Sophia Holdingus Co., Ltd. (6942) AI Stock Analysis

• Market Cap: ¥5.49B
• Dividend Yield: N/A
• Average Volume (3M): 6.10K
• Price to Earnings (P/E): 52.2
• Beta (1Y): 0.40
• Revenue Growth: -5.20%
• EPS Growth: 133.74%
• Country: JP
• Employees: 193
• Sector: Technology
• Sector Strength: 95
• Industry: Information Technology Services
• EPS (TTM): -45.03
• Shares Outstanding: 4,677,720
• 10 Day Avg. Volume: 7,190
• 30 Day Avg. Volume: 6,103
• PEG Ratio: 0.18
• Price to Book (P/B): 1.46
• 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: ¥1,108.00
• Price Target Upside: -7.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,261.00 ▲(5.17%Upside)

Sophia Holdingus Co., Ltd. receives a moderate stock score of 65, mainly driven by strong technical momentum despite overbought signals. Financial performance is moderate with concerns in revenue and operational efficiency, while valuation suggests the stock is overvalued. The absence of earnings call and corporate events data did not impact the overall score.

Sophia Holdingus Co., Ltd. Business Overview & Revenue Model

Company Description

Sophia Holdingus Co., Ltd. (6942) operates as a diversified holding company with interests in various sectors including technology, manufacturing, and financial services. The company is known for its innovative approach in developing advanced technologies and providing high-quality services that cater to a wide range of industries. Its core products and services include software development, industrial machinery, and financial consulting services.

How the Company Makes Money

Sophia Holdingus Co., Ltd. generates revenue through multiple streams. The company earns money from its technology segment by developing and licensing software solutions to businesses across different sectors. In manufacturing, it produces and sells industrial machinery, adding to its income. The financial services arm provides consulting and advisory services, generating fees and commissions. Strategic partnerships with other firms enhance its market reach and contribute to its earnings by leveraging shared resources and expertise. The company also benefits from investments in various industries, which provide dividend income and capital gains.

Sophia Holdingus Co., Ltd. Financial Statement Overview

Summary

The company has a stable gross profit margin, but declining revenue and negative EBIT in 2025 indicate operational challenges. Despite these issues, the EBITDA margin remains positive, and the balance sheet shows improved debt management and equity growth. However, cash flow inconsistency and operational cash flow issues are areas of concern.

Income Statement

The company has experienced a decline in revenue over the past few years, with a notable decrease from 2022 to 2025. Gross profit margin remains relatively stable, but there has been a significant drop in EBIT and net income margins. The company posted a negative EBIT for 2025, indicating operational challenges. Despite these struggles, the EBITDA margin remains positive, suggesting some underlying operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved slightly over the years, indicating better leverage management. Stockholders' equity has shown growth, which is positive for financial health. However, the equity ratio is still not ideal, suggesting moderate risk. The company's return on equity has fluctuated but shows potential for improvement.

Cash Flow

The free cash flow has been inconsistent, with a notable decline in recent years. The operating cash flow to net income ratio indicates some operational cash flow generation issues. However, the company has managed to maintain positive free cash flow in the TTM period, reflecting some resilience.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.57B	8.36B	9.03B	9.42B	11.78B	11.38B
Gross Profit	3.21B	3.11B	3.38B	3.46B	4.01B	3.81B
EBITDA	240.54M	523.98M	536.01M	686.88M	1.34B	1.12B
Net Income	144.17M	95.33M	-100.89M	21.11M	613.33M	501.87M
Balance Sheet
Total Assets	7.49B	7.46B	7.84B	7.40B	8.60B	8.61B
Cash, Cash Equivalents and Short-Term Investments	2.82B	2.75B	2.96B	2.02B	2.34B	2.12B
Total Debt	1.89B	2.31B	2.49B	3.28B	3.97B	4.67B
Total Liabilities	3.95B	4.43B	4.73B	5.38B	6.59B	7.22B
Stockholders Equity	3.54B	3.03B	3.11B	2.03B	2.00B	1.39B
Cash Flow
Free Cash Flow	0.00	175.15M	601.57M	373.63M	929.36M	1.20B
Operating Cash Flow	0.00	261.42M	633.80M	411.10M	1.07B	1.23B
Investing Cash Flow	0.00	377.55M	-27.15M	-38.55M	-150.91M	86.12M
Financing Cash Flow	0.00	-848.06M	332.13M	-693.70M	-696.11M	-793.37M

Sophia Holdingus Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1199.00
• 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:6942, the sentiment is Positive. The current price of 1199 is above the 20-day moving average (MA) of 1126.75, above the 50-day MA of 1094.18, and above the 200-day MA of 1082.54, indicating a bullish trend. The MACD of 22.69 indicates Negative momentum. The RSI at 87.54 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6942.

Sophia Holdingus Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3920	81 Outperform	¥5.49B	12.87		1.02%	13.25%	16826.25%
3988	81 Outperform	¥5.99B	13.73		1.21%	12.89%	-8.37%
4486	81 Outperform	¥5.06B	12.17		8.48%	9.50%	27.50%
6942	65 Neutral	¥5.49B	52.20		―	-5.20%	133.74%
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
2493	52 Neutral	¥4.02B	34.94		0.55%	18.43%	22.38%
2375	44 Neutral	¥5.00B	―		0.42%	-9.76%	3.53%