Money Forward (3994) AI Stock Analysis

• Market Cap: ¥241.82B
• Dividend Yield: N/A
• Average Volume (3M): 292.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 19.57%
• EPS Growth: -16.67%
• Country: JP
• Employees: 2,597
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -21.46
• Shares Outstanding: 55,524,780
• 10 Day Avg. Volume: 391,570
• 30 Day Avg. Volume: 292,293
• PEG Ratio: 71.75
• Price to Book (P/B): 6.85
• Price to Sales (P/S): 6.35
• P/FCF Ratio: -23.02
• 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: ¥6,015.84
• Price Target Upside: 37.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ¥4,573.00 ▲(4.33% Upside)

The overall stock score is primarily impacted by the company's financial performance and technical analysis. The persistent net losses and reliance on external financing are significant concerns. Additionally, the stock's bearish technical indicators and negative valuation metrics further contribute to a low score.

Positive Factors

Revenue Growth

Strong revenue growth indicates a robust demand for Money Forward's products and services, suggesting a solid market position and potential for future expansion.

Subscription-Based Model

The subscription-based model provides predictable and recurring revenue streams, enhancing financial stability and allowing for better long-term planning.

Cash Position

A strong cash position provides financial flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder the company's ability to reinvest in growth and could impact long-term sustainability if not addressed.

Rising Debt Levels

Increasing debt levels can strain financial resources and limit strategic flexibility, posing a risk if the company cannot manage its liabilities effectively.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and reliance on external financing, which could be unsustainable if profitability is not achieved soon.

Money Forward Business Overview & Revenue Model

Company Description

Money Forward (3994) is a leading fintech company based in Japan, specializing in providing cloud-based financial services and solutions. The company operates primarily in the sectors of personal finance management, accounting software, and corporate finance solutions. Its core products include the Money Forward app for individuals, which helps users track their expenses and manage budgets, as well as the Money Forward Accounting software targeted at businesses for efficient financial management and bookkeeping.

How the Company Makes Money

Money Forward generates revenue through a subscription-based model for its software services, offering tiered pricing plans that cater to both individual users and businesses. Key revenue streams include monthly and yearly subscriptions for the Money Forward app, accounting software, and additional services such as payroll processing and tax filing. The company also earns revenue through partnerships with financial institutions and other businesses that integrate its services into their offerings. Moreover, Money Forward benefits from a growing ecosystem of affiliated services and products, which enhances customer retention and increases overall earnings.

Money Forward Financial Statement Overview

Summary

Money Forward, Inc. shows strong revenue growth, but profitability remains a challenge with consistent net losses. The balance sheet is supported by a solid cash position, though increasing debt levels are concerning. Cash flow issues persist with negative Free Cash Flow and reliance on external financing, indicating potential risks if profitability is not achieved.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.74B	40.36B	30.38B	21.48B	15.63B	11.32B
Gross Profit	29.32B	27.06B	19.08B	13.40B	10.82B	7.62B
EBITDA	-772.82M	-1.92B	-4.13B	-7.97B	-513.68M	-1.93B
Net Income	-5.93B	-6.33B	-6.32B	-9.45B	-1.48B	-2.42B
Balance Sheet
Total Assets	109.14B	106.19B	88.28B	65.99B	56.94B	21.71B
Cash, Cash Equivalents and Short-Term Investments	45.33B	50.46B	42.52B	28.48B	37.29B	9.14B
Total Debt	33.43B	35.44B	30.37B	16.90B	8.55B	6.55B
Total Liabilities	58.53B	61.52B	53.62B	30.90B	14.61B	11.47B
Stockholders Equity	38.65B	37.44B	28.33B	32.63B	40.53B	9.66B
Cash Flow
Free Cash Flow	0.00	-11.13B	-2.92B	-8.39B	-4.66B	-2.29B
Operating Cash Flow	0.00	-4.76B	2.46B	-4.12B	-2.33B	-1.12B
Investing Cash Flow	0.00	-9.51B	-7.47B	-14.78B	-5.20B	-2.61B
Financing Cash Flow	0.00	20.35B	17.46B	9.07B	34.80B	5.26B

Money Forward Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4383.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3994, the sentiment is Negative. The current price of 4383 is above the 20-day moving average (MA) of 4206.80, below the 50-day MA of 4433.26, and below the 200-day MA of 4906.15, indicating a neutral trend. The MACD of -22.07 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3994.

