THECOO Inc. (4255) AI Stock Analysis

• Market Cap: ¥1.63B
• Dividend Yield: N/A
• Average Volume (3M): 3.51K
• Price to Earnings (P/E): 83.5
• Beta (1Y): 0.06
• Revenue Growth: 17.30%
• EPS Growth: N/A
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 1.96
• Shares Outstanding: 2,099,605
• 10 Day Avg. Volume: 2,260
• 30 Day Avg. Volume: 3,506
• 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: ¥698.00
• Price Target Upside: -9.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥710.00 ▼(-7.43%Downside)

THECOO Inc.'s stock score is primarily influenced by its financial performance, which shows positive revenue and cash flow trends but lacks profitability. Technical analysis provides a neutral perspective, while valuation concerns due to a high P/E ratio and no dividend yield further impact the score. The absence of earnings call data and corporate events means these factors are not contributing to the score.

THECOO Inc. Business Overview & Revenue Model

Company Description

THECOO Inc. (4255) is a Japan-based company that specializes in influencer marketing and digital content creation. The company operates primarily in the digital media sector, offering platforms and services that connect influencers with brands to facilitate marketing campaigns. Their core services include talent management, campaign planning, and social media analytics, which help brands effectively engage with their target audiences.

How the Company Makes Money

THECOO Inc. generates revenue primarily through its influencer marketing services. The company earns money by acting as an intermediary between brands and influencers, charging fees for campaign planning, execution, and analytics. Additionally, THECOO Inc. may receive a percentage of the marketing budget allocated by brands for influencer campaigns. Significant partnerships with social media platforms and brands enhance their market presence and contribute to their revenue growth.

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
EBITDA	-18.76M	-516.00M	-394.85M	-67.36M	-52.75M
Net Income	-69.00M	-764.00M	-488.47M	-109.20M	-65.67M
Balance Sheet
Total Assets	2.67B	2.37B	3.00B	3.22B	1.72B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.52B	1.84B	2.04B	599.18M
Total Debt	4.00M	24.00M	55.30M	106.72M	131.68M
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: Positive
• Last Price: 767.00
• 50DMA: Positive
• 100DMA: Negative
• 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:4255, the sentiment is Positive. The current price of 767 is above the 20-day moving average (MA) of 711.70, above the 50-day MA of 727.64, and above the 200-day MA of 680.25, indicating a bullish trend. The MACD of 7.56 indicates Negative momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 95.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥2.49B	27.61		―	-0.88%	―
Sector *	63 Neutral	$34.08B	6.06	-11.85%	1.82%	5.31%	-18.34%
4255	51 Neutral	¥1.63B	83.53		―	17.30%	―
4166	50 Neutral	¥2.07B	―		―	-11.56%	50.90%
3910	45 Neutral	¥1.68B	―		1.29%	24.63%	82.26%
3787	38 Underperform	¥1.39B	―		―	-16.96%	-76.66%
4179	35 Underperform	¥1.92B	―		―	-5.40%	-18.52%