Smaregi, Inc. (4431) AI Stock Analysis

• Market Cap: ¥60.55B
• Dividend Yield: 0.52%
• Average Volume (3M): 65.61K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.94
• Revenue Growth: 26.98%
• EPS Growth: 19.69%
• Country: JP
• Employees: 210
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 26.51
• Shares Outstanding: 19,692,400
• 10 Day Avg. Volume: 80,770
• 30 Day Avg. Volume: 65,606
• PEG Ratio: 1.06
• Price to Book (P/B): 7.90
• Price to Sales (P/S): 5.47
• P/FCF Ratio: 33.82
• 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: 75 Outperform
• Price Target: ¥3,437.00 ▲(12.50% Upside)

The score is driven primarily by strong financial performance (rapid growth, solid margins, very low leverage and strong ROE). Technicals are moderately supportive with neutral-to-positive momentum, but the overall score is held back by a relatively high P/E and low dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategy, supporting long-term expansion potential.

Balance Sheet Health

A conservatively managed balance sheet with low leverage enhances financial stability and flexibility for future investments.

Annual Recurring Revenue Growth

Significant ARR growth reflects strong customer retention and recurring revenue model, ensuring steady cash flow and market leadership.

Negative Factors

Cash Conversion Volatility

Volatile cash conversion indicates potential working capital management issues, which could affect liquidity and operational efficiency.

Margin Variability

Fluctuating margins suggest sensitivity to cost base changes or growth investments, which could impact long-term profitability.

Cash Flow Dependency

High dependency on free cash flow for earnings support may limit reinvestment capacity, affecting growth and competitive positioning.

Smaregi, Inc. Business Overview & Revenue Model

Company Description

Smaregi, Inc. plans, designs, develops, and provides Web services. The company also offers Smaregi, a cloud type POS cash register system; Smaregi Waiter, an order management system that uses smartphones; and Smaregi - Time Card, a cloud-based attendance management service that manages attendance information, as well as provides payroll calculation, vacation management, shift management, daily report, and project management functions. It is also involved in data collection/analysis and mail order businesses. The company was incorporated in 2005 and is headquartered in Osaka, Japan.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.09B	11.07B	8.39B	5.91B	4.30B	3.32B
Gross Profit	5.59B	6.76B	5.20B	3.57B	2.64B	2.06B
EBITDA	2.14B	2.72B	1.95B	1.11B	744.93M	969.56M
Net Income	1.33B	1.64B	1.21B	887.60M	444.98M	583.92M
Balance Sheet
Total Assets	8.28B	10.67B	7.95B	6.16B	5.36B	4.50B
Cash, Cash Equivalents and Short-Term Investments	5.22B	5.91B	5.28B	3.96B	3.77B	3.61B
Total Debt	0.00	100.00M	0.00	0.00	0.00	0.00
Total Liabilities	1.91B	3.00B	1.98B	1.48B	1.05B	822.71M
Stockholders Equity	6.37B	7.67B	5.97B	4.68B	4.31B	3.68B
Cash Flow
Free Cash Flow	362.23M	1.79B	1.35B	806.71M	116.59M	672.99M
Operating Cash Flow	446.98M	2.47B	1.71B	986.44M	222.99M	772.77M
Investing Cash Flow	-100.51M	-1.92B	-393.08M	-310.73M	-84.51M	-103.03M
Financing Cash Flow	3.92M	82.22M	8.84M	-447.94M	17.21M	-228.70M

Smaregi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3055.00
• 50DMA: Positive
• 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 Positive. The current price of 3055 is above the 20-day moving average (MA) of 3029.90, above the 50-day MA of 2912.48, and below the 200-day MA of 3089.24, indicating a bullish trend. The MACD of 21.34 indicates Positive momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4431.

Smaregi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3854	84 Outperform	¥64.89B	17.50	―	1.93%	11.45%	28.42%
4431	75 Outperform	¥60.55B	34.37	―	0.52%	26.98%	19.69%
5036	75 Outperform	¥80.06B	14.22	―	2.35%	22.52%	271.71%
4475	69 Neutral	¥42.84B	31.08	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4419	55 Neutral	¥50.99B	58.74	―	―	29.31%	62.60%

Smaregi, Inc. Corporate Events

Smaregi Surpasses JPY 10 Billion ARR Milestone

Smaregi, Inc. has achieved a significant milestone by surpassing JPY 10 billion in Annual Recurring Revenue (ARR) as of November 2025, marking a 42.1% year-on-year growth. This achievement reflects the widespread adoption of their services across various industries, driven by the company’s commitment to improving store management and supporting small and midsize businesses. Smaregi aims to establish itself as a leading player in the store infrastructure domain by expanding essential functions and delivering practical features that provide immediate value to store operations.

Smaregi, Inc. Reports Positive Financial Growth for 2025

Smaregi, Inc. reported its consolidated financial results for the six months ending October 31, 2025, showing net sales of ¥6,264 million and a profit attributable to owners of the parent of ¥887 million. The company has also revised its financial forecast for the fiscal year ending April 30, 2026, expecting a 25.2% increase in net sales and a 22.6% rise in profit attributable to owners of the parent, indicating positive growth and strong market positioning.