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

• Market Cap: ¥45.26B
• Dividend Yield: 0.9%
• Average Volume (3M): 326.06K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.59
• 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: 69 Neutral
• Price Target: ¥682.00 ▼(-28.06% Downside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is driven primarily by strong financial performance (profitable growth, strong cash generation, and a zero-debt balance sheet). This is meaningfully offset by weak technicals (price well below key moving averages and negative MACD), while valuation is broadly reasonable with a modest dividend yield.

Positive Factors

Multi-year revenue growth

A steady multi-year top-line expansion to ¥25.8B in 2025 indicates persistent product-market fit and growing user monetization. Durable revenue growth supports scale economics, funds reinvestment in products and marketing, and underpins sustainable operating leverage over the next several quarters.

Exceptionally conservative balance sheet (zero debt)

Zero reported debt and rising equity reduce financial risk and preserve strategic optionality. This conservative capital structure enhances resilience in downturns, allows self-funded investment or M&A, and supports consistent capital returns or reinvestment without leverage-related constraints.

Strong and improving cash generation

High operating and free cash flow that closely tracks earnings demonstrate quality of profits and strong internal funding capacity. Robust FCF supports dividends, share buybacks or organic investment, improving long-term financial flexibility and reducing reliance on external financing.

Negative Factors

Margin compression in 2025

Compression of gross, operating and net margins in 2025 signals rising cost or pricing pressures that can structurally reduce return on capital. If persistent, weaker margins will limit free cash flow conversion and constrain ability to expand margins through scale or to sustain payout policies.

Historical cash-flow volatility

Material swings in free cash flow across cycles make cash generation less predictable, complicating capital allocation and dividend planning. Persistent volatility raises execution risk for reinvestment and increases the need for liquidity buffers despite overall strong recent FCF levels.

Relatively small scale of operations

A compact workforce and smaller operational scale in a competitive internet content industry can limit product development bandwidth and marketing reach versus larger peers. Scale constraints raise vulnerability to aggressive competitors and may slow international expansion or diversification.

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

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m-up holdings, Inc. Financial Statement Overview

Summary

Strong fundamentals supported by solid income statement performance (revenue growth to 25.8B in 2025 and growing net income to 1.67B), an exceptionally conservative balance sheet with zero debt and strong ROE, and improving operating/free cash flow in 2025. Key offset is 2025 margin compression versus 2024 and historical cash-flow volatility.

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	24.67B	19.55B	16.44B	14.19B	11.76B
Cash, Cash Equivalents and Short-Term Investments	12.38B	12.33B	8.78B	6.98B	6.74B	4.82B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	17.27B	15.88B	12.41B	9.78B	8.79B	7.31B
Stockholders Equity	7.90B	7.74B	6.38B	6.20B	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: Neutral
• STOCH: Positive

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 674.00, above the 50-day MA of 747.84, and above the 200-day MA of 945.10, indicating a bearish trend. The MACD of -26.89 indicates Positive momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 6.61 is Positive, 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
3922	77 Outperform	¥27.34B	12.43	―	0.38%	18.02%	46.43%
3661	69 Neutral	¥45.26B	19.22	―	0.90%	30.25%	67.87%
6185	64 Neutral	¥5.56B	24.73	―	―	8.77%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6562	60 Neutral	¥11.06B	10.90	―	―	33.34%	-25.08%
2489	57 Neutral	¥9.98B	40.80	―	1.09%	-5.70%	-215.73%

m-up holdings, Inc. Corporate Events

m-up Holdings Reports Progress on Treasury Share Buyback

m-up holdings, Inc. has disclosed the progress of its share repurchase program authorized by its board in May 2025 under provisions of the Companies Act of Japan. The company bought back 158,000 common shares for 108,950,800 yen on the market between February 24 and 28, 2026, using a discretionary dealing contract.

This latest transaction represents part of a broader authorization allowing purchases of up to 1,450,000 shares, or about 2% of shares outstanding, for a total amount of up to 1 billion yen. As of February 28, 2026, cumulative repurchases under this resolution total 158,000 shares at an acquisition cost of 106,950,800 yen, signaling ongoing efforts to enhance capital efficiency and potentially support shareholder value.

The most recent analyst rating on (JP:3661) stock is a Hold with a Yen763.00 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 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.