Shanon, Inc. (3976) AI Stock Analysis

1 Followers

Shanon, Inc.

(TSE/TYO:3976)

Select Model

Rating:62Neutral

Price Target:JPY 440.00▲(11.11% Upside)

Action:downgraded

Date:10/21/26

Shanon, Inc. presents a mixed investment profile characterized by strong cash flows and a deeply discounted valuation, weighed down by weak technical momentum and contracting revenues. The company's successful balance sheet restructuring and low P/E ratio are significant strengths. However, the stock's score is notably penalized by a pronounced bearish technical trend and persistent top-line growth challenges.

Positive Factors

Cash GenerationStrong operating cash flow and free cash flow in 2025, following positive free cash flow in 2024, provide internally generated liquidity for ongoing operations and investment. This improves financial flexibility over the next several quarters, although sustained conversion remains important.

Negative Factors

Revenue ContractionThe 2025 revenue decline indicates that the recent operating recovery is not yet supported by consistent top-line expansion. Continued contraction would make it harder to spread fixed costs, sustain EBIT improvement, and build a durable earnings base over the next several quarters.

Shanon, Inc. (3976) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.41B
Dividend Yield: ―
Average Volume (3M): 51.48K
Price to Earnings (P/E): 5.1
Beta (1Y): 0.50
Revenue Growth: -13.15%
EPS Growth: ―
Country: Japan
Employees: 195
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Shanon, Inc. Business Overview & Revenue Model

Company Description

SHANON Inc. provides cloud solutions in Japan. It develops and sells SHANONMARKETING PLATFORM that supports marketing activities; Event Management System which allows to manage the operation and management of various events, from in-person and online...

Shanon, Inc. Financial Statement Overview

Summary

Shanon, Inc. demonstrates significant balance sheet improvements and robust free cash flow generation, mitigating previous insolvency risks. However, ongoing net losses and a 9.5% decline in total revenue restrict the overall financial score.

Income Statement

48Neutral

Balance Sheet

72Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	2.74B	2.75B	3.21B	2.93B	2.46B	2.20B
Gross Profit	1.80B	1.81B	1.93B	1.83B	1.59B	1.37B
EBITDA	128.72M	192.53M	122.87M	-180.97M	-146.19M	193.94M
Net Income	-83.78M	-23.72M	-101.61M	-445.67M	-365.86M	107.89M
Balance Sheet
Total Assets	1.94B	2.00B	2.17B	2.02B	1.84B	1.69B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.01B	763.13M	400.86M	264.18M	491.14M
Total Debt	101.15M	97.13M	1.39B	1.13B	744.58M	564.42M
Total Liabilities	1.01B	1.01B	2.22B	1.98B	1.56B	1.04B
Stockholders Equity	929.42M	986.29M	-52.54M	39.53M	285.41M	645.90M
Cash Flow
Free Cash Flow	494.24M	494.24M	225.46M	-151.04M	-25.43M	177.68M
Operating Cash Flow	593.83M	593.83M	226.62M	-148.76M	-3.92M	183.72M
Investing Cash Flow	-61.11M	-61.11M	-160.54M	-260.58M	-283.58M	-245.38M
Financing Cash Flow	-287.04M	-287.04M	295.04M	545.35M	57.51M	110.63M

Shanon, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price396.00

Price Trends

50DMA546.56Negative

100DMA554.17Negative

200DMA474.38Negative

Market Momentum

MACD-34.39Positive

RSI25.32Positive

STOCH10.39Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3976, the sentiment is Negative. The current price of 396.00 is below the 20-day moving average (MA) of 468.40, below the 50-day MA of 546.56, and below the 200-day MA of 474.38, indicating a bearish trend. The MACD of -34.39 indicates Positive momentum. The RSI at 25.32 is Positive, neither overbought nor oversold. The STOCH value of 10.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3976.

Shanon, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3976 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4168	78Outperform	JPY 9.43B	8.52	―	2.00%	12.61%	49.51%
JP:4477	73Outperform	JPY 37.62B	17.09	―	1.55%	34.68%	552.65%
JP:3976	62Neutral	JPY 2.47B	5.08	―	―	-13.15%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:5027	59Neutral	JPY 44.68B	35.26	―	0.28%	28.94%	-29.21%
JP:9553	58Neutral	JPY 14.89B	21.82	―	―	22.31%	691.30%
JP:9561	49Neutral	JPY 3.37B	59.39	―	―	10.93%	―

* Technology Sector Average

Performance Comparison

JP:3976 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3976	Shanon, Inc.	396.00	1.00	0.25%
JP:4168	Yappli, Inc.	728.00	-175.77	-19.45%
JP:4477	BASE, Inc.	315.00	-43.60	-12.16%
JP:5027	AnyMind Group Inc.	727.00	69.09	10.50%
JP:9553	MicroAd, Inc.	540.00	89.00	19.73%
JP:9561	GLAD CUBE Inc.	392.00	-113.00	-22.38%

Shanon, Inc. Corporate Events

Shanon Swings Back to Profit as Assets and Equity Strengthen in First Half 2026

Aug 14, 2026

Shanon Inc. reported consolidated financial results for the six months ended June 30, 2026, showing a modest increase in net sales to ¥1,441 million and a sharp turnaround from the prior-year loss to a profit attributable to owners of parent of...

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 21, 2026

Shanon, Inc. AI Stock Analysis