freee K.K. (JP:4478)
:4478
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freee K.K.
(4478)
Select Model
Select Model
Rating:55Neutral
Price Target:
¥2,141.00
▼(-29.80% Downside)
Action:ReiteratedDate:03/07/26
The score is supported mainly by improving fundamentals (solid revenue growth, operational improvement, stronger free cash flow, and a stable balance sheet). Offsetting this are weak-to-neutral technicals (below key longer-term moving averages with negative MACD) and a very expensive valuation (extremely high P/E with no dividend yield provided).
Positive Factors
Recurring SaaS subscription model
A subscription-based SaaS model creates recurring, predictable revenue tied to a growing paying user base. This supports durable unit economics, higher customer lifetime value, and easier forecasting for 2-6 month planning horizons, while integrations enable retention and upsell opportunities.
Negative Factors
High operating expenses pressure margins
Elevated operating costs materially compress net margins despite healthy gross margins. Unless cost structure is trimmed or revenue growth accelerates meaningfully, sustained high OPEX can limit conversion of revenue into durable profits and constrain free cash flow expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS subscription model
A subscription-based SaaS model creates recurring, predictable revenue tied to a growing paying user base. This supports durable unit economics, higher customer lifetime value, and easier forecasting for 2-6 month planning horizons, while integrations enable retention and upsell opportunities.
Read all positive factors
freee K.K. (4478) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥121.67B
Dividend YieldN/A
Average Volume (3M)425.28K
Price to Earnings (P/E)293.6
Beta (1Y)0.82
Revenue Growth31.57%
EPS GrowthN/A
CountryJP
Employees1,722
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding59,670,765
10 Day Avg. Volume390,490
30 Day Avg. Volume425,280
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)11.51
Price to Sales (P/S)6.80
P/FCF Ratio62.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,100.00Price Target Upside-31.15% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
freee K.K. Business Overview & Revenue Model
Company Description
freee 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...
How the Company Makes Money
freee primarily makes money by selling subscriptions to its cloud-based software (SaaS). Revenue is generated from recurring fees paid by businesses and individuals who use its products for functions such as accounting/bookkeeping, expense reimbur...
freee K.K. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 33.27B | 25.43B | 19.22B | 14.38B | 10.26B |
| Gross Profit | 27.36B | 20.99B | 16.07B | 11.54B | 8.16B |
| EBITDA | 1.02B | -8.39B | -7.92B | -2.46B | -2.14B |
| Net Income | 1.37B | -10.15B | -12.34B | -11.61B | -2.76B |
Balance Sheet | |||||
| Total Assets | 52.60B | 39.95B | 42.79B | 47.41B | 55.29B |
| Cash, Cash Equivalents and Short-Term Investments | 35.79B | 31.75B | 36.41B | 42.55B | 47.64B |
| Total Debt | 9.60B | 4.70B | 0.00 | 576.00M | 292.05M |
| Total Liabilities | 32.93B | 23.00B | 15.73B | 10.98B | 8.41B |
| Stockholders Equity | 19.66B | 16.95B | 26.06B | 36.43B | 46.87B |
Cash Flow | |||||
| Free Cash Flow | 3.62B | -7.43B | -5.44B | -2.68B | -656.47M |
| Operating Cash Flow | 3.66B | -6.77B | -4.75B | -1.07B | -192.53M |
| Investing Cash Flow | -4.60B | -2.09B | -935.42M | -4.48B | -3.18B |
| Financing Cash Flow | 4.98B | 4.71B | -456.14M | 451.99M | 35.38B |
freee K.K. Technical Analysis
Negative
3050.00
Price Trends
2382.80
Negative
2742.53
Negative
3188.89
Negative
Market Momentum
-80.75
Negative
45.54
Neutral
37.09
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 3050 is above the 20-day moving average (MA) of 2116.65, above the 50-day MA of 2382.80, and below the 200-day MA of 3188.89, indicating a bearish trend. The MACD of -80.75 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 37.09 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥32.07B | 20.63 | ― | 4.58% | 4.58% | -15.00% | |
64 Neutral | ¥23.89B | 41.34 | ― | ― | 21.87% | 240.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥6.64B | 27.15 | ― | ― | 11.32% | ― | |
59 Neutral | ¥7.99B | 54.21 | ― | 0.12% | 37.21% | 129.72% | |
55 Neutral | ¥121.67B | 293.64 | ― | ― | 31.57% | ― | |
52 Neutral | ¥172.95B | 143.78 | -19.16% | ― | 19.57% | -16.67% |
* Technology Sector Average
JP:4478
freee K.K.
2,089.00
-1,561.00
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freee K.K. Corporate Events
Freee to Acquire Logistics Platform Provider Logikura as Wholly Owned Subsidiary
Mar 18, 2026
Freee K.K. will acquire all outstanding shares of Logikura Inc., a developer of the cloud-based logistics platform “Logikura,” and make it a wholly owned consolidated subsidiary. The company plans to integrate Logikura’s centrali...
Freee Lifts FY2026 Guidance on Strong ARR and Customer Growth
Feb 12, 2026
Freee K.K. reported second-quarter fiscal 2026 revenue of JPY 10,197 million, up 29.5% year on year, and raised its full-year revenue guidance to JPY 41,930 million, implying 26.0% growth. The company also highlighted strong expansion in its Platf...
Freee K.K. Delivers Strong Revenue Growth but Lower Profit, Lifts FY2026 Outlook
Feb 12, 2026
Freee K.K. reported consolidated net sales of ¥19,941 million for the six months ended Dec. 31, 2025, up 30.8% year on year, with operating profit falling 38.8% to ¥531 million and profit attributable to owners of parent down 61.6% to &#...
freee K.K. Raises FY2026 Earnings Guidance on Strong Customer Growth
Feb 12, 2026
freee K.K. has revised upward its consolidated earnings guidance for the fiscal year ending June 30, 2026 in response to strong performance in the first half, especially steady progress in acquiring new customers. The company now expects net sales...
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.