Sockets Inc. AI Stock Analysis
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Sockets Inc. (3634) AI Stock Analysis
Sockets Inc.
(TSE/TYO:3634)
The overall score of 70 reflects a solid financial turnaround, underscored by a debt-free balance sheet and a return to profitability. This strength is the primary driver of the rating. The stock's strong upward price momentum supports the positive view but is significantly tempered by an extremely overbought RSI reading, which introduces considerable short-term risk. The company's reasonable valuation provides a stable, though not compelling, underpinning.
Sockets Inc. (3634) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 1.41B
- Dividend Yield
- 1.05%
- Average Volume (3M)
- 17.51K
- Price to Earnings (P/E)
- 15.8
- Beta (1Y)
- 0.31
- Revenue Growth
- -2.71%
- EPS Growth
- ―
- Country
- Japan
- Employees
- 73
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Sockets Inc. Business Overview & Revenue Model
Company Description
Based in Tokyo, Japan, Sockets Inc. was founded in 2000 with a focus on crafting and delivering internet-based solutions, encompassing services, applications, and database systems. The company provides a comprehensive suite of offerings, including da...
Sockets Inc. Financial Statement Overview
Summary
The company has achieved a significant turnaround, returning to profitability with an 8.2% net margin and generating positive operating and free cash flow. The balance sheet is a key strength, being completely debt-free, which provides substantial financial flexibility. The primary weakness is modest revenue growth of 2.0%.
Income Statement
68PositiveBalance Sheet
85Very PositiveCash Flow
75Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.06B | 1.04B | 1.02B | 994.61M | 873.19M |
| Gross Profit | 552.35M | 526.63M | 475.93M | 468.71M | 506.26M | 425.49M |
| EBITDA | 171.50M | 58.46M | -138.50M | -79.15M | -27.82M | -83.17M |
| Net Income | 71.52M | 86.59M | -139.13M | -100.26M | -26.89M | -150.24M |
Balance Sheet | ||||||
| Total Assets | ― | 907.62M | 814.73M | 970.85M | 1.45B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | ― | 600.19M | 464.96M | 678.66M | 722.56M | 788.11M |
| Total Debt | ― | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | ― | 287.75M | 262.48M | 264.80M | 634.85M | 200.01M |
| Stockholders Equity | ― | 619.88M | 552.25M | 706.05M | 813.05M | 854.64M |
Cash Flow | ||||||
| Free Cash Flow | 211.56M | 87.42M | -151.98M | -15.73M | -55.59M | -23.87M |
| Operating Cash Flow | 260.31M | 121.56M | -151.77M | -14.86M | -44.79M | -14.06M |
| Investing Cash Flow | -48.75M | 28.01M | -54.59M | -21.63M | -13.40M | 15.52M |
| Financing Cash Flow | -236.68M | -14.35M | -7.33M | -7.42M | -7.36M | -7.33M |
Sockets Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3634, the sentiment is Negative. The current price of 573.00 is below the 20-day moving average (MA) of 595.90, below the 50-day MA of 605.54, and below the 200-day MA of 647.78, indicating a bearish trend. The MACD of -9.99 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 77.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3634.
Sockets Inc. Peers Comparison
Overall Rating
JP:367081Outperform
JP:439474Outperform- JP:363470Outperform
JP:383959Neutral
JP:481447Neutral
JP:397044Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3670 | 81Outperform | JPY 1.98B | 6.30 | ― | 3.93% | 7.22% | -7.86% |
| JP:4394 | 74Outperform | JPY 4.52B | 30.89 | ― | 2.04% | 2.58% | 6.19% |
| JP:3634 | 70Outperform | JPY 1.43B | 15.84 | ― | 1.05% | -2.71% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:3839 | 59Neutral | JPY 5.07B | 85.97 | ― | 1.62% | 1.74% | -72.72% |
| JP:4814 | 47Neutral | JPY 1.97B | -4.32 | ― | ― | -2.19% | -302.00% |
| JP:3970 | 44Neutral | JPY 2.06B | -6.26 | ― | 5.29% | 19.74% | -202.56% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3634 | Sockets Inc. | 573.00 | -145.09 | -20.20% | |
| JP:3670 | Kyoritsu Computer & Communication Co., Ltd. | 1654.00 | -310.74 | -15.82% | |
| JP:3839 | ODK Solutions Company, Ltd. | 619.00 | 18.35 | 3.06% | |
| JP:3970 | Innovation, Inc. | 756.00 | -163.80 | -17.81% | |
| JP:4394 | eXmotion Co., Ltd. | 735.00 | 347.43 | 89.64% | |
| JP:4814 | Nextware Ltd. | 152.00 | -31.00 | -16.94% |
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 03, 2026