Sinops, Inc. (4428) AI Stock Analysis

• Market Cap: ¥4.85B
• Dividend Yield: 2.08%
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.84
• Revenue Growth: 10.65%
• EPS Growth: 28.85%
• Country: JP
• Employees: 104
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.97
• Shares Outstanding: 6,259,000
• 10 Day Avg. Volume: 4,220
• 30 Day Avg. Volume: 4,280
• PEG Ratio: -0.93
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 65.81
• 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: 55 Neutral
• Price Target: ¥781.00 ▲(5.40% Upside)

The score is held back primarily by weakening financial performance (2024 revenue and margin decline) and deteriorating/volatile cash flow, plus bearish technicals (price below key moving averages and negative MACD). A strong, low-risk balance sheet and a modest dividend partially offset these negatives.

Positive Factors

Balance Sheet Strength

A zero-debt balance sheet provides high financial flexibility and low solvency risk, supporting long-term stability and strategic investments.

Revenue Growth History

Strong revenue growth from 2021 to 2023 indicates robust market demand and effective business strategies, laying a foundation for future recovery.

Equity Stability

Stable equity in relation to assets suggests a solid financial base, enhancing the company's ability to withstand economic fluctuations and invest in growth.

Negative Factors

Revenue Decline

A significant revenue decline in 2024 indicates potential challenges in market demand or competitive positioning, impacting future earnings potential.

Margin Compression

Margin compression suggests increased cost pressures or pricing challenges, which may erode profitability and limit reinvestment capacity.

Cash Flow Volatility

Volatile cash flow can hinder strategic planning and operational stability, increasing reliance on external financing during downturns.

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

Overall fundamentals are mixed. The balance sheet is a major strength (zero debt and stable equity), but 2024 operating results weakened with a material revenue decline and margin compression, and cash generation deteriorated and has been volatile historically.

Income Statement

Profitability is positive but clearly weakening. Revenue grew strongly from 2021–2023, but 2024 revenue declined materially (down ~20% YoY), and margins compressed (gross margin fell from ~49% to ~41%; net margin roughly halved from ~12% to ~6%). Net income remained positive in 2024, yet earnings power looks less resilient than prior years, increasing sensitivity to further top-line softness.

Balance Sheet

The balance sheet is a clear strength. Debt has been reduced to zero in 2023–2024 (down from modest leverage in earlier years), leaving the company with high financial flexibility and low solvency risk. Equity remains large and stable versus assets, and returns on equity are positive (though down in 2024 versus 2023), indicating profitability without reliance on leverage.

Cash Flow

Cash generation is the main concern. Operating cash flow and free cash flow remain positive in 2024, but both stepped down sharply versus 2023, and cash conversion weakened (operating cash flow is a relatively small share of earnings in 2024). The track record is also volatile, including negative operating and free cash flow in 2019, which points to variability in working capital and/or cash discipline through the cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.78B	1.73B	1.46B	1.20B	909.83M
Gross Profit	869.05M	725.99M	854.76M	701.76M	566.32M	393.86M
EBITDA	423.48M	275.49M	354.00M	307.94M	237.57M	82.31M
Net Income	209.61M	108.24M	206.22M	153.50M	101.30M	8.04M
Balance Sheet
Total Assets	2.30B	2.17B	2.20B	2.01B	1.99B	1.72B
Cash, Cash Equivalents and Short-Term Investments	749.09M	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	453.69M	400.04M	434.82M	462.13M	549.96M	389.63M
Stockholders Equity	1.84B	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: Positive
• Last Price: 741.00
• 50DMA: Positive
• 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 Positive. The current price of 741 is below the 20-day moving average (MA) of 784.05, below the 50-day MA of 782.58, and below the 200-day MA of 861.48, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4428.

Sinops, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4372	79 Outperform	¥5.42B	11.99	―	1.28%	13.05%	3.18%
3933	75 Outperform	¥5.10B	9.85	―	1.84%	86.36%	116.52%
4446	69 Neutral	¥16.53B	181.59	―	―	14.10%	-53.62%
3841	63 Neutral	¥4.99B	26.07	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2321	56 Neutral	¥10.34B	-83.64	―	―	-6.35%	71.66%
4428	55 Neutral	¥4.85B	24.87	―	2.08%	10.65%	28.85%