Sinops, Inc. (4428) AI Stock Analysis

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Sinops, Inc.

(4428)

Rating:61Neutral

Price Target:―

Sinops, Inc. demonstrates strong financial stability with no debt and high liquidity, which is a significant positive factor. However, declining profit margins and free cash flow pose challenges to profitability and growth potential. The technical analysis suggests a bearish trend, and the high P/E ratio indicates possible overvaluation. Overall, while the company is financially sound, the stock's current market conditions and valuation metrics suggest caution.

Sinops, Inc. (4428) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥5.63B

Dividend Yield1.67%

Average Volume (3M)4.64K

Price to Earnings (P/E)41.6

Beta (1Y)0.67

Revenue Growth2.76%

EPS Growth-47.70%

CountryJP

Employees104

SectorTechnology

Sector Strength84

IndustrySoftware - Application

Share Statistics

EPS (TTM)5.00

Shares Outstanding6,259,000

10 Day Avg. Volume2,550

30 Day Avg. Volume4,643

Financial Highlights & Ratios

PEG Ratio-1.70

Price to Book (P/B)2.98

Price to Sales (P/S)0.00

P/FCF Ratio0.00

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

Sinops, Inc. Business Overview & Revenue Model

Company DescriptionSinops, Inc. (4428) is a technology company operating in the industrial automation sector, specializing in the development and provision of software solutions for optimizing manufacturing processes. The company's core products include advanced planning and scheduling (APS) systems, designed to enhance operational efficiency and productivity in manufacturing environments. Sinops, Inc. leverages its expertise in software engineering to deliver cutting-edge solutions that cater to the needs of various industries, including automotive, electronics, and consumer goods.

How the Company Makes MoneySinops, Inc. generates revenue primarily through the sale of its software solutions, which are offered as both on-premises installations and cloud-based services. The company employs a licensing model, charging clients for the use of its advanced planning and scheduling systems. Additional revenue streams include subscription fees for cloud-hosted services, maintenance contracts, and customer support services. Sinops, Inc. also engages in strategic partnerships with manufacturing enterprises and technology providers, which help expand its market reach and enhance its offerings. By continuously innovating its products and expanding its client base, Sinops, Inc. maintains a steady flow of income.

Sinops, Inc. Financial Statement Overview

Summary

Sinops, Inc. presents a mixed financial picture. The company shows strong revenue growth and a robust balance sheet with no debt and high liquidity. However, there are concerns regarding declining profit margins and free cash flow, which may affect its ability to invest in future growth or return capital to shareholders. The company's financial stability is strong, but it faces profitability challenges that need addressing to sustain long-term growth in the competitive software application industry.

Income Statement

Positive

Sinops, Inc. has demonstrated consistent revenue growth, with a 2.73% increase from 2023 to 2024 and a significant 20.55% increase from 2022 to 2023. The company's gross profit margin for 2024 is robust at 40.87%, although it has decreased from 49.44% in the previous year. The net profit margin for 2024 is 6.08%, which is lower than the 11.93% reported in 2023, indicating a decline in profitability. EBIT and EBITDA margins have also contracted, reflecting cost pressures or investment in growth initiatives. Overall, the financial performance shows growth but with some profitability challenges.

Balance Sheet

Very Positive

The balance sheet of Sinops, Inc. is strong, characterized by zero debt in 2024, which suggests financial prudence and low risk. The equity ratio improved to 81.47%, indicating a solid capital structure. Return on equity (ROE) for 2024 is 6.12%, down from 11.67% in 2023, reflecting the decline in net income. The company maintains a high level of cash and short-term investments, providing excellent liquidity and financial flexibility.

Cash Flow

Positive

Sinops, Inc. reported a decline in free cash flow from 2023 to 2024, with a free cash flow of 72 million compared to 155.47 million the previous year, indicating a negative growth trend. The operating cash flow to net income ratio for 2024 is 1.06, showing that the company generates sufficient cash from operations relative to its net income. However, the free cash flow to net income ratio has decreased significantly, suggesting increased capital expenditures or other cash outflows affecting free cash flow generation.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.78B	1.73B	1.46B	1.20B	909.83M
	Gross Profit
726.00M	854.76M	701.76M	566.32M	393.86M
	EBIT
154.91M	270.75M	224.54M	142.89M	22.93M
	EBITDA
275.49M	354.00M	307.94M	237.57M	82.31M
	Net Income Common Stockholders
108.24M	206.22M	153.50M	101.30M	8.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
612.55M	830.55M	1.30B	1.43B	1.08B
	Total Assets
2.17B	2.20B	2.01B	1.99B	1.72B
	Total Debt
0.00	0.00	28.75M	162.95M	197.15M
	Net Debt
-612.00M	-830.55M	-1.27B	-1.26B	-880.12M
	Total Liabilities
400.04M	434.82M	462.13M	549.96M	389.63M
	Stockholders Equity
1.76B	1.77B	1.54B	1.44B	1.33B
Cash Flow		Free Cash Flow
72.00M	155.47M	83.04M	358.75M	89.22M
	Operating Cash Flow
115.92M	305.88M	193.18M	464.80M	224.82M
	Investing Cash Flow
-211.24M	-751.21M	-101.07M	-92.37M	-135.67M
	Financing Cash Flow
-122.68M	-24.41M	-217.36M	-24.15M	191.54M

Sinops, Inc. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price900.00

Price Trends

50DMA

848.00

Positive

100DMA

837.72

Positive

200DMA

874.76

Positive

Market Momentum

MACD

16.12

Positive

RSI

63.52

Neutral

STOCH

71.08

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4428, the sentiment is Positive. The current price of 900 is above the 20-day moving average (MA) of 898.85, above the 50-day MA of 848.00, and above the 200-day MA of 874.76, indicating a bullish trend. The MACD of 16.12 indicates Positive momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 71.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4428.

Sinops, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3996	72 Outperform	¥4.30B	16.46		―	3.20%	99.69%
3676	70 Neutral	¥20.12B	32.92		2.47%	2.47%	255.58%
3922	68 Neutral	¥30.78B	27.43		0.45%	17.06%	-3.97%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
4428	61 Neutral	¥5.63B	41.64		1.67%	2.76%	-47.70%

* Technology Sector Average

Performance Comparison

JP:4428

Sinops, Inc.

913.00

-176.84

-16.23%

JP:3676

DIGITAL HEARTS HOLDINGS Co., Ltd.

934.00

-134.63

-12.60%

JP:3922

PR TIMES Corporation

2,260.00

473.22

26.48%

JP:3996

Signpost Corporation

331.00

-333.00

-50.15%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.