Simplex Holdings,Inc. (4373) AI Stock Analysis

• Market Cap: ¥222.85B
• Dividend Yield: 1.32%
• Average Volume (3M): 128.10K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.90
• Revenue Growth: 16.42%
• EPS Growth: 24.53%
• Country: JP
• Employees: 1,350
• Sector: Industrials
• Sector Strength: 85
• Industry: Consulting Services
• EPS (TTM): 53.56
• Shares Outstanding: 58,720,776
• 10 Day Avg. Volume: 132,820
• 30 Day Avg. Volume: 128,100
• PEG Ratio: 1.51
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.95
• 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

• Rating: 68 Neutral
• Price Target: ¥4,171.00 ▲(9.91%Upside)

The overall stock score for Simplex Holdings, Inc. is primarily supported by its robust financial performance, characterized by strong revenue growth, solid profitability, and efficient cash flow management. However, technical analysis indicates overbought conditions, and the high P/E ratio raises valuation concerns, which dampen the overall score.

Simplex Holdings,Inc. Business Overview & Revenue Model

Company Description

Simplex Holdings, Inc. (4373) is a Japanese company primarily engaged in providing comprehensive IT services. The company specializes in offering a wide range of solutions, including IT consulting, system integration, and software development, primarily targeting the financial industry. With a focus on leveraging advanced technologies, Simplex Holdings aims to enhance business efficiencies and deliver innovative solutions to meet the evolving needs of its clients.

How the Company Makes Money

Simplex Holdings, Inc. generates revenue through its diverse portfolio of IT services, which includes consulting, system integration, and software development. The company primarily serves financial institutions, offering tailored solutions that enhance operational efficiency and drive digital transformation. Key revenue streams include fees from consulting services, income from system integration projects, and sales of proprietary software products. Additionally, Simplex Holdings benefits from strategic partnerships with technology firms, which enable it to leverage cutting-edge technologies and expand its service offerings. These collaborations, along with a strong focus on client relationships, contribute significantly to the company's financial performance.

Simplex Holdings,Inc. Financial Statement Overview

Summary

Simplex Holdings, Inc. exhibits robust financial health with strong revenue growth, profitability, and efficient cash flow management. The income statement is particularly strong due to impressive revenue growth and high profit margins. The balance sheet reflects a solid financial position with manageable leverage and a strong equity base. Cash flow is favorable with strong cash generation relative to net income, ensuring ample liquidity.

Income Statement

The company shows impressive growth in revenue with a 16.4% increase in TTM compared to the previous year. Gross profit margin is strong at 41.3%, and the net profit margin stands at 16.4%. EBIT and EBITDA margins are also robust at 22.1% and 26.6% respectively, indicating excellent operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.38, showcasing manageable leverage. The return on equity is strong at 15.9%, indicating efficient use of equity. The equity ratio is 61.8%, evidencing a strong equity base and financial stability.

Cash Flow

The cash flow position is favorable with a 19.5% growth in free cash flow. The operating cash flow to net income ratio of 1.25 and free cash flow to net income ratio of 1.13 suggest strong cash generation relative to net income, ensuring ample liquidity.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
47.39B	40.71B	34.95B	30.58B	27.53B
	Gross Profit
19.52B	17.45B	14.60B	13.02B	10.76B
	EBIT
10.74B	8.85B	7.45B	6.36B	4.51B
	EBITDA
13.59B	11.46B	9.99B	8.55B	6.83B
	Net Income Common Stockholders
7.78B	6.19B	5.43B	4.21B	2.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.44B	13.73B	12.83B	13.97B	8.07B
	Total Assets
79.02B	79.25B	70.27B	66.93B	61.68B
	Total Debt
18.63B	22.62B	21.26B	21.68B	23.41B
	Net Debt
5.19B	8.89B	8.42B	7.71B	15.34B
	Total Liabilities
30.21B	32.16B	28.28B	29.64B	30.22B
	Stockholders Equity
48.81B	47.09B	41.98B	37.29B	31.46B
Cash Flow		Free Cash Flow
0.00	7.34B	3.25B	7.42B	5.02B
	Operating Cash Flow
9.75B	8.33B	3.73B	7.56B	5.25B
	Investing Cash Flow
534.00M	-3.67B	-1.44B	-328.00M	-234.00M
	Financing Cash Flow
-10.57B	-3.77B	-3.44B	-1.35B	-2.35B

Simplex Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3795.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4373, the sentiment is Positive. The current price of 3795 is above the 20-day moving average (MA) of 3755.00, above the 50-day MA of 3354.46, and above the 200-day MA of 2720.70, indicating a bullish trend. The MACD of 148.99 indicates Positive momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4373.

Simplex Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9757	73 Outperform	¥113.68B	24.68		3.13%	10.59%	-13.59%
6532	72 Outperform	¥1.14T	36.30		1.01%	23.58%	21.75%
4373	68 Neutral	¥222.85B	28.36		1.32%	16.42%	24.53%
6027	67 Neutral	¥69.25B	65.63		―	24.27%	24.16%
4792	66 Neutral	¥30.40B	10.58		4.88%	2.63%	0.62%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
7033	61 Neutral	¥30.95B	14.66		1.62%	16.97%	26.12%

Simplex Holdings,Inc. Corporate Events

Simplex Holdings Announces Dividend Payout Aligned with Growth Strategy

Simplex Holdings, Inc. has announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, amounting to 50 yen per share. This decision aligns with the company’s policy to enhance shareholder returns while maintaining financial soundness and focusing on growth investments. The company aims to sustainably increase dividends per share with a target payout ratio of 40%, reflecting its commitment to capital efficiency and profit growth.

Simplex Holdings Reports Strong Financial Growth and Increased Dividends

Simplex Holdings, Inc. reported a strong financial performance for the fiscal year ended March 31, 2025, with significant increases in revenue and profits compared to the previous year. The company achieved a 16.4% increase in revenue and a 25.6% rise in profit attributable to owners of the parent, reflecting its robust operational capabilities and strategic market positioning. The company also announced a proposed increase in dividends, indicating confidence in its future growth prospects.

Simplex Holdings Completes Strategic Share Buyback

Simplex Holdings, Inc. has completed a share buyback program, acquiring 1,980,500 ordinary shares for approximately ¥4.999 billion. This strategic move, executed through market purchases on the Tokyo Stock Exchange, aims to optimize the company’s capital structure and potentially enhance shareholder value.

Simplex Holdings Reports Progress on Share Buyback Program

Simplex Holdings, Inc. has announced the progress of its share buyback program, which was initially resolved in a Board of Directors meeting on January 30, 2025. The company has successfully repurchased 114,700 ordinary shares at a total cost of ¥329,489,900 between March 1 and March 31, 2025, as part of its strategic financial management efforts. This buyback is part of a larger plan to repurchase up to 2,000,000 shares, with a maximum budget of ¥5.0 billion, aimed at enhancing shareholder value and optimizing the capital structure.