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Softfront Holdings (JP:2321)
:2321
Japanese Market
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Softfront Holdings (2321) AI Stock Analysis

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JP:2321

Softfront Holdings

(2321)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥125.00
▼(-39.90% Downside)
Action:Reiterated
Date:05/18/26
The score is held back primarily by ongoing losses and a sharp deterioration in FY2026 operating/free cash flow, alongside bearish technical signals with the stock trading below key moving averages. The main offsetting positive is a conservative, low-debt balance sheet that provides financial resilience.
Positive Factors
Low leverage / strong balance sheet
Effectively zero debt and a materially expanded equity base provide durable financial resilience. This reduces refinancing and solvency risk, preserves strategic optionality for investing in product development or M&A, and allows the company to operate through loss-making periods without immediate leverage pressure.
Negative Factors
Persistent net losses
Multi-year net losses and negative returns on equity show the business has not yet converted scale into shareholder profitability. Persistent losses pressure long-term return expectations, complicate capital allocation, and mean operational fixes or structural changes are required to restore sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Effectively zero debt and a materially expanded equity base provide durable financial resilience. This reduces refinancing and solvency risk, preserves strategic optionality for investing in product development or M&A, and allows the company to operate through loss-making periods without immediate leverage pressure.
Read all positive factors

Softfront Holdings (2321) vs. iShares MSCI Japan ETF (EWJ)

Softfront Holdings Business Overview & Revenue Model

Company Description
Headquartered in Tokyo, Japan, Softfront Holdings, established in 1997, specializes in providing communication software and related services across the country. The company's core activities encompass the creation and distribution of products and ...
How the Company Makes Money
null...

Softfront Holdings Financial Statement Overview

Summary
Mixed fundamentals. The balance sheet is strong with effectively zero debt and expanding equity, but the business remains loss-making with operating losses deepening in FY2026. Cash flow weakened sharply in FY2026 with negative operating and free cash flow, raising execution and funding risk.
Income Statement
34
Negative
Balance Sheet
76
Positive
Cash Flow
28
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue862.44M960.06M823.60M889.51M763.83M377.80M
Gross Profit453.75M419.49M408.24M285.62M364.70M205.85M
EBITDA64.33M-78.47M-27.01M-32.17M35.80M7.23M
Net Income-54.57M-99.47M-81.17M-317.02M-59.41M-29.06M
Balance Sheet
Total Assets2.25B2.21B1.71B515.45M2.02B819.70M
Cash, Cash Equivalents and Short-Term Investments2.01B1.70B1.42B206.03M157.00M292.52M
Total Debt0.000.000.009.98M20.38M32.49M
Total Liabilities290.32M342.34M417.83M343.75M1.52B264.11M
Stockholders Equity1.90B1.82B1.23B132.35M424.97M484.16M
Cash Flow
Free Cash Flow0.00-240.08M40.30M33.37M-123.80M-44.30M
Operating Cash Flow0.00-219.95M60.68M64.94M-44.86M9.16M
Investing Cash Flow0.00-76.74M-14.41M-29.91M-78.46M39.82M
Financing Cash Flow0.00581.64M1.17B14.00M-12.19M26.36M

Softfront Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price208.00
Price Trends
50DMA
174.42
Negative
100DMA
209.22
Negative
200DMA
204.93
Negative
Market Momentum
MACD
-12.70
Positive
RSI
24.80
Positive
STOCH
12.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2321, the sentiment is Negative. The current price of 208 is above the 20-day moving average (MA) of 150.65, above the 50-day MA of 174.42, and above the 200-day MA of 204.93, indicating a bearish trend. The MACD of -12.70 indicates Positive momentum. The RSI at 24.80 is Positive, neither overbought nor oversold. The STOCH value of 12.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2321.

Softfront Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥6.64B5.541.20%6.05%8.07%
70
Outperform
¥24.32B10.964.58%6.58%35.23%
67
Neutral
¥9.12B8.240.70%12.98%80.52%
63
Neutral
¥4.62B26.376.84%-67.48%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
¥11.68B26.0912.68%
44
Neutral
¥6.71B-72.9116.57%26.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2321
Softfront Holdings
129.00
14.00
12.17%
JP:4168
Yappli, Inc.
702.00
-68.62
-8.90%
JP:4448
Chatwork Co.Ltd.
274.00
-191.00
-41.08%
JP:5033
Nulab Inc.
713.00
-198.00
-21.73%
JP:5244
jig.jp co.,ltd.
156.00
-89.79
-36.53%
JP:9629
PCA Corporation
1,287.00
-419.51
-24.58%
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: May 18, 2026