Finatext Holdings Ltd. (4419) AI Stock Analysis

• Market Cap: ¥67.20B
• Dividend Yield: N/A
• Average Volume (3M): 446.95K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 1.35
• Revenue Growth: 34.54%
• EPS Growth: 398.15%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 7.15
• Shares Outstanding: 51,300,213
• 10 Day Avg. Volume: 265,180
• 30 Day Avg. Volume: 446,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,166.00
• Price Target Upside: -12.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥1,166.00 ▼(-12.26% Downside)

The overall score is primarily influenced by strong financial performance, especially in revenue growth and profitability improvements. However, the high P/E ratio and cash flow inefficiencies are significant concerns. Technical analysis indicates a lack of clear momentum, adding to the cautious sentiment.

Finatext Holdings Ltd. Business Overview & Revenue Model

Company Description

Finatext Holdings Ltd. is a Tokyo-based fintech company that specializes in providing financial technology solutions. The company operates in sectors such as financial services, technology, and digital education. Its core products and services include mobile-first financial platforms and applications that cater to individual investors and financial institutions. Finatext focuses on developing user-friendly, data-driven solutions that facilitate investment education and trading activities.

How the Company Makes Money

Finatext Holdings Ltd. generates revenue through a combination of B2B and B2C models. On the B2B side, the company partners with financial institutions, providing them with white-label platforms and services that enhance their digital offerings, for which it receives fees and ongoing licensing revenue. On the B2C front, Finatext offers educational investment apps and platforms directly to consumers, earning money through subscription fees, in-app purchases, and premium content. Key partnerships with financial entities and strategic collaborations also contribute significantly to its earnings by expanding its market reach and enhancing product offerings.

Finatext Holdings Ltd. Financial Statement Overview

Summary

Finatext Holdings Ltd. demonstrates strong revenue growth and improved profitability, with net profit margins turning positive. The balance sheet shows financial stability with low leverage, but cash flow challenges persist, indicating inefficiencies in cash generation.

Income Statement

Finatext Holdings Ltd. demonstrates a strong revenue growth trajectory with a significant increase in total revenue from 2024 to 2025, representing a growth rate of approximately 43.3%. Gross profit margin has improved to 66.6% in 2025, indicating efficient cost management. The net profit margin turned positive at 8.6% in 2025, a notable improvement from previous losses. However, historical EBIT and EBITDA margins have been volatile, posing potential risks.

Balance Sheet

The company maintains a stable equity position with an equity ratio of 47.8% in 2025, showcasing financial stability. The debt-to-equity ratio is low at 0.18, indicating low leverage and reduced financial risk. Return on equity has improved to 7.2% in 2025, reflecting better profitability. However, fluctuations in total assets and liabilities suggest potential volatility in the balance sheet structure.

Cash Flow

Operating cash flow remains negative at -945 million yen, signaling ongoing challenges in generating cash from operations. Free cash flow has shown a marginal improvement but remains negative, suggesting potential liquidity issues. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation. Despite these concerns, free cash flow deficit has narrowed compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.70B	7.70B	5.38B	3.82B	2.72B	2.06B
Gross Profit	5.13B	5.13B	3.23B	2.10B	1.67B	1.37B
EBITDA	1.05B	1.06B	129.42M	-316.11M	-703.40M	-715.85M
Net Income	659.62M	659.72M	-78.45M	-388.02M	-669.94M	-759.42M
Balance Sheet
Total Assets	19.03B	19.03B	20.18B	17.71B	15.85B	12.66B
Cash, Cash Equivalents and Short-Term Investments	4.45B	4.45B	4.77B	5.35B	5.79B	4.32B
Total Debt	1.60B	1.60B	666.80M	37.50M	138.00M	363.00M
Total Liabilities	9.40B	9.40B	11.45B	8.91B	6.67B	6.17B
Stockholders Equity	9.10B	9.10B	8.22B	8.29B	8.59B	5.76B
Cash Flow
Free Cash Flow	0.00	-973.43M	-1.20B	-402.40M	-1.79B	-1.92B
Operating Cash Flow	0.00	-945.21M	-938.06M	-179.51M	-1.53B	-1.75B
Investing Cash Flow	0.00	-489.84M	-343.67M	-233.63M	-279.40M	-26.37M
Financing Cash Flow	0.00	1.04B	684.02M	-32.08M	3.27B	-126.75M

Finatext Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1329.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4419, the sentiment is Positive. The current price of 1329 is above the 20-day moving average (MA) of 1252.90, above the 50-day MA of 1247.50, and above the 200-day MA of 1050.58, indicating a bullish trend. The MACD of 4.11 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4419.

Finatext Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4431	80 Outperform	60.64B	38.86	―	0.46%	27.02%	21.10%
5036	75 Outperform	69.67B	14.27	6.66%	1.96%	22.09%	143.20%
4475	66 Neutral	56.19B	48.23	―	0.17%	30.64%	33.06%
3854	63 Neutral	70.45B	19.76	―	1.78%	10.20%	22.51%
4419	58 Neutral	¥67.20B	73.64	―	―	34.54%	398.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%