S&J Corporation (5599) AI Stock Analysis

• Market Cap: ¥11.90B
• Dividend Yield: N/A
• Average Volume (3M): 33.85K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.00
• Revenue Growth: 18.39%
• EPS Growth: 37.21%
• Country: JP
• Employees: 61
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 19.06
• Shares Outstanding: 5,627,200
• 10 Day Avg. Volume: 47,290
• 30 Day Avg. Volume: 33,846
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 79 Outperform
• Price Target: ¥2,519.00 ▲(32.09% Upside)

The score is driven primarily by strong financial fundamentals (growth, solid margins, and a debt-free balance sheet), reinforced by positive technical trend and momentum. The main constraints are weaker cash-flow quality (negative 2025 free cash flow) and a relatively high P/E valuation.

Positive Factors

Debt-free Balance Sheet

Zero reported debt provides durable financial flexibility: it lowers insolvency risk, reduces fixed interest obligations, and preserves capacity to fund capex, M&A, or shareholder returns from operating cash. This structural strength supports resilience through cycles and strategic optionality.

Sustained Revenue Growth

Nearly doubling revenue over three years indicates durable market traction and a scalable business model. Persistent top-line expansion supports investment in products and talent, helps absorb fixed costs, and provides a stronger base to sustain margins and long-term profitability as the firm scales.

Solid Profitability

Stable high gross margins and improving net margins reflect structural pricing power or efficient delivery. Sustained profitability enhances free resources for reinvestment, builds retained earnings, and supports return metrics, making earnings less reliant on continuous high revenue growth to maintain company health.

Negative Factors

Negative Free Cash Flow

A shift to negative FCF signals diminished internal funding for growth or returns and may force reliance on external capital or cuts to discretionary spending. If prolonged, negative FCF can constrain strategic initiatives and reduce the balance sheet cushion despite low nominal debt.

Inconsistent Operating Cash Flow

Volatile operating cash conversion relative to earnings raises earnings quality concerns and complicates forecasting. Structural variability in cash generation can impair liquidity planning, increase working-capital risk, and limit the firm's ability to commit to multi-year investments or stable shareholder distributions.

Margin Variability

Profitability swings versus prior peak levels imply structural sensitivity to revenue mix, pricing, or input costs. Persistent margin volatility can reduce predictability of returns on incremental revenue, weaken operating leverage benefits, and heighten exposure to competitive or macro pressures over the medium term.

S&J Corporation Business Overview & Revenue Model

Company Description

S&J Corp is a Japan-based company mainly engaged in the operation of cybersecurity business that provides consulting services and security operation center (SOC) services, which are security monitoring and operation services. The consulting service provides security advisors, incident response, email security, vulnerability diagnosis, and security products. The SOC service provides monitoring services through KeepEye, a proprietary cloud-based endpoint detection and response (EDR) service powered by SOC Engine. The Company provides monitoring and operation services using other companies' EDR products.

How the Company Makes Money

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S&J Corporation Financial Statement Overview

Summary

S&J Corporation exhibits strong financial health with robust revenue growth, healthy profit margins, and a solid balance sheet free of debt. However, the decline in operating cash flow indicates a potential concern that requires monitoring.

Income Statement

S&J Corporation shows strong performance in the income statement with a significant revenue growth rate of 25.73% from 2023 to 2024 and robust gross and net profit margins of 48.53% and 13.58% respectively in 2024. The EBIT margin is 21.66%, indicating efficient control over operating expenses. These metrics suggest a healthy and growing profitability profile.

Balance Sheet

The balance sheet of S&J Corporation is very strong with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is also high at 71.44%, indicating a solid capital structure primarily financed by equity. Return on equity stands at 12.44%, reflecting sound shareholder returns. The company's financial stability is reinforced by significant cash reserves.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from 2023 to 2024, but the company maintains a positive free cash flow of 55.03 million. The operating cash flow to net income ratio is 0.30, suggesting moderate efficiency in converting net income to cash flow. The decrease in operating cash flow is a potential concern that needs monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.94B	1.61B	1.28B	1.08B
Gross Profit	946.03M	781.72M	627.91M	483.56M
EBITDA	482.99M	329.45M	329.63M	255.72M
Net Income	309.11M	218.67M	210.52M	223.59M
Balance Sheet
Total Assets	2.71B	2.46B	1.55B	992.35M
Cash, Cash Equivalents and Short-Term Investments	2.00B	2.12B	1.35B	839.75M
Total Debt	0.00	0.00	0.00	109.28M
Total Liabilities	701.84M	703.08M	791.89M	449.31M
Stockholders Equity	2.00B	1.76B	753.57M	543.04M
Cash Flow
Free Cash Flow	-72.31M	55.03M	637.04M	401.21M
Operating Cash Flow	344.06M	66.55M	645.71M	421.42M
Investing Cash Flow	-402.58M	-76.27M	-22.44M	-28.00K
Financing Cash Flow	-63.41M	775.87M	-109.28M	21.38M

S&J Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1907.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5599, the sentiment is Positive. The current price of 1907 is below the 20-day moving average (MA) of 1964.25, above the 50-day MA of 1772.20, and above the 200-day MA of 1402.03, indicating a bullish trend. The MACD of 102.53 indicates Negative momentum. The RSI at 75.89 is Negative, neither overbought nor oversold. The STOCH value of 89.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5599.

S&J Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5599	79 Outperform	¥11.90B	32.94	―	―	18.39%	37.21%
4012	79 Outperform	¥6.44B	10.76	―	1.66%	8.16%	5.69%
3799	78 Outperform	¥10.33B	9.87	―	4.16%	4.52%	51.81%
2488	73 Outperform	¥7.82B	12.52	―	2.78%	13.58%	20.32%
5578	68 Neutral	¥13.01B	20.99	―	0.55%	27.16%	29.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	60 Neutral	¥7.67B	35.06	―	―	2.32%	126.46%