SIG Group Co., Ltd. (4386) AI Stock Analysis

• Market Cap: ¥5.57B
• Dividend Yield: 2.99%
• Average Volume (3M): 11.68K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.73
• Revenue Growth: 26.64%
• EPS Growth: 30.76%
• Country: JP
• Employees: 669
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.80
• Shares Outstanding: 5,940,540
• 10 Day Avg. Volume: 8,000
• 30 Day Avg. Volume: 11,676
• PEG Ratio: 0.08
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 8.31
• 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: 73 Outperform
• Price Target: ¥1,028.00 ▲(8.78% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily driven by strong financial performance and supportive valuation (low P/E and solid dividend yield). This is partially offset by weak near-term technical signals, with the stock trading below key short/medium moving averages and oversold momentum readings.

Positive Factors

Strong revenue & EPS growth

Sustained high revenue (26.6%) and EPS (30.8%) growth indicate durable demand expansion and scalable operations. Over 2–6 months this supports reinvestment capacity, margin preservation and the ability to fund growth initiatives without meaningfully altering capital structure.

Healthy margins & profitability

Consistently healthy gross and improving net margins plus robust EBIT/EBITDA reflect structural operational efficiency and pricing power. These durable margin drivers support cash generation and resilience to cost variability across a multi-month horizon.

Solid balance sheet and cash generation

A strong equity base and favorable leverage profile imply financial flexibility and lower refinancing risk. Coupled with positive operating cash flow and growing free cash flow, the company can fund capex, M&A or dividends without stressing liquidity over the medium term.

Negative Factors

Volatile investing/financing cash flows

Variability in investing and financing cash flows signals uneven capital allocation or timing of transactions. Over months this can affect free cash flow consistency, capital return plans and the predictability of funding for strategic investments.

No forward guidance disclosed

Absence of formal guidance and empty earnings highlights reduces forward visibility for investors and stakeholders. This limits medium-term planning clarity and makes it harder to assess sustainability of growth or margin targets across the next reporting cycle.

Limited public corporate events/news

A lack of disclosed recent news or corporate events restricts insight into strategic initiatives, partnerships or regulatory changes. Over 2–6 months this raises uncertainty about future catalysts or risks that could materially affect operations or competitive position.

SIG Group Co., Ltd. Business Overview & Revenue Model

Company Description

SIG Group Co.,Ltd. provides system integration, IT infrastructure, and security solutions in Japan. It is involved in planning, development, and maintenance of information systems; proposal and sales of various packaged software and hardware equipment; operation and maintenance of servers, network devices, and software products; and proposal and sales of various security measures solutions. The company was formerly known as Sig Co., Ltd. and changed its name to SIG Group Co.,Ltd. in October 2021. SIG Group Co.,Ltd. was incorporated in 1991 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SIG Group generates revenue through multiple streams, primarily from the sale of its electronic components and systems to manufacturers in the telecommunications, automotive, and industrial sectors. The company's revenue model is largely based on direct sales, with a focus on long-term contracts and partnerships with key industry players. Significant revenue is derived from the development of customized solutions tailored to specific customer needs, which often leads to repeat business. Additionally, SIG Group benefits from strategic partnerships with technology firms and suppliers, enhancing its market reach and product offerings. The company's investments in research and development also play a critical role in driving innovation, allowing it to stay competitive and expand its product lines, further contributing to its overall earnings.

SIG Group Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: solid income statement (85) with improving margins and profitability, a stable balance sheet (80) with favorable leverage and robust ROE, and generally healthy cash generation (75) despite some variability in investing/financing flows.

Income Statement

SIG Group Co., Ltd. has demonstrated strong revenue growth with a consistent upward trend over the past few years. The gross profit margin has remained healthy, and the net profit margin has shown improvement, indicating effective cost management. The EBIT and EBITDA margins are strong, reflecting operational efficiency. Overall, the income statement reflects solid growth and profitability.

Balance Sheet

The balance sheet shows a strong equity position with a favorable debt-to-equity ratio, indicating sound financial leverage management. The company's return on equity is robust, showcasing the ability to generate returns from shareholders' investments. The equity ratio also indicates a solid asset base funded by equity. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

The cash flow statement shows positive operating cash flow, suggesting the company is effectively converting its earnings into cash. The free cash flow has been growing, although there are fluctuations in investing and financing cash flows. The operating cash flow to net income ratio is solid, indicating strong cash generation relative to net income. Overall, the cash flow position is healthy but shows some variability in non-operational cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.30B	8.77B	6.91B	5.42B	4.92B	4.40B
Gross Profit	2.01B	1.89B	1.47B	1.30B	1.16B	1.04B
EBITDA	774.97M	807.85M	456.65M	506.91M	426.76M	349.64M
Net Income	455.59M	480.57M	239.28M	301.79M	274.08M	239.61M
Balance Sheet
Total Assets	5.92B	5.82B	4.58B	4.28B	3.17B	2.61B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.21B	1.81B	1.18B	1.13B	714.28M
Total Debt	1.57B	1.61B	1.04B	1.12B	644.03M	337.61M
Total Liabilities	3.44B	3.36B	2.52B	2.38B	1.47B	1.06B
Stockholders Equity	2.47B	2.45B	2.06B	1.90B	1.69B	1.55B
Cash Flow
Free Cash Flow	0.00	452.39M	468.23M	151.50M	465.11M	-21.28M
Operating Cash Flow	0.00	526.35M	514.11M	235.19M	484.67M	-6.67M
Investing Cash Flow	0.00	-567.04M	271.39M	-500.66M	-107.60M	-678.94M
Financing Cash Flow	0.00	478.30M	-153.56M	308.35M	43.46M	-197.13M

SIG Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 945.00
• 50DMA: Negative
• 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:4386, the sentiment is Neutral. The current price of 945 is below the 20-day moving average (MA) of 968.55, below the 50-day MA of 966.76, and above the 200-day MA of 840.70, indicating a neutral trend. The MACD of 2.30 indicates Positive momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4386.

SIG Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3940	78 Outperform	¥6.49B	14.84	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.32B	-16.02	―	1.61%	7.03%	1.01%
4386	73 Outperform	¥5.57B	11.37	―	2.99%	26.64%	30.76%
3988	68 Neutral	¥5.68B	26.17	―	1.23%	11.62%	-16.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4053	58 Neutral	¥15.41B	-16.73	―	―	9.82%	-32.60%
5255	42 Neutral	¥6.60B	-28.24	―	―	-29.41%	79.74%