Step Co., Ltd. (9795) AI Stock Analysis

• Market Cap: ¥37.80B
• Dividend Yield: 3.49%
• Average Volume (3M): 18.95K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.32
• Revenue Growth: 6.41%
• EPS Growth: 11.83%
• Country: JP
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 71
• Industry: Education & Training Services
• EPS (TTM): 163.39
• Shares Outstanding: 16,670,000
• 10 Day Avg. Volume: 19,060
• 30 Day Avg. Volume: 18,946
• PEG Ratio: -10.68
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Step Co., Ltd. shows strong financial stability and growth, supported by effective cost management and a robust balance sheet. The technical analysis suggests a mild upward trend, though more indicators would provide a clearer picture. The stock's valuation is reasonable with an attractive dividend. However, the lack of recent cash flow data requires attention to ensure ongoing liquidity.

Step Co., Ltd. Business Overview & Revenue Model

Company Description

Step Co., Ltd. (9795) is a company that operates in the technology sector, specializing in the development and provision of software solutions and services. The company's core offerings include software development, IT consulting, and system integration services designed to enhance business efficiency and innovation for its clients across various industries.

How the Company Makes Money

Step Co., Ltd. generates revenue primarily through the sale of its software solutions and IT services. The company earns money by providing customized software development services tailored to meet the specific needs of its clients, which can range from small businesses to large enterprises. Additionally, Step Co., Ltd. offers IT consulting services, guiding organizations in their digital transformation efforts and helping them optimize their IT infrastructure. The company's system integration services, where they assist clients in merging disparate systems and ensuring seamless communication between them, also contribute significantly to its revenue. Key partnerships with other technology providers and strategic alliances play a vital role in enhancing the company's service offerings and expanding its market reach, further driving its earnings.

Step Co., Ltd. Financial Statement Overview

Summary

Step Co., Ltd. exhibits strong financial health with consistent revenue growth and robust profitability, evidenced by a high net profit margin of 17.08% and a low debt-to-equity ratio of 0.01. However, the absence of recent cash flow data limits full assessment of liquidity and operational efficiency.

Income Statement

Step Co., Ltd. demonstrates strong profitability and consistent revenue growth. The TTM gross profit margin stands at 29.65%, and the net profit margin is 17.08%, indicating efficient cost management and strong bottom-line performance. Revenue has grown steadily, with a notable increase of 7.31% over the past year. The EBIT and EBITDA margins of 24.87% and 28.25%, respectively, further highlight operational efficiency.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.01, suggesting minimal reliance on debt financing. The return on equity is strong at 9.92%, reflecting effective use of shareholder funds to generate profits. The equity ratio is high at 90.12%, indicating substantial equity financing and a stable capital structure.

Cash Flow

While the free cash flow growth rate is unavailable for the TTM period, historical data suggests positive trends in free cash flow generation. The operating cash flow to net income ratio for the last annual report is 1.35, indicating adequate cash generation from operations relative to net income. However, the lack of reported cash flow metrics for the TTM period poses a challenge in assessing current liquidity and cash flow sustainability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
15.49B	15.10B	14.44B	13.65B	13.04B	10.93B
	Gross Profit
4.59B	4.36B	4.00B	4.44B	4.27B	2.68B
	EBIT
3.85B	3.51B	3.19B	3.66B	3.51B	1.93B
	EBITDA
4.38B	4.03B	3.72B	4.16B	4.02B	2.37B
	Net Income Common Stockholders
2.65B	2.51B	2.41B	2.56B	2.47B	1.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.68B	9.67B	9.73B	9.35B	8.65B	7.88B
	Total Assets
29.59B	29.26B	28.63B	27.57B	26.79B	26.04B
	Total Debt
258.16M	295.53M	311.87M	409.02M	1.58B	3.43B
	Net Debt
-9.42B	-9.38B	-9.41B	-8.95B	-7.07B	-4.45B
	Total Liabilities
2.92B	3.02B	2.70B	2.77B	3.92B	4.98B
	Stockholders Equity
26.66B	26.24B	25.94B	24.80B	22.87B	21.06B
Cash Flow		Free Cash Flow
0.00	3.13B	2.38B	2.71B	3.41B	1.34B
	Operating Cash Flow
0.00	3.38B	2.85B	3.06B	3.72B	1.87B
	Investing Cash Flow
0.00	-937.54M	-1.03B	-388.41M	-401.88M	-560.11M
	Financing Cash Flow
0.00	-2.50B	-1.45B	-1.97B	-2.55B	1.73B

Step Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9795, the sentiment is Neutral. The current price of 2290 is below the 20-day moving average (MA) of 2307.25, above the 50-day MA of 2282.78, and above the 200-day MA of 2071.33, indicating a neutral trend. The MACD of 4.20 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9795.

Step Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4716	77 Outperform	$2.21T	36.63	36.60%	3.72%	8.31%	8.39%
9795	72 Outperform	¥37.80B	14.02		3.49%	6.41%	11.83%
4712	72 Outperform	¥14.21B	5.74		1.33%	17.70%	68.00%
Sector *	64 Neutral	$8.77B	14.68	4.78%	173.90%	3.25%	2.18%
4718	63 Neutral	¥42.86B	17.89		2.42%	6.48%	18.62%
4755	46 Neutral	$1.69T	―	-22.97%	―	10.38%	38.09%

Step Co., Ltd. Corporate Events

STEP Co., Ltd. Announces Share Repurchase

STEP Co., Ltd. has announced the repurchase of 39,200 of its own common shares, amounting to 87,459,800 yen, through market purchases on the Tokyo Stock Exchange during April 2025. This action is part of a broader strategy approved by the board in September 2024, allowing for the acquisition of up to 484,100 shares. The repurchase aims to optimize capital structure and potentially enhance shareholder value.

STEP Co., Ltd. Announces Share Repurchase

STEP Co., Ltd. announced the repurchase of 2,800 of its own common shares for a total of 6,255,900 yen, conducted through market purchases on the Tokyo Stock Exchange during March 2025. This move is part of a broader resolution to acquire up to 484,100 shares, reflecting the company’s strategic focus on enhancing shareholder value and managing its capital effectively.