circlace Inc (5029) AI Stock Analysis

• Market Cap: ¥4.63B
• Dividend Yield: N/A
• Average Volume (3M): 27.57K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.61
• Revenue Growth: 30.72%
• EPS Growth: N/A
• Country: JP
• Employees: 296
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -7.58
• Shares Outstanding: 4,366,336
• 10 Day Avg. Volume: 15,900
• 30 Day Avg. Volume: 27,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,161.00
• Price Target Upside: 6.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,161.00 ▲(6.51% Upside)

The overall stock score reflects strong financial performance as the most significant factor, supported by effective cash flow and a solid balance sheet. However, technical analysis indicates bearish trends, and valuation suggests moderate pricing. The absence of earnings call and corporate events data limits further insights.

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

Cirlace Inc generates revenue primarily through its subscription-based software-as-a-service (SaaS) model, where clients pay for access to its logistics and supply chain management platforms. Key revenue streams include monthly or annual subscriptions, licensing fees for premium features, and consulting services that help businesses implement and optimize Cirlace's solutions. Additionally, the company may engage in strategic partnerships with logistics firms and technology providers to expand its market reach and enhance its product offerings, further contributing to its earnings.

circlace Inc Financial Statement Overview

Summary

Circlace Inc demonstrates strong financial performance with impressive revenue growth and improved profitability. The balance sheet is solid with low leverage and a strong equity position. Cash flow management is effective, supporting operational and investment activities. Areas for improvement include 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	3.80B	3.80B	2.90B	2.53B	2.27B	1.81B
Gross Profit	1.76B	1.76B	1.45B	1.26B	1.22B	898.27M
EBITDA	239.22M	193.26M	-35.26M	65.73M	154.48M	-41.79M
Net Income	184.05M	184.05M	-67.38M	11.03M	175.57M	-63.18M
Balance Sheet
Total Assets	1.82B	1.82B	1.54B	1.15B	719.51M	535.29M
Cash, Cash Equivalents and Short-Term Investments	833.35M	833.35M	807.96M	675.35M	289.86M	240.87M
Total Debt	211.46M	211.46M	224.46M	127.61M	200.00M	220.00M
Total Liabilities	893.30M	893.30M	751.98M	338.94M	499.65M	490.38M
Stockholders Equity	992.59M	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: Neutral
• Last Price: 1090.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5029, the sentiment is Neutral. The current price of 1090 is above the 20-day moving average (MA) of 1058.75, below the 50-day MA of 1172.24, and below the 200-day MA of 1121.04, indicating a neutral trend. The MACD of -32.52 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5029.

circlace Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5259	73 Outperform	¥11.18B	50.00	12.87%	0.38%	12.37%	199.06%
4476	68 Neutral	¥7.20B	74.14	8.69%	―	14.20%	-57.38%
5029	66 Neutral	¥4.63B	27.09	―	―	30.72%	―
4845	57 Neutral	¥7.44B	7.41	―	3.94%	-25.27%	―
9561	43 Neutral	¥4.85B	-8.01	-83.83%	―	4.16%	-381.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%