Sinops, Inc. (4428) AI Stock Analysis

• Market Cap: ¥5.98B
• Dividend Yield: 1.67%
• Average Volume (3M): 6.21K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.77
• Revenue Growth: 12.78%
• EPS Growth: 59.33%
• Country: JP
• Employees: 104
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 13.55
• Shares Outstanding: 6,259,000
• 10 Day Avg. Volume: 4,290
• 30 Day Avg. Volume: 6,210
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ―

Sinops, Inc. demonstrates strong financial stability with no debt and high liquidity, which is a significant positive factor. However, declining profit margins and free cash flow pose challenges to profitability and growth potential. The technical analysis suggests a bearish trend, and the high P/E ratio indicates possible overvaluation. Overall, while the company is financially sound, the stock's current market conditions and valuation metrics suggest caution.

Sinops, Inc. Business Overview & Revenue Model

Company Description

Sinops, Inc. (4428) is a technology company operating in the industrial automation sector, specializing in the development and provision of software solutions for optimizing manufacturing processes. The company's core products include advanced planning and scheduling (APS) systems, designed to enhance operational efficiency and productivity in manufacturing environments. Sinops, Inc. leverages its expertise in software engineering to deliver cutting-edge solutions that cater to the needs of various industries, including automotive, electronics, and consumer goods.

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

Sinops, Inc. presents a mixed financial picture. The company shows strong revenue growth and a robust balance sheet with no debt and high liquidity. However, there are concerns regarding declining profit margins and free cash flow, which may affect its ability to invest in future growth or return capital to shareholders. The company's financial stability is strong, but it faces profitability challenges that need addressing to sustain long-term growth in the competitive software application industry.

Income Statement

Sinops, Inc. has demonstrated consistent revenue growth, with a 2.73% increase from 2023 to 2024 and a significant 20.55% increase from 2022 to 2023. The company's gross profit margin for 2024 is robust at 40.87%, although it has decreased from 49.44% in the previous year. The net profit margin for 2024 is 6.08%, which is lower than the 11.93% reported in 2023, indicating a decline in profitability. EBIT and EBITDA margins have also contracted, reflecting cost pressures or investment in growth initiatives. Overall, the financial performance shows growth but with some profitability challenges.

Balance Sheet

The balance sheet of Sinops, Inc. is strong, characterized by zero debt in 2024, which suggests financial prudence and low risk. The equity ratio improved to 81.47%, indicating a solid capital structure. Return on equity (ROE) for 2024 is 6.12%, down from 11.67% in 2023, reflecting the decline in net income. The company maintains a high level of cash and short-term investments, providing excellent liquidity and financial flexibility.

Cash Flow

Sinops, Inc. reported a decline in free cash flow from 2023 to 2024, with a free cash flow of 72 million compared to 155.47 million the previous year, indicating a negative growth trend. The operating cash flow to net income ratio for 2024 is 1.06, showing that the company generates sufficient cash from operations relative to its net income. However, the free cash flow to net income ratio has decreased significantly, suggesting increased capital expenditures or other cash outflows affecting free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.78B	1.73B	1.46B	1.20B	909.83M
Gross Profit	765.50M	725.99M	854.76M	701.76M	566.32M	393.86M
EBITDA	311.58M	275.49M	354.00M	307.94M	237.57M	82.31M
Net Income	134.46M	108.24M	206.22M	153.50M	101.30M	8.04M
Balance Sheet
Total Assets	2.12B	2.17B	2.20B	2.01B	1.99B	1.72B
Cash, Cash Equivalents and Short-Term Investments	625.27M	612.55M	830.55M	1.30B	1.43B	1.08B
Total Debt	0.00	0.00	0.00	28.75M	162.95M	197.15M
Total Liabilities	378.04M	400.04M	434.82M	462.13M	549.96M	389.63M
Stockholders Equity	1.75B	1.77B	1.77B	1.54B	1.44B	1.33B
Cash Flow
Free Cash Flow	0.00	72.89M	155.47M	83.04M	358.75M	89.22M
Operating Cash Flow	0.00	115.92M	305.88M	193.18M	464.80M	224.82M
Investing Cash Flow	0.00	-211.24M	-751.21M	-101.07M	-92.37M	-135.67M
Financing Cash Flow	0.00	-122.68M	-24.41M	-217.36M	-24.15M	191.54M

Sinops, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 959.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4428, the sentiment is Neutral. The current price of 959 is below the 20-day moving average (MA) of 972.70, above the 50-day MA of 921.78, and above the 200-day MA of 851.53, indicating a neutral trend. The MACD of 11.98 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 9.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4428.

Sinops, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4372	81 Outperform	¥5.61B	12.57		1.22%	13.82%	3.01%
3841	77 Outperform	¥5.64B	26.88		2.83%	2.53%	-32.88%
4446	66 Neutral	¥5.74B	57.67		―	51.83%	-62.04%
3933	62 Neutral	¥5.25B	13.11		1.73%	70.44%	55.95%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
4428	61 Neutral	¥5.98B	28.37		1.67%	12.78%	59.33%
2321	47 Neutral	¥10.81B	―		―	-1.68%	85.30%