note inc. (5243) AI Stock Analysis

• Market Cap: ¥35.38B
• Dividend Yield: N/A
• Average Volume (3M): 379.15K
• Price to Earnings (P/E): 121.0
• Beta (1Y): 0.93
• Revenue Growth: 22.37%
• EPS Growth: 655.34%
• Country: JP
• Employees: 151
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 8.63
• Shares Outstanding: 18,141,700
• 10 Day Avg. Volume: 278,790
• 30 Day Avg. Volume: 379,153
• PEG Ratio: -0.61
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 33.40
• 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: 73 Outperform
• Price Target: ¥1,951.00 ▲(19.55% Upside)

The overall stock score of 73 reflects strong financial performance and positive technical indicators, which are offset by a high valuation. The company's robust revenue growth and improved profitability are key strengths, but the high P/E ratio suggests caution due to potential overvaluation.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Note Inc.'s products, enhancing its market position and supporting long-term business expansion.

Cash Generation

Robust cash generation relative to net income ensures liquidity and financial flexibility, enabling reinvestment in growth opportunities and stability.

Profit Margins

High profit margins reflect efficient operations and cost control, contributing to sustainable profitability and competitive advantage in the edtech sector.

Negative Factors

High Valuation Concerns

A high valuation may limit future stock price appreciation and indicates potential overvaluation, which could deter value-focused investors.

No Dividend Yield

Lack of dividends may reduce appeal to income-focused investors, potentially impacting the stock's attractiveness compared to peers offering yields.

Liability Monitoring

While the balance sheet is strong, ongoing liability monitoring is crucial to prevent financial strain and ensure long-term financial health.

note inc. Business Overview & Revenue Model

Company Description

note inc. engages in the media platform business in Japan. The company offers note, a C2C content platform that allows creators to create, publish, and sell digital content while communicating with users; and note pro, an information dissemination SaaS for corporations; and services for corporations, such as organizing corporate sponsored contests on note. It also develops an infrastructure system related to media operation. The company was formerly known as Piece of Cake, Inc. and changed its name to note inc. on April 7, 2020. note inc. was incorporated in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Note Inc. generates revenue primarily through subscription fees for its e-learning platforms and software applications. The company offers tiered subscription models catering to individual users, educational institutions, and corporate clients, which provide access to its full suite of digital tools and resources. Additional revenue streams include licensing agreements for its proprietary technology, sales of digital content, and partnerships with educational institutions that integrate Note's solutions into their curriculum. Significant collaborations with tech firms and educational organizations further bolster its earnings by expanding its market reach and enhancing product offerings.

note inc. Financial Statement Overview

Summary

The company has demonstrated strong financial performance with significant improvements across income, balance sheet, and cash flow metrics. Notable strengths include a high gross profit margin, positive net profit margin, and impressive revenue growth. The balance sheet is stable with low leverage, and cash flow generation is robust.

Income Statement

The company has shown significant improvement in its income statement metrics. The gross profit margin is high at 93.9%, indicating strong cost management. The net profit margin has turned positive to 3.0% from a negative position, showcasing a turnaround. Revenue growth rate is impressive at 19.2%, reflecting strong top-line growth. EBIT and EBITDA margins have also improved significantly, indicating better operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating low financial leverage. The return on equity has improved to 5.7%, reflecting better profitability. The equity ratio is healthy at 45.7%, suggesting a solid capital structure. However, the company should continue to monitor its liabilities to maintain this stability.

Cash Flow

The cash flow statement shows a remarkable turnaround with a positive free cash flow growth rate. The operating cash flow to net income ratio is 2.28, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 2.27, reflecting efficient cash management. These metrics highlight the company's improved liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.90B	3.31B	2.78B	2.32B	1.88B	1.52B
Gross Profit	3.65B	3.11B	2.57B	2.10B	1.64B	1.22B
EBITDA	163.61M	86.15M	-398.79M	-733.26M	-418.75M	-335.02M
Net Income	264.06M	98.94M	-414.84M	-756.49M	-436.17M	-352.31M
Balance Sheet
Total Assets	6.02B	3.77B	3.31B	3.30B	1.75B	2.24B
Cash, Cash Equivalents and Short-Term Investments	2.88B	2.15B	1.99B	2.19B	872.08M	1.52B
Total Debt	780.00M	80.00M	160.00M	160.00M	160.00M	160.00M
Total Liabilities	3.22B	2.05B	1.75B	1.49B	1.18B	1.23B
Stockholders Equity	2.80B	1.72B	1.56B	1.82B	574.11M	1.01B
Cash Flow
Free Cash Flow	19.00M	224.37M	-358.94M	-683.10M	-652.22M	-217.07M
Operating Cash Flow	19.00M	225.76M	-346.58M	-660.12M	-646.87M	-155.22M
Investing Cash Flow	-358.89M	-9.77M	-12.78M	-23.45M	-5.35M	-133.88M
Financing Cash Flow	287.37M	-38.14M	158.93M	2.00B	0.00	160.33M

note inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1632.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5243, the sentiment is Positive. The current price of 1632 is above the 20-day moving average (MA) of 1608.35, above the 50-day MA of 1527.92, and above the 200-day MA of 1486.66, indicating a bullish trend. The MACD of 77.62 indicates Negative momentum. The RSI at 74.17 is Negative, neither overbought nor oversold. The STOCH value of 86.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5243.

note inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3901	74 Outperform	¥20.49B	13.29	―	3.10%	9.20%	2.32%
5243	73 Outperform	¥35.38B	121.02	―	―	22.37%	655.34%
3662	70 Outperform	¥22.62B	19.59	―	1.85%	0.63%	-1.84%
3843	66 Neutral	¥32.81B	11.23	―	1.90%	12.67%	-9.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3930	61 Neutral	¥2.86B	15.99	―	―	7.20%	47.54%

note inc. Corporate Events

Note Inc. Data Shows Rapid Growth in Paid Content and Premium for Practical Know‑How on “note”

Note inc. has released the results of a large-scale statistical analysis of around 300,000 paid articles and membership records on its “note” platform, showing that the creator economy on the service continues to expand, with the top 1,000 creators averaging annual sales of about 15.15 million yen. The data highlight strong year-on-year growth in 2025, with membership sales up 81.3% and paid article sales up 26.8%, driven particularly by rapidly growing categories that offer practical, problem-solving know-how—such as AI utilization, social media management and childcare—which also command nearly double the average unit price of general reading content. The study further finds almost no correlation between word count and sales, underscoring that content quality and user experience rather than length are key to profitability, while the company maintains its existing earnings forecast and signals that more detailed progress will be disclosed in its upcoming financial results.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Finalizes Terms for Paid Stock Options to Directors and Executive Officer

note inc. has finalized the previously undecided terms for issuing paid stock acquisition rights as stock options to its directors and an executive officer, following a December 17, 2025 board resolution. A total of 1,060 stock acquisition rights, corresponding to 106,000 shares of common stock, will be allotted to six individuals, aligning management and key employees more closely with shareholder interests and signaling the company’s continued use of equity-based compensation to retain and incentivize leadership within the competitive digital content and media market.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Sets Terms for Employee Stock Option Issuance

note inc. has finalized the terms for issuing stock acquisition rights as stock options to its employees, following a board resolution passed on December 17, 2025. The company will grant 870 stock acquisition rights in total to nine employees, with an exercise price set at 148,000 yen per right, equivalent to 1,480 yen per share. This stock option program is intended to align employee incentives with shareholder interests and may support talent retention and long-term growth by tying compensation more closely to the company’s future equity value.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Joins National GENIAC Project to Build Fair AI Content Ecosystem

note inc. has been selected for GENIAC, a national generative AI promotion program run by Japan’s Ministry of Economy, Trade and Industry and NEDO, and will build a Retrieval-Augmented Generation (RAG) database of high-quality content from publishers, academic bodies and web media to improve the accuracy of AI-generated information. The project, backed by a budget of up to ¥1.5 billion over one year, aims to create a new “RAG data ecosystem” that lets rights holders track how AI services use their content and receive fair compensation, a move the company expects will enhance its medium- to long-term corporate value and reshape the economics of content distribution in the AI era.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Issues Stock Options to Align Employee and Shareholder Interests

note inc. has announced the issuance of paid stock options to enhance the motivation and alignment of its directors and employees with shareholder interests. The stock options are designed to boost business performance and corporate value, with exercise prices adjusted based on performance targets related to net sales. The issuance is expected to have a reasonable impact on share dilution and contribute positively to shareholder value.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Issues Stock Options to Boost Employee Engagement

note inc. has announced the issuance of stock acquisition rights as stock options to its employees. This initiative aims to enhance employee awareness of share price appreciation and improve mid-to-long-term business performance, thereby increasing shareholder value. The stock options will be issued without requiring monetary payment, serving as incentive compensation. The exercise period for these rights spans from December 18, 2027, to December 17, 2035, with specific conditions and potential adjustments outlined for their execution.

The most recent analyst rating on (JP:5243) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Partners with NAVER to Expand Ecosystem

note inc. has announced a capital and business alliance with NAVER Corporation to accelerate the expansion of its ecosystem. This partnership aims to launch new services and businesses utilizing note’s assets, particularly in the IP and AI sectors, enhancing the company’s innovation in the creation-related value chain and providing new corporate services.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1501.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

Note Inc. Forms Strategic Alliance with NAVER Corporation

Note Inc. has announced a capital and business alliance with NAVER Corporation, a major Korean technology company. This partnership involves issuing new shares to NAVER and aims to leverage both companies’ strengths in generative AI technology, platform collaboration, and global IP development. The alliance is expected to enhance Note Inc.’s operations and market positioning by fostering synergy in content creation and distribution, ultimately expanding their business foundation in the user-generated content domain.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1501.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

Note Inc. Reports Accelerated Revenue Growth in Q3 FY2025

Note Inc. has reported a significant acceleration in revenue growth for Q3 FY2025, with a year-over-year increase of 27.2%. This growth is primarily driven by the expansion of Gross Merchandise Value in its core note business, fueled by the proliferation of generative AI and the platform’s network effect. The company anticipates continued high revenue growth rates, targeting 20-30% from the fiscal year ending November 2025 onwards, as it leverages AI advancements and platform expansion.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1501.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.