Sharing Innovations Inc. (4178) AI Stock Analysis

• Market Cap: ¥2.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 38.9
• Beta (1Y): 0.32
• Revenue Growth: -8.81%
• EPS Growth: -63.23%
• Country: JP
• Employees: 257
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.07
• Shares Outstanding: 3,793,300
• 10 Day Avg. Volume: 2,060
• 30 Day Avg. Volume: 1,420
• PEG Ratio: 0.06
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 10.13
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥671.00 ▲(10.00% Upside)

The overall stock score is primarily driven by strong financial performance, reflecting robust revenue growth and cash flow generation. However, negative technical indicators and a high P/E ratio suggest caution, as the stock may be overvalued and currently experiencing bearish momentum.

Positive Factors

Financial Health

Maintaining a low debt-to-equity ratio and strong equity position ensures financial stability and flexibility for future growth.

Cash Flow Generation

Strong cash flow generation supports operational needs and future investments, indicating effective cash management.

Revenue Model

A subscription-based model provides predictable revenue streams and customer retention, enhancing long-term financial stability.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can indicate market saturation or increased competition, potentially impacting future profitability.

Earnings Decline

A significant drop in earnings per share suggests challenges in maintaining profitability, which could affect investor confidence.

Operational Efficiency

Low EBIT margins indicate potential inefficiencies in operations, which may limit the company's ability to improve profitability.

Sharing Innovations Inc. Business Overview & Revenue Model

Company Description

Sharing Innovations Inc. (4178) is a technology-driven company specializing in collaborative platforms and solutions aimed at enhancing productivity and innovation across various sectors, including education, healthcare, and corporate environments. The company focuses on developing software and tools that facilitate knowledge sharing, project management, and communication among teams and organizations. Its core products include cloud-based collaboration software, mobile applications, and customized enterprise solutions designed to streamline workflows and foster creativity.

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

Sharing Innovations Inc. exhibits strong financial health with consistent revenue growth and improved profitability. The balance sheet reflects a solid financial position with low leverage and strong equity. Cash flow generation is robust, supporting future growth and operational needs.

Income Statement

Sharing Innovations Inc. has demonstrated strong revenue growth with a 2.2% increase from the previous year, and a significant improvement in net profit margin from 0.67% to 2.65%. The gross profit margin remains healthy at 21.27%, indicating efficient cost management. However, the EBIT margin, while improved, is still relatively low at 4.63%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.15, indicating low financial leverage. The equity ratio is strong at 64.68%, reflecting a robust capital structure. Return on equity has improved to 8.64%, showcasing enhanced profitability. The company's liquidity position is strong, supported by substantial cash reserves.

Cash Flow

Cash flow performance is impressive, with a notable increase in free cash flow by 324.9%. The operating cash flow to net income ratio is robust at 1.95, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 1.91, highlighting effective cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	5.17B	5.06B	5.19B	4.48B	3.78B
Gross Profit	932.86M	1.10B	1.02B	1.02B	1.06B	808.15M
EBITDA	267.62M	359.00M	200.06M	261.13M	456.96M	350.00M
Net Income	67.54M	137.02M	34.01M	96.52M	243.18M	176.69M
Balance Sheet
Total Assets	2.29B	2.45B	2.32B	2.03B	2.10B	1.58B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.09B	822.76M	752.53M	952.75M	462.77M
Total Debt	196.94M	239.82M	238.08M	0.00	0.00	0.00
Total Liabilities	713.65M	866.40M	870.04M	614.99M	604.85M	532.37M
Stockholders Equity	1.58B	1.59B	1.45B	1.41B	1.50B	1.04B
Cash Flow
Free Cash Flow	0.00	262.26M	61.70M	82.62M	312.47M	136.44M
Operating Cash Flow	0.00	267.56M	64.23M	96.62M	313.71M	137.61M
Investing Cash Flow	0.00	-4.41M	-231.77M	-119.20M	-28.50M	-3.23M
Financing Cash Flow	0.00	1.74M	237.32M	-179.17M	202.97M	9.00M

Sharing Innovations Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 610.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 610 is below the 20-day moving average (MA) of 654.30, below the 50-day MA of 710.08, and below the 200-day MA of 756.89, indicating a bearish trend. The MACD of -32.14 indicates Positive momentum. The RSI at 18.17 is Positive, neither overbought nor oversold. The STOCH value of 24.16 is Neutral, 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
5126	77 Outperform	¥2.92B	11.62	―	―	12.74%	5.89%
2351	62 Neutral	¥2.66B	12.14	―	0.90%	-4.77%	42.04%
3042	62 Neutral	¥2.65B	25.41	―	0.55%	25.37%	―
4178	62 Neutral	¥2.62B	38.88	―	―	-8.81%	-63.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6659	42 Neutral	¥4.01B	-6.91	―	―	2.89%	21.05%