Chatwork Co.Ltd. (4448) AI Stock Analysis

• Market Cap: ¥20.98B
• Dividend Yield: N/A
• Average Volume (3M): 180.14K
• Price to Earnings (P/E): 135.8
• Beta (1Y): 0.92
• Revenue Growth: 25.35%
• EPS Growth: -118.04%
• Country: JP
• Employees: 582
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): -0.70
• Shares Outstanding: 42,051,945
• 10 Day Avg. Volume: 89,700
• 30 Day Avg. Volume: 180,136
• PEG Ratio: 0.03
• Price to Book (P/B): 12.92
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Chatwork Co.Ltd. shows strong revenue growth, which is a positive indicator for future potential. However, profitability issues, a declining equity position, and unfavorable technical indicators present significant risks. The lack of earning call insights or dividend yield further limits investor confidence. The overall score reflects a cautious outlook due to these financial and technical challenges.

Chatwork Co.Ltd. Business Overview & Revenue Model

Company Description

Chatwork Co.,Ltd. provides business chat services in Japan and internationally. The company operates in two segments, Chatwork and Security. It offers Chatwork, a business communication tool; and distributes security solutions software. The company was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Chatwork Co., Ltd. generates revenue primarily through a subscription-based model for its business chat platform. The company offers various pricing tiers, including free and premium plans, catering to different sizes of businesses and their communication needs. Revenue streams include monthly or annual subscription fees from users who opt for premium features, such as enhanced security, increased storage, and advanced administrative controls. Additionally, Chatwork may partner with other companies to integrate its platform into broader enterprise solutions, although specific partnership details are not disclosed.

Chatwork Co.Ltd. Financial Statement Overview

Summary

Chatwork Co.Ltd. is on a positive growth trajectory with significant revenue increases but faces persistent profitability challenges. While leverage remains stable, the decline in equity and ongoing net losses highlight potential financial risks. Improvements in cash flow performance are encouraging, suggesting enhanced operational efficiency and cash management practices. The company must focus on converting revenue growth into sustainable profits to strengthen its financial stability further.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.47B	6.49B	4.59B	3.37B	2.42B
	Gross Profit
5.84B	4.14B	3.19B	2.38B	1.77B
	EBIT
96.86M	-684.71M	-719.27M	-688.09M	327.16M
	EBITDA
-741.13M	-305.22M	-540.93M	-572.00M	360.37M
	Net Income Common Stockholders
-1.17B	-620.00M	-725.81M	-708.40M	208.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.91B	2.10B	2.85B	3.20B	1.85B
	Total Assets
6.11B	6.36B	5.40B	5.17B	2.54B
	Total Debt
1.16B	1.38B	865.50M	467.50M	0.00
	Net Debt
-1.75B	-723.93M	-1.98B	-2.73B	-1.85B
	Total Liabilities
4.52B	3.88B	2.53B	1.77B	744.84M
	Stockholders Equity
1.60B	2.48B	2.83B	3.33B	1.79B
Cash Flow		Free Cash Flow
886.76M	-10.69M	-691.61M	-784.56M	238.30M
	Operating Cash Flow
1.48B	469.54M	-283.68M	-475.25M	444.87M
	Investing Cash Flow
-650.12M	-1.45B	-517.08M	-840.21M	-192.18M
	Financing Cash Flow
-14.59M	236.94M	450.97M	2.67B	62.83M

Chatwork Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 499.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4448, the sentiment is Positive. The current price of 499 is above the 20-day moving average (MA) of 458.60, above the 50-day MA of 462.40, and below the 200-day MA of 518.60, indicating a neutral trend. The MACD of 8.20 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4448.

Chatwork Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3697	77 Outperform	€389.73B	57.86	19.04%	―	20.02%	-5.47%
3923	72 Outperform	¥421.78B	57.76		0.19%	30.19%	137.93%
4483	65 Neutral	¥211.42B	47.04		0.43%	33.25%	-21.90%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
3994	52 Neutral	€249.79B	―	-17.75%	―	28.35%	-2.49%
4448	51 Neutral	¥20.98B	135.78		―	25.35%	-118.04%

Chatwork Co.Ltd. Corporate Events

Kubell Co., Ltd. Proposes Amendments to Articles of Incorporation

Kubell Co., Ltd. announced a proposal for a partial amendment to its Articles of Incorporation to be presented at the upcoming General Meeting of Shareholders on March 26, 2025. The proposed amendments aim to clarify and expand the company’s business objectives, reflecting a diversification into new domains, including education, learning support, skill development, contact center operations, and mail receipt services. This strategic move is expected to better align Kubell’s operations with its current business landscape and growth ambitions.

kubell Co., Ltd. Announces Restricted Stock Compensation Plan

kubell Co., Ltd. has announced a new issuance of shares as part of a restricted stock compensation plan for its employees, aimed at aligning employee incentives with the company’s long-term growth goals. This move is designed to enhance corporate and shareholder value by fostering employee engagement and commitment, reflecting a strategic effort to strengthen the company’s operational and market positioning.

Chatwork Co., Ltd. Rebrands to kubell Co., Ltd. to Enhance Workplace Creativity

Chatwork Co., Ltd. has rebranded to kubell Co., Ltd. as of July 1, 2024, to align with its mission of making work more enjoyable and innovative. This strategic move highlights the company’s commitment to fostering a dynamic and creative work culture, potentially enhancing its position in the market and offering new opportunities for engagement with stakeholders.

Kubell Co., Ltd. Announces Strategic Merger to Boost Efficiency

Kubell Co., Ltd. announced a management integration involving an absorption-type merger between its subsidiary, kubell partner Co., Ltd., and sub-subsidiary, MINAGINE Co., Ltd., to enhance revenue and profit growth and improve management efficiency. This strategic move is expected to have no significant impact on the company’s consolidated financial results, despite an extraordinary loss recorded in 2024, as it is part of a broader effort to optimize the group’s structure and expand its BPaaS operations.

Kubell Co., Ltd. Reports FY 2024 Earnings Discrepancies and Restructuring Plans

Kubell Co., Ltd. reported differences between its FY 2024 earnings forecast and actual results, with higher operating and ordinary profits due to increased Chatwork ID subscriptions and lower expenses. However, the company recorded an extraordinary loss due to impairment on goodwill and fixed assets, and valuation losses on investment securities and shares, impacting profit attributable to owners of the parent. The company is restructuring to expand its BPaaS business, with a merger between subsidiaries to enhance operational efficiency.