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Soliton Systems KK
(3040)
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Rating:76Outperform
Price Target:
¥3,486.00
▲(70.38% 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
Exceptionally low leverage and a steadily expanding equity base reduce financial strain and preserve flexibility for investment, dividends, or resilience during weaker periods. Strong returns on equity further indicate that the company is generating attractive profitability without relying heavily on debt financing.
Negative Factors
Uneven Revenue Trajectory
The return to growth is encouraging, but consecutive annual declines before the 2025 rebound show that demand and expansion have not followed a consistently upward path. Choppy top-line performance can make capacity planning and investment decisions less predictable and may limit the durability of recent earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Exceptionally low leverage and a steadily expanding equity base reduce financial strain and preserve flexibility for investment, dividends, or resilience during weaker periods. Strong returns on equity further indicate that the company is generating attractive profitability without relying heavily on debt financing.
Read all positive factors
Soliton Systems KK (3040) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥57.10B
Dividend Yield1.88%
Average Volume (3M)180.56K
Price to Earnings (P/E)18.1
Beta (1Y)1.04
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. Volume346,120
30 Day Avg. Volume180,560
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...
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
2387.86
Positive
2208.85
Positive
2045.25
Positive
Market Momentum
158.65
Negative
79.45
Negative
75.59
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 2604.05, below the 50-day MA of 2387.86, and above the 200-day MA of 2045.25, indicating a bullish trend. The MACD of 158.65 indicates Negative momentum. The RSI at 79.45 is Negative, neither overbought nor oversold. The STOCH value of 75.59 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥61.56B | 35.85 | ― | 0.58% | 19.17% | 46.29% | |
76 Outperform | ¥57.10B | 18.06 | 23.79% | 1.88% | 12.25% | 84.46% | |
75 Outperform | ¥37.51B | 39.51 | ― | 0.14% | 22.65% | 74.18% | |
71 Outperform | ¥26.38B | 23.91 | ― | ― | 21.05% | -2.47% | |
69 Neutral | ¥101.81B | 63.67 | ― | 0.64% | 25.26% | 52.87% | |
65 Neutral | ¥43.99B | 62.98 | ― | ― | 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
3,085.00
1,645.72
114.34%
JP:147A
SORACOM,INC.
958.00
78.00
8.86%
JP:3694
OPTiM Corp.
484.00
-61.00
-11.19%
JP:4417
Global Security Experts Inc.
6,650.00
3,508.60
111.69%
JP:4475
HENNGE K.K.
1,894.00
420.21
28.51%
JP:4493
Cyber Security Cloud, Inc.
3,700.00
1,947.85
111.17%
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...
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.