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Neural Group Inc. (JP:4056)
:4056
Japanese Market

Neural Group Inc. (4056) AI Stock Analysis

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JP:4056

Neural Group Inc.

(4056)

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Neutral 43 (OpenAI - 5.2)
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
Strong gross margins
Consistent ~64–66% gross margins signal durable unit economics and likely pricing power or low variable costs. Such margin strength provides structural support for future operating leverage and cash generation if the company stabilizes SG&A and converts scale into sustained profitability.
Negative Factors
Ongoing net losses
Persistent net losses through 2024–2025 mean the company has yet to convert healthy gross margins and positive cash flow into sustainable profitability. Continued losses limit retained earnings, impede ROE recovery, and force reliance on cash flow improvements or external capital to fund growth and debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross margins
Consistent ~64–66% gross margins signal durable unit economics and likely pricing power or low variable costs. Such margin strength provides structural support for future operating leverage and cash generation if the company stabilizes SG&A and converts scale into sustained profitability.
Read all positive factors

Neural Group Inc. (4056) vs. iShares MSCI Japan ETF (EWJ)

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
Financials are mixed: strong and stable gross margins (~64–66%) and a swing to positive operating/free cash flow in 2024–2025, but revenue declined in 2025 (-8.78%), net income remains negative, and leverage is still a risk despite improvement in debt-to-equity by 2025.
Income Statement
42
Neutral
Balance Sheet
38
Negative
Cash Flow
57
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.62B3.30B3.56B3.18B2.88B1.01B
Gross Profit2.36B2.15B2.37B2.06B1.85B787.57M
EBITDA295.04M142.80M187.38M-490.05M-21.77M111.26M
Net Income45.21M-107.66M-60.93M-650.12M-909.18M11.27M
Balance Sheet
Total Assets2.95B4.20B2.98B3.41B3.89B2.42B
Cash, Cash Equivalents and Short-Term Investments847.75M2.22B670.06M821.19M1.11B1.43B
Total Debt1.99B1.91B1.88B2.42B2.85B961.40M
Total Liabilities2.36B2.31B2.36B2.94B3.46B1.10B
Stockholders Equity593.66M1.88B614.24M466.59M432.44M1.32B
Cash Flow
Free Cash Flow0.00149.40M193.65M-451.39M-455.36M-159.02M
Operating Cash Flow0.00150.17M194.60M-386.99M-318.24M-788.00K
Investing Cash Flow0.00-28.52M4.83M-55.73M-262.96M-494.58M
Financing Cash Flow0.001.40B-344.24M237.69M162.82M496.55M

Neural Group Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price389.00
Price Trends
50DMA
371.84
Negative
100DMA
396.49
Negative
200DMA
565.53
Negative
Market Momentum
MACD
-11.79
Negative
RSI
41.45
Neutral
STOCH
55.28
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 347.10, above the 50-day MA of 371.84, and below the 200-day MA of 565.53, indicating a bearish trend. The MACD of -11.79 indicates Negative momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥24.16B16.060.73%17.86%21.52%
74
Outperform
¥30.50B35.9929.61%93.16%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥14.07B15.261.75%13.47%296.94%
55
Neutral
¥32.08B29.01-10.49%
43
Neutral
¥5.67B-57.57-0.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4056
Neural Group Inc.
330.00
-314.00
-48.76%
JP:2158
FRONTEO, Inc.
814.00
295.00
56.84%
JP:3984
User Local, Inc.
1,495.00
-36.51
-2.38%
JP:5574
ABEJA,Inc.
3,070.00
982.00
47.03%
JP:6572
RPA Holdings, Inc.
223.00
-51.73
-18.83%
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: Mar 24, 2026