Overview

Summary
Strong fundamentals overall, supported by improved profitability (Net Profit Margin 8.51%) and very strong cash generation (Free Cash Flow Growth +780.69%, OCF/Net Income 1.23). Balance sheet leverage is prudent (Debt-to-Equity 0.28), though operating efficiency is a relative gap (EBIT/EBITDA margins ~6.6%).
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
88
Very Positive
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue2.98B3.02B2.93B2.57B2.12B2.04B
Gross Profit927.87M934.30M802.94M699.05M587.37M492.19M
EBITDA150.98M200.16M101.76M-110.64M-373.08M-509.15M
Net Income205.81M257.17M128.78M-132.64M-291.85M-786.86M
Balance Sheet
Total Assets3.08B2.90B2.60B2.40B2.30B2.15B
Cash, Cash Equivalents and Short-Term Investments1.99B1.72B1.39B1.33B1.34B1.12B
Total Debt641.31M511.63M484.45M438.75M263.05M380.89M
Total Liabilities1.30B1.09B1.06B979.04M760.93M840.30M
Stockholders Equity1.78B1.80B1.55B1.42B1.54B1.31B
Cash Flow
Free Cash Flow0.00312.34M46.55M-185.04M-368.67M-608.83M
Operating Cash Flow0.00316.80M49.22M-184.57M-360.40M-601.24M
Investing Cash Flow0.00-16.09M-26.84M-1.18M202.75M-360.74M
Financing Cash Flow0.0027.04M41.95M169.80M390.22M1.04B

Signpost Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price269.00
Price Trends
50DMA
260.30
Negative
100DMA
272.24
Negative
200DMA
297.95
Negative
Market Momentum
MACD
-12.34
Positive
RSI
33.29
Neutral
STOCH
11.87
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 269 is above the 20-day moving average (MA) of 237.70, above the 50-day MA of 260.30, and below the 200-day MA of 297.95, indicating a bearish trend. The MACD of -12.34 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 11.87 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥23.89B16.060.73%17.86%21.52%
67
Neutral
¥2.83B38.31-1.26%-39.08%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
¥3.84B49.521.74%
57
Neutral
¥5.36B18.3327.60%-15.54%
55
Neutral
¥2.44B268.525.05%-50.80%
42
Neutral
¥6.66B-28.24-29.41%79.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3996
Signpost Corporation
221.00
-216.00
-49.43%
JP:3984
User Local, Inc.
1,478.00
-236.18
-13.78%
JP:4261
AsiaQuest Co.,Ltd.
3,625.00
1,043.00
40.40%
JP:4416
True Data Inc.
503.00
-223.00
-30.72%
JP:5250
Prime Strategy Co., Ltd.
1,080.00
51.16
4.97%
JP:5255
Monstarlab Holdings Inc.
103.00
21.00
25.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 05, 2026