Company DescriptionSoliton Systems K.K., a technology company, provides IT security, remote live broadcasting, and embedded solutions in Japan and internationally. The company offers IT security products that include mailzen, soliton secure desktop, NetAttest D3, NetAttest LAP, and cyber space analytics.. It also provides mobile video transmission products comprising smart-telecaster ZAO, smart-telecaster Zao-S, smart-telecaster Zao-SH, ZAO App, HD view decoder/receiver, cloud view, cloud view switcher, and VMS Plus. In addition, the company offers advanced teleoperation products and data analytics. Soliton Systems K.K. was founded in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Soliton Systems KK Financial Statement Overview

Summary

Soliton Systems KK demonstrates strong financial health with consistent revenue and profit margins, a robust equity foundation, and healthy cash flow generation. While there are signs of operational efficiency challenges, notably in recent EBIT and EBITDA margins, the company remains well-positioned with low leverage and effective capital management.

Income Statement

Positive

Soliton Systems KK has shown consistent revenue growth over the years, although there was a slight dip in 2024. The gross profit margin has remained robust, indicating effective cost management, while the net profit margin has been strong, showcasing profitability. However, the recent decline in both EBIT and EBITDA margins suggests potential challenges in operational efficiency.

Balance Sheet

Very Positive

The company maintains a healthy equity position with a strong equity ratio and low debt levels, as evidenced by a favorable debt-to-equity ratio. Return on Equity (ROE) is impressive, indicating effective use of equity capital to generate profits. Overall, the balance sheet reflects financial stability and low leverage risk.

Cash Flow

Positive

Operating cash flow has shown resilience, although there has been a decrease in 2024. The company has maintained positive free cash flow, which is a strong indicator of liquidity. However, the decline in free cash flow growth rate indicates potential challenges in generating cash surplus compared to previous years.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
18.61B	19.06B	19.76B	17.39B	16.46B
	Gross Profit
8.29B	8.56B	7.63B	7.82B	7.55B
	EBIT
2.04B	2.61B	2.04B	2.37B	1.87B
	EBITDA
2.52B	3.12B	2.49B	2.83B	2.24B
	Net Income Common Stockholders
1.73B	1.94B	1.59B	1.87B	1.48B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.69B	13.39B	10.22B	8.50B	7.38B
	Total Assets
23.29B	22.62B	19.26B	17.30B	16.01B
	Total Debt
191.00M	133.00M	157.00M	157.00M	292.00M
	Net Debt
-14.50B	-13.26B	-10.04B	-8.29B	-7.01B
	Total Liabilities
11.00B	11.49B	9.65B	8.83B	8.98B
	Stockholders Equity
12.27B	11.12B	9.60B	8.46B	7.01B
Cash Flow		Free Cash Flow
1.84B	3.14B	2.00B	1.75B	1.53B
	Operating Cash Flow
2.04B	3.64B	2.30B	2.08B	2.62B
	Investing Cash Flow
-237.00M	-57.00M	-305.00M	-464.00M	-1.12B
	Financing Cash Flow
-507.00M	-397.00M	-252.00M	-481.00M	-1.10B

Soliton Systems KK Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYKKF		$167.79M	14.74	14.77%	―	―	―
4493	78 Outperform	¥18.22B	33.18		0.17%	24.15%	-7.80%
3992	76 Outperform	¥21.81B	25.96		1.67%	3.71%	-14.56%
4847	75 Outperform	¥28.65B	20.13		3.67%	7.50%	0.64%
3741	71 Outperform	¥26.50B	19.65		2.12%	20.63%	21.52%
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
3695	60 Neutral	¥10.89B	170.27		4.64%	-1.38%	-91.00%

* Technology Sector Average

Performance Comparison

SYKKF

Soliton Systems KK

8.97

1.86

26.16%

JP:3695

GMO Research & AI,Inc.

2,475.00

-216.87

-8.06%

JP:3741

Systems Engineering Consultants Co., Ltd.

5,180.00

936.45

22.07%

JP:3992

Needs Well, Inc.

540.00

155.97

40.61%

JP:4493

Cyber Security Cloud, Inc.

1,797.00

-449.00

-19.99%

JP:4847

Intelligent Wave Inc.

1,090.00

74.77

7.36%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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