m-up holdings, Inc. (3661) AI Stock Analysis

• Market Cap: ¥49.11B
• Dividend Yield: 0.9%
• Average Volume (3M): 326.06K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.63
• Revenue Growth: 30.25%
• EPS Growth: 67.87%
• Country: JP
• Employees: 283
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 11.82
• Shares Outstanding: 72,992,775
• 10 Day Avg. Volume: 407,470
• 30 Day Avg. Volume: 326,056
• PEG Ratio: 2.80
• Price to Book (P/B): 8.08
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 12.23
• 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): 32.38
• Revenue Forecast (FY): ¥31.79B

• Rating: 80 Outperform
• Price Target: ¥785.00 ▼(-17.19% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (profitable growth, strong cash generation, and zero debt), partially offset by 2025 margin compression and historically volatile cash flow. Technicals are supportive in the short term but mixed versus longer-term moving averages, while valuation is reasonable (P/E ~13.3) with a low dividend yield.

Positive Factors

Conservative balance sheet

Zero reported debt materially lowers financial risk and preserves strategic flexibility. With equity rising to ¥7.74B and ROE in the high‑teens to low‑20s, the company can fund operations, invest, or pursue opportunities internally, supporting durable capital allocation through cycles.

Strong cash generation

Robust operating cash flow and free cash flow in 2025 indicate high cash conversion ability; FCF closely tracks earnings. This strengthens capacity to reinvest in digital products, sustain dividends or buybacks, and absorb shocks, underpinning medium‑term financial resilience.

Sustained revenue and profit growth

Multi‑year revenue and net income growth reflect durable demand and effective monetization of mobile/online services. A business model focused on user engagement and digital commerce supports scaleable margins and continued top‑line expansion over the next several quarters.

Negative Factors

2025 margin compression

Compression in gross, operating and net margins in 2025 signals rising cost or pricing pressure that can erode sustainable profitability. If structural (competition, content costs, or mix shift), weaker margins could reduce reinvestment capacity and slow ROE expansion over the medium term.

Historical cash flow volatility

Prior episodes of negative or stepped‑down free cash flow mean cash conversion is not fully stable. This variability complicates long‑range planning and capital allocation, raising the need for larger reserves or caution in committing to recurring payouts or aggressive investments.

Limited liquidity disclosure

Absence of explicit liquidity metrics (e.g., cash, short‑term assets, working capital detail) reduces visibility into short‑term resilience. Even with zero debt, constrained or opaque liquidity could expose the firm to operational strain in downturns or require rapid, value‑dilutive financing options.

m-up holdings, Inc. Business Overview & Revenue Model

Company Description

m-up holdings, Inc. engages in the mobile and PC content distribution, and e-commerce businesses in Japan. The company is also involved in the official fan site management; entertainment Website management; management of music/video distribution site; e-book label management; production of digital contents; and application creation for smartphones. In addition, it engages in the fan club Website operation; YouTube channel construction; and Website creation business. Further, the company is involved in the e-commerce activities consisting of the sale of CD, DVD, and goods; the management of collection brand site; planning and production of goods; and various mail order site management, as well as electronic ticket business. m-up holdings, Inc. was founded in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

m-up Holdings, Inc. generates revenue through several key streams, primarily focusing on its digital content distribution services. The company earns money by licensing digital music and videos to various platforms, ensuring that artists and content creators have a means of monetizing their work. Additionally, m-up Holdings offers mobile content services that include ringtones and wallpapers, which further contribute to its earnings. The company also provides e-book services, allowing it to tap into the growing digital publishing market. Strategic partnerships with entertainment companies and mobile carriers enhance its distribution capabilities and expand its market reach, significantly contributing to its financial performance.

m-up holdings, Inc. Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth to 25.8B (2025), growing net income to 1.67B, and very conservative leverage with zero reported debt. Offsets include margin compression in 2025 versus 2024 and some historical cash flow volatility despite strong 2025 operating (5.48B) and free cash flow (5.11B).

Income Statement

The company shows a solid multi-year growth profile, with revenue rising each year and reaching 25.8B in 2025 (annual), including strong growth in 2024 and 2023. Profitability is healthy with double-digit operating profit margins across the period, though 2025 saw some margin compression versus 2024 (lower gross, operating, and net margins). Net income continues to grow to 1.67B in 2025, but the softer margin trajectory is a key watch item.

Balance Sheet

The balance sheet is very conservatively positioned with zero reported debt across all periods, which significantly reduces financial risk and improves flexibility. Equity has grown to 7.74B in 2025 alongside a larger asset base, and returns on equity remain strong (roughly high-teens to low-20s in recent years), indicating efficient profitability relative to shareholder capital. The main limitation is that with no liquidity detail provided, the analysis is centered on leverage and returns rather than near-term balance sheet buffers.

