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Money Forward, Inc. (JP:3994)
:3994

Money Forward (3994) AI Stock Analysis

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JP

Money Forward

(Frankfurt:3994)

Rating:53Neutral
Price Target:
¥4,489.00
▼(-4.49%Downside)
The overall stock score is primarily influenced by strong revenue growth and positive short-term technical indicators, offset by ongoing profitability challenges and a weak valuation profile due to negative earnings.

Money Forward (3994) vs. iShares MSCI Japan ETF (EWJ)

Money Forward Business Overview & Revenue Model

Company DescriptionMoney Forward, Inc. provides money-related services for individuals and corporations. It offers Money Forward ME, an automatic household account book service; MONEY PLUS for enhancing readers' money literacy and foster awareness of money; Money Forward Mall, a web portal and platform for comparing and applying for financial services, such as credit cards and securities accounts; mirai talk, a channel to resolve customers financial concerns; and Tock pop, an application specialized in coupon information. The company also provides Money Forward Cloud Accounting, a cloud accounting software; Money Forward Cloud Final Report, a cloud-type final tax return software; Money Forward Cloud Invoice, an invoice creation software; Money Forward Cloud Salary, a salary calculation software; Money Forward Cloud Attendance, a time management service for companies; Money Forward Cloud My Number, a my number management system; Money Forward Cloud Expenses, a cloud-type expense reimbursement system; and Money Forward Cloud Fundraising, a service that provides money forward cloud data to financial institutions. In addition, it offers STREAMED, a software specialized in automating accounting bookkeeping; Manageboard, a cloud service that allows to conduct business analysis by importing accounting software data; MF KESSAI, an inter-company postpaid settlement service; BALES, an inside sales outsourcing and consulting service; BALES CLOUD, a cloud-based inside sales management system; BOXIL that provides various information on prices, specifications, and word-of-mouth reviews of various Software-as-a-Service; and Money Forward X, a group that works with various client issues to create services. The company was formerly known as Moneybook Co. and changed its name to Money Forward, Inc. in December 2012. Money Forward, Inc. was founded in 2012 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMoney Forward, Inc. generates revenue primarily through a subscription-based model, where users pay for access to its software services. For individual users, it offers premium subscriptions for enhanced features on its personal finance management platform, Money Forward ME. For businesses, it provides the Money Forward Cloud suite, where companies pay subscription fees based on the number of users and the types of applications they use, such as accounting, payroll, and tax return software. Additionally, the company earns revenue from partnerships with financial institutions by offering them financial data aggregation services and solutions that enhance their digital offerings. Key contributors to its earnings include the growing adoption of cloud-based financial tools among businesses and individuals and its strategic partnerships with banks and other financial entities.

Money Forward Financial Statement Overview

Summary
Money Forward, Inc. exhibits strong revenue growth, but continuous net losses and negative Free Cash Flow highlight profitability challenges. While the balance sheet shows a strong cash position, increasing debt levels and negative operating cash flow pose risks.
Income Statement
45
Neutral
Money Forward, Inc. has demonstrated strong revenue growth over the years, with a significant increase in Total Revenue from 2023 to 2024. However, the company has consistently incurred net losses, as indicated by negative Net Income and EBIT margins. The Gross Profit Margin remains stable, but the continuous negative EBITDA suggests challenges in achieving profitability.
Balance Sheet
55
Neutral
The balance sheet shows relatively high levels of cash and short-term investments, which is a strength. However, the Debt-to-Equity ratio has increased, indicating rising leverage. The company's Equity Ratio is decreasing, reflecting a potential risk if liabilities continue to grow. The Return on Equity is negative due to consistent net losses.
Cash Flow
40
Negative
The cash flow statement highlights negative Free Cash Flow, which has worsened over the years. Operating Cash Flow is also negative, indicating dependency on financing activities. The company has been able to secure financing, but the reliance on external funding could be a risk if not managed.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
36.16B40.36B30.38B21.48B15.63B11.32B
Gross Profit
23.64B27.06B19.08B13.40B10.82B7.62B
EBIT
-4.95B-4.74B-6.33B-8.47B-1.06B-2.80B
EBITDA
-2.28B-1.92B-4.13B-7.97B-513.68M-1.93B
Net Income Common Stockholders
-5.53B-6.33B-6.32B-9.70B-1.58B-2.48B
Balance SheetCash, Cash Equivalents and Short-Term Investments
31.29B50.46B42.52B28.48B37.29B9.14B
Total Assets
85.32B106.19B88.28B65.99B56.94B21.71B
Total Debt
31.05B35.44B30.37B16.90B8.55B6.55B
Net Debt
3.05B-9.81B-8.48B-9.81B-27.67B-2.37B
Total Liabilities
51.86B61.52B53.62B30.90B14.61B11.47B
Stockholders Equity
27.90B37.44B28.33B32.63B40.53B9.66B
Cash FlowFree Cash Flow
2.68B-11.13B-2.92B-8.39B-4.66B-2.29B
Operating Cash Flow
2.68B-4.76B2.46B-4.12B-2.33B-1.12B
Investing Cash Flow
0.00-9.51B-7.47B-14.78B-5.20B-2.61B
Financing Cash Flow
0.0020.35B17.46B9.07B34.80B5.26B

