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

• Market Cap: ¥4.44B
• Dividend Yield: 3.5%
• Average Volume (3M): 14.48K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.74
• Revenue Growth: 27.51%
• EPS Growth: 68.04%
• Country: JP
• Employees: 669
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 15.28
• Shares Outstanding: 5,935,140
• 10 Day Avg. Volume: 14,540
• 30 Day Avg. Volume: 14,476
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥834.00
• Price Target Upside: 8.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥834.00 ▲(8.17% Upside)

The overall stock score of 75 reflects strong financial performance and attractive valuation, which are key strengths. However, bearish technical indicators suggest potential short-term weakness, slightly lowering the overall score.

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 Co., Ltd. generates revenue through the sale of its software products and the provision of IT services. The company offers a range of software solutions that cater to specific industry needs, allowing businesses to optimize their operations and enhance productivity. Additionally, SIG Group Co., Ltd. provides consultancy and support services, further contributing to its revenue streams. The company may form strategic partnerships with other technology firms to expand its market reach and enhance its product offerings, thereby boosting its earnings potential.

SIG Group Co., Ltd. Financial Statement Overview

Summary

SIG Group Co., Ltd. presents a strong financial position with impressive revenue growth and profitability. The balance sheet reflects robust financial stability with effective leverage management. While the cash flow statement is generally positive, some fluctuations in investing and financing activities warrant attention.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.77B	8.77B	6.91B	5.42B	4.92B	4.40B
Gross Profit	1.89B	1.89B	1.47B	1.30B	1.16B	1.04B
EBITDA	776.40M	807.85M	456.65M	506.91M	426.76M	349.64M
Net Income	479.69M	480.57M	239.28M	301.79M	274.08M	239.61M
Balance Sheet
Total Assets	5.82B	5.82B	4.58B	4.28B	3.16B	2.60B
Cash, Cash Equivalents and Short-Term Investments	2.21B	2.21B	1.81B	1.18B	1.13B	714.28M
Total Debt	1.61B	1.61B	1.04B	1.12B	644.03M	337.61M
Total Liabilities	3.36B	3.36B	2.52B	2.38B	1.45B	1.05B
Stockholders Equity	2.45B	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: Positive
• Last Price: 771.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 771 is below the 20-day moving average (MA) of 787.33, above the 50-day MA of 763.40, and above the 200-day MA of 697.92, indicating a bullish trend. The MACD of 14.30 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3996	77 Outperform	¥4.43B	21.50	14.26%	―	-1.23%	2.92%
4386	75 Outperform	¥4.44B	9.84	―	3.50%	27.51%	68.04%
4068	65 Neutral	¥3.59B	36.19	4.72%	―	17.03%	644.34%
3682	63 Neutral	¥4.04B	18.38	―	3.30%	2.04%	-3.43%
2493	61 Neutral	¥4.14B	36.17	3.83%	0.53%	18.43%	22.38%
4416	55 Neutral	¥3.91B	1,126.47	1.22%	―	-0.93%	-97.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%