Safie Inc. (4375) AI Stock Analysis

• Market Cap: ¥46.20B
• Dividend Yield: N/A
• Average Volume (3M): 165.94K
• Price to Earnings (P/E): 104.1
• Beta (1Y): 0.67
• Revenue Growth: 29.56%
• EPS Growth: 86.66%
• Country: JP
• Employees: 470
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.18
• Shares Outstanding: 55,729,767
• 10 Day Avg. Volume: 163,670
• 30 Day Avg. Volume: 165,936
• PEG Ratio: -0.83
• Price to Book (P/B): 5.14
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 763.82
• 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): 4.15
• Revenue Forecast (FY): ¥23.85B

• Rating: 57 Neutral
• Price Target: ¥889.00 ▲(5.58% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving fundamentals and an exceptionally low-debt balance sheet, offset by still-unproven operating profitability and only modest/volatile cash generation. Technical signals are neutral-to-weak, and the very high P/E meaningfully drags the overall score.

Positive Factors

Strong Balance Sheet

Safie’s near-zero leverage and substantial equity provide durable financial resilience and flexibility to fund growth, R&D, or acquisitions without heavy refinancing risk. That conservative capital structure lowers insolvency risk and supports multi‑quarter investments in product and scale.

Improving Margins & Revenue Growth

Consistent revenue growth alongside a meaningful gross margin expansion to about 50% demonstrates improving unit economics and potential for operating leverage. Over the medium term this supports margin sustainability as cloud services scale and fixed costs are spread across higher recurring revenue.

Recurring subscription model

A subscription-based cloud video platform creates predictable recurring revenue tied to camera deployments and service tiers. This business model improves revenue visibility, supports higher customer lifetime value via upsells/add-ons, and underpins durable cash inflows as deployments grow.

Negative Factors

Operating profitability not yet established

Despite revenue and margin improvements, operating results remain marginally negative. Near‑break‑even operations mean profitability is fragile: cost inflation or slower subscription growth could re‑introduce losses, delaying sustainable self‑funded expansion and constraining strategic flexibility.

Cash flow quality & volatility

Operating and free cash flow only recently turned positive and remain small relative to accounting earnings, reflecting prior volatility. Weak cash conversion reduces the company’s ability to fund capex or M&A from operations and raises the risk of needing external financing during adverse periods.

Weak historical returns

A history of negative profitability and ROE indicates capital has not consistently produced attractive returns. Even with a strong balance sheet, this weak track record raises execution risk: management must sustain margin gains and convert revenue growth into lasting returns to justify reinvestment.

Safie Inc. Business Overview & Revenue Model

Company Description

Safie Inc. develops and operates a cloud-based video recording platform under the Safie brand in Japan. The company provides cloud security cameras, such as Safie One, AXIS M1065-L, VIVOTEK FD9166-HN (SF), AXIS M5074PTZ, VIVOTEK FD9389-EHV-v2(SF), i-PRO WV-U1532LAUX(SF), Safie GO PTZ Plus, Safie GO 180, Safie GO PTZ, Safie Pocket2 Plus, and Safie Pocket2. It offers Safie Entrance2, a cloud-based face recognition entry/exit service; Safie AI People Count, which automatically counts the number of people in the store using cloud cameras and AI analysis; and Safie Manager that serves as an integrated management tool for Safie cameras, as well as YouTube Live collaboration, Safie POS journal linkage, unlimited data downloads, auto time lapse, auto snapshot, and share limit increased. Its products are used in various industries, such as retail; eating and drinking; service; construction; subcontractor; house maker; logistics; manufacturing; public; medical/nursing care; and finance. Safie Inc. was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Safie Inc. generates revenue primarily through a subscription-based model for its cloud video surveillance services. Customers pay a recurring fee for access to the platform, which includes features such as video storage, live streaming, and advanced analytics. Additionally, the company earns revenue from the sale of its proprietary hardware, including surveillance cameras and related equipment. Significant partnerships with businesses in various sectors, such as retail, education, and logistics, enhance its market presence and contribute to its earnings by providing tailored security solutions to a wide range of clientele.

Safie Inc. Financial Statement Overview

Summary

Revenue growth and gross margin expansion are solid, and the balance sheet is very strong with near-zero leverage. However, operating profit is still slightly negative (near break-even) and cash flow only recently turned positive, with some quality-of-earnings caution given modest operating/free cash flow versus net income.

