Liberaware Co.,Ltd. (218A) AI Stock Analysis

• Market Cap: ¥27.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 43
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): -32.06
• Shares Outstanding: 18,959,900
• 10 Day Avg. Volume: 1,818,540
• 30 Day Avg. Volume: 1,693,786
• PEG Ratio: -6.69
• Price to Book (P/B): 36.46
• Price to Sales (P/S): 24.17
• P/FCF Ratio: -82.89
• 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: 48 Neutral
• Price Target: ¥1,386.00 ▲(11.41% Upside)

The score is held back primarily by weak financial quality—especially negative operating/free cash flow and weak profitability despite strong revenue growth. Technicals are mixed with modest momentum but negative MACD, while valuation is difficult to justify with a negative P/E and no dividend yield data.

Positive Factors

Revenue growth

A 72% revenue increase signals strong commercial traction for Liberaware's industrial drone solutions, suggesting expanding addressable market and product adoption. Sustained top-line growth supports scale economics, recurring services, and potential long-term market share gains if profitability improves.

Improving gross margins

Reported improving gross margins indicate better cost control or higher‑value product mix. Durable margin improvement enhances unit economics for hardware-plus-software inspection offerings, increasing the probability of eventual operating profitability and stronger free cash flow once scale is achieved.

Improved leverage management

An improving debt-to-equity ratio reflects progress in leverage management, lowering financial risk. Better capital structure increases flexibility to fund R&D, capex for specialized drones, and service expansion without immediate reliance on dilutive equity or expensive debt, strengthening long-term stability.

Negative Factors

Negative cash generation

Negative operating and free cash flows show the company burns cash to fund operations and growth. Persistent cash deficits constrain reinvestment, require external financing, and raise execution risk for scaling inspections and software services, pressuring long-term sustainability absent cash-flow turnaround.

Weak operating profitability

Negative EBIT/EBITDA margins despite rapid revenue growth mean the business isn't yet converting sales into sustainable operating profits. If structural cost bases or pricing power don't improve, the company may struggle to generate durable operating returns as it scales.

Low return on equity

Low return on equity signals the firm struggles to translate assets and equity into shareholder returns. This persistent weak ROE suggests inefficiencies in capital allocation or margin generation, limiting the company's ability to finance growth internally and to create long-term investor value.

Liberaware Co.,Ltd. Business Overview & Revenue Model

Company Description

Liberaware Co., Ltd. develops inspection drones and data editing and analysis technology. The company was founded by Hong Kyu Min and Tetsuya Wada on August 22, 2016 and is headquartered in Chiba, Japan.

How the Company Makes Money

Liberaware Co., Ltd. generates revenue through multiple streams, primarily from software licensing, subscription services, and consultancy fees. The company offers its software products on a subscription basis, allowing clients to access updates and support while ensuring a steady income flow. Additionally, Liberaware provides consulting services to help businesses implement and optimize their software solutions, charging for the expertise and customization involved. The company may also establish strategic partnerships with other technology firms, expanding its market reach and creating bundled service offerings that enhance its revenue potential.

Liberaware Co.,Ltd. Financial Statement Overview

Summary

Strong revenue growth (72% in the latest period) and improving gross margin, but overall profitability remains weak with negative EBIT/EBITDA margins. Cash flow is a major concern, with negative operating and free cash flows and poor cash conversion.

Income Statement

Liberaware Co.,Ltd. has shown significant revenue growth over the years, with a notable 72% increase in the latest period. However, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins, despite a positive net profit margin in the most recent year. The gross profit margin has improved, suggesting better cost management, but the overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. However, the return on equity remains low, reflecting challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the company needs to enhance its profitability to improve overall financial health.

