Nulab Inc. (5033) AI Stock Analysis

• Market Cap: ¥4.86B
• Dividend Yield: N/A
• Average Volume (3M): 14.79K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.04
• Revenue Growth: 7.60%
• EPS Growth: 19.13%
• Country: JP
• Employees: 159
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.38
• Shares Outstanding: 6,484,101
• 10 Day Avg. Volume: 28,550
• 30 Day Avg. Volume: 14,793
• PEG Ratio: 0.16
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 9.54
• 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: 66 Neutral
• Price Target: ¥822.00 ▲(10.93% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

Nulab Inc. shows strong financial health and an attractive valuation, but the technical indicators suggest bearish momentum. The stock's undervaluation presents an opportunity, but caution is advised due to current market trends.

Positive Factors

High gross & net margins

Sustained ~72% gross margin and improving net margin indicate durable pricing power and efficient cost structure for a SaaS operator. High margins support reinvestment in product, customer success and R&D, allowing the company to sustain profitability through cycles and fund growth initiatives.

Prudent balance sheet

A very low leverage profile and solid equity ratio provide long-term financial flexibility, lowering default risk and enabling sustained investment in product and sales. Strong ROE shows efficient capital use, supporting durable shareholder value creation without reliance on debt.

Recurring SaaS model & cash generation

A subscription SaaS revenue base creates predictable recurring revenue, enhancing cash flow visibility. Consistent operating cash flow growth and favorable FCF conversion support ongoing product investment, customer retention programs and potential opportunistic M&A, underpinning durable cash generation.

Negative Factors

Modest revenue growth

Revenue growth near 6.8% is modest for an application software company and may indicate slower market penetration or competitive pressure. Over the medium term, subpar top-line expansion can limit scale economies, reduce R&D budgets growth and constrain long-term market share gains versus faster peers.

Decline in operating cash flow

A recent decrease in operating cash flow, albeit slight, signals potential margin pressure or working capital build that could recur. If persistent, weaker operating cash conversion can restrict reinvestment capacity and raise reliance on equity to fund expansion, reducing financial resilience over time.

Small employee base

A headcount of 159 suggests a lean organization but may limit capacity for rapid product development, large-scale enterprise sales and international expansion compared with larger competitors. This structural constraint raises execution risk as growth initiatives scale and customer demands diversify.

Nulab Inc. Business Overview & Revenue Model

Company Description

Nulab Inc. develops solution that promotes team collaboration. The company offers Backlog, a project management tool; Nulab Pass, a tool which strengthens your organization information security and governance; Cacoo, online drawing tool; and Typetalk, a business chat tool. The company was incorporated in 2004 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

Nulab Inc. generates revenue primarily through a subscription-based model for its software products. Customers pay monthly or annual fees for access to different tiers of service, which provide varying features and capabilities. This model allows Nulab to have a predictable revenue stream as users commit to long-term subscriptions. Key revenue streams include individual and enterprise subscriptions for each of its core products. Additionally, Nulab may engage in partnerships with other technology firms or platforms that enhance its product offerings and expand its user base, further contributing to its overall earnings through increased visibility and market reach.

Nulab Inc. Financial Statement Overview

Summary

Nulab Inc. demonstrates strong financial performance with impressive revenue growth, healthy profit margins, and a robust balance sheet with minimal debt. The cash flow position is strong, although a slight decrease in operating cash flow warrants monitoring.

Income Statement

Nulab Inc. demonstrates strong revenue growth with a significant increase from the previous year. The gross profit margin is healthy at approximately 72%, indicating efficient cost management. Net profit margin has improved, reflecting higher profitability. Additionally, the company shows strong EBIT and EBITDA margins, which suggest robust operational performance.

Balance Sheet

The company's balance sheet reflects a very low debt-to-equity ratio, signifying prudent leverage management. Return on equity is strong, indicating efficient use of shareholder funds. The equity ratio is solid, suggesting a strong capital structure with an emphasis on equity financing over debt.

Cash Flow

Nulab Inc. has a strong cash flow position with consistent operating cash flow growth. The free cash flow to net income ratio is favorable, indicating good cash generation relative to reported profits. However, a slight decrease in operating cash flow from the previous year suggests a need for caution.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.18B	4.11B	3.66B	2.71B	2.33B	1.94B
Gross Profit	3.07B	2.96B	2.64B	1.73B	1.42B	1.09B
EBITDA	692.35M	753.00M	424.12M	179.14M	266.01M	66.69M
Net Income	505.40M	552.68M	308.16M	88.42M	197.88M	-25.53M
Balance Sheet
Total Assets	4.35B	4.25B	3.48B	2.61B	1.62B	1.33B
Cash, Cash Equivalents and Short-Term Investments	3.22B	3.13B	2.48B	1.74B	1.13B	878.98M
Total Debt	8.36M	5.00M	8.00M	13.75M	58.69M	154.21M
Total Liabilities	2.37B	2.34B	2.15B	1.66B	1.23B	1.15B
Stockholders Equity	1.98B	1.91B	1.33B	958.63M	391.25M	182.66M
Cash Flow
Free Cash Flow	0.00	724.95M	694.57M	169.40M	321.29M	153.73M
Operating Cash Flow	0.00	749.13M	811.90M	297.32M	401.01M	242.03M
Investing Cash Flow	0.00	-128.81M	-110.72M	-130.74M	-74.35M	-80.91M
Financing Cash Flow	0.00	-1.00M	16.87M	417.41M	-95.27M	-119.66M

Nulab Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 741.00
• 50DMA: Positive
• 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:5033, the sentiment is Neutral. The current price of 741 is below the 20-day moving average (MA) of 746.00, below the 50-day MA of 746.44, and below the 200-day MA of 817.86, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5033.

Nulab Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.02B	21.40	―	0.57%	21.03%	32.29%
4397	68 Neutral	¥6.79B	27.15	―	―	11.32%	―
4168	67 Neutral	¥8.91B	11.67	―	0.70%	9.78%	-23.98%
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4074	59 Neutral	¥5.10B	-26.75	―	―	-3.20%	-39.38%
4448	58 Neutral	¥11.75B	23.59	―	―	14.63%	-760.87%