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Soliton Systems KK (3040) AI Stock Analysis
Soliton Systems KK
(TSE/TYO:3040)
The overall score of 77 is driven primarily by the company's fortress-like balance sheet and strong cash flow generation, which provide a foundation of low financial risk. Positive technical momentum across all major moving averages further supports the outlook. The valuation is fair, though not deeply discounted, and the resumption of modest revenue growth adds stability. The lack of earnings call guidance limits forward-looking visibility.
Soliton Systems KK (3040) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 56.08B
- Dividend Yield
- 1.91%
- Average Volume (3M)
- 263.88K
- Price to Earnings (P/E)
- 17.7
- Beta (1Y)
- 1.02
- Revenue Growth
- 12.25%
- EPS Growth
- 84.46%
- Country
- Japan
- Employees
- 655
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 includes...
Soliton Systems KK Financial Statement Overview
Summary
The company demonstrates solid financial health. The balance sheet is exceptionally strong with negligible debt (D/E 0.007) and a high ROE of 17.3%. Cash flow conversion is robust, with FCF at 95% of net income. Revenue growth has resumed at 5.3%, and margins are healthy, though top-line growth remains modest.
Income Statement
75PositiveBalance Sheet
92Very PositiveCash Flow
80Positive| 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 | 3.43B | 1.84B | 3.55B | 2.20B | 2.03B |
| Operating Cash Flow | 0 | 3.60B | 2.04B | 3.64B | 2.30B | 2.11B |
| Investing Cash Flow | 0 | -10.17B | -237.00M | -57.00M | -309.00M | -495.00M |
| Financing Cash Flow | 0 | -1.27B | -507.00M | -397.00M | -252.00M | -481.00M |
Soliton Systems KK Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3040, the sentiment is Neutral. The current price of 2942.00 is below the 20-day moving average (MA) of 3147.90, above the 50-day MA of 2713.88, and above the 200-day MA of 2136.02, indicating a neutral trend. The MACD of 146.27 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3040.
Soliton Systems KK Peers Comparison
Overall Rating
JP:449387Outperform
JP:369478Outperform
JP:447578Outperform- JP:304077Outperform
JP:441773Outperform
JP:147A57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4493 | 87Outperform | JPY 29.87B | 31.46 | ― | 0.17% | 22.65% | 74.18% |
| JP:3694 | 78Outperform | JPY 25.78B | 22.39 | ― | ― | 21.05% | -2.47% |
| JP:4475 | 78Outperform | JPY 70.26B | 39.58 | ― | 0.53% | 19.17% | 46.29% |
| JP:3040 | 77Outperform | JPY 56.08B | 17.73 | 23.79% | 1.91% | 12.25% | 84.46% |
| JP:4417 | 73Outperform | JPY 126.92B | 57.26 | ― | 0.52% | 25.18% | 85.59% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:147A | 57Neutral | JPY 42.25B | 60.49 | ― | ― | 45.62% | 48.60% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3040 | Soliton Systems KK | 3030.00 | 1362.49 | 81.71% | |
| JP:147A | SORACOM,INC. | 920.00 | 25.00 | 2.79% | |
| JP:3694 | OPTiM Corp. | 473.00 | -74.00 | -13.53% | |
| JP:4417 | Global Security Experts Inc. | 8290.00 | 4629.97 | 126.50% | |
| JP:4475 | HENNGE K.K. | 2091.00 | 631.14 | 43.23% | |
| JP:4493 | Cyber Security Cloud, Inc. | 2946.00 | 1051.24 | 55.48% |
Soliton Systems KK Corporate Events
Soliton Systems Hikes 2026 Earnings and Dividend Forecast on Strong Security Demand
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 guidance...
Soliton Systems Boosts Earnings, Raises Dividend and Full-Year Forecast
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 profit m...
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: Oct 24, 2026