Beaglee Inc. (3981) AI Stock Analysis

• Market Cap: ¥7.90B
• Dividend Yield: 1.76%
• Average Volume (3M): 6.39K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.82
• Revenue Growth: -10.62%
• EPS Growth: 44.02%
• Country: JP
• Employees: 213
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 35.21
• Shares Outstanding: 6,301,986
• 10 Day Avg. Volume: 5,680
• 30 Day Avg. Volume: 6,390
• PEG Ratio: -0.23
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 4.88
• 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: 67 Neutral
• Price Target: ¥1,381.00 ▲(9.95% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by mixed financial performance—solid profitability and cash conversion, but recent revenue decline and margin compression. Valuation is a meaningful positive (low P/E and ~3.3% yield), while technicals are moderately supportive with price above key moving averages and a positive MACD.

Positive Factors

Free cash flow conversion

Consistently high FCF conversion (~0.90–0.93) indicates earnings quality and durable cash generation. This supports dividends, capital allocation or debt reduction without relying on capital markets, providing long-term financial flexibility and resilience through cycles.

Deleveraging / stronger balance sheet

Meaningful reduction in leverage over several years improves solvency and lowers interest burden, expanding strategic optionality. A stronger equity base and lower debt enhance the firm's ability to invest, weather downturns, and pursue growth without raising costly external capital.

Positive operating profitability

Sustained positive operating and EBITDA margins show an economically viable business model with structural profit generation. Even with recent softness, these margins provide a foundation for reinvestment, sustained cash flow and recovery when top-line momentum improves.

Negative Factors

Revenue decline

A falling top line over consecutive periods erodes scale advantages and undermines operating leverage. If revenue contraction persists it will constrain reinvestment, weaken pricing power and make it harder to restore prior profit levels, pressuring long-term growth potential.

Margin compression

Notable deterioration in gross and net margins signals structural pressure on unit economics—either pricing, mix or cost increases. Sustained margin erosion reduces retained earnings and free cash flow, limiting capital for strategic initiatives and dividend sustainability.

Weaker operating cash flow

Declining operating cash flow and a lower OCF-to-revenue ratio reduce internal funding for capex, working capital and dividends. If this trend continues, the company may face tighter liquidity for growth or capital return without increasing leverage or cutting investments.

Beaglee Inc. Business Overview & Revenue Model

Company Description

Beaglee Inc. engages in platform and contents businesses. The Platform segment provides subscription and other ancillary businesses centered on Manga Kingdom. The Contents segment offers e-books, publishing, and other ancillary services. The company also provides comics distribution services; novelba, a service for posting novels; and television drama services, as well as distributes smartphone games. Beaglee Inc. was founded in 2004 and is based in Tokyo, Japan.

How the Company Makes Money

Beaglee Inc. generates revenue primarily through the sale and distribution of digital content, including comics and e-books, via its online platforms. The company monetizes its services through direct sales of digital titles, subscription models, and potentially through advertising partnerships. Key revenue streams include individual purchase transactions by users and subscription fees from customers who access a broader range of content. Additionally, Beaglee may engage in partnerships with publishers or content creators to expand its catalog and enhance its service offerings, contributing to its earnings.

Beaglee Inc. Financial Statement Overview

Summary

Mixed fundamentals: operating profitability remains positive (TTM operating margin ~8.2%, EBITDA margin ~13.9%) and earnings quality is supported by strong FCF conversion (FCF/net income ~0.90–0.93). However, 2025 showed weakening momentum with revenue decline (-3.4%) and margin compression (net margin ~4.1% vs ~7.1% in 2024; gross margin ~30.6% vs ~34.4%), and both operating cash flow and free cash flow fell versus 2024.

Income Statement

Profitability is positive and fairly steady at the operating level (TTM operating margin ~8.2%, EBITDA margin ~13.9%), but the growth picture has weakened. Revenue has declined in the most recent annual period (2025 revenue growth -3.4% after a roughly flat 2024), and profitability compressed versus 2024 (net margin fell to ~4.1% from ~7.1%). Gross margin also stepped down in 2025 (~30.6% vs ~34.4% in 2024), signaling some pressure on unit economics.

Balance Sheet

Leverage has improved meaningfully over time, with debt-to-equity declining from ~1.76 (2020) to ~0.47 (2025), reflecting balance-sheet de-risking. Equity has also grown (from ~¥5.2B in 2020 to ~¥8.1B in 2025), supporting financial flexibility. The main watch item is that total assets have drifted down modestly since 2020, and returns on equity were stronger in 2024 (~17%) than in prior years, suggesting profitability/efficiency may be variable.

Cash Flow

Cash generation is a clear support: free cash flow has consistently tracked close to reported earnings (free cash flow to net income ~0.90–0.93 in 2022–2025), implying good earnings quality. However, operating cash flow as a share of revenue is relatively modest (about ~20% in 2025 and ~29% in 2024), and both operating cash flow and free cash flow fell in 2025 versus 2024, consistent with the softer profit and margin backdrop.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.31B	16.72B	18.45B	19.08B	18.71B	18.64B
Gross Profit	5.36B	5.12B	6.34B	5.85B	6.63B	6.51B
EBITDA	2.39B	2.32B	2.77B	2.51B	2.67B	2.36B
Net Income	1.07B	683.68M	1.30B	689.20M	664.51M	444.92M
Balance Sheet
Total Assets	16.13B	16.56B	17.29B	18.38B	19.04B	19.46B
Cash, Cash Equivalents and Short-Term Investments	4.46B	5.29B	5.12B	4.83B	4.22B	3.55B
Total Debt	4.29B	3.79B	4.80B	5.83B	6.84B	8.24B
Total Liabilities	8.55B	8.49B	9.81B	11.43B	12.73B	13.79B
Stockholders Equity	7.58B	8.06B	7.49B	6.95B	6.31B	5.67B
Cash Flow
Free Cash Flow	0.00	1.44B	2.16B	1.69B	2.13B	1.20B
Operating Cash Flow	0.00	1.54B	2.34B	1.86B	2.38B	1.57B
Investing Cash Flow	0.00	-222.20M	-245.00M	-173.69M	-244.96M	-330.13M
Financing Cash Flow	0.00	-1.14B	-1.80B	-1.08B	-1.46B	-929.13M

Beaglee Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1256.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3981, the sentiment is Positive. The current price of 1256 is below the 20-day moving average (MA) of 1269.90, below the 50-day MA of 1262.96, and above the 200-day MA of 1251.93, indicating a bullish trend. The MACD of 10.05 indicates Negative momentum. The RSI at 68.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3981.

Beaglee Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	75 Outperform	¥7.66B	12.37	―	3.29%	7.47%	55.61%
3981	67 Neutral	¥7.90B	10.67	―	1.76%	-10.62%	44.02%
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%
3691	42 Neutral	¥7.30B	-144.09	―	―	11.29%	-358.08%

Beaglee Inc. Corporate Events

Beaglee Inc. Reports Decline in Q3 Financial Performance

Beaglee Inc. reported a decline in its financial performance for the third quarter of the fiscal year ending December 31, 2025, with net sales and profits showing significant decreases compared to the previous year. The company’s comprehensive income dropped by 32.8%, reflecting challenges in maintaining its market position. Despite these setbacks, the company has maintained its dividend forecast for the fiscal year, indicating a potential recovery strategy to reassure stakeholders.

The most recent analyst rating on (JP:3981) stock is a Buy with a Yen1462.00 price target. To see the full list of analyst forecasts on Beaglee Inc. stock, see the JP:3981 Stock Forecast page.