Income Statement

Revenue growth has been consistently positive (about +9% to +28% in most years, with +12.5% in 2025), and gross margin has steadily improved to roughly 50% in 2025 from the mid-30%s in 2020—supportive of long-term operating leverage. However, profitability remains mixed: operating profit is still slightly negative in 2025 (near break-even), and the company only recently swung to a modest net profit (about a 2.3% net margin in 2025) after sizable losses in 2022–2024. Overall, the top-line trajectory and margin expansion are positives, but sustained operating profitability is not yet firmly established.

Balance Sheet

The balance sheet is a clear strength: leverage is extremely low (debt-to-equity near zero in 2025), with substantial equity relative to assets. This conservative capital structure provides resilience and flexibility to fund growth. The key weakness is not balance-sheet risk but historical returns—recent years showed negative profitability and negative return on equity (where provided), though the 2025 return metric is not shown alongside the return to net income.

Cash Flow

Cash flow performance has improved meaningfully: operating cash flow and free cash flow turned positive in 2025 after multiple years of cash burn, signaling better cash discipline and/or working-capital dynamics. That said, cash generation still lags accounting earnings in 2025 (operating cash flow is small relative to net income, and free cash flow is under net income), which raises some quality-of-earnings questions. The historical volatility (deeply negative operating and free cash flow in 2022–2023) remains a caution.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.92B	19.03B	15.05B	11.82B	9.25B	8.46B
Gross Profit	8.27B	9.51B	7.34B	5.67B	4.36B	3.40B
EBITDA	-225.15M	-75.47M	-1.54B	-1.41B	-1.40B	-126.10M
Net Income	-343.02M	437.89M	-1.55B	-1.44B	-1.43B	-173.98M
Balance Sheet
Total Assets	10.74B	12.08B	11.02B	11.70B	12.73B	13.72B
Cash, Cash Equivalents and Short-Term Investments	6.04B	6.82B	6.80B	7.22B	8.77B	11.65B
Total Debt	1.58M	892.00K	2.55M	94.20M	125.86M	135.00M
Total Liabilities	2.07B	2.86B	2.45B	1.68B	1.48B	1.19B
Stockholders Equity	8.63B	9.10B	8.55B	10.02B	11.24B	12.53B
Cash Flow
Free Cash Flow	0.00	61.27M	-150.60M	-1.58B	-1.56B	-374.49M
Operating Cash Flow	0.00	124.25M	-101.00M	-1.39B	-1.54B	-276.27M
Investing Cash Flow	0.00	-1.12B	-274.54M	-310.50M	-1.45B	-118.48M
Financing Cash Flow	0.00	16.74M	-38.72M	141.60M	107.88M	10.40B

Safie Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 842.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4375, the sentiment is Positive. The current price of 842 is above the 20-day moving average (MA) of 841.50, below the 50-day MA of 858.10, and below the 200-day MA of 929.29, indicating a neutral trend. The MACD of -8.62 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 27.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4375.

Safie Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3687	63 Neutral	¥46.01B	23.58	25.26%	1.14%	20.29%	30.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥55.75B	-37.78	―	―	8.98%	-581.59%
4375	57 Neutral	¥46.20B	104.07	―	―	29.56%	86.66%
3905	57 Neutral	¥53.81B	-34.62	―	―	27.58%	-1.50%
5572	56 Neutral	¥9.02B	64.08	―	―	60.41%	-27.67%
4425	44 Neutral	¥22.25B	-46.34	―	―	36.08%	-7.71%

Safie Inc. Corporate Events

Safie Highlights Intelligent Vision Platform Strategy in Q4 FY2025 Presentation

Safie Inc. outlined its vision in its Q4 FY2025 financial results presentation, positioning itself as a platform that supports decisions made by people and connected devices. The company aims to create an infrastructure of visual data extending from individual homes to entire cities, highlighting a strategic focus on intelligent vision as a foundation for future services and urban innovation.

By emphasizing an integrated data platform spanning multiple environments, Safie signals its intention to play a central role in the digital transformation of physical spaces. This approach suggests potential implications for stakeholders across smart home, security, and smart city ecosystems, as the company works to embed its technology deeper into everyday decision-making and urban infrastructure.

The most recent analyst rating on (JP:4375) stock is a Sell with a Yen895.00 price target. To see the full list of analyst forecasts on Safie Inc. stock, see the JP:4375 Stock Forecast page.