Visional, Inc. (4194) AI Stock Analysis

• Market Cap: ¥295.05B
• Dividend Yield: N/A
• Average Volume (3M): 194.66K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.44
• Revenue Growth: 23.28%
• EPS Growth: 26.56%
• Country: JP
• Employees: 1,705
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 136.55
• Shares Outstanding: 40,219,800
• 10 Day Avg. Volume: 152,710
• 30 Day Avg. Volume: 194,656
• PEG Ratio: 1.45
• Price to Book (P/B): 7.28
• Price to Sales (P/S): 6.12
• P/FCF Ratio: 27.85
• 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: ¥10,050.00
• Price Target Upside: 0.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 436.08
• Revenue Forecast (FY): ¥99.38B

• Rating: 67 Neutral
• Price Target: ¥7,978.00 ▼(-20.30% Downside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

Strong financial performance (growth, high margins, solid cash flow, low leverage) supports the score, but it is meaningfully offset by weak technicals (price below all key moving averages and negative MACD). Valuation is reasonable based on the P/E ratio.

Positive Factors

High margins & profitability

Sustained very high gross margins (90%+) and a near-20% net margin indicate a scalable, low-variable-cost digital business model with pricing power. These margins underpin durable cash generation, fund reinvestment and product development, and provide a cushion through economic cycles.

Consistent revenue growth

Mid-teens revenue growth reflects continued product adoption and market expansion in the Internet content space. Persistent top-line growth supports operating leverage, enables reinvestment in distribution and product, and is a durable indicator of demand for the company's offerings.

Robust free cash flow generation

Healthy free cash flow and strong cash conversion show earnings are well-backed by cash, supporting sustainable operations, capital expenditure, and strategic investments without heavy reliance on external financing. This enhances long-term financial flexibility.

Negative Factors

Declining return on equity

A gradual decline in ROE signals less efficient use of shareholder capital and could indicate diminishing incremental returns on new investments. If unaddressed, it may pressure long-term profitability and make it harder to justify equity reinvestment versus returning capital to shareholders.

Limited forward guidance / disclosure

The absence of forward guidance and call highlights reduces visibility into management's near-term plans and execution priorities. Over the medium term, limited disclosure can increase forecasting uncertainty for investors and hinder external monitoring of strategic progress.

No dividend/shareholder yield support

Lack of a dividend program limits direct cash returns to investors and may reduce appeal to income-oriented shareholders. Structurally, this funnels returns into reinvestment; if reinvestment opportunities slow, absence of dividends could pressure investor composition and perceived capital allocation discipline.

Visional, Inc. Business Overview & Revenue Model

Company Description

Visional, Inc. provides human resources platform solutions in Japan. It operates through two segments, HR Tech and Incubation. The HR Tech segment provides BizReach, a professional recruiting platform; HRMOS, a cloud based HCM platform; CareerTrek, a recruiting platform for young professional talents; BizReach, a campus network for alumni visits; and BINAR, a recruiting platform for high-skilled engineers. The Incubation segment offers BizReach Succeed, an online M&A matching platform; Trabox, an online logistics matching platform; BizHint, an B-to-B lead generation platform; and Yamory, an OSS (open source software) vulnerability management tool. The company was founded in 2020 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Visional, Inc. generates revenue through a combination of subscription fees for its software products, licensing agreements, and consulting services. The company primarily earns money by offering tiered subscription models for its analytics platforms, allowing businesses to access advanced features based on their needs. Additionally, consulting services related to data strategy and implementation contribute to significant revenue. Key partnerships with major cloud service providers enhance its capabilities and market reach, while collaborations with industry leaders in various sectors help Visional secure large-scale contracts, providing a steady income stream.

Visional, Inc. Financial Statement Overview

Summary

Strong fundamentals: ~16.5% revenue growth, very high gross margins (90%+), and solid net margin (~19.9%). Cash generation is robust with strong free cash flow and healthy cash conversion. Balance sheet risk is low due to minimal leverage, though a slightly declining ROE is a modest efficiency concern.

