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Japanese provider of software testing and quality-assurance services, plus SaaS tools for engineering teams.
Japanese provider of software testing and quality-assurance services, plus SaaS tools for engineering teams.
Bills customers mainly for the hours of its testers and engineers, so revenue follows headcount and how fully they are used. It has grown by acquiring smaller IT service firms as well as by hiring, while its software tools are a side line.
In one line: A software-QA-focused Japanese IT services firm.
Moat: narrow (scale, process know-how). Large trained tester workforce and testing methodology are the main edge in a labor-intensive niche.
Headquarters: Tokyo, Japan · Founded: 2005
Size Shift (3697.T) is a Japan Information Technology company (Information Technology Services) with a market value of $1.71B, the 528th largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥1,058 on 6 Nov 2026.
Performance Over six months the shares gained 61.2%, against -12.5% for the median peer and +1.8% for the Japan market (cap-weighted) — 3rd highest of 21 in its peer set.
Growth Revenue grew 24.5% over the last twelve months (peer median +7.9%); the operating margin is 10.8% (peer median 7.8%).
Valuation It trades at 19.2× forward earnings against a peer median of 28.3× (3rd cheapest of 15).
Price implies For today's price to make sense, revenue must grow about -2% a year for seven years (Req g). Recent delivered growth is +29%, so the hurdle is -31 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 21.3 points above its cost of capital (5.1% WACC).
Next results Next results expected around 8 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | ¥162B | ¥162B | ¥130B | ¥111B | ¥88.0B |
| Revenue growth | — | +24% | +17% | +26% | — |
| Gross profit | ¥54.2B | ¥54.2B | ¥45.0B | ¥35.4B | ¥29.9B |
| EBITDA | ¥21.7B | ¥21.7B | ¥18.8B | ¥13.4B | ¥13.3B |
| Net income | ¥7.43B | ¥7.43B | ¥8.94B | ¥5.13B | ¥6.25B |
| Free cash flow | n/a | ¥12.6B | ¥14.3B | ¥3.44B | ¥9.10B |
| Capital expenditure | n/a | ¥1.66B | ¥1.48B | ¥5.71B | ¥1.26B |
| Total debt | ¥34.7B | ¥34.7B | ¥12.3B | ¥9.58B | ¥4.91B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Shift 3697.T | $1.71B | +61% | +24% | 11% | 19.2× | -2.2% |
| Persol 2181.T | $4.11B | +22% | +10% | 4% | 13.7× | -10.3% |
| Globant GLOB | $2.05B | +21% | -1% | 10% | 8.0× | -1.2% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 3697.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +20.4% | -1.9% | highest of 21 |
| 6-month return | +61.2% | -12.5% | 3rd highest of 21 |
| Distance from 52-week high | -17.0% | -32.2% | 7th highest of 21 |
| Revenue growth (TTM) | +24.5% | +7.9% | 2nd highest of 21 |
| Operating margin | 10.8% | 7.8% | 7th highest of 21 |
| Forward P/E | 19.2× | 28.3× | 3rd cheapest of 15 |
| Growth the price implies (Req g, 7 yrs) | -2.2% | 16.4% | 3rd least demanding of 11 |
| Growth delivered (Del g) | +28.6% | +9.6% | 2nd highest of 11 |
| Hurdle (Req g minus delivered) | -30.7 pp | +2.9 pp | least demanding of 11 |
| ROIC minus cost of capital | +21.3 pp | -2.8 pp | 2nd highest of 18 |
| EV / EBITDA | 12.6× | 24.3× | 3rd cheapest of 11 |
| Net debt / EBITDA | 0.2× | -0.9× | 6th most indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Shift 3697.T | Japan | $1.71B | +61% | +24% | 11% | 19.2× | -2.2% | +28.6% |
| Omnicell OMCL | United States | $1.70B | -15% | +6% | 5% | 19.5× | 11.7% | +5.8% |
| Transportation Telecommunication and Information Development Inc. Ltd. Zhejiang 300469.SZ | China | $1.72B | -18% | -15% | -102% | n/a | n/a | n/a |
| Northking Information Technology 002987.SZ | China | $1.67B | -14% | +1% | 6% | 30.6× | 16.2% | +16.1% |
| Formula Systems (1985) Ltd. Sponsored ADR FORTY | United States | $1.75B | -26% | +1% | 8% | n/a | -3.4% | +6.3% |
| Simplex Holdings,Inc 4373.T | Japan | $1.66B | +25% | +20% | 23% | 19.4× | 12.4% | +16.3% |
| secunet Security Networks YSN.DE | Germany | $1.66B | +20% | +13% | 11% | 37.3× | n/a | n/a |
| CETC Cyberspace Security Technology 002268.SZ | China | $1.77B | -11% | -3% | 1% | 45.0× | n/a | n/a |
| Mega Fortune MGRT | United States | $1.65B | -14% | -8% | -37% | n/a | n/a | n/a |
| Zen Technologies ZENTEC.NS | India | $1.64B | +6% | +4% | 31% | 45.7× | 53.0% | +66.0% |
| A10 Networks ATEN | United States | $1.80B | -11% | +12% | 17% | 22.0× | 16.7% | +5.2% |
| CETC Digital Technology 600850.SS | China | $1.62B | -18% | -1% | 2% | 17.3× | 19.1% | +5.8% |
| Sigma Advanced Systems SIGMAADV.NS | India | $1.83B | +196% | +358% | 12% | n/a | n/a | n/a |
| PDF Solutions PDFS | United States | $1.59B | -27% | +23% | 8% | 26.0× | n/a | n/a |
| Concentrix CNXC | United States | $1.85B | +25% | +3% | 8% | 2.6× | -11.9% | +15.8% |
| Computer Age Management Services CAMS.NS | India | $1.87B | -15% | +9% | 39% | 32.3× | n/a | n/a |
| Data#3 DTL.AX | Australia | $1.54B | +81% | +6% | 8% | 31.6× | 26.9% | -14.2% |
| Shenzhen YSSTech Information Technology 300377.SZ | China | $1.53B | -24% | +14% | -3% | n/a | n/a | n/a |
| Black Box BBOX.NS | India | $1.53B | +10% | +12% | 7% | 47.3× | n/a | n/a |
| Shenzhen Forms Syntron Information 300468.SZ | China | $1.52B | -33% | +9% | 9% | n/a | n/a | n/a |
| Kainos KNOS.L | United Kingdom | $1.92B | +57% | +17% | 11% | 23.2× | 21.7% | +12.9% |