Money Forward Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4432	74 Outperform	¥121.43B	23.82	―	2.67%	5.22%	-6.62%
4776	72 Outperform	¥131.58B	21.13	―	1.03%	26.47%	142.77%
3697	63 Neutral	¥258.61B	29.60	24.24%	―	17.35%	74.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	54 Neutral	¥215.25B	199.61	―	―	27.65%	96.11%
4478	51 Neutral	¥172.62B	126.10	―	―	31.57%	―
3994	41 Neutral	¥241.82B	-40.07	-19.16%	―	19.57%	-16.67%

Money Forward Corporate Events

Money Forward Announces Management Restructure for 2026

Money Forward, Inc. has announced a significant change in its management structure for the upcoming fiscal year, following recommendations from its Nomination and Compensation Committee. The changes, which include the renomination of several directors and the introduction of new external directors, aim to strengthen the company’s governance and align with its strategic goals. These adjustments are set to be finalized at the Annual General Meeting of Shareholders in February 2026, reflecting the company’s commitment to maintaining robust leadership and compliance with governance guidelines.

Money Forward Acquires Michibiku to Enhance Cloud Solutions

Money Forward, Inc. has announced the acquisition of Michibiku, Inc., making it a wholly-owned subsidiary. Michibiku specializes in digital transformation services for board meetings, offering a cloud-based tool that enhances meeting efficiency and decision-making processes. This acquisition aims to integrate Michibiku’s services with Money Forward Cloud, enriching the product lineup and expanding the customer base through Money Forward’s established network.

Money Forward Initiates Tender Offer for Full Acquisition of OutlookConsulting

Money Forward Cloud Corporate Performance Management Consulting, Inc. has announced a tender offer to acquire all shares of OutlookConsulting Co., Ltd., aiming to make it a wholly owned subsidiary. This move is part of a strategic transaction to consolidate ownership and potentially delist the target company from the Tokyo Stock Exchange Growth Market, ensuring fairness and protecting minority shareholders’ interests.

Money Forward Adjusts Stock Acquisition Rights Amid Strategic Portfolio Shift

Money Forward, Inc. announced changes to the exercise conditions of its performance-linked stock acquisition rights following the transfer of all shares of its subsidiary, SMARTCAMP Co., Ltd. This strategic move significantly alters the company’s business portfolio by removing the SaaS Marketing segment, prompting adjustments to the stock acquisition rights to align with the new business structure. The changes reflect the company’s efforts to adapt to its evolving market focus and maintain alignment with its financial performance metrics.

Money Forward Revises Financial Forecasts and Targets Amid Strategic Shift

Money Forward, Inc. has announced a revision of its full-year consolidated financial forecasts and medium-to-long-term financial targets following the transfer of all shares in its subsidiary, Smart Camp, Inc. This strategic move results in the exclusion of the SaaS Marketing segment from its business portfolio, prompting adjustments in financial forecasts and targets. The revised forecasts indicate slight decreases in net sales and profits, while the medium-to-long-term targets reflect a 10% reduction in net sales and EBITDA expectations for FY2028. The changes are part of a broader strategy to realign the company’s focus and improve financial performance.

Money Forward Reports Increased Sales Amidst Ongoing Losses

Money Forward, Inc. reported its consolidated financial results for the nine months ending August 31, 2025, showing a 19% increase in net sales and a 29.9% rise in SaaS ARR. Despite these gains, the company reported a net loss, highlighting challenges in profitability. The forecast for the fiscal year ending November 2025 anticipates continued growth in sales and SaaS ARR, but with expected losses, reflecting ongoing strategic investments and adjustments following the deconsolidation of a subsidiary.

Money Forward Transfers Smart Camp Shares to Boost Growth

Money Forward, Inc. announced the transfer of all shares of its subsidiary, Smart Camp Co., Ltd., to M-Cap No. 21 Co., Ltd., a move aimed at optimizing capital allocation and enhancing Smart Camp’s growth potential. This strategic decision is expected to leverage the management expertise and extensive network of Marunouchi Capital, potentially increasing Smart Camp’s corporate value and contributing to the broader adoption of SaaS solutions in Japan.