S.Science Company, Ltd. (5721) AI Stock Analysis

• Market Cap: ¥113.41B
• Dividend Yield: N/A
• Average Volume (3M): 16.50M
• Price to Earnings (P/E): 855.0
• Beta (1Y): 0.62
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 27
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.72
• Shares Outstanding: 613,010,130
• 10 Day Avg. Volume: 6,247,700
• 30 Day Avg. Volume: 16,499,810
• PEG Ratio: 1.37
• Price to Book (P/B): 5.72
• Price to Sales (P/S): 25.89
• P/FCF Ratio: -64.59
• 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: 48 Neutral
• Price Target: ¥212.00 ▼(-7.83% Downside)

The score is primarily held back by weak financial performance, especially sustained negative operating and free cash flow alongside a sharp FY2025 revenue decline and return to losses. An extremely high P/E further pressures the score, while technicals provide partial support due to strong trend and positive momentum (though near-overbought readings add risk).

Positive Factors

Minimal financial leverage

Near-zero debt materially lowers insolvency and refinancing risk and gives the company durable financial flexibility. Over a 2–6 month horizon this reduces bankruptcy risk, preserves strategic optionality to raise capital if needed, and cushions cash-flow volatility.

Sizeable equity base

A high equity-to-asset ratio signals solvency strength and a buffer against operating losses. This structural capital base can absorb near-term losses, supports creditor confidence, and provides a stable platform for restructuring or strategic investment over the medium term.

Demonstrated ability to be profitable

Historic FY2024 profitability shows the business model can achieve high margins when revenue is stable, indicating capacity for operational leverage. This suggests upside if management restores sales or controls costs, making profitability recovery a realistic structural outcome.

Negative Factors

Persistent negative operating cash flow

Consistent negative operating cash flow undermines self-funding and forces reliance on outside financing or equity dilution. Over months this reduces ability to invest, increases execution risk for strategic initiatives, and can steadily erode the company’s equity cushion despite low debt.

Sharp revenue decline and volatility

A severe, abrupt revenue drop and historical volatility impair forecasting, scale economics, and long-term customer relationships. Structurally, this weakens margin sustainability, makes cost recovery difficult, and raises the risk that profitability remains intermittent without durable demand recovery.

Return to operating losses and earnings volatility

Earnings instability—moving from strong profit to loss—signals underlying operating or demand issues. Over a multi-month horizon this heightens funding uncertainty, complicates strategic planning, and reduces return predictability for shareholders, making sustained recovery uncertain.

S.Science Company, Ltd. Business Overview & Revenue Model

Company Description

S Science Company, Ltd. produces and sells nickel products primarily in Japan. The company offers s and p pellets/anodes, s and r round anodes, nickel plating chips, nickel balls and anodes, nickel sulfate, and nickel chloride. It also engages in the management of schools; brokering and mediation of real estate properties; and environment related business. The company was formerly known as Shimura Sangyo Co., Ltd. and changed its name to S Science Company, Ltd. in 2003. S Science Company, Ltd. was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

S.Science Company, Ltd. generates revenue through the sale of its advanced materials and components to various industries. The company's key revenue streams include direct sales to electronics manufacturers, automotive companies, and healthcare providers who utilize its products in their production processes. Additionally, S.Science Company, Ltd. engages in strategic partnerships and collaborations that enhance its market presence and drive sales growth. The company's focus on innovation and R&D allows it to maintain a competitive edge, ensuring a steady demand for its cutting-edge solutions.

S.Science Company, Ltd. Financial Statement Overview

Summary

S.Science Company, Ltd. demonstrates strong revenue growth and a solid equity position, indicating potential for long-term stability. However, profitability and cash flow challenges persist, suggesting a need for improved cost management and operational efficiency to fully capitalize on its growth potential.

Income Statement

The company shows robust revenue growth with a 13.5% increase from the previous year and a consistent upward trend over the past few years. Despite this, profitability metrics such as the gross profit margin (7.8%) and negative EBIT margin indicate challenges in controlling costs. However, the transition from a negative to a positive net income suggests improving profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio of 91.9% and a very low debt-to-equity ratio due to minimal debt levels. Although these are positive signs of stability, the company has faced fluctuations in total liabilities over recent years, which could indicate some risk.

Cash Flow

Cash flow statements show a consistent negative free cash flow, reflecting challenges in generating positive cash flow from operations. However, the free cash flow has shown minor improvements, and the high operating cash flow to net income ratio suggests that the company is converting its income effectively into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	634.43M	718.71M	1.36B	1.16B	1.08B
Gross Profit	114.66M	71.83M	21.59M	229.87M	248.73M	180.49M
EBITDA	-86.63M	-89.66M	440.44M	-95.05M	-311.44M	-251.41M
Net Income	54.67M	-96.11M	389.50M	-105.52M	-329.38M	-269.62M
Balance Sheet
Total Assets	3.16B	3.01B	3.27B	2.95B	2.94B	2.01B
Cash, Cash Equivalents and Short-Term Investments	2.15B	2.18B	1.83B	1.31B	1.74B	969.37M
Total Debt	0.00	0.00	3.00M	3.00M	3.00M	3.00M
Total Liabilities	140.00M	135.60M	263.77M	316.80M	250.18M	216.12M
Stockholders Equity	3.02B	2.87B	3.01B	2.63B	2.69B	1.80B
Cash Flow
Free Cash Flow	726.00K	-254.29M	-149.97M	-142.79M	-454.46M	-76.13M
Operating Cash Flow	726.00K	-253.41M	-149.74M	-142.41M	-214.96M	-76.13M
Investing Cash Flow	0.00	259.71M	1.09B	-289.19M	-76.69M	-43.81M
Financing Cash Flow	0.00	-22.00K	-13.00K	-10.00K	1.22B	2.65M

S.Science Company, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5721, the sentiment is Positive. The current price of 230 is above the 20-day moving average (MA) of 157.64, above the 50-day MA of 114.62, and above the 200-day MA of 104.86, indicating a bullish trend. The MACD of 17.67 indicates Negative momentum. The RSI at 72.64 is Negative, neither overbought nor oversold. The STOCH value of 56.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5721.

S.Science Company, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7521	80 Outperform	¥18.42B	5.76	―	2.50%	23.68%	80.23%
7795	73 Outperform	¥9.83B	8.27	―	3.79%	6.83%	41.94%
7670	71 Outperform	¥10.77B	6.00	―	4.15%	-5.07%	13.98%
6554	69 Neutral	¥10.72B	11.48	―	3.90%	13.59%	52.99%
3420	67 Neutral	¥11.51B	10.30	―	3.28%	3.06%	5.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥113.41B	854.97	―	―	―	―