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Sockets Inc.
(3634)
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Rating:68Neutral
Price Target:
¥761.00
▲(9.50% Upside)
Action:Reiterated
Date:10/03/26
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.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet materially lowers financial risk and preserves flexibility during weaker operating periods. Substantial equity relative to assets provides resilience and allows the company to fund operations or pursue growth without the added burden of interest expense or refinancing pressure.
Negative Factors
Modest Revenue Growth
Recent revenue growth is modest, indicating that the profitability improvement has not yet been accompanied by strong expansion in the top line. Limited growth can constrain operating leverage, reduce the scope for reinvestment, and make sustained earnings improvement more dependent on margin performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet
A debt-free balance sheet materially lowers financial risk and preserves flexibility during weaker operating periods. Substantial equity relative to assets provides resilience and allows the company to fund operations or pursue growth without the added burden of interest expense or refinancing pressure.
Read all positive factors
Sockets Inc. (3634) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.71B
Dividend Yield0.86%
Average Volume (3M)3.20K
Price to Earnings (P/E)17.6
Beta (1Y)0.22
Revenue Growth-0.54%
EPS GrowthN/A
CountryJP
Employees73
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)4.68
Shares Outstanding2,477,400
10 Day Avg. Volume5,420
30 Day Avg. Volume3,200
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)2.64
Price to Sales (P/S)1.55
P/FCF Ratio18.74
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
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...
Sockets Inc. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.04B | 1.02B | 994.61M | 873.19M |
| Gross Profit | 526.63M | 475.93M | 468.71M | 506.26M | 425.49M |
| EBITDA | 58.46M | -138.50M | -79.15M | -27.82M | -83.17M |
| Net Income | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | 87.42M | -151.98M | -15.73M | -55.59M | -23.87M |
| Operating Cash Flow | 121.56M | -151.77M | -14.86M | -44.79M | -14.06M |
| Investing Cash Flow | 28.01M | -54.59M | -21.63M | -13.40M | 15.52M |
| Financing Cash Flow | -14.35M | -7.33M | -7.42M | -7.36M | -7.33M |
Sockets Inc. Technical Analysis
Positive
695.00
Price Trends
590.90
Positive
590.23
Positive
658.75
Positive
Market Momentum
10.01
Negative
84.60
Negative
65.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3634, the sentiment is Positive. The current price of 695 is above the 20-day moving average (MA) of 598.05, above the 50-day MA of 590.90, and above the 200-day MA of 658.75, indicating a bullish trend. The MACD of 10.01 indicates Negative momentum. The RSI at 84.60 is Negative, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3634.
Sockets Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥1.98B | 6.30 | ― | 3.93% | 13.88% | 36.37% | |
76 Outperform | ¥4.84B | 33.63 | ― | 1.88% | 2.58% | 6.19% | |
68 Neutral | ¥1.71B | 17.59 | ― | 0.86% | -0.54% | ― | |
64 Neutral | ¥5.13B | 46.58 | ― | 1.60% | 3.07% | -54.25% | |
63 Neutral | ¥2.22B | -6.72 | ― | 4.93% | 19.74% | -202.56% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | ¥2.12B | -4.74 | ― | 1.42% | -2.19% | -302.00% |
* Technology Sector Average
JP:3634
Sockets Inc.
698.00
-34.97
-4.77%
JP:3670
Kyoritsu Computer & Communication Co., Ltd.
1,654.00
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JP:3839
ODK Solutions Company, Ltd.
626.00
18.46
3.04%
JP:3970
Innovation, Inc.
811.00
-145.17
-15.18%
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eXmotion Co., Ltd.
800.00
396.44
98.24%
JP:4814
Nextware Ltd.
167.00
-23.00
-12.11%
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.