VALUE GOLF Inc. (3931) AI Stock Analysis

• Market Cap: ¥3.09B
• Dividend Yield: 3.49%
• Average Volume (3M): 1.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 10.69%
• EPS Growth: -101.97%
• Country: JP
• Employees: 79
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): N/A
• Shares Outstanding: 1,807,000
• 10 Day Avg. Volume: 1,530
• 30 Day Avg. Volume: 1,596
• PEG Ratio: 0.32
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -5.81
• 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: 47 Neutral
• Price Target: ¥1,589.00 ▲(3.92% Upside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is primarily held back by weakening financial quality—cash burn and rising leverage alongside compressed margins and slightly negative earnings. Technicals are a relative positive with the stock above key moving averages and moderate momentum, but valuation remains a headwind due to the very high P/E despite a modest dividend yield.

Positive Factors

Revenue Recovery

A 60.5% revenue rebound in 2026 signals regained end-market demand or successful commercial initiatives. Sustained top-line growth supports scale, better absorption of fixed costs, and provides room for reinvestment, underpinning recovery potential over the next several months.

Stable Gross Margins

Gross margins in the mid-30% range indicate core product economics remain intact. This structural margin cushion helps preserve unit profitability, giving management flexibility to invest in growth or pricing and supporting a plausible path to improved operating margins over time.

Growing Asset Base

An expanding asset base implies investments in capacity, inventory, or digital content to support the revenue rebound. If financed and deployed prudently, these assets provide a foundation to scale operations and diversify revenue streams over a multi-month horizon.

Negative Factors

Negative Cash Generation

Operating and free cash flow turning materially negative reverses earlier positive cash outcomes and is a structural red flag. Persistent cash burn forces dependence on external funding, constrains reinvestment, and raises short- to medium-term liquidity risk absent a quick reversal.

Rising Leverage

A marked increase in debt-to-equity reduces financial flexibility and raises refinancing and interest burden risks. Higher leverage limits the company’s ability to absorb shocks or fund opportunistic investments and magnifies downside in the event of weaker operating performance.

Compressed Profitability

Operating margins compressed sharply and net income slipped negative, reflecting weak operating leverage. Sustained thin margins limit free cash generation and leave little room for cost inflation or revenue shortfalls, increasing the risk of continued earnings volatility.

VALUE GOLF Inc. Business Overview & Revenue Model

Company Description

VALUE GOLF Inc., together with its subsidiaries, operates golf, travel, and advertising media production business in Japan. It also provides ASP services, advertising promotion, and support services. The company's travel business provides travel planning services for the golfers, which include business and organized trips. In addition, it's advertising media production business offers recruitment and bridal-related advertising production work, such as interviews, progression, manuscript production, proofreading, and image processing services. The company was incorporated in 2004 and is headquartered in Minato, Japan.

VALUE GOLF Inc. Financial Statement Overview

Summary

Despite strong 2026 revenue growth (+60.5%), profitability has weakened materially (EBIT margin ~1.2%) with net income slightly negative. Balance-sheet risk has risen with higher leverage (debt-to-equity ~1.33) and declining equity, while cash flow is the largest concern as operating cash flow and free cash flow were materially negative in 2025–2026.

Income Statement

Revenue rebounded strongly in 2026 (annual report revenue growth of 60.5%), following a volatile multi-year pattern that included meaningful declines in 2021 and 2024. Profitability, however, has weakened materially versus the 2022–2023 period: operating margins have compressed sharply (EBIT margin ~1.2% in 2026 vs. ~3.8–4.6% in 2022–2023) and net income turned slightly negative in 2026 after only marginal profitability in 2025. Gross margin has held relatively steady in the mid-30% range, but thin operating leverage and inconsistent bottom-line performance keep the income statement quality below average.

Balance Sheet

Leverage has increased meaningfully, with debt-to-equity rising to ~1.33 in 2026 from ~0.71–0.85 in 2022–2024, reducing financial flexibility. Equity has also trended down from 2023–2026, and return on equity turned negative in 2026, reflecting weaker earnings power. Total assets have grown, but the rising debt load alongside declining profitability increases balance-sheet risk and makes the capital structure less resilient if operating performance softens further.

Cash Flow

Cash generation deteriorated sharply, with operating cash flow negative in both 2025 and 2026 and a very large outflow in 2026, leading to deeply negative free cash flow as well. This reverses the stronger cash performance seen in 2021 and the modestly positive cash outcomes in 2022–2023. While free cash flow relative to net income can appear optically favorable when earnings are near zero or negative, the core issue is that the business is currently consuming cash rather than generating it, which heightens funding and liquidity pressure—especially alongside higher leverage.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	4.40B	4.43B	4.13B	3.66B	4.44B	4.28B
Gross Profit	1.51B	1.55B	1.47B	1.30B	1.48B	1.51B
EBITDA	127.27M	100.19M	134.76M	77.38M	245.95M	230.44M
Net Income	17.75M	-19.48M	5.52M	22.69M	114.84M	123.85M
Balance Sheet
Total Assets	3.33B	3.17B	2.65B	2.64B	2.51B	2.37B
Cash, Cash Equivalents and Short-Term Investments	890.33M	757.10M	885.63M	1.26B	1.16B	1.17B
Total Debt	1.58B	1.41B	943.23M	988.45M	832.21M	789.09M
Total Liabilities	2.22B	2.11B	1.52B	1.48B	1.33B	1.28B
Stockholders Equity	1.11B	1.06B	1.13B	1.16B	1.18B	1.10B
Cash Flow
Free Cash Flow	0.00	-484.71M	-43.32M	-14.86M	9.12M	52.60M
Operating Cash Flow	0.00	-471.21M	-33.44M	8.68M	10.08M	56.24M
Investing Cash Flow	0.00	-79.00M	-80.30M	-30.43M	-26.20M	-10.73M
Financing Cash Flow	0.00	420.70M	-266.77M	120.32M	7.02M	142.13M

VALUE GOLF Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1529.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3931, the sentiment is Positive. The current price of 1529 is below the 20-day moving average (MA) of 1627.90, below the 50-day MA of 1579.14, and below the 200-day MA of 1602.88, indicating a bullish trend. The MACD of 35.31 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 93.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3931.

VALUE GOLF Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2481	75 Outperform	¥3.75B	10.37	―	2.95%	1.41%	-6.45%
7849	74 Outperform	¥15.24B	10.61	―	3.16%	-7.41%	-17.57%
3678	72 Outperform	¥24.93B	22.08	―	2.01%	6.10%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9475	58 Neutral	¥9.91B	14.53	―	1.06%	0.02%	-88.78%
9468	52 Neutral	¥428.21B	162.08	―	0.98%	1.96%	-45.28%
3931	47 Neutral	¥3.09B	-12.58	―	3.49%	10.69%	-101.97%