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

Money Forward (3994) AI Stock Analysis

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Money Forward

(Frankfurt:3994)

Rating:55Neutral
Price Target:
¥5,111.00
▲(2.51%Upside)
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 (3994) vs. iShares MSCI Japan ETF (EWJ)

Money Forward Business Overview & Revenue Model

Company DescriptionMoney 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 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.16B40.36B30.38B21.48B15.63B11.32B
Gross Profit23.64B27.06B19.08B13.40B10.82B7.62B
EBITDA-2.28B-1.92B-4.13B-7.97B-513.68M-1.93B
Net Income-5.53B-6.33B-6.32B-9.70B-1.58B-2.48B
Balance Sheet
Total Assets85.32B106.19B88.28B65.99B56.94B21.71B
Cash, Cash Equivalents and Short-Term Investments31.29B50.46B42.52B28.48B37.29B9.14B
Total Debt31.05B35.44B30.37B16.90B8.55B6.55B
Total Liabilities51.86B61.52B53.62B30.90B14.61B11.47B
Stockholders Equity27.90B37.44B28.33B32.63B40.53B9.66B
Cash Flow
Free Cash Flow2.68B-11.13B-2.92B-8.39B-4.66B-2.29B
Operating Cash Flow2.68B-4.76B2.46B-4.12B-2.33B-1.12B
Investing Cash Flow0.00-9.51B-7.47B-14.78B-5.20B-2.61B
Financing Cash Flow0.0020.35B17.46B9.07B34.80B5.26B

Money Forward Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4986.00
Price Trends
50DMA
4612.84
Positive
100DMA
4389.60
Positive
200DMA
4701.93
Positive
Market Momentum
MACD
93.18
Negative
RSI
63.07
Neutral
STOCH
68.25
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 4986 is above the 20-day moving average (MA) of 4791.35, above the 50-day MA of 4612.84, and above the 200-day MA of 4701.93, indicating a bullish trend. The MACD of 93.18 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 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 (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥136.96B23.11
2.11%11.47%8.73%
74
Outperform
¥458.29B68.0419.04%20.02%-5.47%
72
Outperform
¥166.31B39.13
0.83%16.68%43.49%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
66
Neutral
¥257.59B122.61
29.19%
55
Neutral
€270.21B-17.75%28.35%-2.49%
47
Neutral
¥209.63B
29.79%77.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3994
Money Forward
4,986.00
-414.00
-7.67%
JP:4432
WingArc1st Inc.
3,975.00
1,427.52
56.04%
JP:4443
Sansan, Inc.
2,051.00
262.00
14.65%
JP:4478
freee K.K.
3,540.00
1,052.00
42.28%
JP:4776
Cybozu, Inc.
3,625.00
1,735.00
91.80%
JP:3697
SHIFT
1,714.50
686.18
66.73%

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.

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.Date of analysis: Jul 05, 2025