V-cube (3681) AI Stock Analysis

• Market Cap: €3.49B
• Dividend Yield: N/A
• Average Volume (3M): 112.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -10.00%
• EPS Growth: 70.32%
• Country: JP
• Employees: 372
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -16.13
• Shares Outstanding: 26,343,900
• 10 Day Avg. Volume: 69,410
• 30 Day Avg. Volume: 112,550
• PEG Ratio: 0.05
• Price to Book (P/B): -39.88
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 7.24
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ¥131.00 ▼(-2.96% Downside)

V-cube, Inc. is facing significant financial and technical challenges. The company's declining financial performance, characterized by negative profitability and high leverage, is the most significant factor impacting the score. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The valuation is unattractive due to negative earnings and the absence of dividends. These factors collectively result in a low overall stock score.

V-cube Business Overview & Revenue Model

Company Description

V-cube, Inc. develops and provides visual communication services to enterprise customers. The company offers V-CUBE Meeting, a cloud-based Web conferencing service; V-CUBE Seminar, a Web seminar product for seminars, training, and information sessions; V-CUBE Sales, a web conferencing tool for online sales; V-CUBE Learning, a learning management system (LMS) that has incorporated the virtual online platform for training and learning purposes; and V-CUBE Voice, a teleconferencing service. It also provides Telecube, a soundproof smartphone box that can be installed anywhere and there are tables and chairs, and a PC inside that can be used for web conferencing; QUMU, a cloud-type video distribution management system; Agora for implementation of video calls and live distribution on iOS/Android applications and websites; EventIn, an online event platform; V-CUBE Collaboration, a web conferencing service to share video and audio, and PC desktop screens in real-time; and Realwear explosion-proof smart glass. In addition, the company offers hardware related to visual communication, such as web cameras, headsets, microphones with echo cancellers, large LCD displays, etc., as well as post-installation management services. V-cube, Inc. was founded in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

V-cube generates revenue primarily through subscription fees for its cloud-based services, which include video conferencing, online seminars, and virtual event platforms. The company also earns income from one-time service fees for custom solutions and technical support. Key revenue streams include corporate subscriptions, educational institution contracts, and partnerships with other tech companies for integrated services. Additionally, V-cube has established collaborations with various organizations to enhance its service offerings, contributing to its overall earnings through expanded market reach and customer base.

V-cube Financial Statement Overview

Summary

V-cube, Inc. faces significant financial challenges, with declining revenues and profitability issues impacting the income statement. The balance sheet shows high leverage and negative equity, raising concerns about financial stability. The cash flow statement reveals some resilience in operating cash flow, but volatility in free cash flow suggests underlying operational and financial challenges.

Income Statement

V-cube, Inc. has experienced declining revenue over the past years, dropping from ¥12.2 billion in 2022 to ¥10.5 billion in 2024. The company has faced significant profitability challenges, evidenced by negative net profit margins in recent years, with a net income loss of ¥1.4 billion in 2024. Margins have also deteriorated, with the EBIT and EBITDA margins turning negative in 2023 and remaining low in 2024. While gross profit margins have remained relatively stable, the overall income statement performance suggests the company is struggling to maintain profitability.

Balance Sheet

The balance sheet of V-cube, Inc. reveals financial instability, with stockholders' equity turning negative in 2024. The debt-to-equity ratio is concerning due to negative equity, indicating high leverage. Total debt remains significantly high compared to the company’s assets, suggesting potential liquidity issues. These factors demonstrate a weak financial position and may pose risks to the company's long-term sustainability.

Cash Flow

Despite operating cash flow remaining positive, V-cube, Inc. has experienced volatility in free cash flow, recovering from negative figures in previous years to a positive ¥671 million in 2024. However, the operating cash flow to net income ratio is impacted by negative net income. The company's ability to generate cash from operations is a positive sign, but the fluctuations in free cash flow indicate potential challenges in managing capital expenditures and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.86B	10.46B	11.08B	12.23B	11.49B	8.28B
Gross Profit	3.52B	3.95B	4.64B	5.42B	5.31B	3.87B
EBITDA	-251.02M	287.18M	-2.76B	1.44B	1.93B	1.89B
Net Income	-1.84B	-1.42B	-5.62B	84.59M	1.32B	1.14B
Balance Sheet
Total Assets	10.94B	10.48B	12.33B	16.89B	15.26B	10.03B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.01B	1.39B	1.70B	1.82B	2.77B
Total Debt	7.21B	7.89B	8.66B	7.89B	7.48B	3.49B
Total Liabilities	9.69B	10.46B	11.58B	10.90B	10.16B	6.21B
Stockholders Equity	1.11B	-121.81M	630.32M	5.90B	5.05B	3.79B
Cash Flow
Free Cash Flow	-1.14B	671.00M	-1.15B	-414.09M	-25.91M	1.09B
Operating Cash Flow	-1.01B	815.79M	990.96M	1.83B	2.09B	1.98B
Investing Cash Flow	-11.00M	-473.13M	-1.92B	-2.40B	-5.97B	-935.46M
Financing Cash Flow	548.69M	-759.60M	562.40M	290.31M	2.83B	950.76M

