Step Co., Ltd. (9795) AI Stock Analysis

• Market Cap: ¥38.51B
• Dividend Yield: 3.28%
• Average Volume (3M): 6.49K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.28
• Revenue Growth: 5.34%
• EPS Growth: -0.95%
• Country: JP
• Employees: 945
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Education & Training Services
• EPS (TTM): 21.53
• Shares Outstanding: 16,670,000
• 10 Day Avg. Volume: 6,560
• 30 Day Avg. Volume: 6,493
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,647.00
• Price Target Upside: 12.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥2,647.00 ▲(12.69% Upside)

Step Co., Ltd. exhibits strong financial performance with consistent revenue growth and high profitability, which is the most significant factor in its score. The technical analysis supports a positive trend, and the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. These factors collectively contribute to a strong overall stock score.

Step Co., Ltd. Business Overview & Revenue Model

Company Description

Step Co., Ltd. (9795) is a dynamic company specializing in the development and provision of advanced technology solutions primarily in the fields of information technology and automation. With a strong focus on delivering innovative products and services, Step Co. operates in various sectors, including software development, system integration, and IT consulting, catering to a diverse range of industries.

How the Company Makes Money

Step Co., Ltd. generates revenue through multiple streams, predominantly from software licensing, system integration projects, and IT consulting services. The company typically charges customers for software licenses on a subscription basis, providing ongoing updates and support. Additionally, revenue is bolstered by custom integration projects where Step Co. collaborates with businesses to create tailored technology solutions that enhance operational efficiency. The company also engages in strategic partnerships with technology firms, enabling it to expand its service offerings and access new markets, thereby contributing to its overall earnings.

Step Co., Ltd. Financial Statement Overview

Summary

Step Co., Ltd. demonstrates strong financial health with consistent revenue growth, robust profitability, and a solid balance sheet with minimal leverage. However, the absence of recent cash flow data requires attention to ensure ongoing liquidity and operational efficiency.

Income Statement

Step Co., Ltd. demonstrates strong profitability and consistent revenue growth. The TTM gross profit margin stands at 29.65%, and the net profit margin is 17.08%, indicating efficient cost management and strong bottom-line performance. Revenue has grown steadily, with a notable increase of 7.31% over the past year. The EBIT and EBITDA margins of 24.87% and 28.25%, respectively, further highlight operational efficiency.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.01, suggesting minimal reliance on debt financing. The return on equity is strong at 9.92%, reflecting effective use of shareholder funds to generate profits. The equity ratio is high at 90.12%, indicating substantial equity financing and a stable capital structure.

Cash Flow

While the free cash flow growth rate is unavailable for the TTM period, historical data suggests positive trends in free cash flow generation. The operating cash flow to net income ratio for the last annual report is 1.35, indicating adequate cash generation from operations relative to net income. However, the lack of reported cash flow metrics for the TTM period poses a challenge in assessing current liquidity and cash flow sustainability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	15.10B	14.44B	13.65B	13.04B	10.93B
Gross Profit	4.36B	4.00B	4.44B	4.27B	2.68B
EBITDA	4.03B	3.72B	4.16B	4.02B	2.37B
Net Income	2.51B	2.41B	2.56B	2.47B	1.34B
Balance Sheet
Total Assets	29.26B	28.63B	27.57B	26.79B	26.04B
Cash, Cash Equivalents and Short-Term Investments	9.67B	9.73B	9.35B	8.65B	7.88B
Total Debt	295.53M	311.87M	409.02M	1.58B	3.43B
Total Liabilities	3.02B	2.70B	2.77B	3.92B	4.98B
Stockholders Equity	26.24B	25.94B	24.80B	22.87B	21.06B
Cash Flow
Free Cash Flow	3.13B	2.38B	2.71B	3.41B	1.34B
Operating Cash Flow	3.38B	2.85B	3.06B	3.72B	1.87B
Investing Cash Flow	-937.54M	-1.03B	-388.41M	-401.88M	-560.11M
Financing Cash Flow	-2.50B	-1.45B	-1.97B	-2.55B	1.73B

Step Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2349.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9795, the sentiment is Positive. The current price of 2349 is above the 20-day moving average (MA) of 2346.40, above the 50-day MA of 2306.18, and above the 200-day MA of 2201.65, indicating a bullish trend. The MACD of 10.44 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9795.

Step Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	80 Outperform	¥38.51B	14.34		3.28%	5.34%	-0.95%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
4714	―	¥36.88B	23.76		4.63%	―	―
4718	73 Outperform	¥51.86B	21.15		1.65%	7.19%	33.38%
9769	72 Outperform	¥25.36B	13.77		3.89%	-0.36%	-2.22%
9470	67 Neutral	¥45.65B	14.15		2.43%	6.15%	-17.22%
9696	65 Neutral	¥29.89B	176.82		1.86%	7.52%	-80.63%

Step Co., Ltd. Corporate Events

STEP Co., Ltd. Disposes Treasury Shares to Employees as Incentives

STEP Co., Ltd. has announced a resolution to dispose of 91,720 treasury shares as restricted shares to 376 employees, aiming to incentivize sustainable improvement and align employee interests with shareholders. This move is intended to encourage long-term commitment from employees, with restrictions on share transfer for three years, reflecting the company’s strategy to enhance its market positioning and operational stability.

Step Co., Ltd. Reports Positive Financial Performance for Nine Months Ending June 2025

Step Co., Ltd. reported a year-on-year increase in its financial performance for the nine months ending June 30, 2025, with net sales rising by 5.5% and operating profit increasing by 4.3%. The company maintains a strong equity-to-asset ratio of 91.9%, indicating a stable financial position. The forecast for the fiscal year ending September 30, 2025, anticipates continued growth in net sales and profits, reflecting a positive outlook for stakeholders.

STEP Co., Ltd. Announces Share Repurchase

STEP Co., Ltd. has announced the repurchase of 39,200 of its own common shares, amounting to 87,459,800 yen, through market purchases on the Tokyo Stock Exchange during April 2025. This action is part of a broader strategy approved by the board in September 2024, allowing for the acquisition of up to 484,100 shares. The repurchase aims to optimize capital structure and potentially enhance shareholder value.