Interfactory, Inc. (4057) AI Stock Analysis

• Market Cap: ¥1.65B
• Dividend Yield: N/A
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.42
• Revenue Growth: 12.83%
• EPS Growth: 193.35%
• Country: JP
• Employees: 157
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 4,125,700
• 10 Day Avg. Volume: 6,370
• 30 Day Avg. Volume: 4,293
• PEG Ratio: -0.03
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 10.76
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥431.00 ▼(-6.51% Downside)
• Action: Downgraded Date: 10/18/25
• Date: Action: Downgraded 10/18/25

Interfactory, Inc. demonstrates solid financial performance with consistent revenue growth and improving profitability. The technical analysis indicates a bearish trend, but the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events limits additional insights. Overall, the stock is on a positive trajectory with potential for further improvement.

Positive Factors

Recurring revenue mix

Interfactory's mix of product sales, maintenance/support contracts and subscription software creates predictable recurring revenue. That structural revenue base increases cash flow visibility, raises customer lifetime value, and supports steady reinvestment in R&D and customer success over multiple years.

High & improving gross margins

A 42.6% gross margin in an automation/software-heavy business indicates durable unit economics and pricing power versus peers. Sustained high gross margins provide scope to absorb SG&A, fund product development, and scale profitably as revenues grow, underpinning long-term margin sustainability.

Conservative leverage and strong equity base

Low leverage and a healthy equity ratio give the company financial flexibility to invest in capex, R&D or selective M&A without stressing the balance sheet. Positive ROE shows capital is generating returns, supporting resilience through manufacturing cycles and strategic initiatives.

Negative Factors

Low net profitability

Despite strong gross margins, the net margin of ~4.8% implies elevated operating costs, R&D spending, or SG&A pressure that absorb profits. Low net profitability limits retained earnings, reduces ability to self-fund expansion, and makes long-term EPS improvement contingent on operating leverage.

Weak free cash flow conversion

Operating cash generation is strong relative to net income, but weak free cash flow conversion suggests capex or working capital needs are consuming cash. This structurally constrains cash available for dividends, debt reduction, or growth investments without external funding.

Earnings volatility (EPS contraction)

A ~46% decline in EPS reflects material earnings volatility that can stem from one-offs, margin pressure, or investment cycles. Persistent EPS contraction impairs predictability of returns, may raise stakeholder scrutiny, and limits the firm's ability to steadily accumulate capital for long-term initiatives.

Interfactory, Inc. Business Overview & Revenue Model

Company Description

Interfactory, Inc. provides cloud solutions. It offers ebisumart, a cloud e-commerce platform. The company was founded in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Interfactory, Inc. generates revenue through multiple key streams. The primary source of income comes from the sale of its proprietary software and hardware solutions to manufacturing clients, which are often accompanied by ongoing maintenance and support contracts. Additionally, the company earns revenue from consulting services that help clients implement and optimize their automation systems. Significant partnerships with major technology firms and industry leaders further bolster its revenue, providing collaborative projects and joint ventures that expand its market reach. Furthermore, Interfactory capitalizes on recurring revenue through subscription-based models for its software products, ensuring a steady income flow as clients continue to rely on its innovative solutions.

Interfactory, Inc. Financial Statement Overview

Summary

Interfactory, Inc. exhibits a solid financial performance with consistent revenue growth and improving profitability metrics. The balance sheet reflects a stable financial position with manageable leverage and a strong equity base. Cash flow generation has improved, although there are opportunities to enhance free cash flow conversion. Overall, the company is on a positive trajectory with room for further improvement in profitability and cash flow efficiency.

Income Statement

Interfactory, Inc. has shown consistent revenue growth over the years, with a 4.22% increase in the latest period. The gross profit margin has improved to 42.6% in the latest year, indicating efficient cost management. However, the net profit margin remains relatively low at 4.8%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over time, currently standing at 0.31, indicating a stable leverage position. The return on equity has turned positive, reaching 11.6%, which is a positive sign of profitability. The equity ratio is healthy at 55.9%, showing a strong equity base relative to total assets.

Cash Flow

Interfactory, Inc. has demonstrated significant improvement in free cash flow, with a notable growth rate. The operating cash flow to net income ratio is strong at 2.74, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential challenges in converting profits into free cash flow.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2021
Income Statement
Total Revenue	2.97B	2.86B	2.60B	2.49B	2.28B	2.17B
Gross Profit	1.27B	1.22B	938.64M	963.38M	806.25M	907.90M
EBITDA	427.66M	398.46M	157.73M	124.70M	92.20M	240.28M
Net Income	150.67M	137.57M	-31.77M	22.09M	20.11M	131.03M
Balance Sheet
Total Assets	2.06B	2.11B	1.80B	1.70B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	343.00M	477.31M	306.42M	301.93M	376.04M	686.55M
Total Debt	370.00M	370.00M	400.00M	250.00M	150.00M	100.00M
Total Liabilities	854.00M	931.84M	764.06M	585.99M	491.26M	495.13M
Stockholders Equity	1.21B	1.18B	1.04B	1.12B	1.01B	952.91M
Cash Flow
Free Cash Flow	0.00	200.93M	-98.26M	-262.38M	-351.82M	58.64M
Operating Cash Flow	0.00	376.31M	50.28M	130.01M	-85.11M	179.17M
Investing Cash Flow	0.00	-175.42M	-144.51M	-392.45M	-276.71M	-127.14M
Financing Cash Flow	0.00	-30.00M	98.73M	188.33M	51.31M	360.89M

Interfactory, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 461.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4057, the sentiment is Negative. The current price of 461 is above the 20-day moving average (MA) of 401.70, above the 50-day MA of 412.66, and below the 200-day MA of 467.46, indicating a bearish trend. The MACD of -3.93 indicates Negative momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4057.

Interfactory, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3922	77 Outperform	¥31.37B	15.15	―	0.38%	18.02%	46.43%
4057	64 Neutral	¥1.65B	18.88	―	―	12.83%	193.35%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6562	60 Neutral	¥12.19B	13.47	―	―	33.34%	-25.08%
2489	57 Neutral	¥10.80B	44.82	―	1.09%	-5.70%	-215.73%
3961	52 Neutral	¥2.28B	-48.01	―	―	-12.06%	-184.14%
3674	46 Neutral	¥3.58B	-8.52	―	―	-3.79%	-272.95%