Smartvalue Co.Ltd. (9417) AI Stock Analysis

• Market Cap: ¥3.56B
• Dividend Yield: 2.04%
• Average Volume (3M): 10.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: ¥357.00 ▼(-22.73% 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

Revenue Growth

Sustained top-line expansion (11.65% latest year) indicates durable demand for Smartvalue's software infrastructure offerings. Reliable revenue growth supports scale benefits, funds reinvestment in product and sales, and creates a base from which management can pursue margin recovery and long-term profitability.

Gross Margin Strength

A relatively healthy gross margin suggests the company maintains pricing power or cost advantage on core offerings. This margin cushion is durable across quarters, allowing Smartvalue to absorb SG&A or R&D spending, support product development and improve operating leverage as revenue grows.

Operating Cash Conversion

Positive operating cash flow relative to net income shows core operations generate cash despite accounting losses. This persistent operational cash generation supports working capital and debt servicing in the medium term, reducing immediate refinancing pressure while management works to restore profitability.

Negative Factors

High Leverage

A high debt-to-equity ratio and low equity ratio signal substantial leverage on the balance sheet. Over the next several months this constrains financial flexibility, increases interest and refinancing risk, and can force prioritization of debt service over strategic investments or margin improvement initiatives.

Negative Profitability

Negative EBIT and net margins show the company currently fails to convert revenue into operating profits. Persistent operating losses erode retained earnings and limit internal funding for growth or efficiency programs, meaning management must execute cost or pricing changes to achieve durable profitability.

Negative Free Cash Flow

Negative free cash flow growth and a negative FCF-to-net-income ratio indicate cash generation shortfalls after investment. This structural cash deficit can necessitate external financing, worsen leverage metrics, and restrict the company's ability to invest or return capital absent operational or financing changes.

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. 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 344.55, above the 50-day MA of 374.60, and above the 200-day MA of 417.38, indicating a bearish trend. The MACD of -10.99 indicates Negative momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 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
3927	77 Outperform	¥5.93B	23.47	―	―	48.76%	978.31%
4270	77 Outperform	¥4.63B	18.04	―	―	―	―
4391	74 Outperform	¥3.37B	12.29	―	1.59%	8.31%	-2.44%
3858	70 Outperform	¥3.61B	-7.14	―	―	4.78%	-234.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9417	58 Neutral	¥3.56B	-2.61	―	2.04%	14.34%	―
3680	44 Neutral	¥3.31B	-2.24	―	1.17%	-21.76%	-5832.28%