Sansan, Inc. (4443) AI Stock Analysis

• Market Cap: ¥241.90B
• Dividend Yield: N/A
• Average Volume (3M): 463.72K
• Price to Earnings (P/E): 568.1
• Beta (1Y): 0.72
• Revenue Growth: 27.52%
• EPS Growth: -55.62%
• Country: JP
• Employees: 1,899
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -10.11
• Shares Outstanding: 126,581,566
• 10 Day Avg. Volume: 434,010
• 30 Day Avg. Volume: 463,720
• PEG Ratio: -10.76
• Price to Book (P/B): 15.97
• Price to Sales (P/S): 5.88
• P/FCF Ratio: 36.57
• 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: ¥2,574.00
• Price Target Upside: 34.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: ¥1,996.00 ▲(4.45% Upside)

Sansan, Inc.'s overall stock score is primarily supported by its strong financial performance, characterized by robust revenue growth and solid cash flow generation. However, the technical analysis indicates a bearish trend, and the extremely high P/E ratio suggests potential overvaluation, which significantly impacts the overall score.

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, Inc. generates revenue primarily through subscription fees for its software services, which are offered to businesses on a monthly or annual basis. The company has a tiered pricing model that caters to different business sizes and needs, allowing clients to select plans that best suit their operational requirements. In addition to subscription revenue, Sansan also earns money through value-added services such as data analysis and customer support. Significant partnerships with corporate clients and integrations with other software platforms enhance its value proposition, contributing to customer retention and attracting new clients, thereby bolstering its revenue streams.

Sansan, Inc. Financial Statement Overview

Summary

Sansan, Inc. presents a strong financial profile with impressive revenue growth and solid cash flow generation. While profitability margins could be improved, the company's stable balance sheet and effective cash management provide a solid foundation for future growth and resilience in the competitive software application industry.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.78B	43.20B	33.88B	25.51B	20.42B	16.18B
Gross Profit	35.17B	37.41B	28.81B	21.83B	17.91B	14.19B
EBITDA	3.12B	1.54B	1.87B	856.00M	1.71B	1.10B
Net Income	2.11B	424.00M	953.00M	-141.00M	857.00M	182.00M
Balance Sheet
Total Assets	39.88B	47.98B	37.59B	31.20B	26.29B	24.31B
Cash, Cash Equivalents and Short-Term Investments	23.93B	31.17B	24.87B	21.11B	15.43B	12.39B
Total Debt	3.78B	3.57B	4.48B	3.40B	3.02B	2.16B
Total Liabilities	22.64B	31.95B	22.82B	18.01B	14.20B	11.73B
Stockholders Equity	17.14B	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: 1911.00
• 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 1911 is below the 20-day moving average (MA) of 1921.25, below the 50-day MA of 1921.36, and below the 200-day MA of 2076.51, indicating a bearish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.56 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
9759	74 Outperform	¥263.39B	23.44	17.50%	2.39%	7.09%	11.95%
4776	72 Outperform	¥158.74B	30.21	―	0.87%	22.97%	107.52%
4432	70 Outperform	¥115.01B	20.39	14.19%	2.82%	11.37%	5.43%
4443	59 Neutral	¥241.90B	568.09	―	―	27.52%	-55.62%
3994	56 Neutral	¥334.21B	-55.57	-16.91%	―	20.96%	-6.20%
4478	55 Neutral	¥224.28B	161.91	6.97%	―	30.83%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%