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

• Market Cap: ¥86.43B
• Dividend Yield: N/A
• Average Volume (3M): 16.50M
• Price to Earnings (P/E): 563.3
• Beta (1Y): 0.88
• 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: 613,004,200
• 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: ¥135.00 ▼(-41.30% Downside)

The score is held down primarily by weak financial performance—especially the steep revenue decline, return to losses, and persistently negative operating and free cash flow. Technicals are currently supportive due to strong upward momentum, but overbought signals add near-term risk. Valuation is a major negative given the extremely high P/E and no provided dividend yield.

Positive Factors

Very low financial leverage

S.Science’s near-zero leverage and sizeable equity base provide durable financial flexibility. With minimal debt service requirements the company can better withstand revenue shocks, preserve access to capital, and prioritize operational recovery or strategic investments over forced deleveraging.

Proven ability to generate strong profits historically

The firm demonstrated the capacity to deliver high margins under favorable conditions, indicating structural profitability in its business model. That past profitability suggests scalable economics and a pathway to margin recovery if revenue stabilizes or cost structure is optimized.

Lean cost base (small employee count)

A very small workforce points to a lean operating model with lower fixed labor costs. This structural advantage aids cash preservation, faster variable-cost adjustments during downturns, and the potential to maintain or restore margins more quickly than larger, labor-intensive peers.

Negative Factors

Sharp revenue contraction and return to loss

A nearly 50% revenue decline and swing to a large net loss indicate structural demand or execution problems. Such a severe top-line hit reduces operating leverage, erodes stakeholder confidence, and makes sustained profit recovery challenging without clear revenue drivers or strategic change.

Consistently negative operating and free cash flow

Persistent negative operating and free cash flow show earnings aren’t converting to cash, increasing reliance on external funding or equity to sustain operations. Over months this undermines investment capacity, restricts strategic options, and raises execution risk despite low leverage.

Earnings volatility and unstable returns on equity

Large swings in profitability that drive ROE from strongly positive to negative reflect inconsistent business performance. This volatility complicates planning, reduces predictability of shareholder returns, and signals that margins and growth are contingent on variable factors rather than steady structural advantages.

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

Financials are weak overall: a sharp FY2025 revenue contraction (~-49% YoY) and a swing back to a net loss (net margin ~-15%) signal unstable profitability. The balance sheet is a relative strength with essentially no leverage and solid equity, but persistent negative operating cash flow and free cash flow across all shown years materially reduce financial flexibility.

Income Statement

Revenue has been volatile and is now contracting sharply (FY2025 revenue down ~49% YoY after growth in FY2023–FY2024). Profitability is inconsistent: the company swung from a strong net profit in FY2024 (net margin ~28%) back to a net loss in FY2025 (net margin ~-15%), with operating losses persisting (negative EBIT margin in FY2025). Gross margins remain modest (roughly 8%–21% historically) and the recent drop in sales combined with negative operating leverage is a key weakness.

Balance Sheet

The balance sheet is a relative strength with essentially no leverage (debt-to-equity ~0% across periods) and a sizeable equity base (equity ~¥2.9B vs assets ~¥3.0B in FY2025). However, shareholder returns are weak and unstable, turning negative again in FY2025 (ROE ~-3%) after a strong FY2024, reflecting earnings volatility rather than balance-sheet stress.

Cash Flow

Cash generation is consistently weak: operating cash flow is negative every year shown (including FY2025 at roughly -¥253M), and free cash flow is also persistently negative. Free cash flow deterioration in FY2025 versus FY2024 is notable, and the pattern suggests earnings (when positive) are not translating into cash, increasing funding and execution risk despite low financial leverage.

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: Positive
• RSI: Neutral
• 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 159.09, above the 50-day MA of 136.61, and above the 200-day MA of 111.80, indicating a neutral trend. The MACD of -2.21 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.44 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	¥17.02B	5.23	―	2.50%	23.68%	80.23%
7795	73 Outperform	¥10.35B	7.96	―	3.79%	6.83%	41.94%
7670	71 Outperform	¥12.36B	6.61	―	4.15%	-5.07%	13.98%
6554	69 Neutral	¥10.43B	11.31	―	3.90%	13.59%	52.99%
3420	67 Neutral	¥11.71B	10.73	―	3.28%	3.06%	5.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥86.43B	563.32	―	―	―	―