Soft99 Corporation (4464) AI Stock Analysis

• Market Cap: ¥87.88B
• Dividend Yield: 1.12%
• Average Volume (3M): 289.05K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.68
• Revenue Growth: 3.77%
• EPS Growth: 7.65%
• Country: JP
• Employees: 811
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 22.54
• Shares Outstanding: 22,274,689
• 10 Day Avg. Volume: 118,330
• 30 Day Avg. Volume: 289,053
• PEG Ratio: 1.08
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 11.90
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,662.00 ▼(-9.02% Downside)

Soft99 Corporation's strong financial performance and positive technical indicators are the primary drivers of its stock score. Despite a high P/E ratio suggesting potential overvaluation, the company's robust financial health and market momentum support a favorable outlook.

Positive Factors

Financial Health

A strong balance sheet with low leverage enhances the company's ability to invest in growth opportunities and weather economic downturns, ensuring long-term stability.

Cash Generation

Strong cash generation supports ongoing operations and strategic investments, providing flexibility to capitalize on market opportunities and sustain growth.

Profitability

Healthy profit margins reflect efficient operations and cost control, which can drive sustainable earnings growth and enhance shareholder value over time.

Negative Factors

Revenue Growth Variability

While revenue growth has been consistent, recent declines suggest potential challenges in maintaining momentum, which could impact long-term growth prospects.

Cash Flow Variability

Variability in cash flow can affect the company's ability to fund operations and investments consistently, potentially impacting financial planning and stability.

Earnings Call Insights

Lack of detailed earnings call insights may hinder investor understanding of strategic direction and management's plans, affecting confidence in future performance.

Soft99 Corporation Business Overview & Revenue Model

Company Description

Soft99 Corporation (4464) is a leading Japanese manufacturer specializing in automotive care products, including car wax, cleaning agents, and surface protection coatings. Established in 1954, the company operates primarily in the automotive sector, offering a diverse range of products designed to enhance vehicle aesthetics and longevity. Soft99 has also expanded into the DIY and household cleaning markets, leveraging its expertise in chemical formulations to develop effective and user-friendly solutions.

How the Company Makes Money

Soft99 Corporation generates revenue through multiple streams, primarily from the sale of automotive care products to both consumers and businesses. The company markets its products through a variety of channels, including retail stores, online platforms, and partnerships with automotive service providers. Key revenue streams include the sales of car wax, detergents, and specialized coatings. Additionally, Soft99 engages in strategic partnerships with automotive manufacturers and distributors to expand its market reach and enhance brand visibility. The company also benefits from seasonal trends in vehicle maintenance and cleaning, which can drive up sales during peak periods, such as spring and summer. Furthermore, innovations in product formulation and packaging can attract new customers and retain existing ones, contributing positively to its earnings.

Soft99 Corporation Financial Statement Overview

Summary

Soft99 Corporation exhibits strong financial health with consistent profitability and growth. The balance sheet is robust with low leverage, and cash flow management is efficient despite some variability.

Income Statement

Soft99 Corporation has demonstrated consistent revenue growth over recent years, despite a slight decline in the most recent year. Gross and net profit margins are healthy, indicating effective cost management and profitability. The company maintains strong EBIT and EBITDA margins, showcasing operational efficiency and earning potential.

Balance Sheet

The balance sheet is robust with a high equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is extremely low, reflecting minimal reliance on debt financing. Return on equity is strong, highlighting effective use of shareholders' funds to generate profits.

Cash Flow

The company shows a positive growth trend in free cash flow, indicating good cash generation capabilities. Operating cash flow to net income ratio is solid, reflecting efficient cash flow management. However, fluctuations in free cash flow to net income ratios suggest potential variability in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.59B	29.74B	29.87B	30.17B	28.44B	26.80B
Gross Profit	11.42B	11.10B	10.68B	10.61B	10.95B	9.96B
EBITDA	4.93B	5.19B	4.79B	4.03B	4.86B	3.03B
Net Income	2.91B	2.91B	2.63B	2.06B	2.76B	1.54B
Balance Sheet
Total Assets	65.85B	64.64B	62.54B	60.38B	59.23B	57.29B
Cash, Cash Equivalents and Short-Term Investments	22.77B	22.35B	21.77B	20.12B	20.50B	19.77B
Total Debt	585.06M	85.73M	190.96M	295.58M	112.10M	46.38M
Total Liabilities	8.12B	8.06B	7.92B	7.60B	7.84B	7.41B
Stockholders Equity	57.74B	56.57B	54.63B	52.77B	51.39B	49.87B
Cash Flow
Free Cash Flow	2.44B	3.00B	2.67B	421.99M	1.72B	2.61B
Operating Cash Flow	4.09B	4.25B	3.77B	2.62B	3.09B	3.22B
Investing Cash Flow	-1.72B	-2.26B	-1.14B	-2.18B	-736.74M	-1.70B
Financing Cash Flow	-1.20B	-1.22B	-1.21B	-516.08M	-1.12B	-650.75M

Soft99 Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4025.00
• 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:4464, the sentiment is Positive. The current price of 4025 is above the 20-day moving average (MA) of 4010.75, above the 50-day MA of 3807.70, and above the 200-day MA of 2412.22, indicating a bullish trend. The MACD of 54.78 indicates Positive momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 73.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4464.

Soft99 Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4461	76 Outperform	¥88.46B	23.05	―	1.26%	8.78%	19.37%
4464	75 Outperform	¥87.88B	29.82	―	1.12%	3.77%	7.65%
4619	75 Outperform	¥50.68B	9.36	―	5.06%	-3.21%	27.18%
4611	74 Outperform	¥37.06B	4.59	―	3.75%	14.83%	51.42%
4078	70 Outperform	¥52.00B	7.99	―	4.46%	-1.09%	―
4094	70 Outperform	¥46.13B	19.51	―	3.79%	8.54%	6.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%