SMS CO., LTD. SMSSY

IndustrialsProfessional & Commercial ServicesJapan

Last close 8.03 USD on Nov 1, 2026, +46.1% year to date

Quant rating

Quant rating B Rank 112 of 418 in Industrials

Growth A 11 of 418
Valuation B 143 of 418
Quality B 150 of 418
Revisions C 292 of 418
Momentum B 89 of 418

Wall Street consensus Sell (3.80)Average target 11.02 USD +37.2%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 1.4B
Enterprise value: 1.4B
52-week range: 4.42 – 9.04
3-year range: 4.22 – 10.54
Dividend yield: 1.13%
Beta (5 years): –
Shares outstanding: 87.6M
Next earnings: Jan 30, 2027

About the company

SMS CO., LTD. is a Japan-based company mainly engaged in the businesses and related operations aimed at building information infrastructure suitable for an aging society. It has four business divisions. The career division includes recruitment and qualification schools for care workers, recruitment for nurses, recruitment for childcare workers, and a cross-occupation direct recruiting platform. The care and disability welfare business division includes management support platform for care and disability welfare businesses. The overseas division includes medical platform businesses and global career businesses. The business development division includes remote health guidance services for health insurance associations, remote industrial health services for companies, renovation contractor information services, funeral home referral services and others.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	408	406	357	344	320	–
Revenue growth	0.3%	14.0%	3.7%	7.6%	−1.6%	4.7%
EPS (basic, normalized)	−1.09	0.50	0.52	0.54	0.47	–
EPS growth	–	−4.6%	−2.8%	13.7%	–	–
Gross margin	88.3%	88.4%	88.1%	87.8%	88.5%	88.2%
Net margin	−22.1%	9.9%	13.4%	14.0%	13.9%	5.8%
ROE	−38.7%	13.2%	17.5%	18.7%	20.5%	6.3%

Balance sheet, last quarter
Cash & short-term investments (mil)	108
Current ratio	1.56x
Long-term debt (mil)	5.4
Net debt (mil)	−62.2
Total equity (mil)	184
Net debt / equity	−0.34x
Net debt / EBITDA	−0.87x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	408	+0.3%	3.4x	71.5	+8.7%	19.2x	−1.09	−317.7%	−7.4x
2027	452	+10.9%	3.0x	65.9	−7.8%	20.9x	0.48	+144.3%	16.7x
2028	482	+6.6%	2.9x	73.0	+10.8%	18.8x	0.54	+12.6%	14.8x
2029	529	+9.7%	2.6x	83.0	+13.8%	16.6x	0.63	+15.2%	12.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	452	+0.1%	+0.2%	+1.3%	0.48	−1.8%	−3.3%	−13.8%
2028	482	−2.1%	−2.0%	−1.9%	0.54	−2.7%	−3.4%	−10.3%
2029	529	−2.5%	−2.5%	−5.5%	0.63	−4.4%	−2.9%	−13.2%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	14,616	17,426	14,416	13,043	16,067	18,672	14,803	13,871	17,389	20,212
Sales mean (mil)	15,087	18,050	14,582	14,191	16,023	19,171	15,681	13,994	17,348	20,342
Surprise	−3.1%	−3.5%	−1.1%	−8.1%	+0.3%	−2.6%	−5.6%	−0.9%	+0.2%	−0.6%
EPS reported	32.87	36.71	6.13	2.19	25.93	47.17	12.82	−3.84	−231.20	45.42
EPS mean	35.04	29.69	11.32	7.05	24.59	26.18	5.49	0.91	25.48	–
Surprise	−6.2%	+23.6%	−45.8%	−69.0%	+5.5%	+80.2%	+133.5%	−522.0%	−1,007.4%	–

Peer comparison Professional & Commercial Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
SMSSY SMS CO., LTD.	1.4B	−0.87x	−22.1%	7.34x	16.7x	14.8x	20.9x	18.8x
HCSG Healthcare Services Group, Inc.	1.7B	−2.21x	3.2%	3.11x	18.5x	19.4x	10.3x	10.7x
DFIN Donnelley Financial Solutions, Inc.	1.6B	0.42x	4.2%	4.01x	13.3x	12.0x	6.8x	6.5x
MLKN MillerKnoll, Inc.	1.5B	3.06x	2.4%	1.09x	10.8x	9.5x	6.7x	6.3x
CMPR Cimpress PLC	1.4B	0.28x	2.6%	−2.81x	11.3x	7.0x	2.9x	2.5x
HAYPY Hays plc	1.3B	–	−0.9%	2.32x	353.4x	198.1x	9.5x	7.6x
Mean		0.14x	−1.8%	2.51x	70.6x	43.5x	9.5x	8.7x
Median		0.28x	2.5%	2.72x	15.0x	13.4x	8.2x	7.0x

