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Science Arts, Inc. (4412) AI Stock Analysis

JP:4412

Science Arts, Inc.

(TSE/TYO:4412)

Select Model
Rating:69Neutral
Price Target:JPY 1,332.00â–²(12.31% Upside)
Action:downgraded
Date:10/16/26

The score is driven primarily by improved financial performance (rapid growth, a clear move into profitability, and a very low-leverage balance sheet). Offsetting this are mixed technical signals (below the 200-day and 20-day averages with neutral momentum) and a demanding valuation (high P/E), partially balanced by a strong dividend yield.

Positive Factors
Revenue and profit growthRevenue more than doubled across the reported period while the company moved into solid profitability, reaching an 11.9% net margin in 2026. This indicates stronger scale and earnings capacity, creating a more substantial foundation for reinvestment if the recent improvement persists.
Negative Factors
Earnings durability riskThe recent profit improvement has not yet been demonstrated across a long, consistent operating history. Losses in 2023–2024 and earlier margin weakness show that earnings remain sensitive to execution, growth conditions, and cost control, making durability a material medium-term risk.

Science Arts, Inc. (4412) vs. iShares MSCI Japan ETF (EWJ)

-40%-20%0%20%40%60%JP:4412-28.03%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 9.87B
Dividend Yield
0.08%
Average Volume (3M)
21.73K
Price to Earnings (P/E)
38.7
Beta (1Y)
1.09
Revenue Growth
28.99%
EPS Growth
128.33%
Country
Japan
Employees
58
Sector
Technology
Sector Strength
61
Industry
Software - Application

Science Arts, Inc. Business Overview & Revenue Model

Company Description

Science Arts, Inc. provides cloud services and software products in Japan. It provides Buddycom, a seamless and scalable communication tool that brings team communications together. The company also offers accessories, such as speaker microphones, he...

Science Arts, Inc. Financial Statement Overview

Summary

Strong financial inflection: revenue scaled materially (771.9M in 2023 to 2,134.2M in 2026) and the company shifted from losses (2023–2024) to solid profitability (net margin 11.9% in 2026). Balance sheet is a key strength with very low leverage (debt-to-equity ~2.7% in 2026) and improving ROE (~15.3% in 2026). Main risk is historical volatility in profitability and cash flow, which raises durability/execution concerns.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue2.13B2.13B1.65B1.18B771.86M659.99M
Gross Profit1.35B1.35B996.01M677.77M490.24M129.36M
EBITDA305.27M290.64M110.25M-18.74M-50.80M15.31M
Net Income254.75M254.75M112.17M-31.85M-81.34M9.01M
Balance Sheet
Total Assets2.46B2.46B2.09B960.74M894.09M801.13M
Cash, Cash Equivalents and Short-Term Investments1.85B1.85B1.58B562.34M504.76M663.91M
Total Debt45.44M45.44M67.23M89.02M00
Total Liabilities789.56M789.56M694.97M484.17M385.68M230.52M
Stockholders Equity1.67B1.67B1.39B476.56M508.41M570.61M
Cash Flow
Free Cash Flow0408.77M271.77M-46.38M-87.88M95.79M
Operating Cash Flow0413.18M290.70M1.15M-66.92M114.25M
Investing Cash Flow0-124.10M-26.88M-32.58M-107.13M-34.65M
Financing Cash Flow0-17.09M753.10M89.02M14.90M323.79M

Science Arts, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price1186.00

Price Trends

50DMA1353.40Negative
100DMA1258.06Negative
200DMA1608.01Negative

Market Momentum

MACD-31.72Positive
RSI32.62Neutral
STOCH7.31Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4412, the sentiment is Negative. The current price of 1186.00 is below the 20-day moving average (MA) of 1383.75, below the 50-day MA of 1353.40, and below the 200-day MA of 1608.01, indicating a bearish trend. The MACD of -31.72 indicates Positive momentum. The RSI at 32.62 is Neutral, neither overbought nor oversold. The STOCH value of 7.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4412.

Science Arts, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4412 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3835JP:383580OutperformJPY 20.63B19.93―3.33%1.86%-12.57%
JP:3648JP:364878OutperformJPY 17.63B9.54―3.49%12.33%13.11%
JP:4412JP:441269NeutralJPY 9.85B38.70―0.08%28.99%128.33%
JP:3853JP:385366NeutralJPY 16.08B7.03―0.94%7.11%146.94%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:5027JP:502759NeutralJPY 46.10B35.78―0.27%28.94%-29.21%
JP:9553JP:955358NeutralJPY 15.72B22.50――22.31%691.30%

* Technology Sector Average

Performance Comparison

0%50%100%JP:4412JP:3648JP:3835JP:3853JP:5027JP:9553Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4412 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4412Science Arts, Inc.1216.00-472.63-27.99%
JP:3648AGS Corporation1031.00-338.05-24.69%
JP:3835eBASE Co., Ltd.448.00-1.69-0.38%
JP:3853Asteria Corporation958.00-489.66-33.82%
JP:5027AnyMind Group Inc.749.0087.1013.16%
JP:9553MicroAd, Inc.565.00127.0029.00%
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 16, 2026