BlueMeme Inc. (4069) AI Stock Analysis

• Market Cap: ¥3.64B
• Dividend Yield: N/A
• Average Volume (3M): 4.97K
• Price to Earnings (P/E): 162.6
• Beta (1Y): 0.54
• Revenue Growth: 24.09%
• EPS Growth: 141.68%
• Country: JP
• Employees: 135
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.28
• Shares Outstanding: 3,617,946
• 10 Day Avg. Volume: 4,480
• 30 Day Avg. Volume: 4,973
• PEG Ratio: 2.08
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -11.03
• 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: 53 Neutral
• Price Target: ¥1,120.00 ▼(-23.44% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by deteriorating profitability and negative operating/free cash flow, alongside very weak technical momentum and a clear downtrend. Balance sheet strength (high equity ratio and minimal leverage) provides some stability, but valuation is only moderate given the current earnings and cash flow challenges.

Positive Factors

Balance sheet strength

A high equity ratio and minimal leverage provide structural stability and financial flexibility over the coming months. This balance sheet buffer can absorb operating losses, reduce refinancing pressure, and preserve options for strategic investments or restructuring while the company addresses operating issues.

Gross margin resilience

A ~50.7% gross margin indicates the company retains sizeable margin on core products or services, suggesting pricing power or low variable costs. Sustained gross-margin strength supports recovery of operating profits if revenue stabilizes and cost control continues, aiding medium-term margin restoration.

Top-line growth metric

A reported revenue growth metric implies underlying demand or successful customer acquisition initiatives. If this top-line momentum persists, it provides a foundation to leverage the healthy gross margin and the strong balance sheet to restore profitability and improve cash generation over the next several quarters.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow is a durable headwind: it erodes cash reserves, shortens runway, and forces reliance on external financing or asset sales. Over 2-6 months this constrains investment in growth, increases refinancing risk, and may necessitate operational cutbacks.

Profitability deterioration

A shift to a significant net loss and contracting EBIT/EBITDA margins signal structural profitability pressure. This undermines internally generated capital, increases dependence on the balance sheet, and means management must fix operations or cut costs to restore sustainable earnings over the medium term.

Declining assets & liquidity risk

Reported declines in total assets and stockholders' equity alongside rising liabilities weaken the balance sheet buffer despite a high equity ratio. This trend raises medium-term liquidity risk, potentially limiting flexibility to fund operations or seize opportunities without dilutive or costly financing.

BlueMeme Inc. Business Overview & Revenue Model

Company Description

BlueMeme Inc. engages in the low code technology and DX business with a focus on agile methods in Japan. The company develops and sells Outsystems, a cloud-based attendance management system that automatically totals working hours; MarkLogic, a multi-model database; Workato, an integration platform that realizes automation of various workflows that require cooperation between multiple applications with low code; Omnext, a source code analysis tool that automates the analysis results of applications; Softools, a no-code development platform for business user-led development and in an environment where the Internet is not connected; and document automatic generation tool. It also provides services, such as enterprise architecture consulting, agile development project management, low code system contract development, training and education of low code engineers, and sales and support of software products. The company was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

BlueMeme Inc. generates revenue primarily through subscription-based services for its analytics platform, offering tiered pricing models based on the features and data access required by clients. Additionally, the company earns money from advertising partnerships, where it provides targeted ad placements for brands looking to reach specific demographics within its user base. Another significant revenue stream comes from consulting services, where BlueMeme collaborates with businesses to develop tailored marketing strategies based on the insights derived from its analytics tools. Strategic partnerships with social media platforms and marketing agencies further bolster its revenue by expanding its service offerings and client reach.

BlueMeme Inc. Financial Statement Overview

Summary

Income statement trends are weakening with declining revenue and a shift to a significant net loss, despite a still-solid gross margin (~50.7%). The balance sheet is a relative strength with a high equity ratio (~64.6%) and very low leverage (debt-to-equity ~0.03), but declining assets/equity add risk. Cash flow is a key concern with negative operating and free cash flow, indicating ongoing cash burn.

Income Statement

BlueMeme Inc. shows a declining trend in total revenue and net income over the past year, with the latest year experiencing a significant net loss. Gross profit margin remains solid at around 50.7% for the latest period, indicating efficient cost management. However, the net profit margin has turned negative due to decreased revenues and increased expenses, which poses a concern for profitability. EBIT and EBITDA margins have also contracted significantly, reflecting operational challenges.

Balance Sheet

The company's balance sheet indicates a strong equity position with a substantial equity ratio of approximately 64.6%, suggesting financial stability. The debt-to-equity ratio is low at about 0.03, indicating minimal leverage risk. However, a decrease in total assets coupled with increased liabilities suggests potential liquidity concerns. The decline in stockholders' equity year-over-year reflects potential risks in maintaining financial health.

Cash Flow

The cash flow statement highlights significant challenges, with negative operating cash flow and free cash flow indicating cash burn issues. The operating cash flow to net income ratio has declined, suggesting difficulties in converting revenue into cash. The company needs to address its cash flow management to support long-term operations and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.73B	2.35B	2.51B	2.29B	1.94B	2.10B
Gross Profit	1.38B	1.19B	1.27B	1.16B	1.06B	691.02M
EBITDA	203.87M	52.91M	273.58M	377.53M	395.25M	193.10M
Net Income	102.26M	-17.14M	174.87M	259.68M	259.02M	130.24M
Balance Sheet
Total Assets	4.21B	3.90B	3.73B	3.56B	3.35B	1.39B
Cash, Cash Equivalents and Short-Term Investments	1.82B	1.71B	2.23B	2.22B	2.36B	645.49M
Total Debt	51.15M	69.94M	5.43M	4.74M	100.51M	212.24M
Total Liabilities	1.56B	1.36B	1.12B	895.78M	952.60M	871.04M
Stockholders Equity	2.57B	2.52B	2.61B	2.66B	2.40B	523.79M
Cash Flow
Free Cash Flow	-142.73M	-355.84M	183.81M	90.79M	330.24M	179.84M
Operating Cash Flow	-136.11M	-348.03M	252.37M	94.84M	338.36M	182.59M
Investing Cash Flow	-7.10M	-65.50M	-106.82M	-46.99M	-9.58M	-21.11M
Financing Cash Flow	-42.25M	-107.73M	-141.57M	-179.28M	1.38B	-100.10M

BlueMeme Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1463.00
• 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:4069, the sentiment is Negative. The current price of 1463 is above the 20-day moving average (MA) of 1040.60, above the 50-day MA of 1232.34, and below the 200-day MA of 1545.21, indicating a neutral trend. The MACD of -41.99 indicates Negative momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4069.

BlueMeme Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9553	68 Neutral	¥23.68B	15.25	―	―	14.28%	-30.60%
4168	67 Neutral	¥8.91B	11.67	―	0.70%	9.78%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4069	53 Neutral	¥3.64B	162.64	―	―	24.09%	141.68%
5027	49 Neutral	¥26.49B	39.28	―	―	20.84%	10.41%
6047	48 Neutral	¥12.55B	30.14	―	3.48%	-11.85%	―
9561	45 Neutral	¥3.96B	-110.35	―	―	3.34%	-219.24%