Interfactory, Inc. (4057) AI Stock Analysis

• Market Cap: ¥1.65B
• Dividend Yield: N/A
• Average Volume (3M): 4.29K
• Price to Earnings (P/E): 552.8
• Beta (1Y): 0.43
• Revenue Growth: 12.83%
• EPS Growth: 193.35%
• Country: JP
• Employees: 157
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 6.69
• 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: ¥427.00 ▼(-7.38% 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

Strong balance sheet and low leverage

Interfactory’s low debt-to-equity (0.31) and healthy equity ratio (55.9%) provide durable financial flexibility. A positive ROE of 11.6% shows capital is generating returns, supporting resilience to shocks and capacity to fund strategic investments over the next several months.

Consistent revenue growth with improving margins

Steady topline growth (around mid-single digits) alongside a rising gross margin (42.6%) and improving EBIT/EBITDA margins indicates the company is gaining pricing or cost advantages. This trend supports sustainable operating leverage and durable profit expansion over a multi-month horizon.

Strong operating cash generation

Operating cash flow materially exceeds accounting earnings (OCF/net income 2.74), which signals high cash conversion at the operating line. Improved cash generation increases capacity to invest, repay obligations, and withstand cyclical pressures over 2–6 months.

Negative Factors

Low net profit margin

A net margin of ~4.8% leaves limited buffer against rising costs or demand softness. Despite solid gross margins, low net profitability constrains retained earnings and reduces the company’s ability to self-fund larger strategic initiatives or absorb margin shocks over the medium term.

Weak free cash flow conversion

Although operating cash is strong, lower free cash flow conversion means reported profits don’t fully translate into discretionary cash. This limits flexibility for capex, acquisitions, or shareholder returns and may necessitate external funding for growth initiatives over coming months.

Material decline in EPS growth

A near-50% drop in EPS signals earnings volatility or one-off pressures that weaken the sustainability of profitability. Such a sharp EPS contraction can impair investment plans and raise execution risk, potentially affecting medium-term earnings recovery prospects.

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

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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	1.71B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	343.72M	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	853.36M	933.32M	765.81M	588.30M	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: Neutral
• 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 Neutral. The current price of 461 is above the 20-day moving average (MA) of 396.95, above the 50-day MA of 405.60, and above the 200-day MA of 458.80, indicating a neutral trend. The MACD of -2.44 indicates Negative momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥28.40B	12.43	―	0.38%	18.02%	46.43%
4057	64 Neutral	¥1.65B	552.80	―	―	12.83%	193.35%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6562	60 Neutral	¥11.49B	10.90	―	―	33.34%	-25.08%
2489	57 Neutral	¥10.41B	40.80	―	1.09%	-5.70%	-215.73%
3961	52 Neutral	¥2.27B	-48.01	―	―	-12.06%	-184.14%
3674	46 Neutral	¥3.55B	-15.74	―	―	-3.79%	-272.95%