circlace Inc (5029) AI Stock Analysis

• Market Cap: ¥2.79B
• Dividend Yield: N/A
• Average Volume (3M): 20.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 29.44%
• EPS Growth: 485.00%
• Country: JP
• Employees: 296
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.45
• Shares Outstanding: 4,377,916
• 10 Day Avg. Volume: 26,200
• 30 Day Avg. Volume: 20,816
• PEG Ratio: -0.04
• 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: ¥676.00 ▼(-35.62% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Score is driven primarily by strong financial performance (profitability turnaround, solid cash flow, and low leverage), partially offset by very weak technicals (price well below key moving averages with negative MACD and extremely oversold RSI/Stoch). Valuation is moderate (P/E ~22) but lacks dividend support.

Positive Factors

Revenue growth & profitability turnaround

Sustained revenue growth and a shift from losses to positive net income indicate the company has regained core profitability. This durable improvement boosts retained earnings, funds reinvestment and reduces reliance on external capital, strengthening long-term competitive positioning and execution capability.

Strong operating cash flow and rising free cash flow

Consistent operating cash flow expansion and higher free cash flow create durable funding for R&D, product rollouts, and working capital without needing excess debt. Strong cash conversion enhances resilience through cycles and supports scalable reinvestment into core software products and customer expansion.

Healthy balance sheet, low leverage and improved ROE

A low leverage profile combined with rising ROE provides lasting financial flexibility to pursue growth or weather downturns. Improved capital efficiency signals better returns for shareholders and less refinancing risk, supporting sustained investment in product development and strategic initiatives.

Negative Factors

Elevated total liabilities relative to assets

Higher aggregate liabilities, even with low debt-to-equity, can compress financial flexibility over time. Persistent liability burdens raise rollover and cash-outflow risks during downturns, potentially forcing asset sales or curtailing strategic investments unless operating cash flow growth consistently outpaces liability build.

Margins still have room for efficiency gains

Positive but not top-tier margins limit the firm's ability to convert revenue into durable profits and free cash. Without continued margin expansion from scale, pricing or cost improvements, the company may face constrained reinvestment capacity and lower resilience versus more efficient competitors over the medium term.

Negative recent EPS growth

A material decline in EPS reflects volatility in per-share earnings that can signal dilution, uneven profitability or one-off items. Even with a net income turnaround, inconsistent EPS trends reduce clarity on sustainable earnings power and may hinder long-term planning for dividends, buybacks or investor confidence.

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.

circlace Inc Financial Statement Overview

Summary

Strong overall fundamentals: revenue growth and a return to positive net income (Income Statement Score 85), supported by solid cash generation and rising free cash flow (Cash Flow Score 80). Balance sheet is stable with low leverage and improved ROE (Balance Sheet Score 78), though liabilities remain a risk to monitor.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.00B	3.80B	2.90B	2.53B	2.27B	1.81B
Gross Profit	1.88B	1.75B	1.44B	1.25B	1.21B	881.85M
EBITDA	225.43M	230.84M	-71.08M	98.54M	162.64M	-22.41M
Net Income	170.08M	184.05M	-39.17M	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	785.87M	806.42M	219.86M	44.91M
Cash Flow
Free Cash Flow	0.00	210.48M	101.19M	-93.17M	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	-85.11M	-73.18M	-45.89M	6.58M
Financing Cash Flow	0.00	3.79M	109.01M	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: 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 Negative. The current price of 1050 is above the 20-day moving average (MA) of 617.60, above the 50-day MA of 812.10, and below the 200-day MA of 1084.91, indicating a neutral trend. The MACD of -40.34 indicates Negative momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, 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
5256	69 Neutral	¥2.76B	27.18	―	―	13.48%	61.77%
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
5029	62 Neutral	¥2.79B	-107.60	―	―	29.44%	485.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5028	57 Neutral	¥2.76B	29.65	―	―	33.55%	293.32%
3976	54 Neutral	¥2.26B	-91.39	―	―	-14.55%	-8.13%
3909	51 Neutral	¥2.33B	2.93	―	―	-32.56%	―