VALUENEX Japan Inc. (4422) AI Stock Analysis

• Market Cap: ¥4.27B
• Dividend Yield: N/A
• Average Volume (3M): 7.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -4.85%
• EPS Growth: -41.71%
• Country: JP
• Employees: 35
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.10
• Shares Outstanding: 2,902,200
• 10 Day Avg. Volume: 15,780
• 30 Day Avg. Volume: 7,560
• PEG Ratio: <0.01
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 2.27
• P/FCF Ratio: -13.63
• 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: 51 Neutral
• Price Target: ¥1,327.00 ▲(165.40% Upside)

The score is held back primarily by weak and volatile fundamentals, including the 2025 swing to losses and negative free cash flow. This is partially offset by a very strong balance sheet with negligible debt and strong technical momentum (price well above major moving averages). Valuation remains challenged due to losses and the lack of a stated dividend yield.

Positive Factors

Low leverage / strong balance sheet

Negligible debt and substantial equity provide durable financial flexibility, allowing the company to weather revenue swings, fund R&D or marketing, and pursue strategic options without refinancing risk. This resilience supports long-term execution even during weak operating periods.

High gross margins

Sustained gross margins near the mid-70s indicate strong unit economics typical of scalable software/AI offerings. This structural margin advantage gives room to invest in product development and sales while potentially achieving operating leverage as revenues stabilize or grow.

Niche AI semantic search product focus

A focused product addressing IP search and enterprise knowledge discovery creates durable customer value through high switching costs and specialized expertise. This vertical specialization supports sticky contracts, defensibility versus general search, and repeatable revenue opportunities.

Negative Factors

Volatile profitability; 2025 swing to losses

A sharp swing to material losses weakens long-term predictability and undermines the company’s ability to generate returns on capital. Persistent margin volatility complicates planning, reduces reinvestment capacity, and increases execution risk for a growth-dependent software business.

Negative operating and free cash flow

Recurring negative operating and free cash flow erodes internal funding for R&D and customer acquisition. Even with low leverage, sustained cash burn forces reliance on equity or non-core asset uses, constraining strategic flexibility and heightening dilution or liquidity risk.

Small scale and declining revenue

A small employee base and recent revenue decline limit the firm’s ability to scale sales, invest broadly in product, or build deep enterprise channels. Size constraints amplify the impact of demand shocks and make sustaining market share and long-term competitive presence more challenging.

VALUENEX Japan Inc. Business Overview & Revenue Model

Company Description

VALUENEX Japan Inc. (4422) is a technology company specializing in the development and provision of advanced analytics and predictive solutions. The company leverages big data analytics and artificial intelligence to offer insights and strategies for innovation and intellectual property management. Its core products include strategic patent analysis tools, technology trend analysis, and innovation planning services, catering to a wide range of industries including pharmaceuticals, chemicals, electronics, and automotive sectors.

How the Company Makes Money

VALUENEX Japan Inc. generates revenue primarily through the sale of its software solutions and consulting services. The company offers subscription-based licensing for its analytics platforms, which provide clients with access to sophisticated data interpretation and visualization tools. In addition to software sales, VALUENEX earns income from consulting projects, where it assists businesses in developing strategic innovation plans and managing intellectual property portfolios. Key revenue streams include direct sales to corporations, partnerships with research institutions, and collaborations with other firms to enhance their product offerings. The company's ability to provide tailored solutions and maintain strong client relationships contributes significantly to its financial performance.

VALUENEX Japan Inc. Financial Statement Overview

Summary

VALUENEX Japan Inc. exhibits strong financial health with significant revenue growth and robust balance sheet metrics. While profitability has seen slight fluctuations, the company has improved its cash flow position, marking a positive financial trajectory. The low leverage and high equity ratio indicate financial stability, although the modest ROE suggests room for enhanced profitability.

Income Statement

VALUENEX Japan Inc. has demonstrated strong revenue growth, increasing from 704.48 million JPY in 2023 to 786.38 million JPY in 2024, marking an 11.63% growth rate. The gross profit margin remains robust at 76.05%, although the net profit margin declined slightly to 0.44% due to reduced net income. The EBIT and EBITDA margins reflect stable operational efficiency, with EBITDA margin at 1.37%.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.0000456, indicating minimal leverage. The equity ratio is high at 78.4%, showcasing financial stability and strong shareholder equity. Return on Equity is 0.43%, which is modest but suggests profitability with low risk.

Cash Flow

Operating cash flow improved significantly from a negative position to 28.92 million JPY in 2024, demonstrating effective cash management. Free cash flow turned positive at 27.78 million JPY, highlighting improved liquidity, with a strong free cash flow to net income ratio of 8.10.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	690.58M	690.00M	786.38M	704.48M	653.40M	473.54M
Gross Profit	528.64M	528.00M	598.12M	537.14M	510.49M	369.15M
EBITDA	-69.93M	-70.00M	10.76M	43.42M	57.87M	-167.53M
Net Income	-82.33M	-82.00M	3.43M	37.46M	33.31M	-175.35M
Balance Sheet
Total Assets	911.00M	911.00M	1.01B	941.15M	967.86M	840.03M
Cash, Cash Equivalents and Short-Term Investments	708.00M	708.00M	826.01M	793.78M	820.45M	708.22M
Total Debt	0.00	0.00	36.00K	471.00K	906.00K	14.54M
Total Liabilities	204.00M	204.00M	217.54M	161.14M	231.48M	153.18M
Stockholders Equity	707.00M	707.00M	789.67M	780.01M	736.38M	686.85M
Cash Flow
Free Cash Flow	0.00	-115.00M	27.78M	-29.97M	91.17M	-150.60M
Operating Cash Flow	0.00	-114.00M	28.91M	-28.66M	91.17M	-148.86M
Investing Cash Flow	0.00	-1.00M	-1.13M	-1.30M	7.97M	-1.74M
Financing Cash Flow	0.00	2.24M	-435.00K	1.98M	1.50M	13.78M

VALUENEX Japan Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4422, the sentiment is Positive. The current price of 500 is below the 20-day moving average (MA) of 717.95, below the 50-day MA of 584.66, and below the 200-day MA of 558.85, indicating a bullish trend. The MACD of 199.10 indicates Negative momentum. The RSI at 73.17 is Negative, neither overbought nor oversold. The STOCH value of 68.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4422.

VALUENEX Japan Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6578	76 Outperform	¥3.27B	-25.92	―	2.07%	49.99%	142.46%
6560	73 Outperform	¥10.19B	13.41	―	1.34%	5.97%	-5.60%
7034	71 Outperform	¥6.68B	31.83	―	―	283.85%	-35.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4490	61 Neutral	¥4.95B	6.74	―	―	0.36%	―
4422	51 Neutral	¥4.27B	-271.33	―	―	-4.85%	-41.71%