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Sougou Shouken Co., Ltd. (JP:7850)
:7850
Japanese Market
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Sougou Shouken Co., Ltd. (7850) AI Stock Analysis

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JP:7850

Sougou Shouken Co., Ltd.

(7850)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
¥896.00
▲(9.14% Upside)
The overall stock score of 62 reflects a balance between positive financial performance and valuation, offset by bearish technical indicators. The company's strong cash flow management and low P/E ratio are significant strengths, while the current bearish market momentum presents a risk. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Sougou Shouken Co., Ltd. (7850) vs. iShares MSCI Japan ETF (EWJ)

Sougou Shouken Co., Ltd. Business Overview & Revenue Model

Company Descriptionnull
How the Company Makes Moneynull

Sougou Shouken Co., Ltd. Financial Statement Overview

Summary
Overall, Sougou Shouken Co., Ltd. exhibits strong cash flow management and improving profitability metrics, despite some volatility in revenue and high leverage. The company's ability to generate cash and improve profitability presents a positive outlook, although careful management of debt levels remains crucial.
Income Statement
65
Positive
The company has shown a consistent gross profit margin, averaging around 30% over the past years, indicating stable cost management. Net profit margin improved significantly from negative to positive, reflecting enhanced profitability. Revenue growth was volatile, with fluctuations in different years, demonstrating inconsistency. EBIT and EBITDA margins improved, signaling better operational efficiency.
Balance Sheet
60
Neutral
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose a risk if not managed well. However, the equity ratio improved slightly, showing a stronger equity base compared to liabilities. Return on Equity (ROE) has been positive, suggesting efficient use of equity to generate profits.
Cash Flow
70
Positive
The company has demonstrated strong free cash flow growth, which is a positive indicator of financial health. Operating cash flow to net income ratio is robust, suggesting efficient cash conversion from profits. The free cash flow to net income ratio is healthy, indicating a strong ability to generate cash relative to earnings.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.71B16.24B15.80B15.86B15.31B16.16B
Gross Profit4.80B5.03B4.74B4.49B4.21B4.58B
EBITDA987.14M702.00M893.33M812.12M825.14M900.65M
Net Income379.15M319.00M274.50M207.48M178.93M256.22M
Balance Sheet
Total Assets11.17B7.98B7.67B8.35B8.95B9.39B
Cash, Cash Equivalents and Short-Term Investments3.22B1.30B1.18B1.34B1.53B1.65B
Total Debt4.20B2.83B3.10B4.11B4.76B4.98B
Total Liabilities7.53B4.81B4.78B5.74B6.47B6.99B
Stockholders Equity3.60B3.14B2.86B2.58B2.45B2.37B
Cash Flow
Free Cash Flow0.00547.00M541.13M539.05M339.99M1.27B
Operating Cash Flow0.00610.00M863.66M642.06M584.72M1.44B
Investing Cash Flow0.00-157.00M41.38M-120.87M-294.47M-183.57M
Financing Cash Flow0.00-332.00M-1.07B-708.99M-401.71M-1.20B

Sougou Shouken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price821.00
Price Trends
50DMA
875.38
Negative
100DMA
868.74
Negative
200DMA
873.47
Negative
Market Momentum
MACD
-14.20
Positive
RSI
31.94
Neutral
STOCH
27.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7850, the sentiment is Negative. The current price of 821 is below the 20-day moving average (MA) of 843.05, below the 50-day MA of 875.38, and below the 200-day MA of 873.47, indicating a bearish trend. The MACD of -14.20 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7850.

Sougou Shouken Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥1.16B12.982.10%10.54%
66
Neutral
¥2.05B11.143.89%5.57%22.28%
64
Neutral
¥3.22B7.232.01%-1.00%105.56%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥3.25B6.473.93%2.39%-8.65%
62
Neutral
¥2.49B7.792.38%2.78%16.45%
61
Neutral
¥4.70B29.163.27%-0.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7850
Sougou Shouken Co., Ltd.
821.00
-5.22
-0.63%
JP:7805
PRINTNET INC.
646.00
41.53
6.87%
JP:7851
Kawase Computer Supplies Co., Ltd.
243.00
26.60
12.29%
JP:7916
Mitsumura Printing Co., Ltd.
1,529.00
67.03
4.58%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
188.00
46.08
32.47%
JP:7939
Kensoh Co., Ltd.
559.00
47.74
9.34%
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: Oct 02, 2025