TRIPLEIZE CO. LTD. (5026) AI Stock Analysis

• Market Cap: ¥4.81B
• Dividend Yield: N/A
• Average Volume (3M): 29.47K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 0.99
• 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: 0.06
• Price to Book (P/B): 5.73
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -88.54
• 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: 41 Neutral
• Price Target: ¥547.00 ▼(-32.80% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held down primarily by weak financial quality—especially recurring cash burn and a return to net loss in 2025 despite strong revenue growth. Technicals reinforce the risk with a broad downtrend and negative momentum. Valuation provides limited cushion given the high P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained high revenue growth over consecutive years indicates the company is gaining scale and market traction. Persistent top-line expansion supports long-term investment in product development and distribution, improving odds of eventual margin leverage and durable competitive positioning.

Improved Leverage

Material reduction in leverage to about 1.0x debt-to-equity and a meaningful equity increase strengthen financial flexibility. A healthier capital structure lowers refinancing risk, supports strategic investment, and provides a firmer base to pursue growth without as much reliance on short-term external funding.

Growing Scale

The firm's expanding revenue base points to improving operational scale, which can enable fixed-cost dilution and longer-term margin improvement if delivery and pricing stabilize. Scale also enhances market presence and bargaining power with suppliers and customers.

Negative Factors

Recurring Cash Burn

Chronic negative operating and free cash flow indicates the business is not self-funding growth and likely requires ongoing external financing. Persistent cash burn undermines investment capacity, raises refinancing risk, and limits the company's ability to sustainably scale operations over the medium term.

Return to Net Loss & Margin Decline

Reversion to a net loss and a marked gross margin drop suggest structural pressure on pricing, cost of delivery, or product mix. Sustained margin deterioration reduces free cash flow potential and lengthens the timeline to durable profitability even if revenue keeps growing.

Inconsistent Earnings Quality

Weak earnings quality and historical balance-sheet volatility (periods of high leverage and negative returns on equity) signal execution and financial-control risks. Inconsistent profitability complicates planning and increases sensitivity to funding conditions and operational shocks over the medium term.

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.

TRIPLEIZE CO. LTD. Financial Statement Overview

Summary

Strong top-line growth is offset by weak quality of earnings: 2025 returned to a net loss with a meaningful gross margin decline. Balance sheet leverage has improved to roughly 1.0x debt-to-equity, but profitability remains negative in 2025. Cash flow is the key weakness, with negative operating cash flow in 2025 and mostly negative free cash flow across 2022–2025.

Income Statement

Revenue growth has been strong over the last two years (2025 annual revenue up ~50% vs. 2024; 2024 up ~88% vs. 2023), showing improving scale. However, profitability is inconsistent: 2025 swung back to a net loss (about -6% net margin) after a small profit in 2024, and gross margin fell meaningfully in 2025 versus 2024, suggesting pressure on pricing, mix, or delivery costs. Overall, growth is a clear strength, but earnings quality and margin stability remain weak.

Balance Sheet

Leverage has improved materially: debt relative to equity declined from very elevated levels in 2023–2024 to roughly 1.0x in 2025, alongside a significant increase in equity. That said, the company is still posting negative returns on equity in 2025, and the balance sheet has been volatile over the cycle (including periods of high leverage and weak profitability). Net: directionally better capital structure, but profitability and consistency still limit the score.

Cash Flow

Cash generation is a key weak spot. Operating cash flow was slightly positive in 2024 but turned negative again in 2025, and free cash flow is negative in most years shown (including 2022–2025), indicating the business has not been consistently self-funding. While free cash flow compared with net income looks favorable in loss years (because both are negative), the underlying issue is recurring cash burn and limited conversion of revenue growth into cash.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	5.71B	4.41B	2.35B	2.42B	2.12B
Gross Profit	1.63B	1.47B	578.15M	693.37M	541.97M
EBITDA	-15.99M	69.22M	-779.28M	140.40M	82.49M
Net Income	-344.00M	76.23M	-825.32M	112.34M	38.02M
Balance Sheet
Total Assets	4.85B	4.92B	2.30B	1.79B	1.11B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.61B	1.75B	1.08B	617.61M
Total Debt	1.62B	2.33B	1.60B	288.48M	262.27M
Total Liabilities	3.18B	4.07B	1.97B	630.92M	671.31M
Stockholders Equity	1.67B	850.65M	332.14M	1.16B	442.39M
Cash Flow
Free Cash Flow	-107.81M	-17.23M	-387.77M	-171.36M	30.00M
Operating Cash Flow	-68.73M	2.58M	-241.26M	34.06M	164.41M
Investing Cash Flow	-78.23M	-1.07B	-399.61M	-192.93M	-126.28M
Financing Cash Flow	447.19M	771.58M	1.32B	621.15M	28.80M

TRIPLEIZE CO. LTD. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5026, the sentiment is Negative. The current price of 814 is above the 20-day moving average (MA) of 671.65, above the 50-day MA of 723.82, and below the 200-day MA of 898.43, indicating a bearish trend. The MACD of -36.56 indicates Positive momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 0.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5026.

TRIPLEIZE CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3940	78 Outperform	¥6.12B	14.84	―	2.43%	2.92%	-0.94%
5576	72 Outperform	¥6.10B	10.09	―	3.13%	6.08%	0.53%
7060	66 Neutral	¥5.91B	10.45	―	3.36%	7.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3988	61 Neutral	¥5.57B	11.49	―	1.23%	11.62%	-16.59%
5255	42 Neutral	¥6.21B	-28.24	―	―	-29.41%	79.74%
5026	41 Neutral	¥4.81B	52.48	―	―	29.55%	-500.01%