Sockets Inc. AI Stock Analysis
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Sockets Inc. (3634) AI Stock Analysis
Sockets Inc.
(TSE/TYO:3634)
The score is driven primarily by improved 2026 financial performance and a very low-risk, debt-free balance sheet, tempered by modest top-line growth and mixed cash-flow quality/history. Technically, the uptrend is strong, but the very high RSI indicates overbought conditions that cap the near-term technical score. Valuation is fair rather than compelling, with a low dividend yield.
Sockets Inc. (3634) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 1.42B
- Dividend Yield
- 1.03%
- Average Volume (3M)
- 17.53K
- Price to Earnings (P/E)
- 14.6
- Beta (1Y)
- 0.29
- 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
2026 shows a clear turnaround with solid profitability (net margin ~8.2%, positive EBIT/EBITDA) and a rebound in gross margin (~49.7%). The balance sheet is a major strength with zero debt and improved ROE (~14%). Offsetting this, revenue growth is modest (~2% in 2025–2026) and historical earnings/cash-flow volatility raises questions about durability; cash conversion in 2026 is also not fully clean (operating cash flow ~77% of net income).
Income Statement
62PositiveBalance Sheet
86Very PositiveCash Flow
58Neutral| 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 582.00 is below the 20-day moving average (MA) of 597.55, below the 50-day MA of 606.02, and below the 200-day MA of 648.11, indicating a bearish trend. The MACD of -10.32 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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:363468Neutral
JP:383959Neutral
JP:397049.7Neutral
JP:481447Neutral
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% | 13.88% | 36.37% |
| JP:4394 | 74Outperform | JPY 4.45B | 31.90 | ― | 2.04% | 2.58% | 6.19% |
| JP:3634 | 68Neutral | JPY 1.43B | 14.62 | ― | 1.03% | -2.71% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:3839 | 59Neutral | JPY 5.10B | 86.11 | ― | 1.61% | 1.74% | -72.72% |
| JP:3970 | 50Neutral | JPY 2.08B | -6.22 | ― | 5.27% | 19.74% | -202.56% |
| JP:4814 | 47Neutral | JPY 1.94B | -4.37 | ― | ― | -2.19% | -302.00% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3634 | Sockets Inc. | 582.00 | -108.32 | -15.69% | |
| JP:3670 | Kyoritsu Computer & Communication Co., Ltd. | 1654.00 | -356.23 | -17.72% | |
| JP:3839 | ODK Solutions Company, Ltd. | 619.00 | 13.43 | 2.22% | |
| JP:3970 | Innovation, Inc. | 753.00 | -159.14 | -17.45% | |
| JP:4394 | eXmotion Co., Ltd. | 747.00 | 361.85 | 93.95% | |
| JP:4814 | Nextware Ltd. | 155.00 | -33.00 | -17.55% |
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