# SMS CO.,LTD: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第23期(2025/04/01－2026/03/31) (S100YF7X)
> Page: https://vizora.meequs.com/en/company/sms
> Retrieved: 2026-09-30T20:58:26.864Z

## Company

SMS, founded in 2003, is a company in Health Tech listed on TSE Prime. It has 4,660 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | SMS CO., LTD. |
| Ticker | 2175 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/2175.T) |
| Listing | TSE Prime |
| Head office | 東京都港区芝公園二丁目11番1号 |
| Representative (per filing) | 代表取締役社長 髙畑 正樹 |
| Founded | Apr 2003 |
| Share capital | ¥2.55B |
| Employees (consolidated) | 4,660 |
| Average salary (parent only) | ¥5.2M |
| Fiscal year end | March |
| Website | www.bm-sms.co.jp (https://www.bm-sms.co.jp/) |
| Corporate number | 2010001134117 |
| EDINET | E05697 |
| Industries (Vizora) | Health Tech |

> Profile source: annual securities report (S100YF7X, filed 2026-06-19). As of filing

## Five-axis industry profile

Primary industry: Health Tech (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 39.3 | 14 |
| Profitability | 36.1 | 18 |
| Cash conversion | 91.2 | 17 |
| Efficiency | 75 | 18 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- SMS brought in ¥64.7B in revenue.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +6.2% from the prior year, operating profit +7.1%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥64.7B |  |
| Operating income | ¥6.79B | Margin 10.5% |
| Net income | -¥14.3B | Margin -22.1% |
| Free cash flow | ¥4.89B |  |
| Employees (consolidated) | 4,660 |  |
| EPS | ¥-272.34 |  |
| Book value per share | ¥251.45 |  |
| Equity ratio | 50.2% |  |
| Shares outstanding | 87,561,600 |  |
| Treasury shares | 5,481,100 |  |
| Shareholders | 8,642 |  |
| Average salary (parent only) | ¥5.2M | Filing company only |
| Cash ratio | 23.8% | Cash ÷ revenue 19.4% |
| Vs. industry median margin | -3.3 pp | Health Tech |
| ROA | -22.1% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 1.7× dividends

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥35960000000 | ¥64735000000 | +80.0% |
| Operating income | ¥5470000000 | ¥6787000000 | +24.1% |
| Operating margin | 15.2% | 10.5% | -4.7 pp |
| Employees | 3,001 people | 4,660 people | +55.3% |
| Cash and equivalents | ¥10144000000 | ¥12547000000 | +23.7% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 64,735 | 100.0% | S100YF7X |
| Cost of revenue | 7,602 | 11.7% | S100YF7X |
| Gross profit | 57,132 | 88.3% | S100YF7X |
| SG&A | 50,345 | 77.8% | S100YF7X |
| Operating income | 6,787 | 10.5% | S100YF7X |
| Ordinary income | 8,721 | 13.5% | S100YF7X |
| Pretax income | -14,433 | -22.3% | S100YF7X |
| Income tax | -115 | -0.2% | S100YF7X |
| Net income | -14,317 | -22.1% | S100YF7X |
| Net income attributable to owners | -14,317 | -22.1% | S100YF7X |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 12 |
| SG&A | 78 |
| Operating income | 10 |
| (Ref.) Net income | -22 |

### Margin funnel

Gross margin 88.3% → Operating margin 10.5% → Net margin -22.1%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +6.2%; Core profit growth: +7.1%
Growth quality: similar-growth
Operating leverage (core profit growth ÷ revenue growth): 1.15×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 60,952 | 64,735 | 3,783 | +6.2% |
| Gross profit | 53,854 | 57,132 | 3,278 | +6.1% |
| Operating income | 6,335 | 6,787 | 452 | +7.1% |
| Net income attributable to owners | 6,054 | -14,317 | -20,371 | -336.5% |
| Operating cash flow | 5,806 | 8,799 | 2,993 | +51.6% |
| Free cash flow | 1,735 | 4,891 | 3,156 | +181.9% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 35,140 | 4,935 | 14.0% | 4,760 | 5,591 | 3,986 | S100LKG9 |
| FY ending Mar 2021 | 35,960 | 5,470 | 15.2% | 4,800 | 6,769 | 4,734 | S100OFGB |
| FY ending Mar 2022 | 38,899 | 6,318 | 16.2% | 5,408 | 9,818 | 7,806 | S100R053 |
| FY ending Mar 2023 | 45,667 | 7,279 | 15.9% | 6,406 | 8,504 | 5,590 | S100TPIW |
| FY ending Mar 2024 | 53,973 | 8,269 | 15.3% | 7,227 | 9,773 | 6,061 | S100W15P |
| FY ending Mar 2025 | 60,952 | 6,335 | 10.4% | 6,054 | 5,806 | 1,735 | S100YF7X |
| FY ending Mar 2026 | 64,735 | 6,787 | 10.5% | -14,317 | 8,799 | 4,891 | S100YF7X |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥13.9M |
| Operating income per employee (consolidated) | ¥1.5M |
| Net income per employee (consolidated) | -¥3.1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 3,303 | 3,703 | 4,188 | 4,528 | 4,660 |
| Average salary (parent company) | ¥5M | ¥5M | ¥5.1M | ¥5.1M | ¥5.2M |
| Average age (parent company) | 32.3 years | 32.4 years | 32.4 years | 32.5 years | 32.8 years |
| Average tenure (parent company) | 3.5 years | 3.5 years | 3.6 years | 3.9 years | 4.3 years |

