THECOO Inc. (4255) AI Stock Analysis

• Market Cap: ¥1.43B
• Dividend Yield: N/A
• Average Volume (3M): 17.13K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 0.06
• Revenue Growth: 17.30%
• EPS Growth: N/A
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 1.96
• Shares Outstanding: 2,094,805
• 10 Day Avg. Volume: 5,270
• 30 Day Avg. Volume: 17,126
• PEG Ratio: -0.29
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 48 Neutral
• Price Target: ¥698.00 ▲(2.35%Upside)

THECOO Inc.'s stock score is primarily influenced by its financial performance and technical analysis. The company shows potential with revenue growth and positive cash flow generation but struggles with profitability and declining equity. The technical indicators highlight bearish trends and potential oversold conditions, while the high P/E ratio and lack of dividends suggest overvaluation.

THECOO Inc. Business Overview & Revenue Model

Company Description

THECOO Inc. is a Japanese company focused on providing influencer marketing and fan engagement services. The company operates within the digital marketing and entertainment sectors, offering platforms and services that connect influencers with their fanbase, while also enabling brands to leverage these connections for marketing purposes.

How the Company Makes Money

THECOO Inc. generates revenue primarily through its influencer marketing platforms and fan engagement services. The company earns money by facilitating collaborations between influencers and brands, earning commissions or fees for successful partnerships and campaigns. Additionally, THECOO Inc. offers subscription-based services and premium content that enhance fan engagement, further contributing to its revenue streams. Partnerships with key brands and influencers play a significant role in expanding its market reach and driving its earnings.

THECOO Inc. Financial Statement Overview

Summary

THECOO Inc. has shown positive revenue growth and improved cash flow generation, indicating potential for future stability. However, persistent negative EBIT and net income, along with declining equity, pose risks to long-term financial health.

Income Statement

THECOO Inc. has shown an improvement in revenue growth with a 13.8% increase from 2023 to 2024, indicating a positive trajectory in sales. However, profitability remains a significant concern with persistent negative EBIT and net income, resulting in negative EBIT and net profit margins. Although gross profit margin is relatively healthy, the company has not yet achieved operational profitability, which poses a risk to financial stability.

Balance Sheet

The company's balance sheet displays a low debt-to-equity ratio due to minimal debt, suggesting limited leverage risk. However, the equity ratio has decreased, reflecting a decline in total equity. Return on Equity is negative due to losses, indicating inefficiencies in generating returns from shareholders' investments. Despite a strong liquidity position, the declining equity could impact long-term financial health.

Cash Flow

Cash flow from operations has turned positive in 2024, demonstrating improved cash generation capability. The free cash flow has grown significantly, which is a positive sign. However, the free cash flow to net income ratio remains distorted due to negative net income, highlighting ongoing profitability challenges. The ability to generate cash flow without relying on external financing is a key strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.33B	3.81B	4.28B	3.48B	2.32B
	Gross Profit
1.83B	1.51B	1.67B	1.29B	825.80M
	EBIT
-68.00M	-544.00M	-212.57M	-100.75M	-59.03M
	EBITDA
-18.76M	-516.00M	-394.85M	-67.36M	-52.75M
	Net Income Common Stockholders
-69.00M	-764.00M	-488.47M	-109.20M	-65.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	1.52B	1.84B	2.04B	599.18M
	Total Assets
2.67B	2.37B	3.00B	3.22B	1.72B
	Total Debt
4.00M	24.00M	55.30M	106.72M	131.68M
	Net Debt
-1.60B	-1.49B	-1.79B	-1.94B	-467.50M
	Total Liabilities
2.32B	1.94B	1.82B	1.52B	1.24B
	Stockholders Equity
354.39M	423.00M	1.19B	1.70B	480.81M
Cash Flow		Free Cash Flow
103.63M	-289.00M	-31.69M	147.54M	-121.39M
	Operating Cash Flow
225.41M	-267.00M	188.66M	275.37M	24.26M
	Investing Cash Flow
-131.26M	-28.09M	-344.91M	-127.99M	-162.68M
	Financing Cash Flow
-21.04M	-29.10M	-55.92M	1.30B	606.95M

THECOO Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 682.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4255, the sentiment is Negative. The current price of 682 is below the 20-day moving average (MA) of 705.40, below the 50-day MA of 757.48, and above the 200-day MA of 663.33, indicating a neutral trend. The MACD of -20.45 indicates Positive momentum. The RSI at 38.50 is Neutral, neither overbought nor oversold. The STOCH value of 8.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4255.

THECOO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3913	69 Neutral	¥3.10B	37.02		―	-0.88%	―
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
3910	51 Neutral	¥1.74B	―		1.25%	24.63%	82.26%
4166	50 Neutral	¥1.96B	―		―	-11.56%	50.90%
4255	48 Neutral	¥1.43B	73.60		―	17.30%	―
3787	38 Underperform	¥1.41B	―		―	-16.96%	-76.66%
4179	35 Underperform	¥1.86B	―		―	-5.40%	-18.52%