Smaregi, Inc. (4431) AI Stock Analysis

• Market Cap: ¥60.06B
• Dividend Yield: 0.49%
• Average Volume (3M): 89.62K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.01
• Revenue Growth: 31.20%
• EPS Growth: 44.01%
• Country: JP
• Employees: 210
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 23.09
• Shares Outstanding: 19,692,400
• 10 Day Avg. Volume: 85,250
• 30 Day Avg. Volume: 89,623
• PEG Ratio: 0.58
• Price to Book (P/B): 11.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 65.21
• 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: 80 Outperform
• Price Target: ―

Smaregi, Inc. demonstrates robust financial performance with strong revenue growth, profitability, and a healthy balance sheet, contributing significantly to the stock's attractiveness. Technical indicators show positive momentum, although caution is warranted due to overbought signals. The stock's high P/E ratio reflects growth expectations, but it may be seen as overvalued. Overall, Smaregi, Inc. is well-positioned, but potential investors should consider valuation risks.

Smaregi, Inc. Business Overview & Revenue Model

Company Description

Smaregi, Inc. (4431) is a Japanese technology company that specializes in providing cloud-based point-of-sale (POS) systems. The company offers innovative solutions designed to streamline retail operations, enhance customer experience, and enable businesses to manage their sales data more efficiently. Smaregi’s products are widely used across various retail sectors, including restaurants, apparel, and specialty stores.

How the Company Makes Money

Smaregi, Inc. generates revenue primarily through the sale and subscription of its cloud-based POS systems and related services. The company offers a software-as-a-service (SaaS) model, where businesses pay for the use of its POS platform on a subscription basis. This includes fees for different tiers of service, depending on the features and scale required by the customer. Additionally, Smaregi may earn revenue from hardware sales, such as tablets and receipt printers, that complement its software solutions. The company also benefits from partnerships with other technology providers, which can lead to expanded service offerings and increased market reach.

Smaregi, Inc. Financial Statement Overview

Summary

Smaregi, Inc. presents a strong financial position with impressive revenue and profit growth, robust margins, and a debt-free balance sheet. The company showcases strong cash flow generation, aligning with its growth and stability in the software infrastructure industry. The financial health of Smaregi, Inc. supports its competitive positioning and potential for future expansion.

Income Statement

Smaregi, Inc. has shown robust revenue growth with a 41.7% increase from 2023 to 2024. The gross profit margin is strong at 62.0%, and net profit margin is impressive at 14.5% in 2024. The EBIT margin of 20.7% and EBITDA margin of 23.3% indicate healthy operational efficiency. The company demonstrates strong profitability and growth trajectory.

Balance Sheet

The company has a solid balance sheet with zero debt, contributing to a favorable debt-to-equity ratio. The return on equity is strong at 20.3%, reflecting efficient use of shareholder funds. An equity ratio of 75.1% highlights strong capitalization and financial stability.

Cash Flow

Smaregi, Inc. exhibits a healthy cash flow profile with a significant free cash flow growth rate of 66.9% from 2023 to 2024. The operating cash flow to net income ratio of 1.4 suggests robust cash generation relative to net income. However, the free cash flow to net income ratio of 1.1 indicates solid cash conversion despite room for further improvement.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.09B	8.39B	5.91B	4.30B	3.32B	3.25B
Gross Profit	5.59B	5.20B	3.57B	2.64B	2.06B	1.92B
EBITDA	2.14B	1.95B	1.05B	744.93M	969.56M	816.86M
Net Income	1.33B	1.21B	887.60M	444.98M	583.92M	547.13M
Balance Sheet
Total Assets	8.28B	7.95B	6.16B	5.36B	4.50B	4.06B
Cash, Cash Equivalents and Short-Term Investments	5.22B	5.28B	3.96B	3.77B	3.61B	3.17B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.91B	1.98B	1.48B	1.05B	822.71M	733.93M
Stockholders Equity	6.37B	5.97B	4.68B	4.31B	3.68B	3.32B
Cash Flow
Free Cash Flow	362.23M	1.35B	806.71M	116.59M	672.99M	667.79M
Operating Cash Flow	446.98M	1.71B	986.44M	222.99M	772.77M	730.30M
Investing Cash Flow	-100.51M	-393.08M	-310.73M	-84.51M	-103.03M	-190.47M
Financing Cash Flow	3.92M	8.84M	-447.94M	17.21M	-228.70M	-91.33M

Smaregi, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3150.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4431, the sentiment is Negative. The current price of 3150 is below the 20-day moving average (MA) of 3276.50, below the 50-day MA of 3215.43, and above the 200-day MA of 2874.69, indicating a neutral trend. The MACD of -42.13 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4431.

Smaregi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4431	80 Outperform	¥60.06B	36.05		0.49%	31.20%	44.01%
4385	75 Outperform	$429.54B	26.05	21.33%	―	3.01%	-2.84%
4420	71 Outperform	¥10.08B	16.24		0.56%	23.68%	577.69%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%
4443	69 Neutral	¥270.24B	127.70		―	29.19%	―
4388	68 Neutral	¥3.03B	20.87		―	102.19%	-122.72%
4446	58 Neutral	¥4.89B	49.13		―	51.83%	-62.04%

Smaregi, Inc. Corporate Events

Smaregi, Inc. Reports Positive Financial Results and Revised Forecast

Smaregi, Inc. reported its consolidated financial results for the nine months ended January 31, 2025, showing net sales of ¥7,876 million and a profit attributable to owners of the parent of ¥1,237 million. The company has revised its financial results forecast for the fiscal year ending April 30, 2025, indicating a positive outlook with expected net sales of ¥10,882 million and a profit of ¥1,592 million, reflecting its strategic growth and market positioning.

Smaregi, Inc. Announces Transition to Consolidated Financial Reporting

Smaregi, Inc. has announced its transition to consolidated financial reporting starting from the third quarter of FY2025, following its acquisition of Netshop Supporters Co., Ltd. This move is expected to impact the company’s financial transparency and operational efficiency, with a full-year consolidated earnings forecast for FY2025 provided. The forecast includes net sales of 10,882 million yen and a profit attributable to owners of 1,592 million yen. The company has recorded provisional goodwill from the acquisition, which will be amortized over a period yet to be finalized. The shift to consolidated reporting signifies a strategic step in Smaregi’s growth and market positioning.