Sansan, Inc. (4443) AI Stock Analysis

• Market Cap: ¥215.25B
• Dividend Yield: N/A
• Average Volume (3M): 412.29K
• Price to Earnings (P/E): 199.6
• Beta (1Y): 0.63
• Revenue Growth: 27.65%
• EPS Growth: 96.11%
• Country: JP
• Employees: 1,899
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.36
• Shares Outstanding: 126,616,516
• 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: ¥3,400.00
• Price Target Upside: 95.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6,091.33
• Revenue Forecast (FY): ¥8.32T

• Rating: 54 Neutral
• Price Target: ¥1,735.00 ▼(-0.46% Downside)

Sansan, Inc.'s strong financial performance, characterized by robust revenue growth and cash flow generation, is a key strength. However, the stock's technical indicators suggest a bearish trend, and the high P/E ratio points to potential overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and competitiveness.

Cash Flow Generation

Strong cash flow generation highlights effective cash management, providing liquidity and financial flexibility to support future investments and growth.

Balance Sheet Health

A stable balance sheet with prudent leverage management ensures financial resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Profitability Margins

Low profitability margins suggest inefficiencies in cost management, which could limit the company's ability to reinvest in growth and improve shareholder returns.

Earnings Growth

Negative earnings growth indicates challenges in scaling profitability, potentially impacting investor confidence and limiting capital for strategic initiatives.

Valuation Concerns

High valuation concerns may deter new investors and increase pressure on management to deliver exceptional growth, impacting long-term strategic flexibility.

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

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	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: Negative

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 1680.60, above the 50-day MA of 1726.38, and below the 200-day MA of 1904.70, indicating a neutral trend. The MACD of -6.63 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 81.18 is Negative, 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	77 Outperform	¥250.63B	21.77	―	2.52%	9.10%	14.67%
4432	74 Outperform	¥121.43B	23.82	―	2.59%	5.22%	-6.62%
4776	72 Outperform	¥131.58B	21.13	―	1.03%	26.47%	142.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	54 Neutral	¥215.25B	199.61	―	―	27.65%	96.11%
4478	51 Neutral	¥172.62B	126.10	―	―	31.57%	―
3994	41 Neutral	¥241.82B	-40.07	-19.16%	―	19.57%	-16.67%