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freee K.K. (JP:4478)
:4478
Japanese Market
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freee K.K. (4478) AI Stock Analysis

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JP:4478

freee K.K.

(4478)

Rating:51Neutral
Price Target:
¥3,148.00
▼(-1.01% Downside)
The overall stock score is primarily influenced by strong financial performance, with significant revenue growth and improving profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, both of which weigh down the score.

freee K.K. (4478) vs. iShares MSCI Japan ETF (EWJ)

freee K.K. Business Overview & Revenue Model

Company Descriptionfreee K.K. provides cloud-based accounting and HR software in Japan. It offers Accounting freee, an integrated accounting software solution for SMBs; and HR freee, a cloud-native integrated payroll software solution that provides payroll and other human resource related functions for SMBs. The company was founded in 2012 and is headquartered in Tokyo, Japan.
How the Company Makes Moneyfreee K.K. generates revenue primarily through subscription fees for its cloud-based software services. The company offers various pricing tiers based on the features and services utilized by its customers, which include small businesses and freelancers. Additionally, freee earns revenue from add-on services such as payroll management, tax filing assistance, and premium support options. Strategic partnerships with financial institutions and other technology providers further enhance its offerings and may provide additional revenue opportunities, such as referral fees or co-marketing initiatives. Overall, the company's focus on recurring revenue from subscriptions is a key driver of its financial performance.

freee K.K. Financial Statement Overview

Summary
The company has shown strong revenue growth and improved profitability metrics, with a healthy gross profit margin. However, high operating expenses impact net profit margin, and return on equity remains a concern despite improvements.
Income Statement
65
Positive
The company has shown a strong revenue growth rate of 15.09% in the latest year, indicating a positive trajectory. Gross profit margin is healthy, reflecting efficient cost management. However, the net profit margin is low due to high operating expenses, impacting overall profitability. The EBIT and EBITDA margins have improved significantly, moving from negative to positive, which is a positive sign of operational improvement.
Balance Sheet
70
Positive
The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is still negative, but there is an improvement compared to previous years, suggesting better utilization of equity. The equity ratio is strong, showing a solid capital structure with a good proportion of equity financing.
Cash Flow
60
Neutral
The company has achieved a significant turnaround in free cash flow, moving from negative to positive, which is a strong indicator of improved cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash efficiently relative to its net income. However, the historical volatility in cash flows poses a risk to stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.86B33.27B25.43B19.22B14.38B10.26B
Gross Profit25.58B27.36B20.99B16.07B11.54B8.16B
EBITDA-142.45M901.21M-10.06B-12.32B-11.72B-2.36B
Net Income-503.51M1.37B-10.15B-12.34B-11.61B-2.76B
Balance Sheet
Total Assets48.15B52.60B39.95B42.79B47.41B55.29B
Cash, Cash Equivalents and Short-Term Investments32.81B35.79B31.75B36.41B42.55B47.64B
Total Debt8.10B9.60B4.70B0.00576.00M292.05M
Total Liabilities29.39B32.93B23.00B15.73B10.98B8.41B
Stockholders Equity18.76B19.66B16.95B26.06B36.43B46.87B
Cash Flow
Free Cash Flow0.003.62B-7.43B-5.48B-3.17B-656.47M
Operating Cash Flow0.003.66B-6.77B-4.75B-1.07B-192.53M
Investing Cash Flow0.00-4.60B-1.09B-1.94B-4.48B-3.18B
Financing Cash Flow0.004.98B3.71B543.86M451.99M35.38B

freee K.K. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3180.00
Price Trends
50DMA
3683.40
Negative
100DMA
3767.05
Negative
200DMA
3554.07
Negative
Market Momentum
MACD
-185.63
Positive
RSI
35.21
Neutral
STOCH
28.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4478, the sentiment is Negative. The current price of 3180 is below the 20-day moving average (MA) of 3393.25, below the 50-day MA of 3683.40, and below the 200-day MA of 3554.07, indicating a bearish trend. The MACD of -185.63 indicates Positive momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4478.

freee K.K. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥105.53B26.20
0.64%27.18%35.88%
72
Outperform
¥163.33B31.08
0.84%22.97%107.52%
71
Outperform
¥51.19B13.29
2.98%4.32%-6.09%
62
Neutral
¥241.70B567.79
27.52%-55.62%
61
Neutral
$35.55B8.91-10.55%1.87%8.47%-8.26%
51
Neutral
¥189.39B136.80
30.83%
€2.00B-18.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4478
freee K.K.
3,180.00
550.00
20.91%
DE:47D
Money Forward
35.20
0.80
2.33%
JP:4071
Plus Alpha Consulting Co. LTD.
2,482.00
414.91
20.07%
JP:4443
Sansan, Inc.
1,910.00
-423.00
-18.13%
JP:4776
Cybozu, Inc.
3,560.00
1,978.40
125.09%
JP:9928
Miroku Jyoho Service Co., Ltd.
1,846.00
39.09
2.16%

freee K.K. Corporate Events

freee K.K. Announces Merger with Apollo Inc. to Enhance ERP Services
Apr 18, 2025

freee K.K. has announced a merger with its wholly owned subsidiary, Apollo Inc., effective July 1, 2025. This strategic move aims to bolster their cloud ERP offerings by integrating Apollo’s AI-powered reservation service, enhancing support for small businesses in both operational and customer-facing functions.

freee K.K. Issues New Restricted Shares to Employees
Mar 18, 2025

freee K.K. has announced the issuance of 137,540 new restricted shares to 328 of its employees, aiming to motivate them towards sustainable growth and align their interests with shareholders. This strategic move is designed to foster long-term commitment from employees and enhance corporate value, with shares subject to transfer restrictions to ensure continued service.

freee K.K. Announces Upward Revision of Earnings Guidance for FY2025
Feb 14, 2025

freee K.K. has revised its consolidated earnings guidance for the fiscal year ending June 30, 2025, maintaining its revenue target but significantly increasing its adjusted operating profit forecast to 1,800-2,500 million yen. This upward revision reflects improved acquisition productivity and successful software capitalization efforts in the first half of the fiscal year, indicating a positive impact on the company’s operational efficiency and market positioning.

freee K.K. Reports Robust Growth in Semi-Annual Financial Results
Feb 14, 2025

freee K.K. announced a significant improvement in its financial performance for the six months ended December 31, 2024, with net sales increasing by 29.6% compared to the previous year. The company’s efforts to expand its customer base in the SaaS business and enhance customer value are driving its growth, and it forecasts further growth in net sales and adjusted operating profit for the fiscal year ending June 30, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025