Simplex Holdings,Inc. (4373) AI Stock Analysis

• Market Cap: ¥248.48B
• Dividend Yield: 1.19%
• Average Volume (3M): 138.46K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.84
• Revenue Growth: 23.88%
• EPS Growth: 64.21%
• Country: JP
• Employees: 1,350
• Sector: Technology
• Sector Strength: 88
• Industry: Consulting Services
• EPS (TTM): 11.51
• Shares Outstanding: 235,970,720
• 10 Day Avg. Volume: 126,450
• 30 Day Avg. Volume: 138,463
• PEG Ratio: 0.85
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 3.42
• P/FCF Ratio: 18.51
• 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: 72 Outperform
• Price Target: ¥1,177.00 ▲(11.99% Upside)

Simplex Holdings, Inc. demonstrates strong financial performance with consistent growth and efficient operations, which significantly contributes to its stock score. The technical analysis presents mixed signals, slightly dampening the overall score. Valuation metrics suggest the stock is fairly valued with a modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial health.

Margin Sustainability

High profit margins reflect operational efficiency and pricing power, contributing to sustained profitability and competitive advantage.

Balance Sheet Health

Prudent leverage and strong equity base enhance financial stability, providing resilience against economic fluctuations.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit future investment capacity and impact the ability to fund new projects or pay down debt.

Cash Flow Conversion

While cash conversion is efficient, the slight decline in free cash flow growth could signal challenges in maintaining cash reserves.

Free Cash Flow to Net Income

Despite strong cash conversion, the slight decline in free cash flow growth suggests potential pressure on liquidity management.

Simplex Holdings,Inc. Business Overview & Revenue Model

Company Description

Simplex Holdings, Inc. provides strategic consulting, system design and development, and operation and maintenance services to financial institutions, corporations, and the public sectors worldwide. Its strategic/DX consulting services include forming management and business strategy formation, organizational reform, and business process transformation services. The company also offers system consulting, and shared service/software as a service solution. The company was founded in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Simplex Holdings generates revenue through a multi-faceted business model that includes direct sales of software and technology solutions, service contracts in the healthcare sector, and sales of renewable energy products. The company has established key partnerships with leading firms in its sectors, enabling it to leverage synergies and enhance its service offerings. Additionally, Simplex Holdings benefits from recurring revenue streams through maintenance contracts and subscription services, further solidifying its financial stability and growth potential.

Simplex Holdings,Inc. Financial Statement Overview

Summary

Simplex Holdings, Inc. exhibits strong financial health across all verticals. The income statement reflects consistent revenue growth and solid profitability margins. The balance sheet is stable with moderate leverage and strong equity returns. The cash flow statement indicates robust cash generation and efficient cash management. Overall, the company is well-positioned financially, with a balanced approach to growth and stability.

Income Statement

Simplex Holdings, Inc. demonstrates strong financial performance with consistent revenue growth, evidenced by a 5.3% increase in TTM. The company maintains healthy profitability margins, including a gross profit margin of 41.3% and a net profit margin of 16.4%. The EBIT and EBITDA margins are also robust at 22.8% and 26.6%, respectively, indicating efficient operational management. These metrics reflect a stable and profitable income statement.

Balance Sheet

The balance sheet of Simplex Holdings, Inc. shows a solid financial structure with a debt-to-equity ratio of 0.38, indicating moderate leverage. The return on equity (ROE) is strong at 16.2%, showcasing effective use of equity to generate profits. The equity ratio stands at 63.5%, reflecting a healthy proportion of equity financing. Overall, the balance sheet is stable, with manageable debt levels and strong equity returns.

Cash Flow

The cash flow statement reveals a positive trajectory with a 36.7% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.37, indicating efficient conversion of income into cash. The free cash flow to net income ratio is 0.90, suggesting strong cash flow relative to earnings. These metrics underscore the company's robust cash flow management and liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.32B	47.39B	40.71B	34.95B	30.58B	27.53B
Gross Profit	23.17B	19.52B	17.45B	14.60B	13.02B	10.76B
EBITDA	16.21B	13.59B	11.46B	9.99B	8.55B	6.83B
Net Income	9.96B	7.78B	6.19B	5.43B	4.21B	2.98B
Balance Sheet
Total Assets	78.28B	79.02B	79.25B	70.27B	66.93B	61.68B
Cash, Cash Equivalents and Short-Term Investments	15.83B	13.44B	13.73B	12.83B	13.97B	8.07B
Total Debt	16.89B	20.64B	22.62B	21.26B	21.68B	23.41B
Total Liabilities	27.89B	30.21B	32.16B	28.28B	29.64B	30.22B
Stockholders Equity	50.38B	48.81B	47.09B	41.98B	37.29B	31.46B
Cash Flow
Free Cash Flow	11.84B	8.76B	7.34B	3.25B	7.42B	5.02B
Operating Cash Flow	11.96B	9.75B	8.33B	3.73B	7.56B	5.25B
Investing Cash Flow	3.18B	534.00M	-3.67B	-1.44B	-328.00M	-234.00M
Financing Cash Flow	-11.79B	-10.57B	-3.77B	-3.44B	-1.35B	-2.35B

Simplex Holdings,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1051.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1051 is below the 20-day moving average (MA) of 1068.60, below the 50-day MA of 1056.22, and above the 200-day MA of 965.41, indicating a neutral trend. The MACD of -5.20 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 44.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4373.

Simplex Holdings,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4373	72 Outperform	¥248.48B	24.30	―	1.19%	23.88%	64.21%
9757	69 Neutral	¥110.07B	24.00	―	3.44%	10.28%	-20.11%
4792	66 Neutral	¥33.69B	14.17	―	4.39%	2.46%	-31.77%
7033	66 Neutral	¥23.11B	12.49	―	2.18%	17.87%	5.31%
6532	65 Neutral	¥1.02T	28.97	―	1.30%	25.07%	26.47%
6027	63 Neutral	¥72.04B	52.66	―	―	15.87%	60.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Simplex Holdings,Inc. Corporate Events

Simplex Holdings Reports Strong Financial Growth and Announces Stock Split

Simplex Holdings, Inc. reported significant growth in its financial results for the six months ended September 30, 2025, with a 27.1% increase in revenue and an 84.1% rise in profit attributable to owners of the parent compared to the previous year. The company announced a 4-for-1 stock split effective December 1, 2025, which will impact its dividend forecasts and earnings per share calculations, indicating a strategic move to enhance shareholder value and market positioning.

Simplex Holdings Announces Stock Split and Articles Amendment

Simplex Holdings, Inc. has announced a stock split and a partial amendment to its Articles of Incorporation. The stock split, set at a ratio of four shares for every one ordinary share, aims to lower the stock price per investment unit, thereby enhancing stock liquidity and attracting a broader investor base. The amendment to the Articles of Incorporation will increase the total number of shares authorized to be issued, reflecting the changes brought by the stock split. These strategic moves are intended to make the company’s stock more accessible to investors, potentially improving market positioning and stakeholder engagement.

Simplex Holdings Revises Financial Forecast and Increases Dividend

Simplex Holdings, Inc. has revised its full-year financial forecast upwards due to strong demand for digital transformation services and efficient resource allocation, leading to increased revenue and operating profit. Additionally, the company has announced a dividend increase, reflecting its commitment to shareholder returns and sustainable growth, with adjustments made for an upcoming 4-for-1 stock split.