Sophia Holdingus Co., Ltd. (6942) AI Stock Analysis

• Market Cap: ¥5.91B
• Dividend Yield: N/A
• Average Volume (3M): 5.99K
• Price to Earnings (P/E): 55.6
• Beta (1Y): 0.43
• Revenue Growth: -5.20%
• EPS Growth: 133.74%
• Country: JP
• Employees: 193
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.10
• Shares Outstanding: 4,677,720
• 10 Day Avg. Volume: 6,000
• 30 Day Avg. Volume: 5,990
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,261.00
• Price Target Upside: -1.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥1,261.00 ▼(-1.25% Downside)

Sophia Holdingus Co., Ltd. receives a moderate stock score of 65, mainly driven by strong technical momentum despite overbought signals. Financial performance is moderate with concerns in revenue and operational efficiency, while valuation suggests the stock is overvalued. The absence of earnings call and corporate events data did not impact the overall score.

Sophia Holdingus Co., Ltd. Business Overview & Revenue Model

Company Description

Sophia Holdings Co.,Ltd., through its subsidiaries, engages in the Internet related business in Japan and internationally. The company is involved in the planning, design development, business contracting, and consultation of web services; provision of solutions across various data centers, hardware, software, and content categories. It also operates as mobile virtual network operator; and provides Smobi SIM for data for corporations and organizations with voice services. In addition, the company provides support services for start-up operations and management services to medical institutions and dispensing pharmacies; offers consultation on medicine or illness; and develops and sells security-related software. Further, it is involved in the provision of hosting services; planning and production of website, web system application development, and others; and development of RIMS, a cloud based real estate information management system. Additionally, it is involved in the health and nursing care businesses. The company was formerly known as Sophia Systems Co., Ltd. and changed its name to Sophia Holdings Co.,Ltd. in April 2007. Sophia Holdings Co.,Ltd. was incorporated in 1975 and is based in Yokohama, Japan.

How the Company Makes Money

Sophia Holdingus Co., Ltd. generates revenue through multiple streams. The company earns money from its technology segment by developing and licensing software solutions to businesses across different sectors. In manufacturing, it produces and sells industrial machinery, adding to its income. The financial services arm provides consulting and advisory services, generating fees and commissions. Strategic partnerships with other firms enhance its market reach and contribute to its earnings by leveraging shared resources and expertise. The company also benefits from investments in various industries, which provide dividend income and capital gains.

Sophia Holdingus Co., Ltd. Financial Statement Overview

Summary

Sophia Holdingus Co., Ltd. demonstrates moderate financial health with some concerns. The income statement shows declining revenue and operational challenges with negative EBIT in 2025, although EBITDA margin remains positive. The balance sheet indicates improved leverage management and equity growth, but the equity ratio suggests moderate risk. Cash flow has been inconsistent, though recent positive free cash flow shows resilience.

Income Statement

The company has experienced a decline in revenue over the past few years, with a notable decrease from 2022 to 2025. Gross profit margin remains relatively stable, but there has been a significant drop in EBIT and net income margins. The company posted a negative EBIT for 2025, indicating operational challenges. Despite these struggles, the EBITDA margin remains positive, suggesting some underlying operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved slightly over the years, indicating better leverage management. Stockholders' equity has shown growth, which is positive for financial health. However, the equity ratio is still not ideal, suggesting moderate risk. The company's return on equity has fluctuated but shows potential for improvement.

Cash Flow

The free cash flow has been inconsistent, with a notable decline in recent years. The operating cash flow to net income ratio indicates some operational cash flow generation issues. However, the company has managed to maintain positive free cash flow in the TTM period, reflecting some resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36B	8.36B	9.03B	9.42B	11.78B	11.38B
Gross Profit	3.11B	3.11B	3.38B	3.46B	4.01B	3.81B
EBITDA	835.98M	523.98M	536.01M	686.88M	1.34B	1.12B
Net Income	95.00M	95.33M	-100.89M	21.11M	613.33M	501.87M
Balance Sheet
Total Assets	7.46B	7.46B	7.84B	7.40B	8.60B	8.61B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.75B	2.96B	2.02B	2.34B	2.12B
Total Debt	2.31B	2.31B	2.49B	3.28B	3.97B	4.67B
Total Liabilities	4.43B	4.43B	4.73B	5.38B	6.59B	7.22B
Stockholders Equity	3.03B	3.03B	3.11B	2.03B	2.00B	1.39B
Cash Flow
Free Cash Flow	0.00	175.15M	601.57M	373.63M	929.36M	1.20B
Operating Cash Flow	0.00	261.42M	633.80M	411.10M	1.07B	1.23B
Investing Cash Flow	0.00	377.55M	-27.15M	-38.55M	-150.91M	86.12M
Financing Cash Flow	0.00	-848.06M	332.13M	-693.70M	-696.11M	-793.37M

Sophia Holdingus Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1277.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6942, the sentiment is Positive. The current price of 1277 is above the 20-day moving average (MA) of 1245.60, above the 50-day MA of 1200.54, and above the 200-day MA of 1108.25, indicating a bullish trend. The MACD of 21.44 indicates Negative momentum. The RSI at 85.46 is Negative, neither overbought nor oversold. The STOCH value of 92.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6942.

Sophia Holdingus Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3920	79 Outperform	5.61B	13.75	12.63%	0.99%	7.38%	515.19%
4486	78 Outperform	5.83B	16.27	18.83%	7.37%	11.92%	-16.48%
3988	75 Outperform	6.42B	15.07	0.00%	1.15%	13.34%	-10.63%
6942	65 Neutral	¥5.91B	55.59		―	-5.20%	133.74%
2493	62 Neutral	4.16B	36.21	3.83%	0.53%	18.43%	22.38%
2375	44 Neutral	5.02B	-23.06	-28.46%	0.41%	-11.66%	-137.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%