SIOS Corp (3744) AI Stock Analysis

SIOS Corp

(TSE/TYO:3744)

Select Model

Rating:55Neutral

Price Target:JPY 513.00▲(8.46% Upside)

Action:reiterated

Date:10/14/26

The overall score of 55 reflects a company with a fortress-like balance sheet but significant operational headwinds. The primary strength is the company's near-zero debt and solid equity base, which provides stability. This is offset by volatile revenue, declining margins, and a sharp drop in cash flow generation. Technical trends are weak, and the lack of a dividend further limits appeal, though a low P/E ratio offers some valuation support.

Positive Factors

Conservative Balance SheetVery low and improving leverage materially reduces solvency risk and interest burden, giving SIOS greater flexibility to fund product development, support services, and customer commitments. A stronger equity base also improves resilience if operating conditions weaken.

Negative Factors

Thin Profit MarginsVery thin margins leave limited protection against cost increases, slower customer spending, or execution setbacks. Even modest operating volatility can therefore materially affect earnings, making sustained profitability more dependent on disciplined cost control and successful revenue growth.

SIOS Corp (3744) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.10B
Dividend Yield: ―
Average Volume (3M): 29.67K
Price to Earnings (P/E): 12.0
Beta (1Y): 0.55
Revenue Growth: 12.47%
EPS Growth: -23.61%
Country: Japan
Employees: 493
Sector: Technology
Sector Strength: 61
Industry: Software - Application

SIOS Corp Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, SIOS Corporation, established in 1997, specializes in open system infrastructure and application services. The company provides digital transformation services aimed at modernizing products, services, and business models for it...

How the Company Makes Money

SIOS Corp primarily makes money by selling and supporting software and services aimed at ensuring system availability and continuity. Key revenue streams include (1) software revenue from licensing its high-availability/disaster-recovery products (an...

SIOS Corp Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a major strength with near-zero debt and strong equity returns. However, the income statement shows volatile revenue, eroding gross margins, and thin profitability. Cash flow turned positive but declined sharply in 2025, raising stability concerns. Overall, the strong solvency partially offsets operational inconsistencies.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.52B	19.06B	20.56B	15.89B	14.42B	15.73B
Gross Profit	5.46B	5.29B	5.33B	5.22B	4.67B	4.88B
EBITDA	527.78M	458.04M	647.78M	-31.24M	-437.77M	488.81M
Net Income	341.82M	320.13M	351.00M	-18.88M	-639.79M	367.75M
Balance Sheet
Total Assets	9.44B	8.66B	8.09B	6.73B	6.04B	6.67B
Cash, Cash Equivalents and Short-Term Investments	4.15B	3.59B	3.68B	2.60B	2.51B	3.15B
Total Debt	37.98M	47.24M	102.30M	181.22M	222.95M	314.85M
Total Liabilities	7.43B	6.81B	6.55B	5.54B	4.80B	4.77B
Stockholders Equity	2.01B	1.86B	1.54B	1.19B	1.24B	1.90B
Cash Flow
Free Cash Flow	0	185.93M	857.00M	-13.01M	-432.52M	543.56M
Operating Cash Flow	0	198.64M	865.53M	28.49M	-370.38M	587.14M
Investing Cash Flow	0	-208.79M	298.01M	188.13M	-107.72M	58.01M
Financing Cash Flow	0	-70.98M	-127.98M	-157.72M	-245.87M	-267.44M

SIOS Corp Technical Analysis

Technical Analysis SentimentNegative

Last Price473.00

Price Trends

50DMA469.44Positive

100DMA483.72Negative

200DMA482.33Negative

Market Momentum

MACD5.98Positive

RSI45.91Neutral

STOCH8.10Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3744, the sentiment is Negative. The current price of 473.00 is below the 20-day moving average (MA) of 484.30, above the 50-day MA of 469.44, and below the 200-day MA of 482.33, indicating a neutral trend. The MACD of 5.98 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 8.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3744.

SIOS Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3744 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2307	83Outperform	JPY 16.77B	10.00	―	3.38%	10.64%	10.58%
JP:4826	83Outperform	JPY 32.34B	16.22	―	3.88%	9.86%	11.31%
JP:3826	82Outperform	JPY 5.26B	11.55	―	2.73%	13.99%	-36.97%
JP:3648	78Outperform	JPY 17.63B	9.54	―	3.49%	12.33%	13.11%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3744	55Neutral	JPY 4.10B	11.99	―	―	12.47%	-23.61%
JP:7527	43Neutral	JPY 4.87B	148.39	―	―	-0.48%	―

* Technology Sector Average

Performance Comparison

JP:3744 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3744	SIOS Corp	473.00	-16.00	-3.27%
JP:2307	Cross Cat Co., Ltd.	1096.00	55.57	5.34%
JP:3648	AGS Corporation	1031.00	-414.54	-28.68%
JP:3826	System Integrator Corp.	477.00	0.38	0.08%
JP:4826	Computer Institute Of Japan, Ltd.	516.00	55.43	12.04%
JP:7527	SystemSoft Corporation	46.00	-24.00	-34.29%

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.

Date of analysis: Oct 14, 2026

SIOS Corp AI Stock Analysis