circlace Inc (5029) AI Stock Analysis

• Market Cap: ¥4.18B
• Dividend Yield: N/A
• Average Volume (3M): 20.82K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.71
• Revenue Growth: 29.44%
• EPS Growth: 485.00%
• Country: JP
• Employees: 296
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 11.03
• Shares Outstanding: 4,377,566
• 10 Day Avg. Volume: 26,200
• 30 Day Avg. Volume: 20,816
• PEG Ratio: -0.06
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 20.67
• 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: 62 Neutral
• Price Target: ¥1,147.00 ▲(9.24% Upside)

Circlace Inc's strong financial performance is a significant positive factor, showcasing robust revenue growth and profitability. However, the technical analysis indicates bearish momentum, which weighs heavily on the overall score. The valuation is moderate, providing some balance but not enough to offset the negative technical signals.

Positive Factors

Revenue and profit momentum

Circlace's high revenue growth and dramatic EPS improvement reflect successful scaling of its offerings and a profitable turnaround into 2025. Sustained top-line expansion combined with regained net profitability improves capacity to reinvest, fund R&D, and support longer-term strategic initiatives.

Healthy balance sheet and low leverage

A strong equity ratio and low debt-to-equity provide Circlace financial flexibility to fund growth, weather industry cyclicality, and pursue partnerships. Durable balance sheet strength supports multi-quarter investments in technology and commercialization without over-reliance on external financing.

Diversified recurring revenue model

Mixing consulting, licensing and subscription software creates recurring and diversified cash streams. Subscriptions and licensing provide predictable revenue and higher lifetime value, while consulting drives customer acquisition and upsell, lowering concentration risk over medium term.

Negative Factors

Margin and operational efficiency headroom

Positive but unimpressive EBIT/EBITDA margins indicate the company hasn't fully converted revenue growth into operating leverage. Without margin expansion, sustained growth may not translate into proportional cash generation, constraining reinvestment and long‑term profitability resilience.

Elevated liabilities vs assets

While leverage metrics are low, the relatively high total liabilities-to-assets ratio raises contingent risk if revenue or cash flow falter. Higher liabilities can limit flexibility for M&A or capex and increase vulnerability to funding stress during adverse industry cycles.

Revenue concentration in consulting

Primary reliance on consulting, which is often project-based and cyclical, can weaken revenue predictability versus pure subscription models. If consulting demand softens, near-term cash flow and client retention could be pressured, slowing durable recurring revenue growth.

circlace Inc Business Overview & Revenue Model

Company Description

circlace Inc supports the introduction and operation of cloud systems and provides in-house developed cloud systems in Japan. The company offers consulting services on digital transformation and business improvement using ICT. It develops and sells SaaS products, including Circlace, an integrated digital communication platform that aggregates communication and documents generated in business, and enables visualization, accumulation, sharing, and utilization of knowledge inside and outside the company; AGAVE, a business-specific cloud service that centralizes procedures necessary for labor management of overseas expatriates; and Prigister One, a personal information acquisition application management tool. In addition, the company provides a one-stop service from design to development, establishment, maintenance, and operation support for the introduction of cloud solutions, such as Salesforce, Anaplan, etc. circlace Inc was incorporated in 2012 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Circlace Inc generates revenue through multiple streams, primarily by offering consulting services to businesses seeking to transition to circular economy practices. The company charges fees for its consultancy, which includes assessments, strategy development, and implementation support. Additionally, Circlace leverages its proprietary recycling technologies by licensing them to manufacturers and municipalities, creating a recurring revenue model. The software platforms developed by Circlace are sold through subscriptions, providing ongoing income as clients utilize the service for waste tracking and management. Strategic partnerships with environmental organizations and governmental agencies also enhance revenue opportunities through grants and collaborative projects aimed at sustainability initiatives.

circlace Inc Financial Statement Overview

Summary

Circlace Inc demonstrates strong financial performance with impressive revenue growth and improved profitability. The company maintains a solid balance sheet with low leverage and a strong equity position. Cash flow management is effective, supporting operational and investment activities. However, there is room for improvement in operational efficiency and managing liabilities.

Income Statement

Circlace Inc has shown strong revenue growth over the years, with a significant increase in total revenue from 2024 to 2025. The gross profit margin has remained robust, indicating effective cost management. The company has turned around its net income from losses in previous years to a positive figure in 2025, reflecting improved profitability. However, the EBIT and EBITDA margins, while positive, suggest room for further operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a strong equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on equity has improved significantly, showcasing enhanced shareholder value. However, the relatively high total liabilities compared to assets could pose a risk if not managed carefully.

Cash Flow

Circlace Inc's cash flow statement reveals a positive trend in operating cash flow, which has grown substantially, supporting the company's operational activities. The free cash flow has also shown a healthy increase, indicating effective capital expenditure management. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to earnings. However, fluctuations in investing and financing cash flows warrant attention to ensure sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.00B	3.80B	2.90B	2.53B	2.27B	1.81B
Gross Profit	1.88B	1.76B	1.45B	1.26B	1.22B	898.27M
EBITDA	229.65M	193.26M	-35.26M	65.73M	154.48M	-41.79M
Net Income	170.08M	184.05M	-67.38M	11.03M	175.57M	-63.18M
Balance Sheet
Total Assets	1.65B	1.82B	1.54B	1.15B	719.51M	535.29M
Cash, Cash Equivalents and Short-Term Investments	319.67M	833.35M	807.96M	675.35M	289.86M	240.87M
Total Debt	196.89M	211.46M	224.46M	127.61M	200.00M	220.00M
Total Liabilities	769.30M	893.30M	751.98M	338.94M	499.65M	490.38M
Stockholders Equity	903.09M	992.59M	785.86M	806.42M	219.87M	44.91M
Cash Flow
Free Cash Flow	0.00	210.48M	93.19M	-105.42M	112.73M	21.70M
Operating Cash Flow	0.00	220.29M	105.35M	-32.24M	117.07M	24.20M
Investing Cash Flow	0.00	-197.63M	-102.16M	-73.18M	-45.89M	6.58M
Financing Cash Flow	0.00	3.79M	126.06M	490.91M	-22.19M	177.12M

circlace Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1050.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5029, the sentiment is Negative. The current price of 1050 is below the 20-day moving average (MA) of 1054.70, above the 50-day MA of 1042.20, and below the 200-day MA of 1195.32, indicating a bearish trend. The MACD of -27.42 indicates Positive momentum. The RSI at 23.37 is Positive, neither overbought nor oversold. The STOCH value of 6.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5029.

circlace Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2186	69 Neutral	¥7.19B	19.43	―	3.65%	―	―
4476	68 Neutral	¥6.49B	78.16	―	―	10.43%	-65.78%
5029	62 Neutral	¥4.18B	22.06	―	―	29.44%	485.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4845	61 Neutral	¥6.63B	6.89	―	4.25%	-24.66%	―
5259	50 Neutral	¥7.37B	-19.88	―	―	6.59%	-294.11%
9561	41 Neutral	¥3.93B	-7.06	―	―	3.34%	-219.24%