Income Statement

Visional, Inc. demonstrates strong revenue growth with a 16.54% increase in the latest year, supported by high gross profit margins consistently above 90%. The net profit margin is robust at 19.90%, indicating effective cost management and profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The company maintains a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has slightly decreased over the years, which may indicate a need for more efficient use of equity capital. Overall, the balance sheet reflects financial stability with low leverage.

Cash Flow

Visional, Inc. exhibits strong free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, showing that earnings are well-supported by cash flows. The free cash flow to net income ratio is also strong, suggesting efficient cash management. Overall, the cash flow statement highlights robust cash generation and management.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	80.16B	66.15B	56.27B	43.95B	28.70B
Gross Profit	72.90B	60.43B	50.46B	38.15B	24.70B
EBITDA	22.67B	20.15B	15.61B	9.56B	2.96B
Net Income	15.95B	12.99B	9.93B	5.85B	1.42B
Balance Sheet
Total Assets	95.41B	76.31B	57.87B	45.76B	35.08B
Cash, Cash Equivalents and Short-Term Investments	72.78B	58.11B	41.17B	31.36B	25.63B
Total Debt	119.00M	46.00M	39.00M	645.00M	824.00M
Total Liabilities	27.65B	23.93B	18.75B	16.98B	12.54B
Stockholders Equity	67.45B	52.33B	39.13B	28.78B	22.54B
Cash Flow
Free Cash Flow	17.63B	17.44B	10.44B	9.28B	4.20B
Operating Cash Flow	19.59B	18.37B	11.02B	9.61B	4.32B
Investing Cash Flow	-3.66B	-1.71B	-870.00M	-3.95B	-33.00M
Financing Cash Flow	-1.25B	279.00M	-346.00M	77.00M	12.23B

Visional, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10010.00
• 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:4194, the sentiment is Negative. The current price of 10010 is above the 20-day moving average (MA) of 7695.75, above the 50-day MA of 8893.98, and below the 200-day MA of 10245.30, indicating a bearish trend. The MACD of -579.93 indicates Negative momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 66.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4194.

Visional, 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%
2371	73 Outperform	¥337.36B	17.64	33.08%	3.62%	20.98%	0.48%
2120	72 Outperform	¥28.23B	4.87	9.76%	5.66%	-18.39%	―
4194	67 Neutral	¥295.05B	16.85	―	―	23.28%	26.56%
5139	62 Neutral	¥19.65B	23.01	―	―	28.90%	29.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4176	58 Neutral	¥7.05B	25.09	―	―	42.83%	26.89%

Visional, Inc. Corporate Events

Visional, Inc. Reports Strong Q1 FY2026/7 Financial Results

Visional, Inc. reported strong financial results for the first quarter of FY2026/7, with a 24.8% year-over-year growth in consolidated net sales and a 31.1% increase in EBITDA. The HR Tech Segment, particularly BizReach, showed robust performance due to high hiring demand, while HRMOS saw significant growth following the acquisition of Thinkings, Inc. The Incubation Segment also experienced notable sales growth, although it continues to operate at a loss as the company invests in future enterprise value. Visional maintains its financial forecast for FY2026/7, planning to leverage stable profits for growth investments and M&A activities.

The most recent analyst rating on (JP:4194) stock is a Buy with a Yen11953.00 price target. To see the full list of analyst forecasts on Visional, Inc. stock, see the JP:4194 Stock Forecast page.

Visional, Inc. Reports Strong Financial Growth in Q3 2025

Visional, Inc. reported significant growth in its financial performance for the three months ended October 31, 2025, with net sales increasing by 24.8% and profit attributable to owners rising by 35.3% compared to the previous year. The company’s strategic inclusion of Thinkings, Inc. in its consolidation scope and its strong equity position reflect its robust operational capabilities and market positioning.

The most recent analyst rating on (JP:4194) stock is a Buy with a Yen11953.00 price target. To see the full list of analyst forecasts on Visional, Inc. stock, see the JP:4194 Stock Forecast page.