Sinops, Inc. (4428) AI Stock Analysis

• Market Cap: ¥4.56B
• Dividend Yield: 2.08%
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.79
• Revenue Growth: 10.65%
• EPS Growth: 28.85%
• Country: JP
• Employees: 104
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 14.27
• Shares Outstanding: 6,259,000
• 10 Day Avg. Volume: 4,220
• 30 Day Avg. Volume: 4,280
• PEG Ratio: 0.22
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 12.51
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥833.00 ▲(12.42% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial quality (especially the debt-free balance sheet and steady growth), partially offset by weak technical trends (below major moving averages with negative MACD). Valuation is supportive but not compelling, with a moderate P/E and a modest dividend yield.

Positive Factors

Debt-free balance sheet

A zero-debt balance sheet materially reduces financial risk and preserves capacity to fund R&D, product development, or M&A without raising costly external capital. Over the medium term this enhances resilience in downturns and gives management strategic optionality to invest or return cash.

Steady revenue growth

Sustained multi-year revenue growth indicates solid product-market fit and expanding customer adoption. Durable top-line growth supports ongoing operating leverage potential, predictable reinvestment capacity, and a stronger platform to defend market share and scale offerings.

Improved cash generation

Operating and free cash flow improved meaningfully in the latest year, boosting internal funding for capex, product development and shareholder returns. If sustained, stronger cash generation reduces reliance on external financing and enhances long-term strategic flexibility.

Negative Factors

Margin compression

Observed margin compression between 2023 and 2024 reduces earnings power and the cash generated per revenue dollar. Persistent margin pressure would limit reinvestment, weaken returns on capital and could force trade-offs on pricing, cost structure, or strategic investment plans.

Cash-flow volatility

Notable swings in free cash flow across the period (notably weaker FCF in 2022 and 2024) create forecasting uncertainty for investments and dividends. Volatile cash conversion raises the risk that durable spending plans require external financing during weak periods, limiting steady capital allocation.

Variable profitability / ROE

Year-to-year variability in returns on equity points to inconsistent profitability and execution. Even with revenue growth, unpredictable margins and ROE can impair long-term earnings visibility and make capital allocation outcomes and investor returns less reliable over a multi-quarter horizon.

Sinops, Inc. Business Overview & Revenue Model

Company Description

sinops Inc. engages in the development of automatic ordering systems for retail, wholesale, and manufacturing sectors. It offers sinops-CLOUD, a cloud service; sinops-R6, a demand forecast type automatic ordering system; sinops-Pad, a shelf allocation maintenance app; sinops-BPO, a store business agency service; and sinops-BCP, an emergency automatic ordering system. It also provides sinops-W, a demand forecasting cash flow optimization system; sinops-IM, a transfer instruction optimization system; and sinops-M, a medium- and long - term demand forecasting system. In addition, the company offers logistics diagnosis and improvement, and planogram consulting services. sinops Inc. was incorporated in 1987 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sinops, Inc. generates revenue primarily through the sale of its software solutions, which are offered as both on-premises installations and cloud-based services. The company employs a licensing model, charging clients for the use of its advanced planning and scheduling systems. Additional revenue streams include subscription fees for cloud-hosted services, maintenance contracts, and customer support services. Sinops, Inc. also engages in strategic partnerships with manufacturing enterprises and technology providers, which help expand its market reach and enhance its offerings. By continuously innovating its products and expanding its client base, Sinops, Inc. maintains a steady flow of income.

Sinops, Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by a debt-free balance sheet (very low financial risk) and steady multi-year revenue growth. Main offset is recent margin pressure and some volatility in cash-flow conversion despite improved latest-year cash generation.

Income Statement

Revenue has grown steadily over the last several years (strong growth in 2021–2023, slower but still positive in 2024–2025). Profitability rebounded meaningfully from a very low-profit 2020 and remained solid through 2023–2024, but margins appear to have compressed in 2024 versus 2023 (lower gross and net profitability). Overall, the company shows durable growth and profitability, with the key watch item being recent margin pressure.

Balance Sheet

The balance sheet is a major strength: total debt has been reduced to zero in the most recent years, and equity has steadily increased alongside asset growth. With no leverage currently and a history of low debt-to-equity even when debt existed, financial risk from funding structure looks minimal. The main limitation is that returns on equity have been variable year to year, indicating profitability consistency—not solvency—is the bigger driver of balance-sheet effectiveness.

Cash Flow

Cash generation is positive and improved sharply in the latest year, with operating cash flow and free cash flow in 2025 well above 2024 levels. However, cash flow has been more volatile across the period (notably weaker free cash flow in 2022 and 2024 versus adjacent years), and 2024 showed relatively weak conversion of operating cash flow into profits. Overall cash flow quality is good, but less consistent than the balance sheet strength would suggest.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.95B	2.04B	1.78B	1.73B	1.46B	1.20B
Gross Profit	869.05M	914.21M	725.99M	854.76M	701.76M	566.32M
EBITDA	423.48M	435.71M	275.49M	354.00M	307.94M	237.57M
Net Income	209.61M	217.04M	108.24M	206.22M	153.50M	101.30M
Balance Sheet
Total Assets	2.30B	2.44B	2.17B	2.20B	2.01B	1.99B
Cash, Cash Equivalents and Short-Term Investments	749.09M	1.40B	612.55M	830.55M	1.30B	1.43B
Total Debt	0.00	0.00	0.00	0.00	28.75M	162.95M
Total Liabilities	453.69M	539.71M	400.04M	434.82M	462.13M	549.96M
Stockholders Equity	1.84B	1.90B	1.77B	1.77B	1.54B	1.44B
Cash Flow
Free Cash Flow	0.00	386.08M	72.89M	155.47M	83.04M	358.75M
Operating Cash Flow	0.00	389.11M	115.92M	305.88M	193.18M	464.80M
Investing Cash Flow	0.00	-103.16M	-211.24M	-751.21M	-101.07M	-92.37M
Financing Cash Flow	0.00	-100.13M	-122.68M	-24.41M	-217.36M	-24.15M

Sinops, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 741.00
• 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:4428, the sentiment is Negative. The current price of 741 is below the 20-day moving average (MA) of 759.25, below the 50-day MA of 769.03, and below the 200-day MA of 856.34, indicating a bearish trend. The MACD of -17.10 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4428.

Sinops, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4429	73 Outperform	¥4.32B	13.21	―	―	―	―
4428	72 Outperform	¥4.56B	20.95	―	2.08%	10.65%	28.85%
4075	67 Neutral	¥4.93B	29.16	―	―	28.63%	551.37%
3917	66 Neutral	¥4.89B	7.98	―	―	7.40%	―
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	55 Neutral	¥5.10B	26.11	―	―	4.36%	-0.02%