Softcreate Holdings Corp. (3371) AI Stock Analysis

• Market Cap: ¥54.18B
• Dividend Yield: 2.77%
• Average Volume (3M): 22.21K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.60
• Revenue Growth: 9.68%
• EPS Growth: -2.04%
• Country: JP
• Employees: 963
• Sector: Technology
• Sector Strength: 75
• Industry: Information Technology Services
• EPS (TTM): 40.11
• Shares Outstanding: 27,550,278
• 10 Day Avg. Volume: 39,990
• 30 Day Avg. Volume: 22,213
• PEG Ratio: -2.61
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Softcreate Holdings Corp. scores a solid 77, driven by strong financial performance, including robust revenue growth, profitability, and a no-debt position. The technical indicators suggest moderate potential for short-term upward price momentum, though caution is advised due to the nearing overbought conditions. The valuation appears fair, with a reasonable P/E ratio and an attractive dividend yield. No significant earnings call details or corporate events affected this analysis.

Softcreate Holdings Corp. Business Overview & Revenue Model

Company Description

Softcreate Holdings Corp. (3371) is a Japan-based company primarily engaged in the provision of information technology (IT) services. The company operates through several business segments, including IT Infrastructure, Solution, and Other. Softcreate Holdings offers a range of products and services, such as IT infrastructure management, cloud solutions, cybersecurity services, and IT consulting. Its clientele spans various industries, providing tailored solutions to meet the diverse technological needs of businesses.

How the Company Makes Money

Softcreate Holdings Corp. generates revenue through its multiple business segments, with IT Infrastructure being a significant contributor. The company earns income by providing IT infrastructure management services, which include system integration, managed services, and maintenance. Additionally, it offers cloud-based solutions that enable businesses to transition to scalable and flexible IT environments, thus driving subscription-based revenue. The cybersecurity services offered by Softcreate Holdings provide another revenue stream, as companies increasingly prioritize protecting their digital assets. Moreover, the company's IT consulting services cater to businesses seeking expert guidance on technology strategy and implementation, further adding to its earnings. Strategic partnerships with major technology vendors enhance its service offerings and expand its market reach, contributing to its overall revenue growth.

Softcreate Holdings Corp. Financial Statement Overview

Summary

Softcreate Holdings Corp. demonstrates strong financial performance with excellent revenue growth, profitability, and a robust balance sheet. The company's no-debt position and high equity ratio significantly reduce financial risk. Cash flow management is efficient, though additional data would enhance the analysis. The company is well-positioned within the Information Technology Services industry.

Income Statement

Softcreate Holdings Corp. has shown a strong revenue growth trajectory with a 22.8% increase from 2023 to TTM. The gross profit margin remains healthy at 41.3% for TTM, indicating efficient cost management. Net profit margin stands at 10.7%, reflecting solid profitability. The EBIT and EBITDA margins are robust at 16.8% and 19.8% respectively, underscoring strong operational performance. The company demonstrates consistent growth and profitability in the Information Technology Services industry.

Balance Sheet

The balance sheet of Softcreate Holdings Corp. is highly stable with zero total debt, highlighting a strong financial position. The equity ratio is impressive at 62.2% for TTM, indicating a well-capitalized structure. Return on equity (ROE) is also strong at 15.4%, showcasing effective utilization of shareholder funds. The company's balance sheet reflects exceptional financial health and low risk exposure.

Cash Flow

The cash flow analysis reveals a stable financial position with a substantial free cash flow of 5,164.3 million JPY in 2024. However, the TTM data lacks specific cash flow details, which limits a comprehensive analysis. The operating cash flow to net income ratio was 1.99 in 2024, indicating efficient conversion of income to cash. Overall, cash flow management appears effective, but more detailed TTM data would provide a clearer picture.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
29.79B	27.91B	24.25B	21.23B	24.24B	23.81B
	Gross Profit
12.30B	11.92B	10.32B	9.25B	7.79B	6.99B
	EBIT
5.02B	5.17B	4.32B	4.03B	3.23B	2.38B
	EBITDA
5.89B	6.35B	5.22B	4.80B	4.06B	3.05B
	Net Income Common Stockholders
3.18B	3.26B	2.74B	2.36B	1.82B	1.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.29B	13.51B	9.43B	9.32B	9.98B	6.99B
	Total Assets
33.29B	31.30B	25.19B	22.79B	21.14B	16.73B
	Total Debt
0.00	0.00	11.84M	48.91M	93.53M	0.00
	Net Debt
-14.29B	-13.51B	-9.42B	-9.27B	-9.59B	-6.99B
	Total Liabilities
9.54B	9.65B	7.66B	7.60B	6.75B	5.80B
	Stockholders Equity
20.71B	19.05B	15.33B	13.25B	12.73B	9.53B
Cash Flow		Free Cash Flow
0.00	5.16B	1.30B	3.09B	2.87B	2.10B
	Operating Cash Flow
0.00	6.48B	2.57B	3.86B	3.30B	2.70B
	Investing Cash Flow
0.00	-1.39B	-1.33B	-1.70B	-406.19M	-420.69M
	Financing Cash Flow
0.00	-1.02B	-1.13B	-2.53B	-407.67M	-1.16B

Softcreate Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1989.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3371, the sentiment is Negative. The current price of 1989 is above the 20-day moving average (MA) of 1985.95, above the 50-day MA of 1962.30, and above the 200-day MA of 1974.04, indicating a bearish trend. The MACD of 19.81 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3371.

Softcreate Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	80 Outperform	¥36.58B	13.03		3.55%	1.34%	-3.93%
3371	77 Outperform	¥54.18B	14.29		2.77%	9.68%	-2.04%
9719	74 Outperform	¥1.33T	29.59		1.67%	24.10%	11.27%
4768	66 Neutral	$1.09T	19.43	16.17%	2.62%	15.49%	18.42%
3626	62 Neutral	¥1.06T	21.15		1.54%	3.33%	-5.12%
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%
4324	58 Neutral	$812.42B	―	-24.51%	4.69%	6.88%	-1044.58%