Cash Flow

Cash generation is strong and improving, with operating cash flow rising to 5.48B and free cash flow to 5.11B in 2025 (annual). Free cash flow closely tracks earnings in most years, supporting earnings quality, and the business rebounded sharply from the 2020 outlier year when free cash flow was negative. A caution is that cash flow has shown meaningful volatility historically (notably 2020 and the 2023 free cash flow step-down), so stability of conversion remains a key focus.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.36B	25.78B	18.57B	15.94B	13.57B	12.33B
Gross Profit	8.34B	7.82B	6.05B	5.03B	4.35B	3.70B
EBITDA	4.07B	3.61B	3.34B	2.57B	2.05B	1.47B
Net Income	2.05B	1.67B	1.48B	1.09B	976.00M	633.14M
Balance Sheet
Total Assets	26.33B	25.98B	19.55B	16.44B	14.19B	11.76B
Cash, Cash Equivalents and Short-Term Investments	12.38B	12.33B	8.78B	6.93B	6.74B	4.82B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	17.27B	17.20B	12.41B	9.79B	8.79B	7.31B
Stockholders Equity	7.90B	7.74B	6.38B	6.19B	5.13B	4.29B
Cash Flow
Free Cash Flow	0.00	5.11B	2.81B	817.00M	2.01B	1.87B
Operating Cash Flow	0.00	5.48B	2.99B	1.46B	2.57B	1.98B
Investing Cash Flow	0.00	-1.05B	-604.00M	-1.07B	-459.82M	-1.66B
Financing Cash Flow	0.00	-881.00M	-586.00M	-149.00M	-191.60M	-403.62M

m-up holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 948.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3661, the sentiment is Negative. The current price of 948 is above the 20-day moving average (MA) of 731.60, above the 50-day MA of 820.86, and below the 200-day MA of 969.36, indicating a bearish trend. The MACD of -45.13 indicates Positive momentum. The RSI at 29.78 is Positive, neither overbought nor oversold. The STOCH value of 49.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3661.

m-up holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3661	80 Outperform	¥49.11B	19.03	―	0.90%	30.25%	67.87%
3922	77 Outperform	¥31.37B	15.15	―	0.38%	18.02%	46.43%
6185	64 Neutral	¥6.25B	13.22	―	―	8.77%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6562	60 Neutral	¥12.19B	13.47	―	―	33.34%	-25.08%
2489	57 Neutral	¥10.80B	44.82	―	1.09%	-5.70%	-215.73%

m-up holdings, Inc. Corporate Events

M-up Holdings Launches ¥1 Billion Share Buyback to Boost Capital Efficiency

M-up Holdings has approved a share repurchase program to buy back up to 1.45 million common shares, representing about 2% of its outstanding stock, for a total cost of up to ¥1 billion. The purchases will be conducted in the market under a discretionary dealing contract between February 24 and July 31, 2026.

The company says the buyback is intended to support a flexible capital policy amid shifts in the business environment, while boosting shareholder returns and improving capital efficiency. As of January 1, 2026, m-up already held just over 2.05 million treasury shares out of roughly 70.9 million shares outstanding, and this move signals a continued emphasis on active balance-sheet and equity management.

The most recent analyst rating on (JP:3661) stock is a Buy with a Yen748.00 price target. To see the full list of analyst forecasts on m-up holdings, Inc. stock, see the JP:3661 Stock Forecast page.

M-up holdings lifts profits and maintains bullish outlook after stock split

M-up holdings, Inc., a Tokyo-listed digital content and entertainment services provider, reported a solid improvement in its financial position for the nine months ended December 31, 2025, with higher equity and an improved equity-to-asset ratio. The company also highlighted an active shareholder-return stance, adjusting its dividend framework in line with a recent stock split, effectively raising the full-year dividend on a pre-split basis.

For the first nine months of fiscal 2025, net sales rose 23.5% year on year to ¥23.46 billion and operating profit increased 23.2% to ¥4.01 billion, while profit attributable to owners of parent surged 53.5% to ¥2.54 billion, driving basic earnings per share to ¥35.74 after reflecting a two-for-one stock split. Management kept its full-year forecast unchanged, targeting ¥30.0 billion in net sales and an 80.2% jump in full-year profit, alongside a forecast dividend of ¥25.00 per share before the split, signaling confidence in sustained earnings growth and enhanced returns to shareholders.

The most recent analyst rating on (JP:3661) stock is a Buy with a Yen910.00 price target. To see the full list of analyst forecasts on m-up holdings, Inc. stock, see the JP:3661 Stock Forecast page.