TRIPLEIZE CO. LTD. (5026) AI Stock Analysis

• Market Cap: ¥5.13B
• 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: 46 Neutral
• Price Target: ¥600.00 ▼(-26.29% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held down primarily by weak financial performance (losses, negative operating/free cash flow, and negative ROE with meaningful leverage). Technical momentum is moderately positive and provides some offset, but valuation remains unattractive/unclear due to negative earnings and no stated dividend support.

Positive Factors

Recurring license & subscription revenue

A mixed revenue model anchored by licenses and subscriptions provides durable, recurring cash inflows and higher customer lifetime value. Consulting and partnerships create upsell channels and distribution scale, helping stabilize revenue while product adoption matures over months.

Healthy gross margin (~28.5%)

A near-30% gross margin indicates the core software/analytics offering has strong unit economics and room to absorb operating fixed costs. If operating expenses are controlled, this margin gives the company a clear path to profitability as revenue scales and customer acquisition costs normalize.

Solid revenue growth trend

Substantial revenue growth (~18%) signals sustained market demand and product-market fit. Continued top-line expansion supports operating leverage, enhances competitive positioning, and provides the foundation to improve margins and convert scale into positive operating cash flow over several quarters.

Negative Factors

Negative profitability

Persistent negative EBIT and net margins show the business is not yet profitable on an operating basis. Continued losses erode equity, limit reinvestment capacity, and require either rapid margin improvement or ongoing external financing to sustain growth beyond the next 2-6 months.

Negative operating and free cash flow

Negative operating cash flow and falling free cash flow indicate the company cannot currently convert revenue into cash. This cash burn restricts capital for R&D and sales, increases financing dependency, and raises execution risk if structural improvements in cash conversion are not realized.

High leverage and negative ROE

Meaningful leverage (D/E ~0.97) combined with negative ROE reduces financial flexibility and raises interest and covenant risk. Until profitability and cash generation recover, leverage magnifies downside and constrains strategic options like M&A or increased R&D spend.

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

Financials are weak overall: profitability is negative (negative EBIT and net margins), operating and free cash flow are negative/declining, and leverage remains meaningful (debt-to-equity ~0.97) with negative ROE. Modest revenue growth and a healthy gross margin are positives but are outweighed by losses and cash burn.

Income Statement

The income statement shows a mixed performance. While there is a slight revenue growth of 1.5% in the latest year, the company is struggling with profitability, as indicated by negative EBIT and net income margins. The gross profit margin is relatively healthy at 28.5%, but the net profit margin has turned negative, reflecting operational challenges. The company needs to address its cost structure to improve profitability.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved from previous years but remains high at 0.97, indicating significant leverage. The equity ratio is stable, suggesting a balanced asset structure. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The company should focus on reducing debt and improving asset utilization.

Cash Flow

The cash flow statement indicates cash management issues. Operating cash flow is negative, and free cash flow has declined, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is unfavorable, suggesting that the company is not efficiently converting its earnings into cash. Improving cash flow generation should be a priority to support future growth and reduce reliance on external financing.

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 686.60, above the 50-day MA of 729.32, and below the 200-day MA of 902.45, indicating a bearish trend. The MACD of -31.20 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 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	¥6.40B	14.84	―	2.43%	2.92%	-0.94%
5576	77 Outperform	¥6.35B	10.09	―	3.13%	6.08%	0.53%
3988	68 Neutral	¥5.58B	11.49	―	1.23%	11.62%	-16.59%
7060	66 Neutral	¥6.12B	10.45	―	3.36%	7.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5026	46 Neutral	¥5.13B	52.48	―	―	29.55%	-500.01%
5255	42 Neutral	¥6.66B	-28.24	―	―	-29.41%	79.74%