Sharing Innovations Inc. (4178) AI Stock Analysis

• Market Cap: ¥2.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 88.7
• Beta (1Y): 0.30
• Revenue Growth: -8.81%
• EPS Growth: -63.23%
• Country: JP
• Employees: 257
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 3,793,300
• 10 Day Avg. Volume: 2,060
• 30 Day Avg. Volume: 1,420
• PEG Ratio: -1.18
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 20.28
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥583.00 ▼(-6.12% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held up by a relatively healthy balance sheet and still-positive cash generation, but is weighed down by deteriorating 2025 profitability/revenue, bearish technical trend (price below key moving averages with negative MACD), and a demanding valuation (P/E ~90) without a dividend yield provided.

Positive Factors

Balance sheet strength

A low debt-to-equity (~0.16) and sizeable equity base (1.61B) provide durable financial flexibility. This supports investment, absorbs cyclical shocks, and preserves strategic optionality for 2–6 months horizons even if operating results remain uneven.

Positive free cash flow

Positive OCF and FCF in 2025 indicate the business can generate internal funding for operations and selective reinvestment. Even though lower than prior year, sustained positive FCF supports near-term capital allocation and reduces reliance on external financing.

Low systematic volatility

A low beta suggests the company’s earnings and cash flows are less sensitive to broad market swings. That structural lower volatility helps preserve capital and planning stability, aiding multi-month operational execution and strategic planning.

Negative Factors

Revenue decline

A nearly 10% revenue decline in 2025 (after prior weak growth) signals waning demand or competitive pressure. Persistent top-line weakness undermines operating leverage, constrains reinvestment capacity, and poses a durable headwind to sustainable margin recovery.

Sharp earnings compression

A steep fall in net income reduces retained earnings and the company’s buffer against shocks. Such earnings compression can force cost cuts, delay product investment, and weaken the company's ability to execute strategic initiatives over the coming months.

Volatile and falling cash conversion

Material decline and historical choppiness in cash conversion increase uncertainty around available free cash. That reduces predictability for capex, R&D, or debt servicing, limiting durable financial planning and raising execution risk over a 2–6 month horizon.

Sharing Innovations Inc. Business Overview & Revenue Model

Company Description

Sharing Innovations, Inc. engages in the digital transformation and platform businesses. The company offers salesforce implementation consulting services, as well as sales support, contract management, billing management, analysis support, etc. It is also involved in the system development, such as financial and medical system solutions; and planning, development, and operation of the in-house developed applications. The company was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sharing Innovations Inc. generates revenue primarily through a subscription-based model for its software services, offering tiered pricing plans that cater to different user needs and organizational sizes. Key revenue streams include monthly and annual subscriptions from individual users, educational institutions, and corporate clients. Additionally, the company earns income from premium features, enterprise solutions, and consulting services that help organizations optimize their use of the platform. Strategic partnerships with educational institutions and businesses further enhance its market reach and provide additional revenue opportunities through bundled services and joint marketing initiatives.

Sharing Innovations Inc. Financial Statement Overview

Summary

Balance sheet strength (low leverage vs equity) is a key support, but recent operating performance weakened sharply: 2025 revenue declined (-9.61%) and net income fell materially (137.0M to 24.0M). Cash flow remains positive (2025 FCF 114.6M) but is volatile and down significantly vs 2024.

Income Statement

Profitability has weakened notably: revenue declined in 2025 (-9.61%) after low/negative growth in prior years, and earnings fell sharply (net income down from 137.0M in 2024 to 24.0M in 2025). Margins were much stronger earlier in the period (2020–2021), but the trajectory since then shows compression and higher volatility, which reduces confidence in near-term earnings power.

Balance Sheet

The balance sheet looks relatively healthy with moderate leverage: debt is 258.2M against 1.61B of equity in 2025 (roughly ~0.16 debt-to-equity), and total assets of 2.33B are well-supported by equity. A key watch item is that debt moved from zero in 2020–2022 to a sustained level since 2023, but overall leverage remains contained versus equity.

Cash Flow

Cash generation is positive, with 2025 operating cash flow of 114.9M and free cash flow of 114.6M, but both are down materially versus 2024 (267.6M and 262.3M). Cash flow has also been choppy across years (strong in 2021 and 2024, weak in 2022–2023), and the 2024 data indicates operating cash flow covered a limited portion of reported earnings, which points to variability in cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.93B	4.46B	5.17B	5.06B	5.19B	4.48B
Gross Profit	932.86M	771.28M	1.10B	1.02B	1.02B	1.06B
EBITDA	267.62M	219.30M	359.00M	200.06M	261.13M	456.96M
Net Income	67.54M	23.97M	137.02M	34.01M	96.52M	243.18M
Balance Sheet
Total Assets	2.29B	2.33B	2.45B	2.32B	2.03B	2.10B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.18B	1.09B	822.76M	752.53M	952.75M
Total Debt	196.94M	258.23M	239.82M	238.08M	0.00	0.00
Total Liabilities	713.65M	720.44M	866.40M	870.04M	614.99M	604.85M
Stockholders Equity	1.58B	1.61B	1.59B	1.45B	1.41B	1.50B
Cash Flow
Free Cash Flow	0.00	114.61M	262.26M	61.70M	82.62M	312.47M
Operating Cash Flow	0.00	114.92M	267.56M	64.23M	96.62M	313.71M
Investing Cash Flow	0.00	-42.74M	-4.41M	-231.77M	-119.20M	-28.50M
Financing Cash Flow	0.00	18.41M	1.74M	237.32M	-179.17M	202.97M

Sharing Innovations Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 621.00
• 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:4178, the sentiment is Negative. The current price of 621 is above the 20-day moving average (MA) of 597.00, above the 50-day MA of 609.28, and below the 200-day MA of 717.11, indicating a bearish trend. The MACD of -14.94 indicates Positive momentum. The RSI at 33.85 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4178.

Sharing Innovations Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	79 Outperform	¥7.14B	17.26	―	1.18%	6.95%	-9.62%
4431	75 Outperform	¥48.05B	27.27	―	0.52%	26.98%	19.69%
4374	72 Outperform	¥8.48B	15.15	―	0.47%	19.35%	71.74%
4475	68 Neutral	¥29.25B	21.78	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥14.24B	-41.77	―	―	―	―
4178	51 Neutral	¥2.12B	88.71	―	―	-8.81%	-63.23%