Neural Group Inc. (JP:4056)
:4056
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Neural Group Inc.
(4056)
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Rating:43Neutral
Price Target:
¥326.00
▼(-16.20% Downside)
Action:ReiteratedDate:03/24/26
The score is held down primarily by weak financial performance (continued net losses, 2025 revenue decline, and still-meaningful leverage) and bearish technical trends (price below key moving averages with negative MACD). Positive operating and free cash flow in 2024–2025 and strong gross margins provide some support but are not yet translating into sustained profitability.
Positive Factors
High gross margins
Sustained ~64–66% gross margins imply durable unit economics and pricing power in core offerings. High gross margin provides a structural buffer to absorb SG&A and enables incremental operating leverage as revenue stabilizes, supporting long-term free cash flow conversion if cost control continues.
Negative Factors
Revenue contraction in 2025
An 8.78% revenue decline in 2025 reverses recent growth momentum and suggests demand softness or competitive pressure. Lower top-line growth reduces operating leverage benefits of high gross margins, making sustainable profitability and ramping free cash flow harder without a clear revenue recovery path.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~64–66% gross margins imply durable unit economics and pricing power in core offerings. High gross margin provides a structural buffer to absorb SG&A and enables incremental operating leverage as revenue stabilizes, supporting long-term free cash flow conversion if cost control continues.
Read all positive factors
Neural Group Inc. (4056) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.52B
Dividend YieldN/A
Average Volume (3M)113.69K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-0.62%
EPS GrowthN/A
CountryJP
Employees219
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.35
Shares Outstanding17,191,030
10 Day Avg. Volume110,240
30 Day Avg. Volume113,690
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)3.30
Price to Sales (P/S)1.88
P/FCF Ratio41.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)23.7
Revenue Forecast (FY)¥4.28B
Neural Group Inc. Business Overview & Revenue Model
Company Description
Neural Pocket Inc. develops and owns a range of proprietary AI technologies. Its AI technologies detect images and videos, classification, spatial awareness, body movement/behavior analysis, facial expression and viewing analysis, and others. The ...
Neural Group Inc. Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
38
Negative
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.62B | 3.30B | 3.56B | 3.18B | 2.88B | 1.01B |
| Gross Profit | 2.36B | 2.15B | 2.37B | 2.06B | 1.85B | 787.57M |
| EBITDA | 295.04M | 142.80M | 187.38M | -490.05M | -21.77M | 111.26M |
| Net Income | 45.21M | -107.66M | -60.93M | -650.12M | -909.18M | 11.27M |
Balance Sheet | ||||||
| Total Assets | 2.95B | 4.20B | 2.98B | 3.41B | 3.89B | 2.42B |
| Cash, Cash Equivalents and Short-Term Investments | 847.75M | 2.22B | 670.06M | 821.19M | 1.11B | 1.43B |
| Total Debt | 1.99B | 1.91B | 1.88B | 2.42B | 2.85B | 961.40M |
| Total Liabilities | 2.36B | 2.31B | 2.36B | 2.94B | 3.46B | 1.10B |
| Stockholders Equity | 593.66M | 1.88B | 614.24M | 466.59M | 432.44M | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 149.40M | 193.65M | -451.39M | -455.36M | -159.02M |
| Operating Cash Flow | 0.00 | 150.17M | 194.60M | -386.99M | -318.24M | -788.00K |
| Investing Cash Flow | 0.00 | -28.52M | 4.83M | -55.73M | -262.96M | -494.58M |
| Financing Cash Flow | 0.00 | 1.40B | -344.24M | 237.69M | 162.82M | 496.55M |
Neural Group Inc. Technical Analysis
Negative
389.00
Price Trends
369.90
Negative
394.64
Negative
563.21
Negative
Market Momentum
-12.35
Positive
38.68
Neutral
44.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4056, the sentiment is Negative. The current price of 389 is above the 20-day moving average (MA) of 344.65, above the 50-day MA of 369.90, and below the 200-day MA of 563.21, indicating a bearish trend. The MACD of -12.35 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4056.
Neural Group Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥23.56B | 16.06 | ― | 0.73% | 17.86% | 21.52% | |
74 Outperform | ¥29.81B | 35.99 | ― | ― | 29.61% | 93.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ¥14.13B | 15.26 | ― | 1.75% | 13.47% | 296.94% | |
55 Neutral | ¥32.00B | 29.01 | ― | ― | -10.49% | ― | |
43 Neutral | ¥5.52B | -57.57 | ― | ― | -0.62% | ― |
* Technology Sector Average
JP:4056
Neural Group Inc.
321.00
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-50.92%
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812.00
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User Local, Inc.
1,458.00
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JP:5574
ABEJA,Inc.
3,000.00
921.00
44.30%
JP:6572
RPA Holdings, Inc.
224.00
-54.65
-19.61%
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.