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Science Arts, Inc. (4412) AI Stock Analysis

2 Followers
JP:4412

Science Arts, Inc.

(TSE/TYO:4412)

Select Model
Rating:65Neutral
Price Target:JPY 1,390.00â–²(7.50% Upside)
Action:downgraded
Date:10/16/26

The company's exceptional financial health, marked by explosive profitable growth and a debt-free balance sheet, is the primary driver of the score. However, this is significantly tempered by weak technical momentum and a very high P/E ratio, which suggest the stock is under near-term pressure and carries valuation risk despite a high dividend yield.

Positive Factors
Revenue and Profitability GrowthRevenue expanded materially while the company moved from losses to a 11.9% net margin in 2026. This combination shows meaningful operating progress and provides a larger earnings base from which the company can fund reinvestment and strengthen its position over the next several quarters.
Negative Factors
Profitability Consistency RiskAlthough margins improved, the company reported losses in 2023–2024 before becoming profitable in 2025–2026. That record indicates the newer earnings profile has not yet been tested across a longer cycle, making sustained profitability an important fundamental risk.

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

-40%-20%0%20%40%60%80%JP:4412-15.70%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 10.49B
Dividend Yield
0.08%
Average Volume (3M)
24.21K
Price to Earnings (P/E)
41.2
Beta (1Y)
1.28
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

Financial performance is strong, driven by a remarkable revenue surge to ¥2.13B and a swing to an 11.9% net margin. A nearly debt-free balance sheet and excellent cash flow conversion, with a free cash flow to net income ratio of 0.99, indicate high-quality, sustainable profits.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive
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 SentimentNeutral
Last Price1293.00

Price Trends

50DMA1343.84Negative
100DMA1261.24Positive
200DMA1558.61Negative

Market Momentum

MACD-43.73Negative
RSI52.43Neutral
STOCH85.61Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4412, the sentiment is Neutral. The current price of 1293.00 is above the 20-day moving average (MA) of 1264.70, below the 50-day MA of 1343.84, and below the 200-day MA of 1558.61, indicating a neutral trend. The MACD of -43.73 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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:3648JP:364878OutperformJPY 17.70B10.30―3.48%6.10%-14.81%
JP:3853JP:385374OutperformJPY 14.55B6.36―1.04%9.82%64.85%
JP:3835JP:383567NeutralJPY 16.03B15.64―6.55%1.86%-12.57%
JP:4412JP:441265NeutralJPY 10.47B41.15―0.08%28.99%128.33%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:5027JP:502759NeutralJPY 44.13B34.26―0.28%28.94%-29.21%
JP:9553JP:955358NeutralJPY 15.70B22.46――30.51%290.91%

* 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 '26Nov '26
JP:4412 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4412Science Arts, Inc.1293.00-280.72-17.84%
JP:3648AGS Corporation1035.00-292.42-22.03%
JP:3835eBASE Co., Ltd.348.00-79.92-18.68%
JP:3853Asteria Corporation867.00-312.21-26.48%
JP:5027AnyMind Group Inc.717.0046.136.88%
JP:9553MicroAd, Inc.564.00-12.00-2.08%
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