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Soliton Systems KK
(3040)
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Rating:76Outperform
Price Target:
¥2,896.00
▲(41.54% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily supported by strong financial fundamentals (very low leverage, solid ROE, and improving margins). This is tempered by overbought technical conditions that raise near-term downside risk, while valuation (P/E 15 and ~2.26% yield) is broadly reasonable and supportive.
Positive Factors
Conservative Balance Sheet
Minimal leverage and sustained equity growth reduce financial risk, preserve borrowing capacity, and give Soliton flexibility to invest in products, security capabilities, and customer support through changing market conditions.
Negative Factors
Choppy Revenue Growth
The uneven top-line trajectory indicates that demand, contract timing, or customer spending may be inconsistent. Continued revenue volatility could limit operating leverage and make sustained earnings growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Minimal leverage and sustained equity growth reduce financial risk, preserve borrowing capacity, and give Soliton flexibility to invest in products, security capabilities, and customer support through changing market conditions.
Read all positive factors
Soliton Systems KK (3040) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥42.50B
Dividend Yield2.52%
Average Volume (3M)114.60K
Price to Earnings (P/E)13.5
Beta (1Y)0.92
Revenue Growth12.25%
EPS Growth84.46%
CountryJP
Employees655
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)170.86
Shares Outstanding19,738,888
10 Day Avg. Volume100,740
30 Day Avg. Volume114,603
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)2.88
Price to Sales (P/S)1.93
P/FCF Ratio11.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Soliton Systems KK Business Overview & Revenue Model
Company Description
Operating both within Japan and on an international scale, Soliton Systems K.K. is a technology firm specializing in IT security, remote live broadcasting, and embedded system solutions. Its comprehensive portfolio of cybersecurity offerings inclu...
How the Company Makes Money
null...
Soliton Systems KK Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.07B | 19.76B | 18.61B | 19.06B | 19.76B | 17.39B |
| Gross Profit | 10.39B | 9.24B | 8.29B | 8.56B | 7.63B | 7.82B |
| EBITDA | 4.47B | 3.26B | 2.52B | 3.12B | 2.77B | 2.98B |
| Net Income | 3.17B | 2.30B | 1.72B | 1.94B | 1.59B | 1.87B |
Balance Sheet | ||||||
| Total Assets | 26.91B | 26.23B | 23.29B | 22.63B | 19.26B | 17.32B |
| Cash, Cash Equivalents and Short-Term Investments | 18.14B | 16.86B | 14.69B | 13.39B | 10.20B | 8.45B |
| Total Debt | 80.00M | 97.00M | 191.00M | 133.00M | 157.00M | 157.00M |
| Total Liabilities | 12.71B | 12.97B | 11.00B | 11.49B | 9.65B | 8.84B |
| Stockholders Equity | 14.19B | 13.25B | 12.27B | 11.12B | 9.60B | 8.46B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.43B | 1.84B | 3.55B | 2.20B | 2.03B |
| Operating Cash Flow | 0.00 | 3.60B | 2.04B | 3.64B | 2.30B | 2.11B |
| Investing Cash Flow | 0.00 | -10.17B | -237.00M | -57.00M | -309.00M | -495.00M |
| Financing Cash Flow | 0.00 | -1.27B | -507.00M | -397.00M | -252.00M | -481.00M |
Soliton Systems KK Technical Analysis
Positive
2046.00
Price Trends
2071.48
Positive
1989.46
Positive
1938.14
Positive
Market Momentum
96.75
Positive
57.73
Neutral
21.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3040, the sentiment is Positive. The current price of 2046 is below the 20-day moving average (MA) of 2210.25, below the 50-day MA of 2071.48, and above the 200-day MA of 1938.14, indicating a bullish trend. The MACD of 96.75 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3040.
Soliton Systems KK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | ¥50.02B | 29.06 | ― | 0.64% | 19.17% | 46.29% | |
78 Outperform | ¥23.71B | 20.41 | ― | ― | 21.05% | -2.47% | |
78 Outperform | ¥69.66B | 42.78 | ― | 0.90% | 25.26% | 52.87% | |
77 Outperform | ¥19.37B | 19.45 | ― | 0.28% | 22.65% | 74.18% | |
76 Outperform | ¥42.50B | 13.48 | 20.19% | 3.09% | 12.25% | 84.46% | |
70 Outperform | ¥47.52B | 67.59 | ― | ― | 45.62% | 48.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3040
Soliton Systems KK
2,303.00
962.78
71.84%
JP:147A
SORACOM,INC.
1,028.00
-39.00
-3.66%
JP:3694
OPTiM Corp.
431.00
-138.00
-24.25%
JP:4417
Global Security Experts Inc.
4,575.00
1,171.51
34.42%
JP:4475
HENNGE K.K.
1,535.00
-234.12
-13.23%
JP:4493
Cyber Security Cloud, Inc.
1,821.00
15.00
0.83%
Soliton Systems KK Corporate Events
Soliton Systems Hikes 2026 Earnings and Dividend Forecast on Strong Security Demand
Aug 12, 2026
Soliton Systems has raised its full-year 2026 earnings forecast, projecting record net sales and profits as robust demand from local governments and schools for its authentication and zero-trust security solutions lifts revenue above earlier guida...
Soliton Systems Boosts Earnings, Raises Dividend and Full-Year Forecast
Aug 12, 2026
Soliton Systems K.K. reported strong growth for the six months ended June 30, 2026, with net sales rising 15.1% year-on-year to ¥10,022 million and profit attributable to owners of parent surging 150.8% to ¥1,447 million. Operating profi...
Soliton Systems Discloses Strong Fiscal 2026 Results of Non-Listed Parent Zen-Noboks
Jun 30, 2026
Soliton Systems K.K. disclosed the fiscal-year 2026 financial results of its non-listed parent, Yugen Kaisha Zen-Noboks, which is based in Tokyo and serves as a securities holding and management company. The parent reported total assets of about &...
Soliton Systems Completes Treasury Share Disposal for Employee Stock Compensation
Jun 18, 2026
Soliton Systems K.K. has completed payment procedures for the disposal of 9,900 treasury shares, which are being granted as restricted stock compensation to 16 employees. The shares were disposed of at 2,061 yen per share, for a total of 20,403,90...
Soliton Systems to Grant Restricted Stock from Treasury Shares to Boost Employee Retention
May 21, 2026
Soliton Systems K.K. has approved the disposal of 9,900 treasury shares as restricted stock compensation for 16 employees, priced at ¥2,061 per share for a total of ¥20.4 million, with the payment date set for June 18, 2026. The restrict...
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.