Smartvalue Co.Ltd. (9417) AI Stock Analysis

• Market Cap: ¥3.48B
• 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: ¥346.00 ▼(-25.11% 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 growth (11.65% last year) indicates continuing customer demand and market traction for Smartvalue’s offerings. Over a 2–6 month horizon this supports predictable revenue streams, enables reinvestment in product and sales capacity, and underpins attempts to convert scale into improved operating leverage.

Gross Profit Margin

A relatively healthy gross profit margin suggests core product economics and pricing power or cost-efficient delivery. This structural margin provides headroom to absorb SG&A and R&D while management addresses operating inefficiencies, helping the company sustain investment in growth without immediate margin collapse.

Lower Market Sensitivity (Beta)

A low beta (~0.52) reflects reduced sensitivity to broader market swings, supporting steadier operational planning and lower revenue volatility. For an infrastructure software firm, this can translate into more predictable cashflows, smoother execution of multi-month projects, and less refinancing stress during market dislocations.

Negative Factors

High Leverage

Significant leverage and a low equity ratio raise medium-term financial risk by increasing interest burden and limiting strategic flexibility. High debt can constrain M&A, capex, or R&D spending, and heighten refinancing and covenant risk, forcing management to prioritize debt service over value-creating investments.

Weak Cash Generation

Negative free cash flow trends and a poor FCF-to-net-income ratio indicate the business struggles to convert earnings into liquidity. Persisting cash deficits can necessitate external financing or equity dilution, restrict hiring and product investment, and impair the company's ability to scale sustainably over the coming months.

Negative Operating Profitability

Negative EBIT and net margins point to structural cost or efficiency problems despite decent gross margins. If operating expenses are not reined in, the company may be unable to translate revenue growth into sustainable earnings, limiting retained cash for reinvestment and weakening long-term shareholder value creation.

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.

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	1.14B	1.27B	1.27B	613.89M
EBITDA	23.68M	-157.14M	71.69M	122.87M	-358.04M
Net Income	916.10M	-348.91M	-48.52M	1.08M	-1.41B
Balance Sheet
Total Assets	24.90B	4.04B	3.88B	4.13B	2.76B
Cash, Cash Equivalents and Short-Term Investments	4.13B	1.73B	2.34B	2.56B	770.68M
Total Debt	19.03B	924.29M	827.43M	1.07B	94.76M
Total Liabilities	21.90B	1.88B	1.44B	1.68B	637.57M
Stockholders Equity	2.54B	1.69B	2.12B	2.13B	2.12B
Cash Flow
Free Cash Flow	-662.06M	-593.02M	-37.97M	583.41M	-980.78M
Operating Cash Flow	463.93M	26.56M	-21.08M	596.74M	-938.34M
Investing Cash Flow	940.23M	543.60M	-5.13M	-789.02M	-236.37M
Financing Cash Flow	995.75M	-82.61M	-198.18M	885.30M	-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 341.90, above the 50-day MA of 369.48, and above the 200-day MA of 415.10, indicating a bearish trend. The MACD of -9.41 indicates Negative momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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
3915	68 Neutral	¥20.46B	9.96	―	―	17.93%	91.21%
4475	68 Neutral	¥31.27B	27.58	―	0.39%	30.59%	65.14%
4493	67 Neutral	¥17.40B	21.91	―	0.17%	31.39%	13.12%
4417	65 Neutral	¥37.65B	29.03	―	0.90%	25.06%	37.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.79B	8.71	―	―	―	―
9417	58 Neutral	¥3.48B	-2.64	―	2.04%	14.34%	―