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Sophia Holdingus Co., Ltd. (JP:6942)
:6942
Japanese Market

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

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JP

Sophia Holdingus Co., Ltd.

(6942)

Rating:59Neutral
Price Target:
¥1,108.00
▲(1.19%Upside)
The company's financial performance is the most significant factor, reflecting moderate financial health with notable operational challenges. Technical analysis shows neutral momentum, while the high P/E ratio suggests overvaluation. The absence of earnings call data and corporate events means the score primarily hinges on financials and valuation.

Sophia Holdingus Co., Ltd. (6942) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSophia 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 MoneySophia 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
65
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue8.57B8.36B9.03B9.42B11.78B11.38B
Gross Profit3.21B3.11B3.38B3.46B4.01B3.81B
EBITDA240.54M523.98M536.01M686.88M1.34B1.12B
Net Income144.17M95.33M-100.89M21.11M613.33M501.87M
Balance Sheet
Total Assets7.49B7.46B7.84B7.40B8.60B8.61B
Cash, Cash Equivalents and Short-Term Investments2.82B2.75B2.96B2.02B2.34B2.12B
Total Debt1.89B2.31B2.49B3.28B3.97B4.67B
Total Liabilities3.95B4.43B4.73B5.38B6.59B7.22B
Stockholders Equity3.54B3.03B3.11B2.03B2.00B1.39B
Cash Flow
Free Cash Flow0.00175.15M601.57M373.63M929.36M1.20B
Operating Cash Flow0.00261.42M633.80M411.10M1.07B1.23B
Investing Cash Flow0.00377.55M-27.15M-38.55M-150.91M86.12M
Financing Cash Flow0.00-848.06M332.13M-693.70M-696.11M-793.37M

Sophia Holdingus Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1095.00
Price Trends
50DMA
1068.94
Positive
100DMA
1078.23
Positive
200DMA
1083.18
Positive
Market Momentum
MACD
7.80
Positive
RSI
55.35
Neutral
STOCH
19.44
Positive
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 1095 is above the 20-day moving average (MA) of 1085.95, above the 50-day MA of 1068.94, and above the 200-day MA of 1083.18, indicating a bullish trend. The MACD of 7.80 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥4.87B11.72
9.79%9.50%27.50%
81
Outperform
¥5.94B13.63
1.07%12.89%-8.37%
75
Outperform
¥4.77B11.18
1.40%13.25%16826.25%
59
Neutral
¥5.03B47.32
-5.20%133.74%
52
Neutral
¥4.01B34.86
0.55%18.43%22.38%
50
Neutral
AU$1.49B1.70-28.24%3.29%16.24%-7.89%
49
Neutral
¥4.73B
0.43%-9.76%3.53%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6942
Sophia Holdingus Co., Ltd.
1,087.00
-4.00
-0.37%
JP:2375
GiG Works, Inc.
231.00
-296.39
-56.20%
JP:2493
E-SUPPORTLINK, Ltd.
906.00
-5.08
-0.56%
JP:3920
Internetworking & Broadband Consulting Co., Ltd.
858.00
376.51
78.20%
JP:3988
SYS Holdings Co. Ltd.
562.00
-59.35
-9.55%
JP:4486
Unite & Grow Inc.
613.00
47.11
8.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 31, 2025