Money Forward (3994) AI Stock Analysis

• Market Cap: €288.52B
• Dividend Yield: N/A
• Average Volume (3M): 489.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 20.96%
• EPS Growth: -6.20%
• Country: JP
• Employees: 2,597
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): -19.53
• Shares Outstanding: 55,520,780
• 10 Day Avg. Volume: 701,420
• 30 Day Avg. Volume: 489,986
• PEG Ratio: -13.48
• Price to Book (P/B): 7.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 197.29
• 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: €5,986.50
• Price Target Upside: -0.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥5,111.00 ▼(-14.97%Downside)

The overall score reflects positive technical momentum as the most significant factor, despite financial performance challenges and unattractive valuation metrics. The lack of profitability and reliance on external funding are notable risks. The absence of earnings call and corporate events data means these components do not influence the score.

Money Forward Business Overview & Revenue Model

Company Description

Money 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 Money

Money Forward primarily generates revenue through subscription-based services offered to both individual and corporate clients. For individuals, the Money Forward ME app provides enhanced features through a subscription model, which includes functionalities like automatic expense tracking and advanced financial analysis tools. On the corporate side, Money Forward Cloud generates significant revenue by offering cloud-based accounting, payroll, and tax return services to businesses. The company also collaborates with financial institutions, offering them its technology to enhance their financial services, which provides additional revenue streams. Partnerships with banks and other financial entities enable Money Forward to integrate its services into broader financial ecosystems, thus expanding its user base and increasing revenue opportunities.

Money Forward Financial Statement Overview

Summary

Money Forward, Inc. demonstrates strong revenue growth but faces challenges in profitability due to consistent net losses and negative EBITDA. The balance sheet is strengthened by high cash levels but is offset by rising leverage and a negative equity ratio. Cash flow issues with negative free cash flow and reliance on external funding present risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.36B	30.38B	21.48B	15.63B	11.32B
Gross Profit	27.06B	19.08B	13.40B	10.82B	7.62B
EBITDA	-1.92B	-4.13B	-7.97B	-513.68M	-1.93B
Net Income	-6.33B	-6.32B	-9.70B	-1.58B	-2.48B
Balance Sheet
Total Assets	106.19B	88.28B	65.99B	56.94B	21.71B
Cash, Cash Equivalents and Short-Term Investments	50.46B	42.52B	28.48B	37.29B	9.14B
Total Debt	35.44B	30.37B	16.90B	8.55B	6.55B
Total Liabilities	61.52B	53.62B	30.90B	14.61B	11.47B
Stockholders Equity	37.44B	28.33B	32.63B	40.53B	9.66B
Cash Flow
Free Cash Flow	-11.13B	-2.92B	-8.39B	-4.66B	-2.29B
Operating Cash Flow	-4.76B	2.46B	-4.12B	-2.33B	-1.12B
Investing Cash Flow	-9.51B	-7.47B	-14.78B	-5.20B	-2.61B
Financing Cash Flow	20.35B	17.46B	9.07B	34.80B	5.26B

Money Forward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6011.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 6011 is above the 20-day moving average (MA) of 5008.40, above the 50-day MA of 4797.34, and above the 200-day MA of 4656.34, indicating a bullish trend. The MACD of 99.94 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3994.

Money Forward Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4776	72 Outperform	¥181.22B	42.64		0.74%	16.68%	43.49%
3994	56 Neutral	€288.52B	―	-18.26%	―	20.96%	-6.20%
Sector *	50 Neutral	C$3.05B	2.51	-63.57%	2.26%	4.49%	-6.15%
7CZ	―	€2.49B	47.81	23.55%	―	―	―
4432	69 Neutral	¥124.43B	21.95		2.33%	11.37%	5.43%
4443	66 Neutral	¥247.97B	588.04		―	29.19%	―
4478	47 Neutral	¥232.74B	―		―	29.79%	77.13%

Money Forward Corporate Events

Money Forward and SMBC Group Finalize Joint Venture Agreement

Money Forward, Inc. has signed a final agreement with Sumitomo Mitsui Financial Group and Sumitomo Mitsui Banking Corporation to form a joint venture, marking a significant step in their digital banking and BaaS initiatives. This partnership involves the establishment of a new subsidiary, SMF Inc., which will transition into a joint venture company, equally owned by Money Forward and Sumitomo Mitsui Banking Corporation, potentially enhancing their market positioning and operational capabilities in the financial technology sector.

The most recent analyst rating on (JP:3994) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Money Forward stock, see the JP:3994 Stock Forecast page.

Money Forward Reports Revenue Growth Amid Profitability Challenges

Money Forward, Inc. reported its consolidated financial results for the six months ended May 31, 2025, showing a 17% increase in net sales compared to the previous year. Despite the revenue growth, the company faced a net loss, with a decrease in operating and ordinary profits. The financial forecast for the fiscal year ending November 2025 indicates a continued focus on revenue growth, although profitability challenges remain, impacting stakeholders’ expectations.

The most recent analyst rating on (JP:3994) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Money Forward stock, see the JP:3994 Stock Forecast page.

Money Forward Announces Strategic Company Split to Enhance Operational Efficiency

Money Forward, Inc. has announced a company split to take over the development business related to the credit screening system for factoring from its subsidiary, Biz Forward, Inc., effective September 1, 2025. This strategic move aims to improve operational efficiency and enhance the functionality of the group. The factoring services will be transferred to another subsidiary, Money Forward Kessai, Inc., with a business outsourcing agreement planned between Money Forward and Money Forward Kessai. The split will not affect the company’s capital or require shareholder approval, and the company foresees no issues in fulfilling its obligations post-split.

The most recent analyst rating on (JP:3994) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Money Forward stock, see the JP:3994 Stock Forecast page.