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Morpho, Inc.
(3653)
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Rating:57Neutral
Price Target:
¥696.00
▼(-17.83% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial footing (very low leverage) and strong top-line growth, but it is held back by unstable profitability and weakening cash flow (negative free cash flow in 2025). Technicals are supportive in the near term, while valuation support is limited due to negative earnings and no dividend data.
Positive Factors
Very low leverage
Near-zero leverage provides durable financial flexibility: it lowers bankruptcy risk, supports sustained investment or M&A optionality, and cushions the business through cyclical downturns. A conservative capital structure enables longer-term strategic execution without refinancing pressure.
Negative Factors
Profitability volatility
Swinging from profit to loss demonstrates inconsistent operating performance and execution risk. Persistent volatility undermines forecasting, weakens investor confidence, and suggests the company may struggle to convert top-line growth into reliable, durable net income over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Near-zero leverage provides durable financial flexibility: it lowers bankruptcy risk, supports sustained investment or M&A optionality, and cushions the business through cyclical downturns. A conservative capital structure enables longer-term strategic execution without refinancing pressure.
Read all positive factors
Morpho, Inc. (3653) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.37B
Dividend YieldN/A
Average Volume (3M)24.81K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-9.43%
EPS Growth-8128.33%
CountryJP
Employees166
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-108.08
Shares Outstanding5,508,500
10 Day Avg. Volume14,970
30 Day Avg. Volume24,810
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.36
Price to Sales (P/S)1.46
P/FCF Ratio-132.87
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)N/A
Revenue Forecast (FY)N/A
Morpho, Inc. Business Overview & Revenue Model
Company Description
Morpho, Inc. engages in the research and development of artificial intelligence and image processing technologies in Japan, the United States, China, South Korea, Europe, and internationally. The company offers Morpho Automotive Suite, an AI Solut...
How the Company Makes Money
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Morpho, Inc. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.98B | 3.36B | 3.30B | 2.38B | 2.00B | 1.73B |
| Gross Profit | 1.44B | 1.84B | 1.90B | 1.36B | 952.07M | 866.53M |
| EBITDA | -213.85M | 159.15M | 326.88M | -226.63M | -473.41M | -734.07M |
| Net Income | -566.66M | -77.57M | 301.48M | -300.18M | -668.39M | -793.42M |
Balance Sheet | ||||||
| Total Assets | 3.46B | 4.15B | 4.26B | 3.71B | 3.86B | 4.55B |
| Cash, Cash Equivalents and Short-Term Investments | 2.13B | 2.53B | 2.94B | 2.71B | 3.06B | 3.39B |
| Total Debt | 17.44M | 10.48M | 23.29M | 36.25M | 12.84M | 21.95M |
| Total Liabilities | 509.88M | 526.38M | 621.77M | 558.59M | 460.63M | 400.45M |
| Stockholders Equity | 2.95B | 3.62B | 3.64B | 3.15B | 3.40B | 4.15B |
Cash Flow | ||||||
| Free Cash Flow | -37.01M | -37.01M | 65.73M | -365.22M | -477.78M | -694.79M |
| Operating Cash Flow | 14.06M | 14.06M | 207.18M | -267.62M | -415.53M | -653.58M |
| Investing Cash Flow | -413.32M | -413.32M | -140.72M | -92.50M | 161.38M | -175.87M |
| Financing Cash Flow | -9.22M | -9.22M | 131.83M | -16.21M | -176.43M | -257.00M |
Morpho, Inc. Technical Analysis
Positive
847.00
Price Trends
624.60
Positive
648.80
Positive
753.99
Negative
Market Momentum
12.23
Negative
65.29
Neutral
92.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3653, the sentiment is Positive. The current price of 847 is above the 20-day moving average (MA) of 643.70, above the 50-day MA of 624.60, and above the 200-day MA of 753.99, indicating a neutral trend. The MACD of 12.23 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3653.
Morpho, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥10.16B | 39.13 | ― | ― | 12.23% | 38.11% | |
63 Neutral | ¥13.30B | 86.25 | ― | ― | 26.18% | -33.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ¥3.37B | -5.83 | ― | ― | -9.43% | -8128.33% | |
56 Neutral | ¥37.00B | 55.38 | ― | ― | 25.82% | ― | |
46 Neutral | ¥18.24B | -96.46 | ― | ― | 131.28% | 76.65% |
* Technology Sector Average
JP:3653
Morpho, Inc.
676.00
-581.00
-46.22%
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Ridge-i Inc.
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Laboro.AI, Inc.
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JP:334A
Visual Processing Japan Co.,Ltd
955.00
196.00
25.82%
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.