Clip Corporation (4705) AI Stock Analysis

• Market Cap: ¥3.03B
• Dividend Yield: 5.45%
• Average Volume (3M): 810.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -3.09%
• EPS Growth: -305.97%
• Country: JP
• Employees: 193
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 15.16
• Shares Outstanding: 4,536,000
• 10 Day Avg. Volume: 650
• 30 Day Avg. Volume: 810
• PEG Ratio: 0.21
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -18.25
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥858.00 ▲(4.00% Upside)

Clip Corporation's overall stock score is primarily constrained by its financial performance challenges, particularly in profitability and cash flow. While the balance sheet remains a positive aspect, the technical analysis reflects moderate bullish signals, which offer some optimism. The valuation score is negatively impacted by profitability issues despite a high dividend yield, necessitating strategic improvements for better future performance.

Positive Factors

Strong Balance Sheet

A robust balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Strategic Partnerships

Strategic partnerships enhance service offerings and open new markets, supporting long-term revenue growth and competitive positioning in the technology sector.

Innovation Commitment

A focus on innovation ensures the company remains competitive by continuously improving its product offerings, meeting evolving client needs, and driving sustainable growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder the company's ability to reinvest in its business, affecting long-term growth and competitive edge if not addressed.

Cash Flow Issues

Insufficient cash flow generation can limit operational flexibility and investment capacity, posing risks to long-term financial health and strategic execution.

Declining Margins

Declining margins indicate potential operational inefficiencies, which could erode competitive advantage and profitability if not effectively managed.

Clip Corporation Business Overview & Revenue Model

Company Description

Clip Corporation (4705) is a leading technology company based in Japan that specializes in the development and provision of digital payment solutions, primarily targeting small to medium-sized enterprises (SMEs). The company operates in the fintech sector, offering a range of services including mobile payment systems, point-of-sale (POS) solutions, and e-commerce payment gateways. Clip Corporation's core products are designed to facilitate seamless transactions for businesses, enhancing their operational efficiency and customer engagement.

How the Company Makes Money

Clip Corporation generates revenue through multiple streams, primarily from transaction fees associated with its payment processing services. Each time a merchant processes a payment through its platform, Clip takes a small percentage as a fee. Additionally, the company earns income from subscription models where businesses pay for premium features of their payment solutions. Partnerships with banks and financial institutions further bolster its revenue, providing access to a wider customer base and additional financial products that complement its core offerings. Marketing and promotional activities also contribute to customer acquisition, thereby increasing transaction volumes and overall revenue.

Clip Corporation Financial Statement Overview

Summary

Clip Corporation demonstrates a mixed financial health profile. While the balance sheet remains robust with low leverage, 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 a strong equity position. Addressing operational inefficiencies and reversing negative cash flow trends are critical for future growth and stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	3.04B	3.04B	2.93B	3.21B	3.20B
Gross Profit	787.76M	753.80M	864.49M	954.04M	1.07B	989.66M
EBITDA	58.37M	46.14M	214.85M	216.52M	357.06M	207.62M
Net Income	-83.23M	-75.27M	87.80M	106.87M	217.29M	89.13M
Balance Sheet
Total Assets	5.31B	5.48B	5.77B	5.78B	5.92B	5.84B
Cash, Cash Equivalents and Short-Term Investments	2.89B	3.00B	3.17B	3.40B	3.79B	3.65B
Total Debt	178.32M	209.98M	179.99M	190.00M	150.00M	140.00M
Total Liabilities	815.51M	680.38M	721.07M	672.73M	701.16M	642.68M
Stockholders Equity	4.50B	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: 825.00
• 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:4705, the sentiment is Positive. The current price of 825 is above the 20-day moving average (MA) of 823.10, above the 50-day MA of 823.84, and above the 200-day MA of 808.87, indicating a bullish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, 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
2179	74 Outperform	¥4.40B	9.56	―	2.59%	8.85%	-1.34%
4319	70 Outperform	¥6.42B	14.36	―	1.44%	2.12%	138.01%
4645	68 Neutral	¥3.67B	4.05	―	2.22%	1.82%	208.53%
4678	64 Neutral	¥1.98B	10.35	―	3.41%	1.92%	71.20%
4705	63 Neutral	¥3.03B	-35.41	―	5.45%	-3.09%	-305.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4720	51 Neutral	¥1.85B	-5.17	―	―	-1.21%	-50.91%