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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)

Rating:72Outperform
Price Target:
¥995.00
▲(8.15% Upside)
Sougou Shouken Co., Ltd. benefits from strong cash flow and profitability metrics, supporting a positive financial outlook. The low P/E ratio and reasonable dividend yield also enhance the stock's attractiveness. However, mixed technical indicators suggest caution, as market momentum may be bearish.

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
78
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
65
Positive
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
82
Very 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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.71B15.80B15.86B15.31B16.16B15.98B
Gross Profit4.80B4.74B4.49B4.21B4.58B4.18B
EBITDA987.14M893.33M812.12M825.14M900.65M390.56M
Net Income379.15M274.50M207.48M178.93M256.22M-169.85M
Balance Sheet
Total Assets11.17B7.67B8.35B8.95B9.39B9.55B
Cash, Cash Equivalents and Short-Term Investments3.22B1.18B1.34B1.53B1.65B1.60B
Total Debt4.20B3.10B4.11B4.76B4.98B6.14B
Total Liabilities7.53B4.78B5.74B6.47B6.99B7.46B
Stockholders Equity3.60B2.86B2.58B2.45B2.37B2.09B
Cash Flow
Free Cash Flow0.00541.13M539.05M339.99M1.27B-437.14M
Operating Cash Flow0.00863.66M642.06M584.72M1.44B723.44M
Investing Cash Flow0.0041.38M-120.87M-294.47M-183.57M-1.16B
Financing Cash Flow0.00-1.07B-708.99M-401.71M-1.20B810.71M

Sougou Shouken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price920.00
Price Trends
50DMA
877.00
Positive
100DMA
869.56
Positive
200DMA
868.29
Positive
Market Momentum
MACD
11.75
Negative
RSI
67.82
Neutral
STOCH
78.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7850, the sentiment is Positive. The current price of 920 is above the 20-day moving average (MA) of 893.40, above the 50-day MA of 877.00, and above the 200-day MA of 868.29, indicating a bullish trend. The MACD of 11.75 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 78.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7850.

Sougou Shouken Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥2.76B6.03
2.13%1.84%75.79%
72
Outperform
¥3.46B8.80
1.87%-5.37%48.09%
72
Outperform
¥2.10B11.40
3.74%5.57%22.28%
69
Neutral
¥1.26B14.15
1.87%10.54%
68
Neutral
¥3.42B6.81
3.77%2.39%-8.65%
64
Neutral
$10.84B16.098.89%1.97%2.67%-15.04%
60
Neutral
¥4.58B28.44
3.41%-0.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7850
Sougou Shouken Co., Ltd.
920.00
82.16
9.81%
JP:7805
PRINTNET INC.
697.00
103.35
17.41%
JP:7851
Kawase Computer Supplies Co., Ltd.
267.00
48.65
22.28%
JP:7916
Mitsumura Printing Co., Ltd.
1,496.00
-3.58
-0.24%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
199.00
51.00
34.46%
JP:7939
Kensoh Co., Ltd.
561.00
46.85
9.11%
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: Jul 18, 2025