Money Forward (3994) AI Stock Analysis

• Market Cap: ¥260.72B
• Dividend Yield: N/A
• Average Volume (3M): 395.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 28.35%
• EPS Growth: -2.49%
• Country: JP
• Employees: 2,597
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): -20.44
• Shares Outstanding: 55,508,180
• 10 Day Avg. Volume: 330,490
• 30 Day Avg. Volume: 395,510
• PEG Ratio: -0.06
• Price to Book (P/B): 8.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.17
• 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: ¥6,799.47
• Price Target Upside: 42.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥4,489.00 ▼(-5.87%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 Business Overview & Revenue Model

Company Description

Money Forward, Inc. (3994) is a Japanese financial technology company that specializes in providing cloud-based financial services and software solutions. Founded in 2012, the company operates in sectors such as personal finance management, business accounting, and financial data aggregation. Its core products include Money Forward ME, a personal finance management tool for individuals, and Money Forward Cloud, a comprehensive suite of accounting and business management tools for small to medium-sized enterprises (SMEs). The company aims to simplify financial management and improve the financial well-being of its users.

How the Company Makes Money

Money 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

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
36.16B	40.36B	30.38B	21.48B	15.63B	11.32B
	Gross Profit
23.64B	27.06B	19.08B	13.40B	10.82B	7.62B
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
31.29B	50.46B	42.52B	28.48B	37.29B	9.14B
	Total Assets
85.32B	106.19B	88.28B	65.99B	56.94B	21.71B
	Total Debt
31.05B	35.44B	30.37B	16.90B	8.55B	6.55B
	Net Debt
3.05B	-9.81B	-8.48B	-9.81B	-27.67B	-2.37B
	Total Liabilities
51.86B	61.52B	53.62B	30.90B	14.61B	11.47B
	Stockholders Equity
27.90B	37.44B	28.33B	32.63B	40.53B	9.66B
Cash Flow		Free Cash Flow
2.68B	-11.13B	-2.92B	-8.39B	-4.66B	-2.29B
	Operating Cash Flow
2.68B	-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: Positive
• Last Price: 4769.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4769 is above the 20-day moving average (MA) of 4614.15, above the 50-day MA of 4338.06, and above the 200-day MA of 4750.63, indicating a neutral trend. The MACD of 98.30 indicates Positive momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 51.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4432	76 Outperform	¥137.99B	23.29		2.03%	11.47%	8.73%
4443	75 Outperform	¥267.55B	126.14		―	29.19%	―
3697	74 Outperform	¥478.20B	69.64	19.04%	―	20.02%	-5.47%
4776	72 Outperform	¥147.27B	34.65		0.93%	16.68%	43.49%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
3994	53 Neutral	¥260.72B	―	-17.75%	―	28.35%	-2.49%
4478	47 Neutral	¥220.54B	―		―	29.79%	77.13%

Money Forward Corporate Events

Money Forward Completes Payment for Restricted Stock Compensation

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

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

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

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

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.