Sansan, Inc. (4443) AI Stock Analysis

• Market Cap: ¥148.73B
• Dividend Yield: N/A
• Average Volume (3M): 412.29K
• Price to Earnings (P/E): 71.9
• Beta (1Y): 0.60
• Revenue Growth: 27.65%
• EPS Growth: 96.11%
• Country: JP
• Employees: 1,899
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 126,688,190
• 10 Day Avg. Volume: 458,570
• 30 Day Avg. Volume: 412,286
• PEG Ratio: -10.76
• Price to Book (P/B): 15.97
• Price to Sales (P/S): 5.88
• P/FCF Ratio: 34.26
• 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: ¥1,300.00
• Price Target Upside: -25.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,136.00 ▼(-34.83% Downside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is primarily supported by strong financial performance (notably revenue growth and cash flow strength). This is materially offset by weak technicals (downtrend and negative momentum) and a demanding valuation (high P/E), which together raise near-term risk despite solid underlying business momentum.

Positive Factors

Recurring revenue / Revenue growth

Recurring subscription sales driving 13.07% revenue growth point to durable demand and predictable ARR from enterprise clients. That recurring base supports multi-period cash flow visibility, easier customer upsell, and scalable revenue as sales and onboarding costs are amortized over time.

Cash generation

Robust free cash flow and strong operating-cash-to-net-income conversion provide lasting financial flexibility. Consistent FCF funds R&D, product investment, and potential M&A without over-reliance on external capital, improving resilience through cycles and enabling strategic long-term initiatives.

Balance sheet strength

Low leverage (D/E ~0.22) and a healthy equity ratio give the company durable financial headroom. This conservative capital structure reduces refinancing risk, preserves investment capacity for growth projects, and allows opportunistic use of debt while maintaining stability in adverse conditions.

Negative Factors

Thin profitability

A sub-1% net margin signals that revenue growth is not translating into proportional earnings. Persistently thin profitability limits retained earnings and slows capital accumulation, constraining the firm's ability to self-fund expansions or materially boost shareholder returns without improving cost structure or pricing.

Modest capital efficiency (ROE)

ROE near 2.7% suggests the business currently generates low returns on invested capital. Even with revenue gains, poor capital efficiency can make it harder to justify reinvestment and may require either higher margins or better asset utilization to sustainably increase shareholder value over the medium term.

Revenue concentration / limited diversification

Heavy dependence on subscription fees and enterprise CRM sales concentrates revenue risk. While subscriptions are durable, concentrated product/service exposure and enterprise customer reliance raise vulnerability to churn, competitive disruption, or slower enterprise IT spend unless the company broadens offerings or deepens partnerships.

Sansan, Inc. Business Overview & Revenue Model

Company Description

Sansan, Inc. engages in the planning, development, and selling of business database in Japan. It offers Sansan, a cloud-based contact management tool that enables to build a complete contact database; Eight, a personal business networking application centered on contacts and career management; and Bill One, a cloud-based solution to receive and digitizes invoices. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sansan generates revenue primarily through subscription fees for its software services. The company offers different pricing tiers based on the number of users and the features included, allowing businesses of varying sizes to choose a plan that suits their needs. Key revenue streams include monthly or annual subscriptions for its flagship Sansan platform and associated services. Additionally, Sansan earns revenue from partnerships with other companies that integrate its technology into their own platforms or services. These collaborations often involve co-marketing agreements or referral fees. The company's focus on enterprise clients, which typically have larger budgets and a greater need for comprehensive CRM solutions, further strengthens its revenue model.

Sansan, Inc. Financial Statement Overview

Summary

Strong revenue growth (+13.07%) and strong cash flow generation support fundamentals. Offsetting this, profitability remains thin (net margin ~0.98%) and ROE is modest (2.66%), suggesting earnings efficiency still needs improvement.

Income Statement

Sansan, Inc. has demonstrated robust revenue growth with a 13.07% increase in the latest year, indicating strong market demand and effective sales strategies. The gross profit margin remains high, showcasing efficient cost management. However, the net profit margin is relatively low at 0.98%, suggesting room for improvement in controlling operational expenses and enhancing profitability.

Balance Sheet

The company's balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.22, indicating prudent leverage management. The return on equity is positive, though modest, at 2.66%, suggesting potential for higher shareholder returns. The equity ratio is healthy, underscoring a solid capital structure.

Cash Flow

Sansan, Inc. exhibits strong cash flow performance with significant free cash flow growth, highlighting effective cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also favorable, reflecting strong liquidity and financial flexibility.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	45.90B	43.20B	33.88B	25.51B	20.42B	16.18B
Gross Profit	39.89B	37.41B	28.81B	21.83B	17.91B	14.19B
EBITDA	2.23B	1.54B	1.87B	856.00M	1.71B	1.10B
Net Income	1.09B	424.00M	953.00M	-141.00M	857.00M	182.00M
Balance Sheet
Total Assets	43.73B	47.98B	37.59B	31.20B	26.29B	24.31B
Cash, Cash Equivalents and Short-Term Investments	28.54B	31.17B	24.87B	21.11B	15.43B	12.39B
Total Debt	3.17B	3.57B	4.48B	3.40B	3.02B	2.16B
Total Liabilities	28.76B	31.95B	22.82B	18.01B	14.20B	11.73B
Stockholders Equity	14.88B	15.92B	14.64B	13.12B	12.09B	12.58B
Cash Flow
Free Cash Flow	0.00	7.42B	5.27B	3.65B	2.65B	2.74B
Operating Cash Flow	0.00	9.65B	5.48B	3.85B	3.12B	3.01B
Investing Cash Flow	0.00	-2.55B	-3.18B	1.36B	-1.01B	-551.42M
Financing Cash Flow	0.00	-654.00M	1.43B	523.00M	909.00M	-2.90B

Sansan, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1743.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4443, the sentiment is Negative. The current price of 1743 is above the 20-day moving average (MA) of 1185.65, above the 50-day MA of 1508.54, and below the 200-day MA of 1795.45, indicating a bearish trend. The MACD of -115.30 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4443.

Sansan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
4776	71 Outperform	¥102.40B	14.57	―	1.02%	26.47%	142.77%
4397	68 Neutral	¥7.04B	17.46	―	―	11.32%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	61 Neutral	¥148.73B	71.94	―	―	27.65%	96.11%
4478	55 Neutral	¥128.29B	144.60	―	―	31.57%	―
3994	49 Neutral	¥177.02B	112.18	-19.16%	―	19.57%	-16.67%