Saison Technology Co.Ltd. (9640) AI Stock Analysis

• Market Cap: ¥30.10B
• Dividend Yield: 4.32%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.23
• Revenue Growth: 1.27%
• EPS Growth: 26.79%
• Country: JP
• Employees: 757
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 29.50
• Shares Outstanding: 16,200,000
• 10 Day Avg. Volume: 2,470
• 30 Day Avg. Volume: 2,133
• PEG Ratio: 0.13
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 29.06
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,302.00 ▲(11.21% Upside)

Saison Technology Co.Ltd. demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet. The technical analysis indicates a bullish trend, although the stock may be overbought. The valuation suggests a high P/E ratio, but the attractive dividend yield provides a positive offset.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability Margins

Improved profitability margins reflect efficient cost management and pricing strategies, enhancing the company's ability to generate sustainable profits.

Balance Sheet Health

A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities.

Negative Factors

Decreased Cash Flow

A significant decrease in free cash flow could constrain the company's ability to fund operations and investments, impacting future growth potential.

Cash Flow Generation

While cash flow generation is adequate, the ratios suggest potential pressure on liquidity, which may affect the company's operational flexibility.

Cash Flow Decline

The decline in free cash flow could limit the company's ability to reinvest in its business, potentially hindering long-term growth and competitiveness.

Saison Technology Co.Ltd. Business Overview & Revenue Model

Company Description

Saison Technology Co., Ltd. engages in the system development and operation, and software package businesses in Japan. The company offers HULFT, a suite of enterprise middleware that enables secure data transfer, conversion, and integration. It also builds and operates systems for the retail and service industries, including department stores, mass retailers, franchise businesses, supermarkets, and others. In addition, the company offers financial business solutions comprising application development services for customers in the financial industry, including banks, securities, and insurance companies; examination solutions to automate the examination process from credit card applications up to settlement in a system; debt collection solutions for credit card companies or servicers; and security services to fulfill the international security standard of the payment card industry. Further, it provides cloud, Al/data management, blockchain and service designs services; and services platform configuration/operation, and service monitoring services. The company was formerly known as Saison Information Systems Co., Ltd. and changed its name to Saison Technology Co., Ltd. in April 2024. Saison Technology Co., Ltd. was incorporated in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Saison Technology Co. Ltd. generates revenue through a diversified model that includes software licensing, subscription services, and transaction-based fees. The company primarily earns money from selling its proprietary software solutions to businesses that seek to enhance their operational efficiency and customer service capabilities. Additionally, Saison Technology offers subscription-based services for access to its cloud platforms and data analytics tools, providing ongoing revenue streams. The company also benefits from strategic partnerships with financial institutions and other technology firms, which help expand its market reach and enhance its service offerings, further contributing to its earnings.

Saison Technology Co.Ltd. Financial Statement Overview

Summary

Saison Technology Co.Ltd. exhibits strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is solid with low leverage and a strong equity position. While cash flow generation has decreased, the company still maintains sufficient cash flow relative to net income, supporting its operational needs.

Income Statement

Saison Technology Co.Ltd. has demonstrated consistent revenue growth with a 2.18% increase from 2024 to 2025. The gross profit margin stands at 35.62%, and the net profit margin improved significantly to 6.18% in 2025, indicating enhanced profitability. The EBIT margin is at 8.78%, and the EBITDA margin is at 11.78%, reflecting strong operational efficiency.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.0005, signifying minimal leverage. The equity ratio is 67.21%, indicating a strong equity base. Return on equity is 10.58%, showing effective use of equity capital to generate profits.

Cash Flow

Free cash flow decreased by 49.52% from 2024 to 2025, which could be a concern. However, the operating cash flow to net income ratio is 0.80, and the free cash flow to net income ratio is 0.66, indicating adequate cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.30B	24.38B	23.86B	23.95B	23.22B	22.50B
Gross Profit	8.80B	8.68B	7.29B	9.27B	10.02B	9.53B
EBITDA	2.99B	2.87B	1.66B	2.72B	4.18B	4.59B
Net Income	1.58B	1.51B	603.18M	1.44B	2.05B	2.46B
Balance Sheet
Total Assets	20.71B	21.18B	22.70B	21.30B	20.83B	20.47B
Cash, Cash Equivalents and Short-Term Investments	12.59B	12.83B	13.84B	13.20B	12.94B	11.93B
Total Debt	6.00M	6.66M	9.91M	13.99M	11.68M	106.97M
Total Liabilities	6.97B	6.94B	8.48B	6.56B	6.09B	6.43B
Stockholders Equity	13.74B	14.24B	14.22B	14.74B	14.75B	14.04B
Cash Flow
Free Cash Flow	0.00	987.74M	1.96B	1.62B	2.35B	3.76B
Operating Cash Flow	0.00	1.19B	2.28B	2.20B	3.24B	4.09B
Investing Cash Flow	0.00	-249.60M	-759.16M	-565.77M	-865.46M	-306.41M
Financing Cash Flow	0.00	-1.46B	-1.46B	-1.46B	-1.50B	-1.42B

Saison Technology Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9640, the sentiment is Positive. The current price of 2070 is above the 20-day moving average (MA) of 1991.10, above the 50-day MA of 1923.13, and above the 200-day MA of 1818.32, indicating a bullish trend. The MACD of 48.14 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 88.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9640.

Saison Technology Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	77 Outperform	¥31.31B	21.80	―	0.73%	17.86%	21.52%
3393	74 Outperform	¥27.15B	13.90	―	4.66%	12.32%	10.42%
2359	74 Outperform	¥28.48B	11.84	―	2.79%	2.11%	5.55%
3655	73 Outperform	¥59.12B	72.09	―	0.30%	8.64%	-23.20%
9640	73 Outperform	¥30.10B	19.53	―	4.32%	1.27%	26.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5574	60 Neutral	¥28.40B	62.71	―	―	29.61%	93.16%