Clip Corporation (4705) AI Stock Analysis

• Market Cap: ¥2.99B
• Dividend Yield: 5.54%
• Average Volume (3M): 3.33K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.25
• Revenue Growth: 0.05%
• EPS Growth: -187.26%
• Country: JP
• Employees: 193
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Education & Training Services
• EPS (TTM): -13.72
• Shares Outstanding: 4,536,000
• 10 Day Avg. Volume: 2,830
• 30 Day Avg. Volume: 3,330
• PEG Ratio: -0.53
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.63
• 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

• Rating: 56 Neutral
• Price Target: ¥821.00 ▲(0.98%Upside)

Clip Corporation faces significant profitability challenges, with declining revenue and negative margins impacting its financial performance. The stock's neutral technical indicators do not provide clear momentum, while the valuation is concerning due to a negative P/E ratio despite a high dividend yield. The strong balance sheet mitigates some risks, but operational improvements are needed for a better outlook.

Clip Corporation Business Overview & Revenue Model

Company Description

Clip Corporation (4705) is a Japanese company primarily engaged in the information services sector. It specializes in providing digital content distribution, system development, and related technology services. The company's core offerings include software development, IT consulting, and the creation of digital platforms that serve various industries such as e-commerce, education, and entertainment.

How the Company Makes Money

Clip Corporation generates revenue through its diverse portfolio of technology services and solutions. The company earns money by developing and licensing software products, offering IT consulting services, and providing digital content distribution platforms. Key revenue streams include subscription fees for its digital platforms, project-based fees for custom software development, and consulting services. Additionally, strategic partnerships with other technology firms and content creators enhance its service offerings and contribute to its earnings by expanding its market reach and client base.

Clip Corporation Financial Statement Overview

Summary

Clip Corporation demonstrates a mixed financial health profile. While the balance sheet remains robust, the income statement and cash flow statement reveal profitability and liquidity challenges. The declining revenue and negative net margins raise concerns, although the company benefits from low leverage and a strong equity position.

Income Statement

Clip Corporation experienced a revenue decline over recent years, with a notable drop in gross profit margins from 34% in 2022 to 25% in 2025. The net profit margin has turned negative in 2025, indicating profitability challenges. Despite previous stability, the recent drop in EBIT and EBITDA margins signals potential operational inefficiencies.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, reflecting limited leverage and financial stability. The equity ratio remains high, indicating a strong equity base. However, the decreasing return on equity from 4.2% in 2022 to a negative value in 2025 suggests deteriorating profitability.

Cash Flow

The cash flow statement indicates significant challenges, with negative free cash flow growth in 2025 and a declining operating cash flow to net income ratio. The free cash flow to net income ratio further highlights liquidity concerns, as operational cash generation becomes insufficient to cover net income.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.03B	3.04B	3.04B	2.93B	3.21B	3.20B
	Gross Profit
827.33M	753.80M	864.49M	954.04M	1.07B	989.66M
	EBIT
-8.53M	1.83M	46.44M	175.87M	305.31M	216.44M
	EBITDA
182.12M	46.14M	214.85M	216.52M	357.06M	207.62M
	Net Income Common Stockholders
89.71M	-75.27M	87.80M	106.87M	217.29M	89.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.91B	3.00B	3.17B	3.40B	3.79B	3.65B
	Total Assets
5.57B	5.48B	5.77B	5.78B	5.92B	5.84B
	Total Debt
183.00M	209.98M	179.99M	190.00M	150.00M	140.00M
	Net Debt
-2.73B	-2.79B	-2.99B	-3.21B	-3.64B	-3.51B
	Total Liabilities
755.00M	680.38M	721.07M	672.73M	701.16M	642.68M
	Stockholders Equity
4.82B	4.80B	5.05B	5.11B	5.21B	5.19B
Cash Flow		Free Cash Flow
0.00	-161.22M	147.96M	-97.78M	365.52M	101.70M
	Operating Cash Flow
0.00	-94.78M	199.51M	-65.21M	378.11M	104.73M
	Investing Cash Flow
0.00	-50.19M	-186.44M	-154.21M	-97.42M	-233.85M
	Financing Cash Flow
0.00	-128.98M	-245.97M	-177.71M	-139.26M	-286.27M

Clip Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 813.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4705, the sentiment is Positive. The current price of 813 is above the 20-day moving average (MA) of 794.80, above the 50-day MA of 789.86, and above the 200-day MA of 799.76, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4705.

Clip Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4319	75 Outperform	¥4.18B	8.77		1.77%	1.03%	―
2179	74 Outperform	¥4.11B	8.90		2.57%	9.04%	6.37%
4645	73 Outperform	¥3.39B	11.61		2.40%	2.85%	-5.28%
4678	73 Outperform	¥1.99B	6.66		3.41%	3.37%	―
Sector *	65 Neutral	$8.77B	15.11	4.67%	3.71%	3.60%	-2.96%
4705	56 Neutral	¥2.99B	32.17		5.54%	0.05%	-187.26%
4720	48 Neutral	¥1.86B	―		2.30%	-3.89%	-244.00%