monoAI technology Co.,Ltd. (5240) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: N/A
• Average Volume (3M): 37.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -18.37%
• EPS Growth: 33.89%
• Country: JP
• Employees: 144
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -13.05
• Shares Outstanding: 12,264,800
• 10 Day Avg. Volume: 29,470
• 30 Day Avg. Volume: 37,610
• PEG Ratio: 0.23
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 3.63
• P/FCF Ratio: -29.67
• 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): -4.9
• Revenue Forecast (FY): ¥1.90B

• Rating: 43 Neutral
• Price Target: ¥236.00 ▼(-25.32% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by weak financial performance (persistent losses, 2025 revenue decline, and ongoing negative free cash flow), with only partial offset from a lower-risk balance sheet. Technicals are neutral-to-bearish with the stock below key moving averages and negative MACD. Valuation provides little support due to the negative P/E and no dividend yield data.

Positive Factors

Low leverage & solid equity

The materially reduced leverage and sizable equity position lower balance-sheet risk and provide durable financial flexibility. Over a multi-month horizon this balance-sheet strength supports continued operations, potential R&D or product investment, and reduces near-term default or covenant risk while losses persist.

Gross margin resilience

A steady mid-30% gross margin suggests the core product economics retain pricing power or efficient production. This structural margin base improves the odds of eventual operating profitability if management cuts SG&A or revenue stabilizes, making margins a durable foundation for recovery planning.

Improving cash burn

A meaningful reduction in cash burn signals operational cost control and execution progress, extending runway without immediate financing. If sustained, this structural improvement lowers dilution and liquidity risk, enabling more time to execute product or market strategies over the coming months.

Negative Factors

Persistent losses and negative margins

Sustained negative EBIT and net margins indicate the core business is not currently profitable, eroding shareholder value and constraining reinvestment. Over 2–6 months this fundamental weakness raises the need for corrective actions or external capital and limits the firm's ability to scale profitably.

Sharp revenue decline in 2025

A marked revenue drop undermines operating leverage and suggests weakening demand or competitive pressure. This structural revenue deterioration makes it harder to absorb fixed costs and convert gross margins into operating profits, increasing the likelihood of continued losses absent a sustained recovery.

Negative operating and free cash flow

Chronic negative OCF and FCF mean the business cannot self-fund growth or cover losses, increasing reliance on external financing. Over months this elevates dilution and liquidity risk, limits strategic choices, and threatens continuity if cash burn reversal or funding sources fail to materialize.

monoAI technology Co.,Ltd. Business Overview & Revenue Model

Company Description

monoAI Technology Co., Ltd. (5240) is a leading innovator in the artificial intelligence sector, specializing in the development of advanced AI-driven solutions for various industries, including healthcare, finance, and logistics. The company offers a range of products and services, such as machine learning algorithms, data analytics platforms, and AI-powered automation tools, aimed at enhancing operational efficiency and decision-making processes for its clients.

How the Company Makes Money

monoAI Technology Co., Ltd. generates revenue primarily through the sale of its software solutions and licensing of its proprietary technology. Key revenue streams include subscription fees for cloud-based services, one-time payments for on-premise software licenses, and consulting services for implementation and optimization of AI systems. The company has also established significant partnerships with large enterprises and technology firms, which not only contribute to direct sales but also facilitate joint ventures and co-development projects that enhance its market presence and profitability.

monoAI technology Co.,Ltd. Financial Statement Overview

Summary

Operating fundamentals are weak: the company is loss-making with deeply negative EBIT and net margins in 2023–2025, revenue fell sharply in 2025 vs 2024, and operating/free cash flow remain negative despite some burn reduction in 2025. The main offset is lower balance-sheet risk from very modest leverage and solid equity, but negative ROE reflects that the capital base is not currently earning returns.

Income Statement

Profitability is weak: the company is currently loss-making with EBIT and net margins deeply negative in 2023–2025, after a brief profitable year in 2022. Revenue momentum has also deteriorated, with 2025 revenue down sharply versus 2024, highlighting an unstable growth trajectory. A positive offset is that gross margin has held relatively steady in the mid-30% range recently (2023–2025), suggesting the core offering still has some pricing/production discipline—but operating costs remain too high for the current revenue base.

Balance Sheet

Leverage is low and improving, with debt-to-equity declining materially from 2021 levels to very modest levels by 2024–2025, reducing balance-sheet risk. Equity is positive and sizable in recent years, supporting financial flexibility. The main weakness is returns: return on equity is negative in 2023–2025 due to ongoing losses, indicating the balance sheet is not currently generating shareholder returns despite improved capitalization.

Cash Flow

Cash generation remains pressured: operating cash flow and free cash flow are negative across all years shown, implying the business is not self-funding and likely relies on external capital or cash reserves. There is a notable improvement in 2025 versus 2024 (cash burn meaningfully reduced), but free cash flow is still negative, keeping liquidity and funding risk elevated if losses persist.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.31B	980.88M	1.43B	1.24B	1.45B	1.29B
Gross Profit	448.29M	337.43M	461.27M	431.00M	660.58M	465.19M
EBITDA	-284.54M	-389.08M	-221.00M	-121.33M	72.36M	-160.86M
Net Income	-318.30M	-336.16M	-585.57M	-203.00M	71.59M	-181.65M
Balance Sheet
Total Assets	1.72B	1.42B	1.88B	1.49B	1.73B	976.74M
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.19B	1.30B	941.00M	1.42B	787.37M
Total Debt	28.05M	23.20M	70.21M	152.00M	243.16M	266.95M
Total Liabilities	201.11M	191.13M	314.87M	342.00M	470.07M	666.96M
Stockholders Equity	1.51B	1.22B	1.56B	1.15B	1.26B	309.78M
Cash Flow
Free Cash Flow	0.00	-119.86M	-548.24M	-196.00M	-204.38M	-122.32M
Operating Cash Flow	0.00	-109.95M	-478.91M	-184.00M	-159.59M	-114.59M
Investing Cash Flow	0.00	43.89M	-72.18M	-288.60M	-80.61M	-12.46M
Financing Cash Flow	0.00	-46.98M	911.14M	-2.48M	840.09M	843.28M

monoAI technology Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 316.00
• 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:5240, the sentiment is Negative. The current price of 316 is above the 20-day moving average (MA) of 232.25, above the 50-day MA of 261.04, and above the 200-day MA of 271.40, indicating a bearish trend. The MACD of -7.50 indicates Negative momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5240.

monoAI technology Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3904	66 Neutral	¥7.31B	11.02	―	0.75%	12.70%	2207.66%
3907	64 Neutral	¥1.87B	9.11	―	1.36%	2.33%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3928	61 Neutral	¥2.60B	11.15	―	―	-10.80%	-64.63%
5240	43 Neutral	¥2.77B	-8.24	―	―	-18.37%	33.89%
3664	42 Neutral	¥2.79B	-4.02	―	―	-9.66%	-55.87%
3667	42 Neutral	¥2.55B	-1.31	―	―	-22.21%	32.20%