Technical analysis

1M−5.9%
3M+11.1%
1Y+46.1%
3Y+4.5%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, SMS CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	408	406	357	344	320	325
Cost of revenue	47.9	47.3	42.5	41.9	36.6	35.7
Gross profit	360	359	314	302	283	289
Selling, general & administrative expenses	290	291	237	225	211	220
Research & development	–	–	–	–	–	–
Depreciation/amortization	27.6	25.4	22.8	21.8	20.4	19.7
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	145	0.6	–	0	0	1.2
Other operating expenses	0	0	0	0	0	0
Operating income	−103	41.6	54.6	54.8	51.9	48.2
Net interest income (expense)	11.5	13.1	10.5	11.0	11.5	10.6
Gain (loss) on sale of assets	0	−0.2	−1.1	−0.1	−0.1	−1.1
Other non-operating income (expense)	0.3	0.4	0.3	0.5	0.1	0.7
Net income before taxes	−90.9	54.9	64.4	66.2	63.3	58.4
Provision for taxes	−0.7	14.5	16.6	18.0	18.9	15.1
Minority interest	–	0	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	−90.2	40.4	47.8	48.2	44.5	43.4
Extraordinary items	–	–	–	–	–	–
Net income	−90.2	40.4	47.8	48.2	44.5	43.4
EBIT, normalized	42.8	42.2	54.6	54.8	51.9	49.4
EBITDA, normalized	71.9	67.7	77.5	76.6	72.3	69.2
Basic EPS, normalized	−1.09	0.50	0.52	0.54	0.47	–

Balance sheet in millions of USD, fiscal years

Balance sheet, SMS CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	86.5	108	121	128	120	95.2
Receivables	147	140	121	111	102	105
Total inventory	0.5	0.8	0.3	0.4	0.4	0.4
Prepaid expenses	7.7	8.6	6.9	6.0	5.5	7.3
Other current assets	0.2	0.3	0.6	0.5	0.2	1.4
Total current assets	242	258	250	245	229	210
Property, plant & equipment	6.8	7.9	7.5	6.7	7.2	8.5
Goodwill	0.4	64.7	64.5	75.5	73.2	79.8
Intangibles	45.0	141	122	125	115	113
Long-term investments	18.3	19.2	17.5	19.8	23.2	17.8
Note receivable	–	–	–	–	–	–
Other long-term assets	19.9	19.8	18.2	18.4	17.6	18.1
Total assets	333	510	479	490	465	447
Liabilities
Accounts payable	2.6	2.8	3.0	2.4	2.5	2.3
Payable/accrued	–	–	–	–	–	–
Accrued expenses	17.3	18.2	19.2	16.5	14.3	14.6
Short-term debt	29.0	23.3	0	0	0	0
Current portion of long-term debt	8.9	13.5	13.6	15.5	17.5	23.4
Other current liabilities	97.1	102	105	101	98.9	85.0
Total current liabilities	155	160	141	136	133	125
Long-term debt	7.7	16.8	28.9	47.2	67.7	98.7
Minority interest	–	–	–	–	–	–
Other liabilities	1.6	18.1	16.5	18.0	17.7	17.9
Total liabilities	164	195	186	201	219	242
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	16.1	17.0	16.9	17.4	19.0	20.6
Additional paid-in capital	1.6	1.7	2.1	0.9	0.9	0.8
Retained earnings (accumulated deficit)	170	291	260	254	231	211
Treasury stock	−61.2	−38.1	−12.6	0	0	0
Other equity	42.2	43.7	26.0	17.4	−4.0	−28.1
Total equity	168	316	293	289	247	205
Total liabilities & shareholders' equity	333	510	479	490	465	447

Cash flow statement in millions of USD, fiscal years

Cash flow statement, SMS CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	−90.9	54.9	64.4	66.2	63.3	58.4
Depreciation, depletion & amortization	29.1	25.4	22.8	21.8	20.4	19.7
Deferred taxes	–	–	–	–	–	–
Non-cash items	147	−0.2	1.2	3.5	−0.5	6.0
Changes in working capital	−29.9	−41.4	−23.8	−27.5	−2.5	−23.1
Cash from operations	55.4	38.7	64.6	64.0	80.7	61.1
Investing activities
Capital expenditures	−24.6	−27.1	−24.5	−21.9	−16.5	−18.4
Other investing cash flows	−1.4	0	−0.2	−6.4	−0.6	2.3
Cash from investing	−26.0	−27.1	−24.7	−28.3	−17.1	−16.1
Financing activities
Financing cash flow items	–	–	–	0	0	0
Cash dividends paid	−15.3	−11.6	−8.6	−6.9	−7.0	−6.6
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−31.0	−16.1	−24.5	−16.0	−25.8	−40.6
Cash from financing	−46.3	−27.7	−33.2	−22.9	−32.8	−47.2
Foreign exchange effects	−0.2	2.0	1.2	2.6	1.9	−1.0
Net change in cash	−17.0	−14.1	7.9	15.4	32.7	−3.1
Free cash flow	30.8	11.6	40.1	42.1	64.2	42.8

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.