note inc. (5243) AI Stock Analysis

• Market Cap: ¥22.61B
• Dividend Yield: N/A
• Average Volume (3M): 213.36K
• Price to Earnings (P/E): 138.3
• Beta (1Y): 0.79
• Revenue Growth: 20.40%
• EPS Growth: N/A
• Country: JP
• Employees: 151
• Sector: Technology
• Sector Strength: 86
• Industry: Internet Content & Information
• EPS (TTM): 4.07
• Shares Outstanding: 16,634,800
• 10 Day Avg. Volume: 248,660
• 30 Day Avg. Volume: 213,356
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,473.00
• Price Target Upside: 11.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,473.00 ▲(11.17% Upside)

The company's strong financial performance is a key strength, driven by improved profitability and robust cash flow generation. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral momentum. The absence of earnings call data and corporate events means these factors do not influence the score.

note inc. Business Overview & Revenue Model

Company Description

Note Inc. (5243) is a dynamic company specializing in digital note-taking solutions and productivity tools. Operating primarily in the technology sector, Note Inc. offers a range of products designed to enhance the efficiency of personal and professional note management. Its core offerings include software applications for digital note-taking, cloud storage solutions, and integration services with other productivity platforms, catering to both individual users and enterprises seeking to streamline their information management processes.

How the Company Makes Money

Note Inc. generates revenue through multiple streams, primarily from software subscriptions and licensing fees for its digital note-taking applications. Users can choose from various subscription tiers, which provide access to additional features and enhanced storage capacity. Additionally, the company earns income from partnerships with educational institutions and corporate clients that integrate Note Inc.’s solutions into their operations. These partnerships often involve bulk licensing agreements, contributing significantly to the company's earnings. Moreover, Note Inc. may also monetize through in-app purchases and advertising within its free product offerings, creating a diverse revenue model.

note inc. Financial Statement Overview

Summary

The company has shown strong financial performance with significant improvements across income, balance sheet, and cash flow metrics. High gross profit margin and positive net profit margin indicate strong cost management and profitability turnaround. 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	3.47B	3.31B	2.78B	2.32B	1.88B	1.52B
Gross Profit	3.25B	3.11B	2.57B	2.10B	1.64B	1.22B
EBITDA	95.90M	86.15M	-398.79M	-733.26M	-418.75M	-335.02M
Net Income	108.84M	98.94M	-414.84M	-756.49M	-436.17M	-352.31M
Balance Sheet
Total Assets	4.49B	3.77B	3.31B	3.30B	1.75B	2.24B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.15B	1.99B	2.19B	872.08M	1.52B
Total Debt	80.00M	80.00M	160.00M	160.00M	160.00M	160.00M
Total Liabilities	2.21B	2.05B	1.75B	1.49B	1.18B	1.23B
Stockholders Equity	2.28B	1.72B	1.56B	1.82B	574.11M	1.01B
Cash Flow
Free Cash Flow	0.00	224.37M	-358.94M	-683.10M	-652.22M	-217.07M
Operating Cash Flow	0.00	225.76M	-346.58M	-660.12M	-646.87M	-155.22M
Investing Cash Flow	0.00	-9.77M	-12.78M	-23.45M	-5.35M	-133.88M
Financing Cash Flow	0.00	-38.14M	158.93M	2.00B	0.00	160.33M

note inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1325.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5243, the sentiment is Negative. The current price of 1325 is below the 20-day moving average (MA) of 1363.05, below the 50-day MA of 1390.62, and above the 200-day MA of 1254.97, indicating a neutral trend. The MACD of -5.51 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 14.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5243.

note inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3901	77 Outperform	¥28.34B	18.38		2.22%	9.05%	2.71%
3930	76 Outperform	¥4.40B	14.94		―	19.99%	4285.55%
3662	71 Outperform	¥21.73B	16.12		1.82%	-3.20%	95.08%
3843	69 Neutral	¥31.08B	11.90		1.87%	3.84%	-23.87%
5243	66 Neutral	¥22.61B	138.28		―	20.40%	―
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
3688	―	¥52.98B	33.90		2.77%	―	―

note inc. Corporate Events

Note Inc. Reports Accelerated Revenue Growth in Q2 FY2025

Note Inc. reported a significant acceleration in revenue growth for Q2 FY2025, driven by a 24.9% year-over-year increase in Gross Merchandise Volume (GMV) within its core business. This growth is attributed to the successful implementation of the company’s ‘Growth Model’ strategy, which has increased both the number of creators and the volume of content on the platform. The adoption of generative AI, including the integration of tools like Gemini, has facilitated content creation, expanding the creator base and enhancing productivity, ultimately boosting the company’s growth trajectory.

Note Inc. Records Deferred Tax Assets Amid Strong Performance

Note Inc. has announced the recording of deferred tax assets amounting to ¥36 million in the second quarter of the fiscal year ending November 2025. This decision reflects the company’s solid business performance and positive future forecasts, which have been incorporated into the consolidated financial results for the first two quarters of the fiscal year.

Note Inc. Reports Robust Growth in First Half of Fiscal Year 2025

Note Inc. reported significant growth in its financial performance for the first two quarters of the fiscal year ending November 2025, with net sales increasing by 22% year-on-year. The company has shown strong profitability with a notable rise in operating and ordinary profits, reflecting its strategic efforts to enhance shareholder value and market competitiveness.

Note Inc. Secures Loan Agreement to Bolster Financial Growth

Note Inc. has announced the execution of a loan agreement with financial covenants to strengthen its financial foundation and support future business growth. The agreement, scheduled for June 30, 2025, involves a principal amount of 700 million JPY from Aozora Bank, Ltd., with a repayment deadline of August 30, 2030. The financial covenants require maintaining specific financial metrics to avoid accelerated repayment. The company anticipates a minor impact on its financial results for the fiscal year ending November 2025.