Money Forward (3994) AI Stock Analysis

• Market Cap: ¥249.79B
• Dividend Yield: N/A
• Average Volume (3M): 734.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 28.35%
• EPS Growth: -2.49%
• Country: JP
• Employees: 2,597
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): -112.35
• Shares Outstanding: 55,508,180
• 10 Day Avg. Volume: 415,660
• 30 Day Avg. Volume: 734,240
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥6,400.59
• Price Target Upside: 42.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Money Forward, Inc. exhibits strong revenue growth but faces significant challenges with profitability and cash flow, which impacts its overall financial performance score. The stock shows positive technical momentum in the short term, but valuation remains a concern due to negative earnings. These mixed factors lead to a moderate overall score.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
30.38B	21.48B	15.63B	11.32B	7.16B
	Gross Profit
19.08B	13.40B	10.82B	7.62B	4.32B
	EBIT
-6.33B	-8.47B	-1.06B	-2.80B	-2.45B
	EBITDA
-4.13B	-7.97B	-513.68M	-1.93B	-2.43B
	Net Income Common Stockholders
-6.32B	-9.70B	-1.58B	-2.48B	-2.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.52B	28.48B	37.29B	9.14B	7.19B
	Total Assets
88.28B	65.99B	56.94B	21.71B	16.31B
	Total Debt
30.37B	16.90B	8.55B	6.55B	5.43B
	Net Debt
-8.48B	-9.81B	-27.67B	-2.37B	-1.76B
	Total Liabilities
53.62B	30.90B	14.61B	11.47B	8.28B
	Stockholders Equity
28.33B	32.63B	40.53B	9.66B	7.93B
Cash Flow		Free Cash Flow
-2.92B	-8.39B	-4.66B	-2.29B	-3.74B
	Operating Cash Flow
2.46B	-4.12B	-2.33B	-1.12B	-3.61B
	Investing Cash Flow
-7.47B	-14.78B	-5.20B	-2.61B	-2.78B
	Financing Cash Flow
17.46B	9.07B	34.80B	5.26B	8.64B

Money Forward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4503.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 4503 is above the 20-day moving average (MA) of 4134.20, above the 50-day MA of 4115.28, and below the 200-day MA of 4779.70, indicating a neutral trend. The MACD of 97.42 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 76.28 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
3921	82 Outperform	¥21.40B	15.23		2.62%	9.79%	55.96%
3923	72 Outperform	¥421.78B	57.76		0.19%	30.19%	137.93%
4385	69 Neutral	$392.16B	23.80	21.33%	―	3.01%	-2.84%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
3994	52 Neutral	¥249.79B	―	-17.75%	―	28.35%	-2.49%
4478	47 Neutral	¥241.51B	―		―	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.

OutlookConsulting Revises Earnings Forecast with Minimal Impact on Money Forward

OutlookConsulting Co., Ltd., a subsidiary of Money Forward, Inc., has revised its earnings forecast for the fiscal year ending March 2025 due to increased man-hours in specific consulting projects, resulting in a downward revision of net sales. Despite this, the revision is expected to have an immaterial impact on Money Forward’s overall financial forecasts for the fiscal year ending November 2025, indicating stability in the parent company’s financial outlook.