coly Inc. (4175) AI Stock Analysis

• Market Cap: ¥10.91B
• Dividend Yield: N/A
• Average Volume (3M): 14.61K
• Price to Earnings (P/E): 137.8
• Beta (1Y): 0.60
• Revenue Growth: 16.70%
• EPS Growth: 87.76%
• Country: JP
• Employees: 269
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 40.12
• Shares Outstanding: 5,502,900
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 14,610
• PEG Ratio: -1.22
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.43
• P/FCF Ratio: -17.04
• 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: 48 Neutral
• Price Target: ¥1,868.00 ▼(-3.16% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by weak financial performance driven by fragile profitability and ongoing cash burn, despite a strong low-leverage balance sheet. Technicals are moderately supportive in the short term, but valuation remains challenged due to the negative P/E and lack of dividend yield data.

Positive Factors

Low-leverage balance sheet

A very low debt-to-equity ratio provides durable financial flexibility: it lowers default risk, preserves borrowing capacity to fund new titles or marketing during product cycles, and cushions the company through multi-year cash flow variability without forcing immediate asset sales.

Proven cash-generation history

Prior multi-year episodes of solid operating and free cash flow show the business model can generate substantial cash when product lineup performs. That historical capability implies management can return to positive cash conversion given successful releases or renewed monetization execution.

Scalable F2P monetization & IP

A free-to-play model with in-game purchases and IP extension creates scalable, recurring revenue potential across players and content drops. Strong IP and character-driven titles enable cross-sell, long-tail monetization and franchise expansion if hit content is developed and sustained.

Negative Factors

Multi-year cash burn

Sustained negative operating and free cash flow for multiple years implies ongoing funding needs, constrains reinvestment in development and marketing, and raises the probability of equity issuance or higher borrowing if product monetization does not recover, impairing long-term growth.

Fragile profitability

Earnings instability—deep losses for several years and only marginal net profit in 2026—reduces visibility into returns, undermines the company’s ability to reliably fund operations from earnings, and signals margins are vulnerable to title performance and cost structure misalignment.

Revenue concentration & volatility

Heavy reliance on in-game purchase dynamics and hit-driven titles produces lumpy, volatile revenue; this business concentration amplifies risk from title underperformance, changing player spend patterns, or regulatory scrutiny of gacha mechanics, making revenue recovery uncertain.

coly Inc. Business Overview & Revenue Model

Company Description

Coly Inc. engages in the planning, development, and operation of mobile online games. It also operates an online store that offers official goods of various titles. The company was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Coly Inc. primarily makes money by operating mobile games under a free-to-play model, generating revenue mainly from in-game purchases (e.g., paid virtual items, gacha/loot-box style draws, and event-related purchases) made by users within its titles. Additional revenue may come from peripheral monetization tied to its game IP (for example, goods/merchandise, licensing, or other media-related collaborations); however, specific disclosures about the breakdown, scale, or named partnerships are null.

coly Inc. Financial Statement Overview

Summary

Financial performance is pressured by a sharp profitability decline after 2022 and continued weak operating results, alongside multi-year negative operating and free cash flow (2023–2026). The main offset is a strong, low-leverage balance sheet (very low debt-to-equity) and a small return to net profit in 2026, though operating profit remains negative and margins are fragile.

Income Statement

Annual results show a sharp deterioration from strong profitability in 2021–2022 to sizable losses in 2023–2025, with only a very thin return to profit in 2026 (net margin ~1%) despite still-negative operating profit. Revenue has been volatile and recently weak (down in 2026 after growth in 2025), and profitability remains fragile with negative operating margins and a notable drop in gross margin versus earlier years.

Balance Sheet

The balance sheet is a clear strength: leverage is low (debt-to-equity ~0.05 in 2026; near-zero in several prior years) and equity remains sizable relative to assets. However, returns on equity have been inconsistent—negative through 2023–2025 and only modestly positive in 2026—highlighting that the capital base is not currently being converted into strong, stable earnings.

Cash Flow

Cash generation is the primary weak point: operating cash flow and free cash flow are negative in 2023–2026, indicating the business is consuming cash even as reported earnings improved in 2026. The company did produce strong positive operating and free cash flow in 2021–2022, but the multi-year reversal raises sustainability concerns and suggests ongoing funding needs if the trend persists.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	7.14B	7.02B	6.50B	5.06B	5.54B	6.52B
Gross Profit	2.86B	2.97B	2.39B	1.84B	2.14B	3.31B
EBITDA	200.86M	-94.72M	-510.18M	-811.37M	-275.96M	1.47B
Net Income	150.90M	72.69M	-546.29M	-830.75M	-320.78M	964.09M
Balance Sheet
Total Assets	6.61B	6.83B	6.28B	6.53B	7.25B	7.76B
Cash, Cash Equivalents and Short-Term Investments	2.88B	2.00B	3.36B	5.09B	6.10B	6.90B
Total Debt	409.16M	254.16M	96.66M	0.00	0.00	3.00M
Total Liabilities	1.30B	1.41B	1.03B	762.41M	649.81M	843.59M
Stockholders Equity	5.31B	5.43B	5.25B	5.77B	6.60B	6.92B
Cash Flow
Free Cash Flow	0.00	-588.15M	-427.35M	-550.25M	-725.48M	550.52M
Operating Cash Flow	0.00	-469.30M	-413.22M	-517.62M	-683.38M	565.65M
Investing Cash Flow	0.00	-1.04B	-1.41B	-493.82M	-115.28M	-33.72M
Financing Cash Flow	0.00	157.35M	96.66M	0.00	-3.07M	3.79B

coly Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1929.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4175, the sentiment is Positive. The current price of 1929 is above the 20-day moving average (MA) of 1858.50, above the 50-day MA of 1853.60, and below the 200-day MA of 1957.49, indicating a bullish trend. The MACD of 20.72 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4175.

coly Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3911	62 Neutral	¥9.57B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥43.63B	9.53	―	4.06%	-15.30%	39.61%
3656	52 Neutral	¥29.86B	-95.92	―	―	-14.71%	-38.87%
4175	48 Neutral	¥10.91B	137.85	―	―	16.70%	87.76%
3903	46 Neutral	¥17.21B	9.33	―	―	-37.68%	―
3793	42 Neutral	¥11.62B	4.66	―	―	93.85%	-216.24%