TRIPLEIZE CO. LTD. (5026) AI Stock Analysis

• Market Cap: ¥6.61B
• Dividend Yield: N/A
• Average Volume (3M): 29.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 29.55%
• EPS Growth: -500.01%
• Country: JP
• Employees: 465
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.49
• Shares Outstanding: 8,388,100
• 10 Day Avg. Volume: 36,840
• 30 Day Avg. Volume: 29,466
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 38 Underperform
• Price Target: ¥741.00 ▼(-8.97% Downside)

The stock's overall score is primarily impacted by its weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Recurring revenue model and partnerships

A mix of subscription/licenses, consulting and strategic partnerships creates diversified, repeatable revenue streams. This business model supports predictable long-term cash flows, upsell opportunities and easier scale with product improvements, aiding durable revenue stability.

Above-peer revenue growth

Nearly 18% revenue growth signals sustained demand for the company’s software and services. Persistent top-line expansion provides room to invest in R&D and sales, enabling market share gains and long-term competitive positioning if converted into improving margins and cash generation.

Healthy gross margin

A ~28.5% gross margin indicates product-level pricing power and efficient delivery of core software services. This margin cushion gives management room to invest in growth and absorb operating costs, supporting potential margin expansion as scale improves and fixed costs are leveraged.

Negative Factors

Negative operating and free cash flow

Sustained negative operating cash flow and falling free cash flow weaken internal funding capacity and increase reliance on external financing. Over months, this limits ability to invest, pursue strategic initiatives, and exposes the company to refinancing risk if cash conversion metrics do not improve.

Unprofitable at operating and net levels

Persistent negative EBIT and net margins indicate the core business is not yet delivering returns after operating costs. This hampers retained earnings, reduces reinvestment capacity, and forces management to prioritize cost restructuring or margin recovery to achieve sustainable, long-term profitability.

High leverage and negative ROE

A near-1.0 debt/equity level combined with negative ROE signals constrained financial flexibility and inefficient capital use. Elevated leverage increases fixed interest obligations, raises solvency risk in downturns, and limits strategic options until debt is reduced and returns on capital recover.

TRIPLEIZE CO. LTD. Business Overview & Revenue Model

Company Description

Tripleize Co.,Ltd. engages in the provision of information technology consulting and system integration services in Japan. It offers AIZE, an image recognition platform that can recognize age, gender, and emotions from facial images. The company also provides system integration services comprising system development, operation, infrastructure, database, and maintenance; smartphone application and website development; and construction, implementation, and consulting services for cloud computer infrastructure. In addition, it offers digital transformation solutions, including AI development, and business intelligence; and AI engineer training services, such as online correspondence education and short-term intensive real-life courses. The company was incorporated in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TRIPLEIZE CO. LTD. generates revenue through multiple streams, primarily by offering software licenses and subscription services for its data analytics tools. The company also earns income from consulting services, where it assists businesses in implementing and optimizing its software solutions. Additionally, TRIPLEIZE has established strategic partnerships with other technology firms and industry leaders, allowing for collaborative projects that can expand its market reach and enhance its service offerings. These partnerships, along with a focus on developing proprietary technology, contribute significantly to the company's overall earnings.

TRIPLEIZE CO. LTD. Financial Statement Overview

Summary

TRIPLEIZE CO. LTD. shows strong revenue growth and a healthy gross profit margin. However, the low net profit margin and high leverage pose significant financial risks. The company needs to address profitability and leverage issues for long-term stability.

Income Statement

TRIPLEIZE CO. LTD. has shown strong revenue growth over the past year, with a revenue increase from 2.35 billion to 4.41 billion JPY, representing an 88% growth rate. The gross profit margin stands at 33.4%, indicating a healthy profitability level. However, the net profit margin is relatively low at 1.7%, which suggests that expenses are significantly impacting net income. Both EBIT and EBITDA margins are positive but modest, reflecting some operational challenges.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 2.71, indicating significant leverage which could pose financial risks. The equity ratio is 17.4%, highlighting that a large portion of the company's assets are financed by debt. Return on equity is positive at 8.89%, showing a capacity to generate profits from shareholders' equity, but the high leverage remains a concern.

Cash Flow

The cash flow analysis shows negative free cash flow, although there has been a significant improvement from the previous period. The operating cash flow to net income ratio is quite low, indicating challenges in converting income into cash. Despite these issues, there is a positive trend in cash flow management compared to last year, as financing inflows remain strong.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.63B	5.71B	4.41B	2.35B	2.42B	2.12B
Gross Profit	1.77B	1.63B	1.47B	578.15M	693.37M	541.97M
EBITDA	-229.39M	-15.99M	69.22M	-779.28M	140.40M	82.49M
Net Income	-293.20M	-344.00M	76.23M	-825.32M	112.34M	38.02M
Balance Sheet
Total Assets	5.37B	4.85B	4.92B	2.30B	1.79B	1.11B
Cash, Cash Equivalents and Short-Term Investments	2.44B	1.91B	1.61B	1.75B	1.08B	617.61M
Total Debt	1.99B	1.62B	2.33B	1.60B	288.48M	262.27M
Total Liabilities	3.69B	3.18B	4.07B	1.97B	630.91M	671.31M
Stockholders Equity	1.68B	1.67B	849.93M	332.15M	1.16B	442.39M
Cash Flow
Free Cash Flow	0.00	-107.81M	-17.23M	-387.77M	-171.36M	30.00M
Operating Cash Flow	0.00	-68.73M	2.58M	-241.26M	34.06M	164.41M
Investing Cash Flow	0.00	-78.23M	-1.07B	-399.61M	-192.93M	-126.28M
Financing Cash Flow	0.00	447.19M	771.58M	1.32B	621.15M	28.80M

TRIPLEIZE CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 814.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5026, the sentiment is Neutral. The current price of 814 is above the 20-day moving average (MA) of 714.35, above the 50-day MA of 727.72, and below the 200-day MA of 960.19, indicating a neutral trend. The MACD of 6.27 indicates Negative momentum. The RSI at 66.21 is Neutral, neither overbought nor oversold. The STOCH value of 80.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5026.

TRIPLEIZE CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥8.59B	11.89	―	3.16%	14.02%	2.74%
4356	78 Outperform	¥10.55B	11.34	―	1.61%	-3.26%	34.51%
2391	75 Outperform	¥8.54B	20.27	―	3.47%	-0.94%	-7.43%
4442	73 Outperform	¥9.26B	16.91	―	0.95%	9.36%	-1.69%
4769	70 Outperform	¥8.10B	16.12	―	3.79%	9.11%	26.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5026	38 Underperform	¥6.61B	-17.74	―	―	29.55%	-500.01%