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

• Market Cap: ¥40.17B
• Dividend Yield: 3.54%
• Average Volume (3M): 22.52K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.32
• Revenue Growth: 4.95%
• EPS Growth: 9.54%
• Country: JP
• Employees: 945
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 44.54
• Shares Outstanding: 16,670,000
• 10 Day Avg. Volume: 10,720
• 30 Day Avg. Volume: 22,523
• PEG Ratio: 1.81
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 9.80
• 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: 75 Outperform
• Price Target: ¥2,730.00 ▲(13.61% Upside)

Step Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the overall score. The technical analysis presents a mixed outlook, with positive price trends but some bearish momentum indicators. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, strengthening the company's market position.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing stability and capacity for strategic investments.

Negative Factors

Industry Competition

Operating in competitive sectors like IT and automation may pressure margins and require continuous innovation to maintain market position.

Market Volatility

Mixed technical indicators suggest potential market volatility, which could impact investor confidence and stock performance.

Profit Margin Pressure

While margins are strong, they could face pressure from rising costs or increased competition, affecting long-term profitability.

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. presents a solid financial profile with strong revenue growth, high profitability, and minimal leverage. The company maintains a stable balance sheet and robust cash flow, indicating a well-managed financial structure. The consistent growth and efficient operations position the company favorably within the Education & Training Services industry, with limited financial risks and a strong outlook for future performance.

Income Statement

Step Co., Ltd. has demonstrated consistent revenue growth with a 4.55% increase in the latest year, alongside strong profitability metrics. The gross profit margin stands at 28.91%, and the net profit margin is 16.62%, indicating efficient cost management and robust profitability. The EBIT margin of 23.26% and EBITDA margin of 26.67% further reinforce the company's operational efficiency. These metrics suggest a healthy income statement with a positive growth trajectory.

Balance Sheet

The balance sheet of Step Co., Ltd. is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity (ROE) is 9.56%, reflecting effective use of equity to generate profits. The equity ratio of 89.66% shows a high level of financial stability and a strong asset base. Overall, the balance sheet reflects a stable financial position with low risk.

Cash Flow

Step Co., Ltd. exhibits a healthy cash flow position with a free cash flow growth rate of 31.87%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.35 suggests efficient conversion of net income into cash. Additionally, the free cash flow to net income ratio of 1.25 highlights the company's ability to generate ample free cash flow relative to its net income. These metrics underline a robust cash flow statement with strong liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.72B	15.10B	14.44B	13.65B	13.04B	10.93B
Gross Profit	4.52B	4.36B	4.00B	4.44B	4.27B	2.68B
EBITDA	4.30B	4.09B	3.72B	4.16B	4.02B	2.37B
Net Income	2.59B	2.51B	2.41B	2.56B	2.47B	1.34B
Balance Sheet
Total Assets	28.94B	29.26B	28.63B	27.57B	26.79B	26.04B
Cash, Cash Equivalents and Short-Term Investments	8.69B	9.67B	9.73B	9.35B	8.65B	7.88B
Total Debt	179.52M	295.53M	311.87M	409.02M	1.58B	3.43B
Total Liabilities	2.34B	3.02B	2.70B	2.77B	3.92B	4.98B
Stockholders Equity	26.60B	26.24B	25.94B	24.80B	22.87B	21.06B
Cash Flow
Free Cash Flow	0.00	3.13B	2.38B	2.71B	3.41B	1.34B
Operating Cash Flow	0.00	3.38B	2.85B	3.06B	3.72B	1.87B
Investing Cash Flow	0.00	-937.54M	-1.03B	-388.41M	-401.88M	-560.11M
Financing Cash Flow	0.00	-2.50B	-1.45B	-1.97B	-2.55B	1.73B

Step Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2403.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9795, the sentiment is Neutral. The current price of 2403 is below the 20-day moving average (MA) of 2427.55, below the 50-day MA of 2415.04, and above the 200-day MA of 2291.51, indicating a neutral trend. The MACD of 8.92 indicates Positive momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	¥40.17B	14.29	―	3.54%	4.95%	9.54%
9769	72 Outperform	¥24.79B	13.46	―	4.14%	-1.18%	-12.01%
4718	70 Outperform	¥43.86B	17.19	―	2.58%	7.41%	22.70%
9470	70 Outperform	¥44.78B	13.75	―	2.33%	7.30%	60.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Step Co., Ltd. Corporate Events

STEP Co., Ltd. Increases Year-End Dividend for FY2025

STEP Co., Ltd. announced a decision to increase its year-end dividend to ¥45.00 per share for the fiscal year ending September 30, 2025, up from the previous forecast of ¥41.00. This move aligns with the company’s policy of prioritizing shareholder returns and reflects its strong business performance, with total dividend payments amounting to ¥709,709 thousand.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.

STEP Co., Ltd. Announces Share Repurchase Plan

STEP Co., Ltd. has announced a resolution to repurchase up to 280,000 of its own shares, which accounts for 1.78% of the total issued shares, as part of its efforts to enhance capital efficiency and provide shareholder returns. The repurchase period is set from October 1, 2025, to September 30, 2026, with a maximum acquisition cost of 672 million yen, and will be conducted through market purchases on the Tokyo Stock Exchange.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.

STEP Co., Ltd. Completes Treasury Share Disposition to Employees

STEP Co., Ltd. has completed the payment procedures for the disposition of treasury shares as restricted shares to its employees, following a resolution made by the board of directors on July 31, 2025. This move involves the disposal of 91,720 common shares at a value of 2,280 yen per share, totaling 209,121,600 yen, and is aimed at 376 employees, potentially impacting employee retention and motivation.

The most recent analyst rating on (JP:9795) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on Step Co., Ltd. stock, see the JP:9795 Stock Forecast page.