Unite & Grow Inc. (4486) AI Stock Analysis

• Market Cap: ¥5.97B
• Dividend Yield: 1.55%
• Average Volume (3M): 11.78K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.65
• Revenue Growth: 15.64%
• EPS Growth: -5.48%
• Country: JP
• Employees: 244
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 16.51
• Shares Outstanding: 7,952,400
• 10 Day Avg. Volume: 10,110
• 30 Day Avg. Volume: 11,783
• PEG Ratio: 0.21
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 3.66
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥859.00 ▲(14.38% Upside)

Unite & Grow Inc. demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet and excellent cash flow generation. The technical analysis shows a positive trend, though caution is advised due to potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances liquidity and provides flexibility for future investments, underpinning financial stability.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports sustainable growth through prudent capital management.

Negative Factors

EPS Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially impacting investor confidence and future earnings.

Profit Margin Pressure

Pressure on profit margins could indicate rising costs or pricing challenges, affecting long-term profitability and competitive positioning.

Industry Competition

High competition in the IT services sector may pressure pricing and margins, requiring continuous innovation to maintain market position.

Unite & Grow Inc. Business Overview & Revenue Model

Company Description

Unite and Grow Inc. provides information technology (IT) administration insourcing services for small and medium-sized businesses, and venture/growth companies in Japan. It offers various services, including telephone IT consulting, onsite troubleshooting, regular visits by full-time engineers, periodical visit, remote operations monitoring, IT Consulting, IT literacy training, management seminar, and online Q and A community services. Unite and Grow Inc. was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Unite & Grow Inc. generates revenue through multiple streams, primarily by offering subscription-based access to its online learning and community platforms. Users and organizations pay a monthly or annual fee to utilize the resources and tools available on the platform. Additionally, the company partners with educational institutions and corporate clients to provide custom training programs and workshops, which serve as a significant source of income. Affiliate partnerships with wellness brands and sponsors also contribute to earnings, allowing the company to earn commissions on products sold through its platform. The combination of subscription fees, corporate training contracts, and affiliate marketing creates a diversified revenue model that supports the company's financial growth.

Unite & Grow Inc. Financial Statement Overview

Summary

Unite & Grow Inc. exhibits a strong financial position with consistent revenue growth, high profitability margins, and a solid balance sheet characterized by low leverage and high equity. The company's cash flow generation is robust, providing ample liquidity and flexibility for future investments and growth opportunities. The financial health of the company is excellent, with minimal risks observed.

Income Statement

Unite & Grow Inc. has demonstrated strong revenue growth with a 11.22% increase from the previous year. The company maintains healthy profitability with a gross profit margin of 46.48% and a net profit margin of 12.95%. The EBIT margin is solid at 13.32%, and the EBITDA margin is 18.73%, indicating efficient operations and cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.002, showcasing minimal leverage and financial risk. The return on equity is impressive at 18.82%, reflecting efficient use of equity capital. The equity ratio stands at 66.33%, indicating a strong capital structure with significant equity financing.

Cash Flow

Cash flow performance is strong, with a substantial free cash flow growth rate of 148.61%. The operating cash flow to net income ratio is 1.47, and the free cash flow to net income ratio is 1.47, highlighting excellent cash generation relative to net income, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	770.16M	2.97B	2.67B	2.34B	2.08B	1.73B
Gross Profit	361.74M	1.33B	1.31B	1.12B	1.01B	804.93M
EBITDA	140.73M	555.79M	395.11M	338.29M	308.62M	240.69M
Net Income	91.17M	384.34M	305.71M	238.37M	198.34M	159.27M
Balance Sheet
Total Assets	2.90B	3.08B	2.61B	2.37B	2.11B	1.77B
Cash, Cash Equivalents and Short-Term Investments	2.55B	2.70B	2.27B	2.14B	1.91B	1.57B
Total Debt	2.83M	3.36M	5.95M	50.00M	10.54M	7.32M
Total Liabilities	860.94M	1.04B	765.75M	767.06M	730.00M	580.95M
Stockholders Equity	2.04B	2.04B	1.85B	1.60B	1.38B	1.19B
Cash Flow
Free Cash Flow	0.00	563.40M	226.61M	173.40M	366.50M	225.31M
Operating Cash Flow	0.00	566.25M	374.32M	213.25M	432.75M	235.54M
Investing Cash Flow	0.00	-12.15M	-118.92M	-489.95M	-66.25M	-38.40M
Financing Cash Flow	0.00	-86.11M	-111.26M	29.52M	-18.08M	-24.72M

Unite & Grow Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 751.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4486, the sentiment is Positive. The current price of 751 is above the 20-day moving average (MA) of 745.35, above the 50-day MA of 728.42, and above the 200-day MA of 661.43, indicating a bullish trend. The MACD of 6.38 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4486.

Unite & Grow Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4076	80 Outperform	¥4.98B	9.45	―	4.35%	8.71%	23.46%
4486	76 Outperform	¥5.97B	14.65	―	1.55%	15.64%	-5.48%
3920	72 Outperform	¥5.52B	13.42	―	1.21%	10.06%	62.77%
9219	65 Neutral	¥5.56B	-167.50	―	5.38%	14.47%	-127.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2375	61 Neutral	¥4.39B	15.60	―	0.94%	-12.25%	―
6942	56 Neutral	¥5.58B	52.33	―	―	-5.20%	133.74%

Unite & Grow Inc. Corporate Events

Unite & Grow Inc. Reports Unique Industry Differentiation and Profitability

Unite & Grow Inc. has achieved a unique differentiation in the industry by standardizing services and prices through a membership-based quasi-delegation contract. By involving all employees in indirect operations, the company increases organizational strength and profitability, setting itself apart from competitors.

Unite & Grow Inc. Reports Strong Financial Growth and Announces Stock Split

Unite & Grow Inc. reported its non-consolidated financial results for the nine months ending September 30, 2025, showing significant growth in net sales and operating profit compared to the previous year. The company also implemented a two-for-one stock split effective July 1, 2025, impacting earnings per share calculations, and announced a commemorative dividend of 30 yen per share for the fiscal year ending December 31, 2025.