S.Science Company, Ltd. (5721) AI Stock Analysis

S.Science Company, Ltd.

(TSE/TYO:5721)

Select Model

Rating:40Underperform

Price Target:JPY 36.00▲(0.00% Upside)

Action:downgraded

Date:10/16/26

The score is held down primarily by weak financial performance: persistent operating losses, a very large FY2026 net loss, and consistently negative free cash flow despite improved revenue. Technicals add further downside pressure with the stock trading well below all major moving averages and bearish momentum signals. Valuation is constrained by losses (negative P/E) and no stated dividend yield.

Positive Factors

Revenue rebound and gross-profit improvementThe FY2026 revenue rebound and improved gross profit indicate stronger recent business activity and some operating improvement. If maintained, this recovery could provide a foundation for better earnings, although profitability must still improve substantially before the trend becomes durable.

Negative Factors

Persistent operating losses and severe net lossPersistent operating losses show that the company has not converted revenue into sustainable earnings, while the very large FY2026 net loss demonstrates substantial profitability risk. Without a durable margin improvement, revenue growth alone may not strengthen earnings power or internal funding capacity.

S.Science Company, Ltd. (5721) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.24B
Dividend Yield: ―
Average Volume (3M): 1.72M
Price to Earnings (P/E): -2.7
Beta (1Y): 1.08
Revenue Growth: ―
EPS Growth: ―
Country: Japan
Employees: 17
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

S.Science Company, Ltd. Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, S Science Company, Ltd. specializes in the manufacturing and distribution of a wide array of nickel products, predominantly serving the Japanese market. Its product lineup encompasses items such as s and p pellets/anodes, s and...

S.Science Company, Ltd. Financial Statement Overview

Summary

Despite a sharp FY2026 revenue rebound (+16% YoY) and improved gross profit, profitability remains very weak with persistent operating losses and a very large FY2026 net loss (net margin roughly -176%). The balance sheet has a meaningful equity cushion (~4.7B), but higher leverage (debt rising to ~756M from zero) and consistently negative free cash flow (including FY2026 ~-181M) keep overall fundamentals pressured.

Income Statement

24Negative

Balance Sheet

58Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.24B	1.44B	634.43M	718.71M	1.36B	1.16B
Gross Profit	114.29M	559.92M	71.83M	20.44M	228.33M	236.86M
EBITDA	-331.30M	-145.91M	-290.67M	-310.43M	-115.68M	-248.11M
Net Income	55.27M	-2.53B	-96.73M	389.50M	-105.52M	-329.38M
Balance Sheet
Total Assets	3.16B	5.67B	3.01B	3.12B	2.95B	2.94B
Cash, Cash Equivalents and Short-Term Investments	2.15B	1.50B	2.18B	2.17B	1.31B	1.74B
Total Debt	0	755.63M	0	3.00M	3.00M	3.00M
Total Liabilities	140.22M	966.43M	135.60M	154.64M	316.80M	250.17M
Stockholders Equity	3.02B	4.70B	2.87B	2.97B	2.63B	2.69B
Cash Flow
Free Cash Flow	0	-180.56M	-254.29M	-149.97M	-142.41M	-453.46M
Operating Cash Flow	0	81.21M	-253.41M	-149.74M	-142.41M	-214.96M
Investing Cash Flow	0	-5.21B	259.71M	1.09B	-289.19M	-76.69M
Financing Cash Flow	0	4.87B	-22.00K	-13.00K	-10.00K	1.22B

S.Science Company, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price36.00

Price Trends

50DMA50.04Negative

100DMA55.60Negative

200DMA85.76Negative

Market Momentum

MACD-4.37Negative

RSI34.35Neutral

STOCH59.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5721, the sentiment is Negative. The current price of 36.00 is below the 20-day moving average (MA) of 41.60, below the 50-day MA of 50.04, and below the 200-day MA of 85.76, indicating a bearish trend. The MACD of -4.37 indicates Negative momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5721.

S.Science Company, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:5721 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4206	85Outperform	JPY 277.01B	14.61	―	3.29%	4.67%	9.51%
JP:5393	81Outperform	JPY 626.13B	18.87	14.35%	1.95%	2.55%	13.32%
JP:3106	80Outperform	JPY 193.85B	16.21	―	14.39%	-3.25%	-0.51%
JP:5331	72Outperform	JPY 179.67B	11.40	9.48%	3.42%	9.01%	33.08%
JP:3105	67Neutral	JPY 352.94B	14.60	8.13%	1.60%	2.09%	95.69%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5721	40Underperform	JPY 6.58B	-2.72	―	―	―	―

* Industrials Sector Average

Performance Comparison

JP:5721 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5721	S.Science Company, Ltd.	37.00	-55.33	-59.93%
JP:5393	Nichias Corporation	3304.00	1420.78	75.44%
JP:3105	Nisshinbo Holdings	2244.00	1050.10	87.95%
JP:5331	Noritake Co.,Limited	3220.00	878.55	37.52%
JP:3106	KURABO INDUSTRIES LTD.	2307.00	948.54	69.82%
JP:4206	Aica Kogyo Company, Limited	4377.00	877.15	25.06%

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

S.Science Company, Ltd. AI Stock Analysis