FRONTEO, Inc. (JP:2158)
:2158
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FRONTEO, Inc.
(2158)
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Rating:55Neutral
Price Target:
¥854.00
▼(-2.18% Downside)
Action:ReiteratedDate:11/01/25
The overall stock score of 55 reflects a combination of mixed financial performance, neutral technical indicators, and high valuation concerns. The company's financials show potential for recovery but are currently unstable, while technical analysis suggests a lack of strong momentum. The high P/E ratio indicates overvaluation, which is a significant risk factor.
Positive Factors
Recurring software + services model
FRONTEO's core revenue mix of e-discovery services, software licensing/subscriptions and AI analytics creates recurring and project-based income tied to litigation, compliance and analytics needs. This diversified service+software model supports steady demand and cross-sell potential over multi-year enterprise relationships.
Negative Factors
Erratic revenue and net margins
Volatile revenue and swings into net losses undermine predictability of cash flows and budgeting. This erratic top-line performance can impede long-term contracting, investment planning, and customer retention, making it harder to sustain R&D or sales expansion required for stable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring software + services model
FRONTEO's core revenue mix of e-discovery services, software licensing/subscriptions and AI analytics creates recurring and project-based income tied to litigation, compliance and analytics needs. This diversified service+software model supports steady demand and cross-sell potential over multi-year enterprise relationships.
Read all positive factors
FRONTEO, Inc. (2158) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥32.99B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)29.0
Beta (1Y)1.68
Revenue Growth-10.49%
EPS GrowthN/A
CountryJP
Employees225
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.00
Shares Outstanding39,412,360
10 Day Avg. Volume1,134,060
30 Day Avg. Volume2,218,706
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)7.05
Price to Sales (P/S)3.73
P/FCF Ratio34.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)21.4
Revenue Forecast (FY)¥9.00B
FRONTEO, Inc. Business Overview & Revenue Model
Company Description
FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in Japan, the United States, Korea, and internationally. The company operates through LegalTech AI Business and AI Solution Business segments. It has eDiscovery and ...
How the Company Makes Money
FRONTEO makes money primarily by selling and delivering software and related professional services in its legal technology and AI analytics businesses. Key revenue streams include: (1) fees from e-discovery and digital forensics services, where th...
FRONTEO, Inc. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.07B | 6.10B | 7.38B | 7.22B | 10.93B | 10.37B |
| Gross Profit | 3.37B | 3.45B | 3.73B | 3.26B | 5.57B | 4.78B |
| EBITDA | 717.38M | 614.80M | -1.93B | -728.90M | 2.69B | 1.40B |
| Net Income | 262.29M | 555.09M | -2.84B | -1.70B | 1.31B | 359.10M |
Balance Sheet | ||||||
| Total Assets | 7.85B | 6.82B | 7.63B | 9.60B | 12.37B | 12.62B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 2.60B | 3.04B | 1.48B | 3.46B | 3.00B |
| Total Debt | 3.10B | 1.99B | 2.93B | 3.09B | 3.75B | 5.63B |
| Total Liabilities | 4.51B | 3.60B | 4.79B | 4.55B | 5.93B | 7.98B |
| Stockholders Equity | 3.34B | 3.23B | 2.84B | 5.05B | 6.44B | 4.64B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 668.34M | 1.23B | -1.54B | 1.72B | 1.45B |
| Operating Cash Flow | 0.00 | 751.47M | 1.71B | -914.62M | 2.38B | 2.03B |
| Investing Cash Flow | 0.00 | -254.03M | -181.86M | -625.06M | -618.21M | -347.73M |
| Financing Cash Flow | 0.00 | -911.48M | -32.15M | -606.32M | -1.46B | -53.02M |
FRONTEO, Inc. Technical Analysis
Positive
873.00
Price Trends
855.58
Negative
873.39
Negative
848.00
Negative
Market Momentum
-13.55
Negative
49.30
Neutral
73.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2158, the sentiment is Positive. The current price of 873 is above the 20-day moving average (MA) of 828.95, above the 50-day MA of 855.58, and above the 200-day MA of 848.00, indicating a neutral trend. The MACD of -13.55 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2158.
FRONTEO, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥28.84B | 16.05 | ― | 2.45% | 19.04% | 30.67% | |
74 Outperform | ¥23.58B | 16.06 | ― | 0.73% | 17.86% | 21.52% | |
74 Outperform | ¥29.08B | 35.99 | ― | ― | 29.61% | 93.16% | |
65 Neutral | ¥31.37B | 6.28 | 10.34% | 4.82% | -3.03% | 38.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥32.99B | 29.01 | ― | ― | -10.49% | ― |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.