Money Forward Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4700.00
Price Trends
50DMA
4303.64
Positive
100DMA
4290.03
Positive
200DMA
4751.35
Negative
Market Momentum
MACD
98.80
Positive
RSI
58.21
Neutral
STOCH
47.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3994, the sentiment is Positive. The current price of 4700 is above the 20-day moving average (MA) of 4612.85, above the 50-day MA of 4303.64, and below the 200-day MA of 4751.35, indicating a neutral trend. The MACD of 98.80 indicates Positive momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3994.

Money Forward Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥134.20B22.65
2.16%11.47%8.73%
72
Outperform
¥145.43B34.22
0.95%16.68%43.49%
67
Neutral
¥263.75B126.50
29.19%
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
53
Neutral
¥259.39B-17.75%28.35%-2.49%
DE7CZ
€2.77B67.9219.04%
47
Neutral
¥224.69B
29.79%77.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3994
Money Forward
4,700.00
-286.00
-5.74%
DE:7CZ
SHIFT
10.50
4.53
75.88%
JP:4432
WingArc1st Inc.
4,005.00
1,423.63
55.15%
JP:4443
Sansan, Inc.
2,116.00
436.00
25.95%
JP:4478
freee K.K.
3,755.00
1,391.00
58.84%
JP:4776
Cybozu, Inc.
3,210.00
1,363.00
73.80%

Money Forward Corporate Events

Money Forward Completes Payment for Restricted Stock Compensation
Apr 18, 2025

Money Forward, Inc. has completed the payment procedure for issuing new shares as restricted stock compensation, a decision made at the company’s Board of Directors meeting on March 25, 2025. This issuance involves 203,400 common shares at an issue price of ¥4,228 per share, totaling ¥859,975,200, and is aimed at rewarding and incentivizing employees and directors, potentially strengthening the company’s internal stakeholder alignment.

Money Forward Partners with SMBC for Digital Banking Initiative
Apr 16, 2025

Money Forward, Inc. has entered into a basic agreement with Sumitomo Mitsui Financial Group and Sumitomo Mitsui Banking Corporation to establish a preparatory company aimed at developing a new BaaS/digital banking service. This initiative seeks to enhance financial services for small and medium-sized enterprises in Japan, aligning with SMBC Group’s strategy to support corporate digital transformation through digital solutions.

Money Forward, Inc. Reports Q1 2025 Financial Results with Increased Sales but Continued Losses
Apr 14, 2025

Money Forward, Inc. reported its consolidated financial results for the three months ended February 28, 2025, showing a significant increase in net sales and SaaS ARR compared to the previous year. Despite improvements in adjusted EBITDA, the company still faced a net loss, reflecting ongoing challenges in achieving profitability. The financial forecast for the fiscal year ending November 30, 2025, anticipates continued growth in sales and ARR, although the company expects to remain in a net loss position, indicating a focus on long-term growth strategies over immediate profitability.

Money Forward Transfers Nexsol to SMCC and SLI, Revises Earnings Forecast
Mar 31, 2025

Money Forward, Inc. has announced the transfer of its subsidiary, Nexsol Co., Ltd., to Sumitomo Mitsui Card Co., Ltd. and Sony Life Insurance Co., Ltd. This strategic move is part of a broader realignment of Money Forward’s B2C business strategies, aimed at enhancing Nexsol’s corporate value. As a result of this transfer, Nexsol will no longer be part of Money Forward’s consolidated financial statements, and the company has revised its net sales forecast for the fiscal year ending November 2025. This decision reflects Money Forward’s ongoing efforts to optimize its business operations and strengthen its market position.

Money Forward, Inc. Issues New Shares as Restricted Stock Compensation
Mar 25, 2025

Money Forward, Inc. has announced the issuance of new shares as restricted stock compensation, aimed at aligning the interests of its employees and directors with those of shareholders by sharing in stock price fluctuations. This move is expected to motivate employees and directors to contribute to increasing the company’s stock price and corporate value, thereby strengthening its market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.