Cocolive,Inc. (137A) AI Stock Analysis

• Market Cap: ¥2.04B
• Dividend Yield: N/A
• Average Volume (3M): 9.07K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.95
• Revenue Growth: 23.74%
• EPS Growth: 41.93%
• Country: JP
• Employees: 83
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): 15.26
• Shares Outstanding: 3,043,840
• 10 Day Avg. Volume: 12,270
• 30 Day Avg. Volume: 9,070
• PEG Ratio: 0.58
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 17.58
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥767.00 ▼(-35.71% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is driven primarily by strong financial performance (profitability improving, debt-free balance sheet, and solid cash flow). Valuation is also favorable with a low P/E. These positives are partially offset by weak technicals, with the stock in a pronounced downtrend and very negative momentum.

Positive Factors

Debt-free balance sheet

Zero reported debt across 2023–2025 provides durable financial flexibility. Without interest burdens the company can fund organic growth, R&D, or M&A, absorb downturns and reallocate capital opportunistically, preserving strategic optionality over months to years.

Improving margins

Substantial expansion to ~21.5% operating and ~16.1% net margin, with gross margins ~57–59%, signals scalable economics and pricing power. Sustained margin improvement supports durable profitability, reinvestment capacity and resilience in a competitive software-infrastructure market.

Strong cash generation

Operating cash flow growth and free cash flow tracking net income indicate high earnings quality. Reliable FCF supports capex, product investment or shareholder returns and reduces dependence on external funding through typical growth cycles over the next several quarters.

Negative Factors

Volatile revenue growth

Pronounced top-line swings complicate medium-term planning and resource allocation. Volatility forces uneven hiring, ramp timing, and capital deployment decisions, and can amplify margin variability, making multi-quarter forecasting and steady scaling harder to sustain.

Normalizing ROE

A decline from peak ROE implies diminishing incremental returns as the company scales. If future investments yield lower marginal returns, management must deploy more capital to achieve past return levels, pressuring long-term return on invested capital.

Historic cash conversion weakness

Earlier weak cash conversion highlights working-capital sensitivity during growth inflection points. Although improved later, similar timing or receivable swings could re-emerge in lumpy quarters, stressing liquidity and forcing external financing or delayed investments.

Cocolive,Inc. Business Overview & Revenue Model

Company Description

Cocolive, Inc. (137A) is a technology company specializing in innovative software solutions for the live streaming and virtual events industry. The company leverages cutting-edge technology to provide seamless, interactive, and high-quality live streaming experiences for businesses and individual users. Cocolive's core services include a robust live streaming platform, virtual event hosting solutions, and a suite of engagement tools designed to enhance audience interaction and participation.

How the Company Makes Money

Cocolive, Inc. generates revenue through a combination of subscription fees, transaction-based fees, and partnerships. Its primary revenue stream comes from subscription plans offered to businesses and individual users who utilize its live streaming platform and virtual event solutions. These plans vary based on features, number of participants, and usage limits. Additionally, the company earns transaction fees from pay-per-view events and premium content offerings hosted on its platform. Significant partnerships with event organizers and businesses further contribute to its earnings, as these collaborations often involve co-hosting large-scale virtual events or integrating Cocolive’s technology into third-party platforms.

Cocolive,Inc. Financial Statement Overview

Summary

Fundamentals are strong: rapid revenue expansion with improving profitability (operating margin up to 21.5%, net margin up to 16.1%), a debt-free balance sheet, and solid cash generation with free cash flow closely tracking net income. Main risk is volatility in growth rates, which may be harder to sustain.

Income Statement

Strong and improving profitability alongside rapid top-line expansion. Annual revenue rose from 557.1M (2022) to 1,301.8M (2025), with growth accelerating to 70.07% in 2025. Margins are robust for the sector: gross margin stayed ~57–59%, while operating margin improved from 12.9% (2022) to 21.5% (2025) and net margin expanded from 8.7% to 16.1%. Primary watch-out is that growth has been volatile (0% in 2022, then >40%, then ~29%, then 70%), which can be harder to sustain.

Balance Sheet

Balance sheet strength is a major positive: total debt is 0 in 2023–2025 (down from 40.0M in 2022), implying very low financial risk and strong flexibility. Equity and assets scaled quickly (equity 141.1M in 2022 to 889.7M in 2025; assets 240.4M to 1,058.0M), supporting growth without leverage. Returns on equity are consistently high (~22.6%–36.4%), though the decline from the 2023 peak suggests incremental profitability may be normalizing as the company scales.

Cash Flow

Cash generation is solid and tracks earnings well. Operating cash flow increased from 47.2M (2022) to 221.4M (2025), and free cash flow closely matches net income (about ~1.0x in 2022–2025), indicating good earnings quality. Free cash flow growth remained healthy (30.7% in 2024; 40.83% in 2025). The key weakness is the historically weaker cash conversion in 2022, when operating cash flow covered net income by only ~0.47x, suggesting earlier working-capital or timing pressure (improved to ~1.14–1.32x in 2023–2025).

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022
Income Statement
Total Revenue	765.43M	1.30B	1.03B	797.14M	557.14M
Gross Profit	448.79M	738.90M	600.97M	468.97M	324.52M
EBITDA	92.08M	279.89M	203.63M	142.60M	71.71M
Net Income	120.42M	209.17M	149.97M	97.17M	48.47M
Balance Sheet
Total Assets	792.19M	1.06B	792.19M	372.50M	240.43M
Cash, Cash Equivalents and Short-Term Investments	641.97M	0.00	641.97M	239.11M	129.88M
Total Debt	0.00	0.00	0.00	0.00	40.00M
Total Liabilities	129.42M	168.28M	129.42M	105.35M	99.37M
Stockholders Equity	662.77M	889.69M	662.77M	267.16M	141.06M
Cash Flow
Free Cash Flow	157.22M	221.41M	157.22M	120.31M	46.06M
Operating Cash Flow	157.50M	221.41M	157.50M	120.31M	47.15M
Investing Cash Flow	-288.00K	0.00	-288.00K	0.00	-1.09M
Financing Cash Flow	245.64M	15.11M	245.64M	-11.07M	10.33M

Cocolive,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1193.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:137A, the sentiment is Negative. The current price of 1193 is above the 20-day moving average (MA) of 746.15, above the 50-day MA of 871.36, and below the 200-day MA of 1199.69, indicating a bearish trend. The MACD of -47.03 indicates Negative momentum. The RSI at 25.47 is Positive, neither overbought nor oversold. The STOCH value of 10.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:137A.

Cocolive,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
137A	75 Outperform	¥2.04B	10.08	―	―	23.74%	41.93%
4431	75 Outperform	¥48.05B	27.27	―	0.52%	26.98%	19.69%
4374	72 Outperform	¥8.48B	15.15	―	0.47%	19.35%	71.74%
3633	65 Neutral	¥10.60B	11.87	―	2.16%	2.75%	25.24%
3665	61 Neutral	¥16.91B	85.14	―	2.31%	9.71%	-70.49%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
3680	44 Neutral	¥3.36B	-1.87	―	1.17%	-21.76%	-5832.28%