Cash Flow

Liberaware Co.,Ltd. faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The company needs to improve its cash flow generation to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.49B	1.41B	815.31M	379.60M	260.46M
Gross Profit	700.62M	669.00M	359.89M	46.50M	39.84M
EBITDA	-1.38B	-1.54B	-364.76M	-569.96M	-438.71M
Net Income	107.88M	46.00M	-437.97M	-641.11M	-456.07M
Balance Sheet
Total Assets	1.70B	1.70B	1.52B	1.07B	639.92M
Cash, Cash Equivalents and Short-Term Investments	751.00M	751.00M	1.06B	608.67M	349.18M
Total Debt	491.00M	491.00M	370.21M	385.73M	198.00M
Total Liabilities	768.00M	768.00M	651.76M	511.01M	335.49M
Stockholders Equity	932.00M	932.00M	865.63M	563.29M	304.43M
Cash Flow
Free Cash Flow	-475.68M	-410.00M	-260.17M	-825.79M	-541.54M
Operating Cash Flow	-466.53M	-363.00M	-253.35M	-637.97M	-470.78M
Investing Cash Flow	-65.63M	-61.35M	-9.16M	-187.82M	-77.34M
Financing Cash Flow	159.94M	122.00M	715.08M	1.09B	600.59M

Liberaware Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1244.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:218A, the sentiment is Negative. The current price of 1244 is below the 20-day moving average (MA) of 1472.25, below the 50-day MA of 1357.78, and below the 200-day MA of 1627.46, indicating a neutral trend. The MACD of 14.55 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:218A.

Liberaware Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3788	76 Outperform	¥25.01B	24.84	―	1.50%	7.83%	49.73%
3741	75 Outperform	¥34.14B	25.23	―	1.74%	21.97%	15.89%
2349	72 Outperform	¥26.65B	11.31	―	1.21%	7.21%	0.30%
5132	67 Neutral	¥19.08B	51.46	―	―	26.91%	135.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥32.91B	119.24	―	―	-10.49%	―
218A	48 Neutral	¥27.25B	-72.24	―	―	―	―

Liberaware Co.,Ltd. Corporate Events

Liberaware Co., Ltd. Reports Q1 Financial Losses Amidst Revenue Gains

Liberaware Co., Ltd. reported its consolidated financial results for the three months ending October 31, 2025, showing a revenue of 294 million yen but a net loss of 605 million yen. The company’s financial position weakened with a significant drop in equity to total assets ratio from 53.6% to 21.6%. These results indicate challenges in profitability and financial stability, which may impact stakeholders’ confidence and the company’s market positioning.

The most recent analyst rating on (JP:218A) stock is a Hold with a Yen1573.00 price target. To see the full list of analyst forecasts on Liberaware Co.,Ltd. stock, see the JP:218A Stock Forecast page.

Liberaware Forms Strategic Alliance with Kyushu Electric Power

Liberaware Co., Ltd. has entered into a capital and business alliance with Kyushu Electric Power Co., Inc. to enhance power infrastructure inspection and maintenance through the use of drones and robotics. This collaboration aims to improve safety, efficiency, and labor savings in power facility management, and to address broader social challenges such as disaster response and infrastructure resilience, with plans to expand these innovations from Kyushu to a global scale.

The most recent analyst rating on (JP:218A) stock is a Hold with a Yen1573.00 price target. To see the full list of analyst forecasts on Liberaware Co.,Ltd. stock, see the JP:218A Stock Forecast page.

Liberaware Co., Ltd. Launches ‘TORINOS’ to Revolutionize Facility Inspections

Liberaware Co., Ltd. has launched a new product, the automatic patrol camera ‘TORINOS,’ designed to automate and enhance the efficiency of patrol inspections in expansive facilities such as data centers and utility tunnels. This innovation addresses labor shortages and safety demands, contributing to the company’s mission of making safety accessible and improving productivity in industrial operations. The product’s impact on business performance has been incorporated into the company’s earnings forecast for the fiscal year ending July 2026.

The most recent analyst rating on (JP:218A) stock is a Hold with a Yen1573.00 price target. To see the full list of analyst forecasts on Liberaware Co.,Ltd. stock, see the JP:218A Stock Forecast page.