Finatext Holdings Ltd. (4419) AI Stock Analysis

• Market Cap: ¥45.88B
• Dividend Yield: N/A
• Average Volume (3M): 456.30K
• Price to Earnings (P/E): 52.2
• Beta (1Y): 1.11
• Revenue Growth: 29.31%
• EPS Growth: 62.60%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.51
• Shares Outstanding: 51,898,340
• 10 Day Avg. Volume: 838,120
• 30 Day Avg. Volume: 456,300
• PEG Ratio: -0.07
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 5.76
• P/FCF Ratio: -45.60
• 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: 55 Neutral
• Price Target: ¥906.00 ▼(-8.39% Downside)

Finatext Holdings Ltd. demonstrates strong financial performance with significant revenue growth and improved profitability, which is the most significant factor in its score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue and Profitability Improvement

Sustained high revenue growth and the shift to positive net margin indicate the company is converting scale into profitable operations. Over a 2–6 month horizon, these trends support reinvestment capacity, endurance through cycles, and improved returns if management sustains revenue momentum and margin discipline.

Low Leverage and Equity Base

A strong equity ratio and very low leverage reduce financial stress and interest burden, giving management flexibility to fund growth or weather shocks without dilutive financing. This capital structure supports durable strategic investments in product and client expansion over months-to-years.

Scalable FinTech Platform Business

A software/platform model serving banks and securities firms suggests recurring, contract-driven revenue and client stickiness. Scalability of platform delivery and higher gross margins from software can sustain long-term operating leverage and margin improvement as client adoption grows.

Negative Factors

Negative Operating Cash Flow

Persistently negative operating cash flow signals the company struggles to turn accounting profits into cash, which can force external financing or constrain investments. Over several months this undermines resilience and increases execution risk despite reported profitability improvements.

Volatile Historical Margins

Earnings-margin volatility reduces predictability of future cash flows and complicates budgeting and long-term planning. For investors and management, volatile operational profitability raises the risk that short-term setbacks could erode recent margin gains unless cost structure and revenue mix stabilize.

Limited Public Disclosure / Investor Communication

Sparse investor communications and absence of earnings call detail weaken transparency into strategy execution and forecast assumptions. Over the medium term, this can hinder market trust, slow investor understanding of fundamentals, and make it harder to assess management's response to operational challenges.

Finatext Holdings Ltd. Business Overview & Revenue Model

Company Description

Finatext Holdings Ltd. engages in the fintech solution, big data analysis, and financial infrastructure businesses in Japan. The company provides Cloud-native and API based financial infrastructure that offers BaaS for wealth management providers and Inspire for insurance providers; alternative data services for institutional investors and governments. It also develops front-end applications and provides off-the-shelf technology solutions to financial institutions. Finatext Holdings Ltd. was incorporated in 2013 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Finatext Holdings generates revenue through multiple streams primarily centered around its fintech solutions. Key revenue sources include transaction fees from trading activities on its platforms, subscription fees from users accessing premium investment tools and analytics, and commissions from financial institutions for data services and technology integration. Additionally, the company may engage in partnerships with other financial entities to develop tailored solutions, further contributing to its earnings. The scalability of its digital products and the growing demand for mobile investment solutions also play a significant role in driving its revenue growth.

Finatext Holdings Ltd. Financial Statement Overview

Summary

Finatext Holdings Ltd. shows strong revenue growth and improved profitability, with significant progress in net income and gross profit margins. The balance sheet reflects financial stability with low leverage, though cash flow challenges persist. Overall, the company is on a positive trajectory but must address cash flow inefficiencies to ensure sustainable long-term growth.

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	8.16B	7.70B	5.38B	3.82B	2.72B	2.06B
Gross Profit	5.48B	5.13B	3.23B	2.10B	1.67B	1.37B
EBITDA	1.12B	1.06B	129.42M	-316.11M	-703.40M	-715.85M
Net Income	909.48M	659.72M	-78.45M	-388.02M	-669.94M	-759.42M
Balance Sheet
Total Assets	17.98B	19.03B	20.18B	17.71B	15.85B	12.66B
Cash, Cash Equivalents and Short-Term Investments	6.67B	4.45B	4.77B	5.35B	5.79B	4.32B
Total Debt	1.87B	1.60B	666.80M	37.50M	138.00M	363.00M
Total Liabilities	7.90B	9.40B	11.45B	8.91B	6.67B	6.17B
Stockholders Equity	9.51B	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: Negative
• Last Price: 989.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4419, the sentiment is Negative. The current price of 989 is above the 20-day moving average (MA) of 924.85, above the 50-day MA of 957.40, and below the 200-day MA of 1123.49, indicating a bearish trend. The MACD of -28.32 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4419.

Finatext Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3854	84 Outperform	¥62.19B	16.77	―	1.93%	11.45%	28.42%
4431	75 Outperform	¥53.50B	30.37	―	0.52%	26.98%	19.69%
5036	75 Outperform	¥83.48B	14.83	―	2.35%	22.52%	271.71%
4475	69 Neutral	¥37.77B	27.40	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4419	55 Neutral	¥45.88B	52.24	―	―	29.31%	62.60%