Year over year: Employees (consolidated) +2.9% · Revenue (consolidated) +6.2%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 8,799 | 13.6% | S100YF7X |
| Capital expenditure | 3,908 | 6.0% | S100YF7X |
| Free cash flow | 4,891 | 7.6% | 算出 |
| Investing cash flow | -4,128 | -6.4% | S100YF7X |
| Financing cash flow | -7,347 | -11.3% | S100YF7X |
| Dividends paid | 2,421 | 3.7% | S100YF7X |
| Share buyback | 3,999 | 6.2% | S100YF7X |
| Change in cash | -2,705 | -4.2% | S100YF7X |
| Cash and equivalents | 12,547 | 19.4% | S100YF7X |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 14,126 | 16,170 | 17,365 | 15,253 | 12,547 | S100TPIW, S100W15P, S100YF7X |
| Total assets | 56,585 | 65,098 | 72,475 | 76,540 | 52,774 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Net assets | 29,991 | 38,421 | 44,284 | 47,319 | 26,724 | S100TPIW, S100W15P, S100YF7X |
| Share capital | 2,310 | 2,315 | 2,551 | 2,551 | 2,551 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Property, plant and equipment | 876 | 886 | 1,132 | 1,187 | 1,087 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Intangible assets excluding goodwill | 22,923 | 26,594 | 28,165 | 30,841 | 7,210 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Goodwill | 8,907 | 10,029 | 9,752 | 9,701 | 64 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Investment securities | 2,825 | 2,629 | 2,652 | 2,875 | 2,909 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Current assets | 27,823 | 32,552 | 37,775 | 38,664 | 38,411 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Current liabilities | 16,207 | 18,015 | 21,325 | 23,990 | 24,584 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Short-term borrowings | — | — | — | 3,500 | 4,600 | S100YF7X |
| Long-term borrowings | 8,054 | 6,153 | 4,251 | 2,350 | 1,050 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Total liabilities | 26,594 | 26,677 | 28,190 | 29,221 | 26,050 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Equity attributable to owners of parent | 30,123 | 35,624 | 40,071 | 40,531 | 19,792 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Retained earnings | 27,699 | 33,190 | 39,111 | 43,430 | 26,691 | S100R053, S100TPIW, S100W15P, S100YF7X |
| Treasury stock | -1 | -1 | -1,904 | -5,713 | -9,711 | S100R053, S100TPIW, S100W15P, S100YF7X |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 24% | S100YF7X |
| Property, plant and equipment | 2% | S100YF7X |
| Intangibles and goodwill | 14% | S100YF7X |
| Investment securities | 5% | S100YF7X |
| Other assets | 55% | S100YF7X |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 49% | S100YF7X |
| Equity | 51% | S100YF7X |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 56,585 | 65,098 | 72,475 | 76,540 | 52,774 |
| Equity | 29,991 | 38,421 | 44,284 | 47,319 | 26,724 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 14,126 | 16,170 | 17,365 | 15,253 | 12,547 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 1.7% | S100YF7X |
| Fixed assets ÷ total assets | 2.1% | S100YF7X |
| Goodwill ÷ parent equity | 0.3% | S100YF7X |

Goodwill over 4 years: 8,907 → 64 JPY; total investing cash flow: -17,780 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 23.8% |
| Cash ÷ revenue | 19.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 129.6% |
| Cash vs. profit gap | 23,116 JPY mn |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | 131.3% |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | 49.5% |
| CapEx intensity (capex ÷ revenue) | 6.0% |
| Investing CF relative to operating CF | 46.9% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 13.9% | 0.69× | 9.6% | 1.88× | 18.0% | S100R053 |
| 2023 | 14.0% | 0.75× | 10.5% | 1.85× | 19.5% | S100TPIW |
| 2024 | 13.4% | 0.78× | 10.5% | 1.82× | 19.1% | S100W15P |
| 2025 | 9.9% | 0.82× | 8.1% | 1.85× | 15.0% | S100YF7X |
| 2026 | — | —× | -22.1% | —× | — | S100YF7X |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| ＭＯＲＯ合同会社 | Major shareholder | 18.7% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 11.2% | 2026-03-31 |
| MISAKI ENGAGEMENT MASTER FUND （常任代理人 香港上海銀行東京支店） | Major shareholder | 3.4% | 2026-03-31 |
| GOLDMAN,SACHS & CO.REG （常任代理人 ゴールドマン・サックス証券株式会社） | Major shareholder | 3.4% | 2026-03-31 |
| NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN (CASHPB) （常任代理人 野村證券株式会社） | Major shareholder | 3.4% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 2.9% | 2026-03-31 |
| アズワン株式会社 | Major shareholder | 2.9% | 2026-03-31 |
| GOLDMAN SACHS INTERNATIONAL （常任代理人 ゴールドマン・サックス証券株式会社） | Major shareholder | 2.9% | 2026-03-31 |
| CGML PB CLIENT ACCOUNT/COLLATERAL （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 2.8% | 2026-03-31 |
| UBS AG LONDON A/C IPB SEGREGATED CLIENT ACCOUNT （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 2.7% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第23期(2025/04/01－2026/03/31) | S100YF7X | 2026-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YF7X,, |
| 有価証券報告書－第22期(2024/04/01－2025/03/31) | S100W15P | 2025-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W15P,, |
| 有価証券報告書－第21期(2023/04/01－2024/03/31) | S100TPIW | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TPIW,, |
| 有価証券報告書－第20期(2022/04/01－2023/03/31) | S100R053 | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R053,, |
| 有価証券報告書－第19期(令和3年4月1日－令和4年3月31日) | S100OFGB | 2022-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OFGB,, |
| 有価証券報告書－第18期(令和2年4月1日－令和3年3月31日) | S100LKG9 | 2021-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LKG9,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).