coly Inc. (4175) AI Stock Analysis

• Market Cap: ¥10.21B
• Dividend Yield: N/A
• Average Volume (3M): 14.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 16.70%
• EPS Growth: 87.76%
• Country: JP
• Employees: 269
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -28.70
• Shares Outstanding: 5,502,900
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 14,610
• PEG Ratio: 0.40
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -17.29
• 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: 44 Neutral
• Price Target: ¥1,832.00 ▼(-5.03% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held down primarily by sustained operating/net losses and negative operating and free cash flow over FY2023–FY2025, which outweigh the benefit of a very low-leverage balance sheet. Technical indicators are neutral-to-soft with negative MACD and price below key moving averages, and valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

The revenue growth in FY2025 indicates a positive trend in sales, suggesting potential market expansion and increased user engagement with Coly's games.

Low Leverage

A low leverage balance sheet provides Coly Inc. with financial flexibility, reducing risk and allowing for potential investment in growth opportunities without the burden of high debt.

Sales Improvement

The increase in net sales reflects a strengthening in Coly's market position, potentially enhancing its competitive edge and supporting long-term revenue growth.

Negative Factors

Profitability Challenges

Despite sales growth, ongoing net losses highlight persistent profitability challenges, which could hinder long-term financial sustainability and investor confidence.

Negative Cash Flow

Negative cash flow indicates that Coly is not generating sufficient cash from operations to support its business, which may limit its ability to reinvest and grow.

Margin Compression

The sharp decline in margins suggests a reset in earnings power, potentially affecting Coly's ability to sustain profitability and invest in future growth initiatives.

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. generates revenue through various channels, primarily centered around its mobile gaming applications. The company employs a freemium model where games are free to download, but users can make in-app purchases to enhance their gaming experience, such as buying virtual items or unlocking additional content. Additionally, Coly Inc. may earn revenue through advertising within its applications and potentially through partnerships or collaborations with other companies in the gaming and entertainment industries. Subscription services or premium content offerings could also contribute to its earnings.

coly Inc. Financial Statement Overview

Summary

Financial performance is weak overall: despite revenue recovery in FY2025 (+6.9% vs. FY2024) and a strong, low-leverage balance sheet, the company has posted operating and net losses for three straight years (FY2023–FY2025) and continues to generate negative operating and free cash flow, indicating ongoing earnings and cash burn pressure.

Income Statement

Revenue has recovered in the latest year (+6.9% in FY2025 vs. FY2024), but profitability remains weak: the company posted operating losses and net losses for three consecutive years (FY2023–FY2025). Margins have also compressed sharply from the strong FY2021–FY2022 period (when net margins were ~22% and ~15%) to negative levels in FY2023–FY2025, indicating a material reset in earnings power despite stable gross margin in the mid-to-high 30s recently.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity ~0.0–0.02 across the period; FY2025 ~0.016), providing financial flexibility. However, ongoing net losses are dragging returns on equity negative in FY2023–FY2025, and equity has trended down from the FY2022 peak, signaling that continued losses could gradually erode the capital base if not reversed.

Cash Flow

Cash generation has deteriorated meaningfully: operating cash flow and free cash flow are negative in FY2023–FY2025, contrasting with strong positive cash flow in FY2021–FY2022. While free cash flow has been directionally improving versus FY2023, the business is still burning cash and operating cash flow is not currently supporting earnings quality or reinvestment needs.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	7.14B	6.50B	5.06B	5.54B	6.52B	6.33B
Gross Profit	2.86B	2.39B	1.84B	2.14B	3.31B	3.26B
EBITDA	200.86M	-510.18M	-811.37M	-275.96M	1.47B	2.07B
Net Income	150.90M	-546.29M	-830.75M	-320.78M	964.09M	1.40B
Balance Sheet
Total Assets	6.61B	6.28B	6.53B	7.24B	7.76B	3.52B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.36B	5.09B	6.10B	6.90B	2.58B
Total Debt	409.16M	86.66M	0.00	0.00	3.00M	9.00M
Total Liabilities	1.30B	1.03B	762.41M	646.04M	841.51M	1.38B
Stockholders Equity	5.31B	5.25B	5.77B	6.60B	6.92B	2.14B
Cash Flow
Free Cash Flow	0.00	-427.35M	-550.25M	-725.48M	550.52M	2.13B
Operating Cash Flow	0.00	-413.22M	-517.62M	-683.38M	565.65M	2.14B
Investing Cash Flow	0.00	-1.41B	-493.82M	-115.28M	-33.72M	-2.38M
Financing Cash Flow	0.00	96.66M	0.00	-3.07M	3.79B	-6.00M

coly Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1929.00
• 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:4175, the sentiment is Negative. The current price of 1929 is above the 20-day moving average (MA) of 1855.90, above the 50-day MA of 1867.68, and below the 200-day MA of 1932.32, indicating a bearish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥9.71B	8.98	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥43.77B	11.62	―	4.06%	-15.30%	39.61%
3903	46 Neutral	¥17.21B	5.65	―	―	-37.68%	―
3656	45 Neutral	¥23.93B	-3.88	―	―	-14.71%	-38.87%
4175	44 Neutral	¥10.21B	-150.32	―	―	16.70%	87.76%
3793	42 Neutral	¥11.70B	-5.92	―	―	93.85%	-216.24%

coly Inc. Corporate Events

Coly Inc. Reports Improved Sales but Continues to Face Profitability Challenges

Coly Inc. reported its non-consolidated financial results for the nine months ending October 31, 2025, under Japanese GAAP. The company showed a year-on-year increase in net sales by 13.9% to 4,899 million yen, although it still reported a net loss of 148 million yen, an improvement from the previous year’s loss of 626 million yen. The equity-to-asset ratio slightly decreased from 83.6% to 78.5% over the period. The announcement indicates a positive trend in sales growth, although profitability challenges remain, which could impact stakeholders’ confidence and future financial strategies.