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

• Market Cap: ¥5.54B
• Dividend Yield: N/A
• Average Volume (3M): 6.86K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 0.41
• Revenue Growth: -5.20%
• EPS Growth: 133.74%
• Country: JP
• Employees: 193
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.10
• Shares Outstanding: 4,677,720
• 10 Day Avg. Volume: 2,840
• 30 Day Avg. Volume: 6,863
• PEG Ratio: -0.31
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 27.75
• 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

• Rating: 56 Neutral
• Price Target: ¥1,241.00 ▲(3.42% Upside)

The overall stock score is primarily influenced by moderate financial performance and technical analysis indicators. The company's financial health shows some strengths in equity growth but faces challenges in revenue and profitability. Technical indicators suggest a lack of strong momentum with potential overbought conditions. The high P/E ratio indicates overvaluation, further impacting the score.

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

Company Description

Sophia Holdings Co.,Ltd., through its subsidiaries, engages in the Internet related business in Japan and internationally. The company is involved in the planning, design development, business contracting, and consultation of web services; provision of solutions across various data centers, hardware, software, and content categories. It also operates as mobile virtual network operator; and provides Smobi SIM for data for corporations and organizations with voice services. In addition, the company provides support services for start-up operations and management services to medical institutions and dispensing pharmacies; offers consultation on medicine or illness; and develops and sells security-related software. Further, it is involved in the provision of hosting services; planning and production of website, web system application development, and others; and development of RIMS, a cloud based real estate information management system. Additionally, it is involved in the health and nursing care businesses. The company was formerly known as Sophia Systems Co., Ltd. and changed its name to Sophia Holdings Co.,Ltd. in April 2007. Sophia Holdings Co.,Ltd. was incorporated in 1975 and is based in Yokohama, Japan.

How the Company Makes Money

Sophia Holdingus Co., Ltd. generates revenue primarily through its diversified service portfolio. The company earns money by charging clients for software licenses and subscriptions, which provide access to its proprietary technology solutions. Additionally, the healthcare management systems division generates revenue through service contracts with hospitals and clinics, offering ongoing support and updates. The financial services segment contributes to earnings through consulting fees and commissions on transactions facilitated for clients. Strategic partnerships with technology providers and healthcare institutions enhance its market reach and revenue potential, allowing the company to leverage complementary strengths and expand its service offerings.

Sophia Holdingus Co., Ltd. Financial Statement Overview

Summary

Sophia Holdingus Co., Ltd. demonstrates moderate financial health with areas of concern in revenue and profitability. The income statement shows declining revenue and negative EBIT, while the balance sheet indicates improved leverage management and equity growth. Cash flow is inconsistent but resilient with positive free cash flow in the TTM period.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.27B	8.36B	9.03B	9.42B	11.78B	11.38B
Gross Profit	3.06B	3.11B	3.38B	3.46B	4.01B	3.81B
EBITDA	615.64M	523.98M	536.01M	686.88M	1.34B	1.12B
Net Income	-12.28M	95.33M	-100.89M	21.11M	613.33M	501.87M
Balance Sheet
Total Assets	6.94B	7.46B	8.34B	7.40B	8.60B	8.61B
Cash, Cash Equivalents and Short-Term Investments	2.25B	2.75B	2.96B	2.02B	2.34B	2.12B
Total Debt	2.03B	2.31B	3.23B	3.28B	3.97B	4.67B
Total Liabilities	3.90B	4.43B	4.73B	5.38B	6.59B	7.22B
Stockholders Equity	3.04B	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: 1200.00
• 50DMA: Negative
• 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:6942, the sentiment is Positive. The current price of 1200 is below the 20-day moving average (MA) of 1203.40, below the 50-day MA of 1222.24, and above the 200-day MA of 1124.38, indicating a neutral trend. The MACD of -8.58 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.62 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	79 Outperform	¥5.56B	13.63	―	1.17%	7.38%	515.19%
4486	76 Outperform	¥5.67B	15.83	―	1.64%	11.92%	-16.48%
3988	68 Neutral	¥6.33B	14.87	―	1.17%	13.34%	-10.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2493	61 Neutral	¥4.08B	51.31	―	0.54%	17.13%	-41.14%
6942	56 Neutral	¥5.54B	52.46	―	―	-5.20%	133.74%
2375	44 Neutral	¥4.78B	―	―	0.42%	-11.66%	-137.22%