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

• Market Cap: ¥38.30B
• Dividend Yield: 3.99%
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 1.27%
• EPS Growth: 26.79%
• Country: JP
• Employees: 757
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.59
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,667.00 ▲(19.92% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is primarily supported by strong financial performance—improving margins and a very strong balance sheet with minimal leverage—while being held back by the sharp decline in free cash flow and a relatively high P/E. Technical indicators are mixed, with price above moving averages but negative MACD indicating weak momentum.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio give the company durable financial flexibility, lowering refinancing and insolvency risk. A mid-teens ROE (~10.6%) shows the firm can generate returns on capital, supporting reinvestment and strategic initiatives over months to years.

Diversified Recurring Revenue

A mix of licensing, subscription and transaction fees provides recurring and annuity-like cash streams, reducing revenue volatility. Strategic partnerships with financial institutions and tech firms broaden distribution and create cross-sell opportunities that sustain growth and customer retention over the medium term.

Profitability & Margins

Healthy gross and mid-single-digit net margins with improving net profitability indicate the business converts revenue to earnings efficiently. Stable operating and EBITDA margins suggest structural cost controls and pricing power that support sustainable earnings generation over multiple quarters.

Negative Factors

Free Cash Flow Decline

A near-50% drop in free cash flow materially weakens internal funding capacity for capex, buybacks, or strategic investments. Lower cash conversion relative to reported net income increases reliance on balance-sheet flexibility and could constrain longer-term growth initiatives if the trend continues.

Recent Revenue Trend Risk

A reported recent revenue contraction of ~9% signals demand or timing issues that could erode scale economics. Persistent or recurring top-line declines would pressure margins and reinvestment capacity, making medium-term growth recovery and planning more challenging for management.

Earnings Per Share Pressure

A significant decline in EPS suggests profit per share is under pressure, possibly from lower core profits, mix shifts, or non-recurring items. Continued EPS contraction would reduce retained earnings and limit the company’s ability to sustainably fund dividends or equity growth over the coming quarters.

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

Strong overall fundamentals: revenue grew 2.18% (2024 to 2025) and profitability improved with net margin rising to 6.18% (EBIT margin 8.78%, EBITDA margin 11.78%). Balance sheet strength is a key positive with extremely low leverage (debt-to-equity 0.0005) and a high equity ratio (67.21%). Main offset is cash flow softness, with free cash flow down 49.52% despite still-adequate cash generation versus net income (OCF/NI 0.80, FCF/NI 0.66).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.30B	24.38B	23.86B	23.95B	23.22B	22.50B
Gross Profit	8.72B	8.68B	7.16B	9.07B	9.82B	9.31B
EBITDA	2.99B	2.86B	1.70B	3.01B	4.17B	4.59B
Net Income	1.58B	1.51B	603.18M	1.44B	2.05B	2.46B
Balance Sheet
Total Assets	20.71B	21.43B	22.95B	21.42B	20.96B	20.55B
Cash, Cash Equivalents and Short-Term Investments	12.59B	12.83B	13.84B	13.20B	12.94B	11.93B
Total Debt	5.57M	6.66M	9.91M	13.99M	8.68M	57.97M
Total Liabilities	6.97B	7.19B	8.73B	6.67B	6.22B	6.51B
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	1.63B	2.36B	3.79B
Operating Cash Flow	0.00	1.21B	2.29B	2.22B	3.25B	4.12B
Investing Cash Flow	0.00	-267.84M	-764.20M	-581.21M	-876.90M	-330.11M
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: 2224.00
• 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 2224 is below the 20-day moving average (MA) of 2291.15, below the 50-day MA of 2331.58, and above the 200-day MA of 2026.65, indicating a bullish trend. The MACD of 23.61 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.57 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
3762	78 Outperform	¥65.89B	18.88	17.96%	1.83%	13.23%	16.07%
4396	76 Outperform	¥22.82B	11.39	―	1.70%	22.25%	31.88%
4709	72 Outperform	¥29.89B	13.94	―	3.40%	12.64%	30.73%
9640	68 Neutral	¥38.30B	-348.86	―	3.99%	1.27%	26.79%
3988	68 Neutral	¥5.58B	26.17	―	1.23%	11.62%	-16.59%
4725	65 Neutral	¥30.97B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%