Chatwork Co.Ltd. (4448) AI Stock Analysis

• Market Cap: ¥16.55B
• Dividend Yield: N/A
• Average Volume (3M): 91.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 19.22%
• EPS Growth: -562.01%
• Country: JP
• Employees: 582
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 42,103,382
• 10 Day Avg. Volume: 85,590
• 30 Day Avg. Volume: 91,436
• PEG Ratio: -0.25
• Price to Book (P/B): 16.44
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 29.64
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥410.00 ▲(8.75% Upside)

Chatwork Co.Ltd. faces significant challenges with profitability and valuation, reflected in a negative P/E ratio and bearish technical indicators. Despite strong revenue growth and improved cash flow, the stock's overall attractiveness is limited by these financial and market performance issues.

Chatwork Co.Ltd. Business Overview & Revenue Model

Company Description

Chatwork Co., Ltd. (4448) is a leading provider of collaboration and communication solutions based in Japan. The company specializes in developing a cloud-based platform that facilitates efficient teamwork and project management for businesses. Its core products include a messaging application, task management features, video conferencing tools, and file sharing options, all designed to enhance productivity and streamline communication within organizations.

How the Company Makes Money

Chatwork generates revenue primarily through subscription-based models, where businesses pay for access to its suite of collaboration tools. The company offers various pricing tiers, catering to different organizational sizes and needs, which allows for a steady stream of recurring revenue. Additionally, Chatwork monetizes through premium features and add-ons that enhance the functionality of its platform. Strategic partnerships with other technology providers and integrations with popular business applications also contribute to its revenue by expanding its user base and creating additional value for customers. The company's focus on the growing demand for remote work solutions further bolsters its earnings potential.

Chatwork Co.Ltd. Financial Statement Overview

Summary

Chatwork Co.Ltd. shows strong revenue growth but struggles with profitability, reflected in a negative net profit margin. The balance sheet is stable with manageable leverage, though declining equity is a concern. Cash flow improvements are a positive sign, indicating better operational efficiency.

Income Statement

Chatwork Co.Ltd. has demonstrated steady revenue growth, achieving a 30.6% increase in 2024 compared to the previous year. However, the company is facing profitability challenges with a negative net profit margin of -13.8% and an EBIT margin of 1.1% in 2024. Despite improvements in EBITDA margin to 6.6%, the company must address its recurring losses to improve overall profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.73, indicating manageable leverage levels. The equity ratio stands at 26.1%, reflecting a stable capital structure. However, the company has experienced a significant decline in stockholders' equity, decreasing from 2.48 billion JPY in 2023 to 1.60 billion JPY in 2024, which could pose risks if not addressed.

Cash Flow

Chatwork Co.Ltd. has made substantial improvements in cash flow. The free cash flow has grown significantly to 886.8 million JPY in 2024 from a negative position in prior years. The operating cash flow to net income ratio is positive, indicating better cash generation relative to its net losses, which is a positive trend for sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.01B	8.47B	6.49B	4.59B	3.37B	2.42B
Gross Profit	6.16B	5.84B	4.14B	3.19B	2.38B	1.77B
EBITDA	719.39M	-741.13M	-305.22M	-540.93M	-592.73M	360.37M
Net Income	-1.21B	-1.17B	-620.00M	-678.53M	-708.40M	208.21M
Balance Sheet
Total Assets	5.98B	6.11B	6.27B	5.40B	5.17B	2.54B
Cash, Cash Equivalents and Short-Term Investments	3.30B	2.91B	2.10B	2.85B	3.20B	1.85B
Total Debt	1.04B	1.16B	1.38B	865.50M	467.50M	0.00
Total Liabilities	4.30B	4.52B	3.88B	2.53B	1.77B	744.84M
Stockholders Equity	1.68B	1.60B	2.48B	2.83B	3.33B	1.79B
Cash Flow
Free Cash Flow	0.00	886.76M	468.00M	-691.61M	-784.56M	238.30M
Operating Cash Flow	0.00	1.48B	469.54M	-283.68M	-475.25M	444.87M
Investing Cash Flow	0.00	-650.12M	-1.45B	-517.08M	-840.21M	-192.18M
Financing Cash Flow	0.00	-14.59M	236.94M	450.97M	2.67B	62.83M

Chatwork Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 377.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4448, the sentiment is Negative. The current price of 377 is below the 20-day moving average (MA) of 400.05, below the 50-day MA of 421.12, and below the 200-day MA of 472.00, indicating a bearish trend. The MACD of -12.68 indicates Positive momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 19.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4448.

Chatwork Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	80 Outperform	¥21.17B	15.83	―	4.05%	3.82%	18.19%
3921	74 Outperform	¥25.78B	15.14	―	2.56%	16.49%	63.26%
3712	72 Outperform	¥18.42B	15.34	―	2.02%	6.39%	6.38%
2307	70 Outperform	¥16.54B	10.91	―	3.14%	3.58%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	49 Neutral	¥16.55B	-13.42	―	―	19.22%	-562.01%
4192	41 Neutral	¥14.56B	-31.73	―	―	24.80%	12.00%