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Sobal Corporation (2186) AI Stock Analysis

JP:2186

Sobal Corporation

(TSE/TYO:2186)

Select Model
Rating:80Outperform
Price Target:JPY 1,053.00â–²(17.79% Upside)
Action:reiterated
Date:08/04/26

Sobal Corporation achieves a strong score of 80, primarily anchored by its highly secure, debt-free balance sheet and appealing valuation, notably a 3.6% dividend yield. Technical indicators display strong upward momentum across all major moving averages. The score is slightly moderated by narrow profit margins and cash flow fluctuations, categorizing the stock as a stable, low-risk, and mature enterprise rather than a rapid growth opportunity.

Positive Factors
Debt-free balance sheetA zero-debt balance sheet materially lowers financial risk and increases strategic flexibility. Over 2–6 months this supports continued investment, dividend stability or opportunistic M&A, and provides a durable cushion against cyclical weakness without relying on external financing.
Negative Factors
Margin pressure and erosionA meaningful decline in operating margin weakens the company's ability to translate revenue growth into profits. If persistent, lower margins constrain free cash flow, limit reinvestment capacity, and reduce buffers against cost shocks or competitive pricing pressure over the medium term.

Sobal Corporation (2186) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:2186+2.31%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 7.03B
Dividend Yield
3.69%
Average Volume (3M)
7,050
Price to Earnings (P/E)
13.9
Beta (1Y)
0.14
Revenue Growth
9.84%
EPS Growth
23.02%
Country
Japan
Employees
978
Sector
Technology
Sector Strength
61
Industry
Software - Application

Sobal Corporation Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, Sobal Corporation, established in 1983, is a prominent developer of embedded software tailored for digital appliances across the Japanese market. Beyond its core software development, the company actively engages in res...

How the Company Makes Money

null

Sobal Corporation Financial Statement Overview

Summary

A solid score reflecting a highly conservative financial profile highlighted by a pristine, zero-debt balance sheet and reliable top-line growth. While the company enjoys immense structural stability, lower-than-average profit margins for the software sector and year-over-year cash flow volatility limit the upside.

Income Statement

65Positive

Balance Sheet

95Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue8.80B8.98B8.68B8.17B8.16B8.16B
Gross Profit1.64B1.71B1.65B1.61B1.62B1.56B
EBITDA710.99M657.18M734.81M706.61M1.02B653.27M
Net Income412.17M460.21M432.19M513.56M683.22M447.16M
Balance Sheet
Total Assets5.60B5.89B5.69B5.10B5.18B4.65B
Cash, Cash Equivalents and Short-Term Investments3.36B3.51B3.80B2.95B3.13B2.46B
Total Debt000000
Total Liabilities1.19B1.35B1.35B933.78M1.27B1.22B
Stockholders Equity4.42B4.54B4.34B4.16B3.91B3.43B
Cash Flow
Free Cash Flow0360.50M825.99M78.72M515.75M419.87M
Operating Cash Flow0372.35M844.11M95.99M525.46M430.86M
Investing Cash Flow0-118.26M270.67M-17.27M400.46M-10.72M
Financing Cash Flow0-258.86M-259.14M-258.63M-262.37M-250.55M

Sobal Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price894.00

Price Trends

50DMA899.41Negative
100DMA896.08Negative
200DMA890.87Positive

Market Momentum

MACD-1.47Positive
RSI44.55Neutral
STOCH21.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2186, the sentiment is Negative. The current price of 894.00 is below the 20-day moving average (MA) of 896.25, below the 50-day MA of 899.41, and above the 200-day MA of 890.87, indicating a neutral trend. The MACD of -1.47 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2186.

Sobal Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:2186 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2186JP:218680OutperformJPY 7.03B13.87―3.69%9.84%23.02%
JP:4060JP:406072OutperformJPY 6.63B24.56―0.79%37.13%-7.58%
JP:5033JP:503366NeutralJPY 7.96B47.99――7.04%-67.36%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4397JP:439761NeutralJPY 6.01B16.11――23.50%2.72%
JP:4484JP:448458NeutralJPY 4.48B45.92―0.72%20.67%-37.51%
JP:4015JP:401557NeutralJPY 8.38B19.74――8.88%191.06%

* Technology Sector Average

Performance Comparison

-25%0%25%50%JP:2186JP:4015JP:4060JP:4397JP:4484JP:5033Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2186 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2186Sobal Corporation894.0016.311.86%
JP:4015Paycloud Holdings Inc.523.0025.005.02%
JP:4060rakumo Inc.1136.0030.042.72%
JP:4397TeamSpirit, Inc.364.00-143.00-28.21%
JP:4484Lancers, Inc.276.00-13.09-4.53%
JP:5033Nulab Inc.1228.00465.0060.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026