note inc. (5243) AI Stock Analysis

• Market Cap: ¥25.46B
• Dividend Yield: N/A
• Average Volume (3M): 437.85K
• Price to Earnings (P/E): 94.8
• Beta (1Y): 0.80
• 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: 16,676,400
• 10 Day Avg. Volume: 425,540
• 30 Day Avg. Volume: 437,846
• 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): 982.05
• Revenue Forecast (FY): ¥616.85B

• Rating: 73 Outperform
• Price Target: ¥1,784.00 ▲(26.61% Upside)

The company's strong financial performance, characterized by significant improvements in revenue growth and profitability, is the primary driver of the stock score. Technical analysis supports a positive trend, though the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events limits further insights.

note inc. Business Overview & Revenue Model

Company Description

Note Inc. (5243) is a Japanese company specializing in the development and provision of digital content and software solutions. The company operates primarily in the edtech sector, offering innovative tools for learning management, content creation, and digital publishing. Its core products include educational software applications, e-learning platforms, and a range of digital resources aimed at enhancing educational outcomes for students and educators alike.

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. The positive revenue growth and profitability turnaround are notable strengths. The balance sheet remains 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	3.67B	3.31B	2.78B	2.32B	1.88B	1.52B
Gross Profit	3.44B	3.11B	2.57B	2.10B	1.64B	1.22B
EBITDA	92.59M	86.15M	-398.79M	-733.26M	-418.75M	-335.02M
Net Income	155.87M	98.94M	-414.84M	-756.49M	-436.17M	-352.31M
Balance Sheet
Total Assets	4.88B	3.77B	3.31B	3.30B	1.75B	2.24B
Cash, Cash Equivalents and Short-Term Investments	2.03B	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	2.46B	2.05B	1.75B	1.49B	1.18B	1.23B
Stockholders Equity	2.43B	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: 1409.00
• 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:5243, the sentiment is Positive. The current price of 1409 is below the 20-day moving average (MA) of 1426.15, above the 50-day MA of 1351.62, and below the 200-day MA of 1457.18, indicating a bullish trend. The MACD of 18.46 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.07 is Neutral, 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	77 Outperform	¥26.40B	17.12	―	2.47%	9.05%	2.71%
3930	76 Outperform	¥2.90B	12.13	―	―	14.67%	267.69%
5243	73 Outperform	¥25.46B	94.77	―	―	22.37%	655.34%
3662	70 Outperform	¥19.28B	19.40	―	2.02%	―	8.68%
3843	66 Neutral	¥30.08B	10.86	―	1.90%	8.93%	-18.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

note inc. Corporate Events

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.

Note Inc. Reports Strong Financial Growth in 2025

Note Inc. reported a strong financial performance for the first three quarters of the fiscal year ending November 2025, with significant year-on-year growth in net sales and profits. The company’s strategic initiatives have resulted in a substantial increase in net sales by 23.8% and a remarkable rise in profit attributable to owners by 344.2%. This positive financial trajectory suggests a robust operational strategy and positions Note Inc. favorably within its industry, potentially benefiting shareholders and investors.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1418.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Records Deferred Tax Assets Amid Strong Performance

note inc. has recorded deferred tax assets in the third quarter of the fiscal year ending November 2025, amounting to ¥38 million in income taxes-deferred (benefit), resulting in a cumulative total of ¥74 million. This adjustment reflects the company’s solid business performance and future forecasts, impacting the upward revision of the full-year consolidated earnings forecast and financial results for the first three quarters.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1418.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

Note Inc. Launches Shareholder Benefit Program to Boost Engagement

Note Inc. has announced the introduction of a shareholder benefit program aimed at expressing gratitude to shareholders and encouraging long-term investment. This program is expected to enhance shareholder engagement and potentially increase the company’s corporate value by offering ‘note points’ to eligible shareholders, which can be used on the company’s platform. The initiative is anticipated to improve trading volume and liquidity, although its immediate financial impact is projected to be minor.