Smartvalue Co.Ltd. (9417) AI Stock Analysis

• Market Cap: ¥3.74B
• Dividend Yield: 2.04%
• Average Volume (3M): 10.02K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.50
• Revenue Growth: 14.34%
• EPS Growth: N/A
• Country: JP
• Employees: 280
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 10,679,800
• 10 Day Avg. Volume: 8,830
• 30 Day Avg. Volume: 10,016
• PEG Ratio: -0.01
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -6.48
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥372.00 ▼(-19.48% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

The overall stock score for Smartvalue Co.Ltd. is primarily influenced by its financial performance and technical analysis. The company shows strong revenue growth but faces significant challenges in profitability and cash flow management, leading to financial instability. The technical indicators suggest a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. However, the low P/E ratio and reasonable dividend yield provide some valuation appeal, suggesting potential for long-term investors if operational efficiencies improve.

Positive Factors

Strong revenue growth

Reported high revenue growth indicates the company is expanding sales and gaining market traction. Durable top-line expansion provides capacity to scale operations, invest in product development and customer acquisition, and absorb short-term margin pressure while pursuing a path to sustainable profitability.

Healthy gross margin

A relatively healthy gross margin signals pricing power or cost-efficient core delivery. This structural cushion helps the business cover fixed operating costs and supports the potential to restore EBIT margins through targeted SG&A reductions or operational improvements over the medium term.

Positive operating cash conversion

Positive operating cash flow relative to net income shows the core business is generating cash from operations. Sustained cash conversion improves liquidity, supports working capital needs and debt servicing, and provides a base for reversing negative free cash flow with disciplined cost and capex management.

Negative Factors

High leverage

Significant leverage raises financing and refinancing risk and increases interest burdens. Over the medium term, high debt limits strategic flexibility, constrains investment in growth initiatives, and raises vulnerability to rate increases or revenue shortfalls unless deleveraging or earnings recovery occurs.

Negative operating profitability

Persistent negative EBIT and net margins despite revenue growth point to structural cost inefficiencies or an unproven pricing model. Until operating margins are restored, the company cannot reliably convert revenue growth into sustainable shareholder returns or internal funding for strategic initiatives.

Negative free cash flow

Negative free cash flow constrains the firm's ability to pay down debt, invest in product development, or return capital. Reliance on external financing to fund operations increases financial fragility and could amplify risks if credit conditions tighten or operating performance falters.

Smartvalue Co.Ltd. Business Overview & Revenue Model

Company Description

Smartvalue Co., Ltd. provides cloud and mobile solutions in Japan. It offers SMART L-Gov, a cloud platform for solving various regional issues; GaaS (Government as a Service), an online administration platform; healthcare support; Mobility IoT, a mobility platform to solve the problems of the mobility society; Kuruma Base, a service that provides a platform for business operators engaged in the service of cars business; and AfterMarket For biz that handles various devices and services installed in vehicles for corporations. The company was founded in 1928 and is headquartered in Osaka, Japan.

How the Company Makes Money

Smartvalue Co., Ltd. generates revenue primarily through its IT services and digital transformation solutions. The company earns money by providing cloud computing services, which involve subscription-based models where clients pay for the use of cloud infrastructure and related services. Additionally, Smartvalue offers IT infrastructure management services, ensuring the smooth operation and maintenance of clients' IT systems, typically on a contractual basis. Digital marketing solutions are another revenue stream, where the company assists businesses in improving their online presence and engagement through marketing strategies, often leading to ongoing service agreements. Key partnerships with technology providers and a strong client base contribute significantly to the company's earnings.

Smartvalue Co.Ltd. Financial Statement Overview

Summary

Smartvalue Co.Ltd. demonstrates strong revenue growth but faces significant challenges in profitability and cash flow management. The high leverage and negative returns on equity suggest financial instability, while the negative cash flow metrics highlight liquidity concerns. The company needs to focus on improving operational efficiency and managing its debt levels to enhance financial stability.

Income Statement

Smartvalue Co.Ltd. has shown a positive revenue growth rate of 11.65% in the latest year, indicating strong top-line growth. However, the company is struggling with profitability as evidenced by negative EBIT and net profit margins, which suggest operational inefficiencies and challenges in cost management. The gross profit margin is relatively healthy, but the negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is low, indicating a higher reliance on debt financing compared to equity.

Cash Flow

Smartvalue Co.Ltd. faces challenges in cash flow management, with negative free cash flow growth and a negative free cash flow to net income ratio. The operating cash flow to net income ratio is positive, but the overall cash flow position indicates potential liquidity issues and the need for improved cash management strategies.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.36B	3.81B	3.87B	3.81B	3.45B
Gross Profit	1.43B	1.16B	1.28B	1.29B	662.90M
EBITDA	2.01B	-197.38M	79.84M	153.21M	-1.19B
Net Income	916.10M	-348.91M	-48.52M	1.08M	-1.41B
Balance Sheet
Total Assets	24.90B	4.04B	3.87B	4.12B	2.74B
Cash, Cash Equivalents and Short-Term Investments	4.13B	1.73B	2.34B	2.56B	770.68M
Total Debt	18.67B	924.29M	827.43M	1.07B	94.76M
Total Liabilities	21.90B	1.88B	1.42B	1.67B	622.46M
Stockholders Equity	2.54B	1.69B	2.12B	2.13B	2.12B
Cash Flow
Free Cash Flow	-662.06M	-693.22M	-73.80M	519.12M	-1.25B
Operating Cash Flow	463.93M	26.56M	-21.08M	596.74M	-938.34M
Investing Cash Flow	940.23M	354.57M	-54.71M	-1.18B	-236.37M
Financing Cash Flow	995.75M	106.00M	-148.60M	1.27B	-77.09M

Smartvalue Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 462.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9417, the sentiment is Negative. The current price of 462 is above the 20-day moving average (MA) of 369.50, above the 50-day MA of 384.98, and above the 200-day MA of 421.56, indicating a bearish trend. The MACD of -11.88 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9417.

Smartvalue Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4270	77 Outperform	¥4.94B	11.06	―	―	―	―
4391	74 Outperform	¥3.42B	16.10	―	1.59%	8.31%	-2.44%
3927	71 Outperform	¥4.58B	10.86	―	―	48.76%	978.31%
3858	70 Outperform	¥3.91B	-32.53	―	―	4.78%	-234.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9417	58 Neutral	¥3.74B	8.01	―	2.04%	14.34%	―
3680	44 Neutral	¥3.36B	-1.88	―	1.17%	-21.76%	-5832.28%