FRONTEO, Inc. (JP:2158)
:2158
Want to see JP:2158 full AI Analyst Report?
Top Page
FRONTEO, Inc.
(2158)
Select Model
Select Model
Rating:47Neutral
Price Target:
¥629.00
▼(-27.95% Downside)
Action:Reiterated
Date:05/19/26
The score is primarily pressured by weaker recent cash-flow conversion and higher leverage despite the earnings recovery, alongside bearish technicals with the stock trading below all major moving averages. A high P/E and lack of dividend yield data further limit valuation support.
Positive Factors
Revenue Growth Re-acceleration
A sustained +26% revenue rebound indicates improving demand for FRONTEO’s services and solutions. Durable top-line momentum supports scale benefits, investment in product development and sales, and provides a foundation for longer-term margin expansion if the company maintains execution.
Negative Factors
Weak Cash Conversion
Sharp deterioration in OCF and FCF versus reported net income shows weak cash conversion and higher working-capital needs. This reduces financial flexibility for capex, product investment or acquisitions and increases reliance on external funding during growth or market stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Re-acceleration
A sustained +26% revenue rebound indicates improving demand for FRONTEO’s services and solutions. Durable top-line momentum supports scale benefits, investment in product development and sales, and provides a foundation for longer-term margin expansion if the company maintains execution.
Read all positive factors
FRONTEO, Inc. (2158) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.44B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)57.9
Beta (1Y)1.70
Revenue Growth25.31%
EPS Growth-1.73%
CountryJP
Employees225
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)6.67
Shares Outstanding39,412,360
10 Day Avg. Volume1,134,060
30 Day Avg. Volume2,218,706
Financial Highlights & Ratios
PEG Ratio-33.99
Price to Book (P/B)8.19
Price to Sales (P/S)4.12
P/FCF Ratio267.01
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 generates revenue primarily by providing (1) e-discovery services to corporate and law-firm clients and (2) software/AI solutions that support legal and compliance analytics. In e-discovery, the company typically earns fees tied to project...
FRONTEO, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.07B | 7.64B | 6.10B | 7.38B | 7.22B | 10.93B |
| Gross Profit | 3.37B | 3.91B | 3.45B | 3.73B | 3.26B | 5.57B |
| EBITDA | 717.38M | 1.17B | 614.80M | -1.93B | -728.90M | 2.69B |
| Net Income | 262.29M | 544.24M | 555.09M | -2.84B | -1.70B | 1.31B |
Balance Sheet | ||||||
| Total Assets | 7.85B | 9.20B | 6.82B | 7.63B | 9.60B | 12.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 1.73B | 2.60B | 3.04B | 1.48B | 3.46B |
| Total Debt | 3.10B | 4.02B | 1.99B | 2.93B | 3.09B | 3.75B |
| Total Liabilities | 4.51B | 5.36B | 3.60B | 4.79B | 4.55B | 5.93B |
| Stockholders Equity | 3.34B | 3.84B | 3.23B | 2.84B | 5.05B | 6.44B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 117.94M | 668.34M | 1.23B | -1.54B | 1.72B |
| Operating Cash Flow | 0.00 | 319.07M | 751.47M | 1.71B | -914.62M | 2.38B |
| Investing Cash Flow | 0.00 | -2.55B | -254.03M | -181.86M | -625.06M | -618.21M |
| Financing Cash Flow | 0.00 | 1.34B | -911.48M | -32.15M | -606.32M | -1.46B |
FRONTEO, Inc. Technical Analysis
Negative
873.00
Price Trends
798.24
Negative
838.58
Negative
876.09
Negative
Market Momentum
-53.40
Positive
28.64
Positive
9.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2158, the sentiment is Negative. The current price of 873 is above the 20-day moving average (MA) of 753.70, above the 50-day MA of 798.24, and below the 200-day MA of 876.09, indicating a bearish trend. The MACD of -53.40 indicates Positive momentum. The RSI at 28.64 is Positive, neither overbought nor oversold. The STOCH value of 9.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥28.95B | 11.97 | ― | 0.73% | 17.32% | 33.18% | |
74 Outperform | ¥26.57B | 11.87 | ― | 2.45% | 8.50% | 2.04% | |
70 Outperform | ¥25.52B | 50.86 | ― | ― | 31.09% | 75.74% | |
65 Neutral | ¥30.39B | 20.84 | 10.34% | 4.82% | -2.76% | 36.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | ¥24.44B | 57.86 | ― | ― | 25.31% | -1.73% |
* Technology Sector Average
JP:2158
FRONTEO, Inc.
620.00
23.00
3.85%
JP:4725
CAC Holdings Corporation
1,800.00
-160.61
-8.19%
JP:3916
Digital Information Technologies Corp.
864.00
-376.78
-30.37%
JP:3984
User Local, Inc.
1,791.00
-31.80
-1.74%
JP:5574
ABEJA,Inc.
2,560.00
-495.00
-16.20%
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.