V-cube Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.00
• 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:3681, the sentiment is Negative. The current price of 135 is below the 20-day moving average (MA) of 142.30, below the 50-day MA of 150.62, and below the 200-day MA of 170.62, indicating a bearish trend. The MACD of -4.20 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3681.

V-cube Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3841	77 Outperform	¥5.05B	22.39	―	2.95%	-1.09%	-14.08%
3933	75 Outperform	¥4.86B	12.14	―	1.83%	70.44%	55.95%
3921	74 Outperform	¥25.78B	15.14	―	2.54%	16.49%	63.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3936	44 Neutral	¥5.67B	-30.94	―	―	33.37%	53.98%
3681	40 Underperform	€3.49B	-1.90	-174.79%	―	-10.00%	70.32%

V-cube Corporate Events

V-cube, Inc. Responds to Tokyo Stock Exchange’s Market Segment Criteria Revisions

V-cube, Inc. is addressing the recent revisions by the Tokyo Stock Exchange regarding market segment criteria, which will no longer require a profit of JPY 100 million for transitioning to the Standard Market. This change impacts V-cube’s strategy as it seeks to maintain its Prime Market listing, with a grace period ending December 31, 2025, followed by a potential one-year improvement period. The company is preparing for a qualitative review and remains committed to meeting the necessary criteria, while also planning for a possible transition to the Standard Market if compliance proves challenging.

The most recent analyst rating on (JP:3681) stock is a Hold with a Yen152.00 price target. To see the full list of analyst forecasts on V-cube stock, see the JP:3681 Stock Forecast page.

V-cube Reports Financial Discrepancies and Losses in H1 2025

V-cube, Inc. reported discrepancies between its forecasts and actual results for the first half of fiscal year 2025, primarily due to the delay in an anticipated extraordinary gain from the deconsolidation of its U.S. subsidiary. The company also recorded significant foreign exchange losses and impairment losses on investment securities, impacting its financial performance. These factors, along with a notable decrease in the valuation difference on available-for-sale securities, have affected the company’s business performance, as reflected in its consolidated financial results.

V-cube Reports Progress on Compliance with Listing Criteria

V-cube, Inc. has announced progress in its efforts to comply with listing maintenance criteria on the Tokyo Stock Exchange’s Prime Market. After facing negative net assets due to impairment losses, the company has returned to a positive net asset position following a capital raise through TEN’s IPO. Despite a net loss in the first half of 2025, V-cube projects a net income for the full year and is taking steps to ensure financial stability, including assessing the impact of the planned deconsolidation of TEN.

V-cube, Inc. Reports Stable FY25 Q2 Results Amid Strategic Restructuring

V-cube, Inc. reported stable financial performance in its FY25 Q2 results, with sales reaching 5 billion yen and ordinary profit meeting forecasts. Despite a decline in HR sales and a year-on-year revenue decrease due to restructuring, the company saw growth in in-house events and Zoom-related services. The introduction of CUBEcooL, a new product with cooling functions, has been well-received, and the company continues to expand its subscription base. The deconsolidation of its U.S. subsidiary, TEN, is progressing, and its Singaporean subsidiary, Wizlearn, remains stable.

V-cube, Inc. Reports Decline in First Half 2025 Financial Performance

V-cube, Inc. reported a challenging financial performance for the first half of 2025, with a significant decline in net sales and operating profits compared to the previous year. The company’s financial position shows a decrease in comprehensive income and a negative profit attributable to owners, indicating operational challenges and potential impacts on stakeholder confidence.

V-cube Announces Reorganization of U.S. Subsidiary TEN Holdings

V-cube, Inc. announced a strategic move to reorganize its U.S. subsidiary, TEN Holdings, Inc., by entering into a stock purchase agreement with Lincoln Park Capital Fund, LLC. This agreement aims to raise up to USD 20 million to fund TEN’s next-generation platform development and M&A activities. While the issuance of new shares will initially keep TEN within V-cube’s consolidated scope, further fundraising could lead to its deconsolidation, impacting V-cube’s operational structure and market positioning.