Sinops, Inc. (4428) AI Stock Analysis

• Market Cap: ¥4.19B
• Dividend Yield: 2.08%
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.71
• 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: ¥744.00 ▲(0.40% 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 capital structure materially lowers financial risk and increases strategic flexibility. With no leverage the company can fund R&D, M&A or cyclical shortfalls from internal resources, maintaining operations through downturns and preserving long-term solvency.

Steady multi-year revenue growth

Sustained revenue expansion indicates durable product-market fit and persistent customer demand. Steady top-line growth supports scalable fixed-cost absorption, funds reinvestment in product development, and underpins medium-term earnings potential even if margins fluctuate.

Improved cash generation

A sharp improvement in operating and free cash flow boosts internal funding capacity and reduces reliance on external financing. Strong recent cash conversion enhances ability to sustain dividends, invest in growth initiatives, and build reserves for strategic opportunities.

Negative Factors

Margin compression

Compression of gross and net margins signals pressure on pricing power or rising unit costs, which can erode long-term profitability if persistent. Sustained margin decline would reduce free cash generation and constrain the company’s capacity to reinvest while maintaining returns.

Volatile cash-flow conversion

Inconsistent conversion of profits into cash introduces forecasting risk and hampers reliable funding for growth or payouts. Volatility in FCF means management may need larger buffers, reducing capital efficiency and increasing vulnerability to operational or market shocks.

Variable returns on equity

Fluctuating ROE reflects inconsistent profitability and execution across cycles, limiting predictability of shareholder returns. Variable returns can indicate operational leverage to business cycles or uneven cost control, constraining long-term ability to compound shareholder value.

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

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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	867.97M	914.21M	719.81M	852.77M	700.18M	564.56M
EBITDA	426.27M	435.71M	257.83M	355.50M	307.79M	227.81M
Net Income	209.73M	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	294.44M	193.18M	464.42M
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: Positive
• STOCH: Positive

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 above the 20-day moving average (MA) of 702.60, below the 50-day MA of 749.30, and below the 200-day MA of 843.45, indicating a bearish trend. The MACD of -21.30 indicates Positive momentum. The RSI at 26.03 is Positive, neither overbought nor oversold. The STOCH value of 11.21 is Positive, 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	¥4.31B	10.74	―	―	―	―
4428	72 Outperform	¥4.19B	22.25	―	2.08%	10.65%	28.85%
3917	66 Neutral	¥4.72B	62.68	―	―	7.40%	―
4075	66 Neutral	¥9.74B	18.46	―	―	28.63%	551.37%
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	55 Neutral	¥4.99B	29.81	―	―	4.36%	-0.02%