STG CO.LTD. (5858) AI Stock Analysis

• Market Cap: ¥3.21B
• Dividend Yield: 0.97%
• Average Volume (3M): 7.50K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.94
• Revenue Growth: 22.57%
• EPS Growth: 87.87%
• Country: JP
• Employees: 659
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 42.43
• Shares Outstanding: 2,081,000
• 10 Day Avg. Volume: 4,080
• 30 Day Avg. Volume: 7,496
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,573.00
• Price Target Upside: 1.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥1,754.00 ▲(13.16% Upside)

STG CO.LTD. receives a strong overall score due to its robust financial performance and attractive valuation. The technical analysis supports a bullish outlook, with the stock trading above key moving averages and showing positive momentum. The absence of earnings call and corporate events data does not detract from the company's solid fundamentals and growth potential.

STG CO.LTD. Business Overview & Revenue Model

Company Description

STG CO.LTD. (5858) is a diversified company primarily engaged in the development and provision of advanced technology solutions across various sectors. With a focus on innovation, STG specializes in software development, IT consulting, and integrated technology services aimed at enhancing operational efficiencies for businesses. The company serves a wide range of industries, including finance, healthcare, and telecommunications, positioning itself as a key player in the technology landscape.

How the Company Makes Money

STG CO.LTD. generates revenue through multiple channels, primarily from its core services in software development and IT consulting. The company charges clients for custom software solutions, support services, and ongoing maintenance contracts, which provide a steady stream of income. Additionally, STG monetizes its proprietary technology products through licensing agreements and subscription models, allowing businesses to leverage its innovative solutions while generating recurring revenue. Strategic partnerships with other technology firms and industry leaders further enhance its market reach and contribute to revenue growth, as STG collaborates on projects and shares resources to deliver comprehensive solutions to clients.

STG CO.LTD. Financial Statement Overview

Summary

STG CO.LTD. presents a well-rounded financial profile with strong revenue growth, improving profit margins, and solid cash flow management. The balance sheet reflects a stable financial position with effective leverage management. The company's ability to enhance profitability and generate cash flow positions it well for future growth and resilience in the Manufacturing - Metal Fabrication industry.

Income Statement

STG CO.LTD. demonstrates solid growth with a consistent increase in total revenue from 2020 to 2025, culminating in a remarkable revenue growth rate of 22.56% in the latest period. Gross profit margin improved significantly from 29.50% in 2020 to 23.71% in 2025, showcasing enhanced cost efficiency. The net profit margin increased from 6.52% to 6.05% over the same period, indicating steady profitability. Additionally, the EBIT and EBITDA margins showed improvement, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.18, reflecting a balanced approach to leverage. Return on equity improved significantly from 19.31% in 2020 to 16.06% in 2025, showcasing the company's ability to generate profits from shareholders' investments. The equity ratio improved, highlighting a strengthening financial position with increased equity relative to assets.

Cash Flow

STG CO.LTD. shows robust cash flow management, with a substantial increase in free cash flow from negative in 2024 to positive in 2025, indicating effective capital expenditure control and operational efficiency. The operating cash flow to net income ratio suggests strong cash generation relative to reported profits, which supports sustainability in operations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.43B	5.24B	4.68B	3.50B	1.98B
Gross Profit	1.52B	1.17B	1.03B	785.13M	541.43M
EBITDA	981.65M	699.33M	619.40M	378.48M	209.23M
Net Income	389.16M	198.01M	191.52M	88.44M	75.02M
Balance Sheet
Total Assets	6.65B	5.89B	5.08B	4.14B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.06B	996.16M	900.02M	492.38M	1.06B
Total Debt	2.87B	3.05B	2.73B	2.51B	2.61B
Total Liabilities	4.23B	4.19B	3.84B	3.23B	3.41B
Stockholders Equity	2.42B	1.71B	1.24B	913.15M	845.03M
Cash Flow
Free Cash Flow	166.72M	-142.77M	235.75M	-333.00M	-157.31M
Operating Cash Flow	542.92M	242.53M	519.88M	-8.49M	141.01M
Investing Cash Flow	-360.09M	-381.55M	-233.14M	-355.51M	-890.91M
Financing Cash Flow	-205.44M	207.26M	85.19M	-217.66M	1.24B

STG CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1550.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5858, the sentiment is Positive. The current price of 1550 is above the 20-day moving average (MA) of 1482.25, above the 50-day MA of 1450.44, and above the 200-day MA of 1352.08, indicating a bullish trend. The MACD of 27.66 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5858.

STG CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5858	81 Outperform	¥3.21B	8.13		0.97%	22.57%	87.87%
6138	72 Outperform	¥2.70B	13.16		2.73%	5.38%	―
6150	68 Neutral	¥2.72B	9.25		2.72%	-11.59%	-40.79%
Sector *	64 Neutral	$10.65B	16.19	5.48%	2.12%	2.75%	-22.21%
5994	58 Neutral	¥3.96B	22.92		2.22%	1.07%	―
6433	54 Neutral	¥2.66B	―		0.22%	-2.83%	7.97%
2962	46 Neutral	¥2.67B	―		―	-25.31%	-864.55%