Fines, Inc. (5125) AI Stock Analysis

• Market Cap: ¥4.05B
• Dividend Yield: N/A
• Average Volume (3M): 21.19K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.33
• Revenue Growth: -0.57%
• EPS Growth: 37.80%
• Country: JP
• Employees: 284
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 15.57
• Shares Outstanding: 4,658,300
• 10 Day Avg. Volume: 8,210
• 30 Day Avg. Volume: 21,186
• PEG Ratio: -2.95
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 8.72
• 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: 69 Neutral
• Price Target: ¥1,150.00 ▲(57.97% Upside)

The score is driven primarily by solid financial fundamentals—especially a debt-free, strengthening balance sheet and high gross margins—offset by lower post-2023 profitability and uneven cash-flow conversion. Technically, the uptrend is strong, but extremely overbought readings increase near-term downside risk. Valuation appears moderate (P/E ~18.2), with no dividend data to provide additional support.

Positive Factors

Debt-Free Balance Sheet

Having zero debt across 2023–2025 materially strengthens financial flexibility and reduces fixed obligations, allowing management to fund growth, weather demand shocks, or pursue strategic M&A without increasing leverage. This durable capital structure supports long-term resilience.

Very High Gross Margins

Sustained gross margins in the 75–84% range and mid-teens EBITDA margins indicate structural pricing power or low variable costs in the business model, providing persistent profit buffer and the ability to absorb SG&A or content investments while preserving long-term operating profitability.

Expanding Equity and Asset Base

Meaningful equity expansion and steady asset growth signal successful reinvestment and scaling of the business, improving capitalization and capacity to support larger operations. A larger capital base enhances strategic optionality and underpins durable operational expansion.

Negative Factors

Compressed Net Margins Since 2023

A sustained halving of net margins versus 2022–2023 materially reduces return on capital and retained earnings capacity; unless margin drivers are restored, long-term profitability, dividend potential and reinvestment ability are constrained, lowering durable shareholder returns.

Volatile Revenue Growth

Wide swings in revenue make forecasting and capacity planning difficult, increasing the risk of margin pressure from over/under investment. Structural demand volatility undermines predictability of earnings and complicates sustainable strategic planning over multi-quarter horizons.

Inconsistent Cash Generation

Irregular free cash flow and a sharp 2024 cash dip point to working-capital or timing volatility, limiting reliable internal funding for capex, dividends or acquisitions. Persistent variability weakens long-term cash resilience despite strong reported earnings.

Fines, Inc. Business Overview & Revenue Model

Company Description

Fines Inc. provides video production and streaming services for enterprise companies and sole proprietors. It offers video cloud, video distribution platform, and consulting services for digital transformation. The company produces and distributes advertisements; provides various services, such as website production, advertisement, and reservation system; and offers video utilization services to promote sales activities. The company was founded in 2009 and is based in Shibuya, Japan.

How the Company Makes Money

Fines, Inc. generates revenue through a subscription-based model, offering its software solutions as a service (SaaS) to financial institutions and corporations. The company charges clients recurring fees for access to its compliance and risk management platforms, providing different pricing tiers based on the scale and specific needs of the customer. Additionally, Fines, Inc. derives income from professional services, including implementation support, training, and consulting, which help clients maximize the value of their software investments. Strategic partnerships with regulatory bodies and financial associations also enhance the company's market presence, driving further adoption of its products.

Fines, Inc. Financial Statement Overview

Summary

Fines, Inc. demonstrates strong financial stability with no debt and solid equity ratios. While revenue and profit margins have faced downward pressure, the company manages its costs efficiently. Cash flow management remains effective, but declining trends in cash flow could pose future risks. Overall, the company is financially sound but must address profitability challenges.

Income Statement

Fines, Inc. has shown a consistent year-over-year revenue growth until 2023, when it fell by 5.21%. Despite this, gross profit margins remain strong, indicating efficient cost management. However, the net profit margin decreased from 2023 to 2024, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also seen declines, suggesting increased operational costs or reduced pricing power.

Balance Sheet

The company maintains a robust financial position with no debt in 2023 and 2024, enhancing financial stability. The equity ratio is high due to strong stockholder equity, indicating a well-capitalized company with low financial risk. Return on equity has been solid, though it decreased in 2024, reflecting reduced profitability.

Cash Flow

Operating cash flow has diminished significantly in 2024, impacting the free cash flow growth negatively. However, the company maintains a high operating cash flow to net income ratio, indicating effective cash management. The free cash flow to net income ratio also remains favorable, but both metrics have been declining, which could affect future financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.03B	2.69B	2.76B	2.91B	2.60B	2.20B
Gross Profit	1.62B	2.14B	2.26B	2.44B	2.10B	1.72B
EBITDA	339.15M	408.60M	375.39M	769.72M	631.97M	398.33M
Net Income	195.43M	233.71M	238.89M	510.03M	420.32M	256.94M
Balance Sheet
Total Assets	2.74B	2.74B	2.58B	2.39B	1.48B	1.40B
Cash, Cash Equivalents and Short-Term Investments	1.96B	1.96B	1.76B	1.74B	965.36M	867.16M
Total Debt	0.00	0.00	0.00	0.00	20.00M	485.53M
Total Liabilities	548.97M	548.97M	567.08M	638.79M	660.27M	1.01B
Stockholders Equity	2.19B	2.19B	2.01B	1.75B	818.10M	390.19M
Cash Flow
Free Cash Flow	0.00	276.11M	8.05M	449.93M	559.22M	425.20M
Operating Cash Flow	0.00	278.68M	151.31M	464.85M	561.61M	431.33M
Investing Cash Flow	0.00	-18.25M	-141.28M	-83.34M	-3.40M	-33.84M
Financing Cash Flow	0.00	-61.48M	15.96M	390.30M	-460.01M	-98.32M

Fines, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 728.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5125, the sentiment is Positive. The current price of 728 is below the 20-day moving average (MA) of 761.35, above the 50-day MA of 681.52, and above the 200-day MA of 594.67, indicating a bullish trend. The MACD of 81.09 indicates Negative momentum. The RSI at 61.15 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5125.

Fines, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4317	79 Outperform	¥9.53B	7.93	―	2.36%	4.44%	29.38%
5125	69 Neutral	¥4.05B	15.08	―	―	-0.57%	37.80%
4308	67 Neutral	¥9.47B	18.80	―	3.92%	2.87%	27.30%
3929	63 Neutral	¥3.23B	17.01	―	―	-0.97%	-29.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4650	52 Neutral	¥2.75B	54.91	―	―	20.86%	-58.07%
3686	46 Neutral	¥5.56B	-12.37	―	―	-2.84%	36.23%