NEO MARKETING Inc. (4196) AI Stock Analysis

• Market Cap: ¥3.36B
• Dividend Yield: N/A
• Average Volume (3M): 17.20K
• Price to Earnings (P/E): 76.5
• Beta (1Y): 0.33
• Revenue Growth: 9.93%
• EPS Growth: -81.98%
• Country: JP
• Employees: 115
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 2,537,600
• 10 Day Avg. Volume: 13,240
• 30 Day Avg. Volume: 17,203
• PEG Ratio: -1.29
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 57.57
• 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: 63 Neutral
• Price Target: ¥1,454.00 ▲(24.70% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

NEO MARKETING Inc. has a moderate overall stock score driven by a combination of stable financial performance and positive market momentum. However, the high P/E ratio suggests overvaluation, which could limit upside potential. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Sustained revenue growth near double digits indicates the business is expanding client engagements and market penetration. With diversified streams (retainers, project fees, licensed analytics) this durable top-line expansion supports reinvestment in services and product development over coming quarters.

Strong Gross Margin

A strong gross margin reflects scalable service delivery and control over direct costs in digital marketing. This margin buffer helps absorb client pricing pressure and supports operating leverage as revenue grows, preserving core profitability even if SG&A or other expenses fluctuate.

Improved Operating Cash Flow

Turning operating cash flow positive signals better working capital and cash conversion discipline. Durable positive OCF enhances liquidity, funds organic growth and software licensing investment, and reduces near-term reliance on external financing over the next several quarters.

Negative Factors

Declining Net Profit Margin

A materially lower net margin erodes earnings quality and the firm's ability to generate retained earnings for reinvestment. Over a multi-quarter horizon, persistent margin compression could limit R&D or sales investments and reduce returns to shareholders despite revenue growth.

Rising Leverage

Higher debt levels raise fixed obligations and financial risk, reducing flexibility to absorb revenue volatility. If leverage continues rising while profitability is weakening, the company may face constrained capital allocation and higher interest burdens over the medium term.

Weak Free Cash Flow Conversion

Limited visibility into FCF growth and weak conversion from net income signals potential gaps between reported profits and cash generation. Poor FCF conversion undermines capacity to deleverage, invest in products, or return capital, making strategic execution riskier over coming quarters.

NEO MARKETING Inc. Business Overview & Revenue Model

Company Description

Neo Marketing Inc. engages in market support business. It offers marketing research services, including quantitative survey, such as online and academic research, venue investigation, home use tests, in-store survey, mail survey, and customer/employee survey; qualitative research consists of online, depth, and group interviews, as well as visit/door-to-door observation survey; and original services, such as new product development research, customer-oriented marketing, unique brand survey, original price research, recruitment without any discomfort, quick delivery interview survey, standardizes concept research, and category entry point search survey. The company also provides communication planning services comprises strategic planning that includes communication strategy, brand strategy, and strategic PR; insight-driven PR and press release creation agency; digital marketing services, such as listing advertisement, display advertising, SNS advertising, video ads, content marketing, article creation agency, pharmaceutical and medical device law check, SNS account operation, and influencer marketing; creative solutions; and SNS promotion, influencer PR, and UGC activation services. In addition, it offers customer support services, including customer success, email/chat support, mystery call/email/chat, and SNS direct recruiting; and B to B marketing consulting services. The company was formerly known as Media Interactive Co., Ltd. and changed its name to Neo Marketing Inc. in April 2012. Neo Marketing Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NEO MARKETING Inc. generates revenue through multiple streams, primarily by providing services to businesses looking to improve their marketing efforts. Key revenue streams include retainer fees for ongoing digital marketing services, project-based income from specific campaigns, and performance-based fees tied to client results. The company also monetizes its proprietary analytics tools and software solutions, which are licensed to clients for enhanced marketing insights. Significant partnerships with technology platforms and advertising networks further bolster its revenue, allowing NEO MARKETING to offer integrated solutions that attract a broader client base and drive higher sales.

NEO MARKETING Inc. Financial Statement Overview

Summary

NEO MARKETING Inc. demonstrates moderate financial health with positive revenue growth and efficient cost management. However, profitability has declined, and leverage has increased, posing potential risks. Cash flow has improved but needs further strengthening.

Income Statement

NEO MARKETING Inc. has shown a modest revenue growth rate of 4.38% in the latest year, indicating a positive trajectory. However, the net profit margin has decreased significantly from previous years, reflecting challenges in maintaining profitability. The gross profit margin remains strong, suggesting efficient cost management. Overall, the income statement reflects moderate growth with some profitability concerns.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating rising leverage, which could pose a risk if not managed properly. However, the equity ratio remains stable, showing a solid equity base. Return on equity has decreased, reflecting reduced profitability. Overall, the balance sheet shows stability but with increased leverage risks.

Cash Flow

The operating cash flow has improved significantly, turning positive from a negative position in the previous year, indicating better cash management. However, the free cash flow growth rate is not available for the latest period, and the free cash flow to net income ratio suggests a need for improvement in converting income to cash. Overall, the cash flow statement shows improvement but still requires attention to sustain positive cash flow.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.31B	2.10B	2.28B	2.25B	1.83B
Gross Profit	1.06B	953.87M	1.07B	1.06B	919.64M
EBITDA	45.74M	215.02M	345.83M	-111.31M	316.42M
Net Income	26.63M	147.44M	198.37M	-280.65M	206.00M
Balance Sheet
Total Assets	1.80B	1.69B	1.38B	1.36B	1.50B
Cash, Cash Equivalents and Short-Term Investments	1.02B	714.16M	498.31M	709.25M	925.55M
Total Debt	630.62M	518.03M	333.72M	469.48M	282.20M
Total Liabilities	1.01B	876.50M	723.90M	837.40M	703.50M
Stockholders Equity	790.51M	810.29M	652.72M	522.25M	797.02M
Cash Flow
Free Cash Flow	49.02M	-36.40M	235.12M	126.51M	270.80M
Operating Cash Flow	49.22M	-35.84M	257.32M	140.35M	278.97M
Investing Cash Flow	207.55M	95.58M	-261.68M	-579.82M	-1.14M
Financing Cash Flow	48.03M	186.11M	-206.58M	193.16M	171.38M

NEO MARKETING Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1166.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4196, the sentiment is Positive. The current price of 1166 is below the 20-day moving average (MA) of 1340.15, below the 50-day MA of 1255.94, and below the 200-day MA of 1240.22, indicating a bullish trend. The MACD of 26.37 indicates Positive momentum. The RSI at 69.72 is Neutral, neither overbought nor oversold. The STOCH value of 26.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4196.

NEO MARKETING Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2436	80 Outperform	¥8.81B	10.35	―	1.24%	11.42%	29.26%
4196	63 Neutral	¥3.36B	76.53	―	―	9.93%	-81.98%
9466	63 Neutral	¥3.22B	8.98	―	6.49%	-13.21%	103.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.27B	7.90	―	―	-4.44%	―
4170	55 Neutral	¥3.01B	101.03	―	―	-3.17%	-535.65%
2656	46 Neutral	¥3.76B	-3.97	―	―	34.64%	8.49%