ELEMENTS,Inc. (5246) AI Stock Analysis

• Market Cap: ¥21.09B
• Dividend Yield: N/A
• Average Volume (3M): 426.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 37.36%
• EPS Growth: -37605.91%
• Country: JP
• Employees: 87
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -2.83
• Shares Outstanding: 27,139,515
• 10 Day Avg. Volume: 427,890
• 30 Day Avg. Volume: 426,830
• PEG Ratio: -0.05
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 3.48
• P/FCF Ratio: -19.92
• 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: 51 Neutral
• Price Target: ¥781.00 ▲(3.86% Upside)

The score is held back primarily by weak financial performance—ongoing losses and negative free cash flow with renewed cash burn in 2025—despite strong revenue growth and a somewhat improved balance sheet. Technicals provide a moderate offset with improving momentum, while valuation remains pressured due to negative earnings and no dividend data.

Positive Factors

Strong, accelerating revenue growth

Sustained, high revenue growth that accelerated into 2025 indicates robust demand and expanding market penetration. Over a 2–6 month horizon this underpins scaling potential, supports reinvestment in product and sales, and gives a clearer pathway to dilute fixed costs as volumes rise.

Improved capitalization and equity position

A materially stronger equity base and moderated leverage versus prior years enhance financial flexibility and access to capital markets. This durable strengthening reduces near-term insolvency risk and provides a firmer platform for strategic investment or bolt-on opportunities over the medium term.

Gross profit scaled with top line

Gross profit rising commensurate with revenue shows scalable unit economics and suggests the business can deliver margin expansion as it grows. If operating expenses are controlled, this structural leverage can convert revenue growth into sustainable operating profitability over time.

Negative Factors

Recurring net losses and negative operating profit

Persistent net losses and a reversion to negative operating profit weaken return metrics and indicate the company has not yet achieved durable profitability. Over months this constrains retained earnings, limits reinvestment from operations, and increases reliance on external capital to sustain growth.

Consistently negative free cash flow and cash burn

Ongoing negative free cash flow and volatile operating cash generation mean the business consumes cash to run and grow. This structural cash burn heightens funding needs, reduces strategic optionality, and increases sensitivity to adverse financing conditions absent a sustainable turnaround in cash conversion.

Rising debt load elevates funding risk

Materially higher debt alongside continued losses increases refinancing and interest-rate exposure. Over a multi-month horizon this can constrain liquidity, raise financing costs, and limit management's ability to invest or weather shocks unless profitability or cash flow materially improve.

ELEMENTS,Inc. Business Overview & Revenue Model

Company Description

ELEMENTS, Inc. (5246) is a leading company in the renewable energy sector, specializing in the development and production of sustainable energy solutions. The company focuses on solar energy systems, energy storage technologies, and smart grid innovations. By integrating advanced technology and sustainable practices, ELEMENTS aims to provide efficient and reliable energy solutions to both residential and commercial customers, contributing to a greener future.

How the Company Makes Money

ELEMENTS, Inc. generates revenue primarily through the sale and installation of solar energy systems, which includes photovoltaic panels and related components. Additionally, the company earns money from energy storage solutions, offering batteries and systems that allow customers to store energy for later use. Another significant revenue stream comes from maintenance and service contracts for installed systems, ensuring ongoing support and performance optimization. ELEMENTS also engages in partnerships with local governments and corporations to implement larger-scale renewable energy projects, providing a steady flow of income through these collaborative efforts. Moreover, they may receive incentives, rebates, or tax credits related to renewable energy initiatives, further enhancing their revenue potential.

ELEMENTS,Inc. Financial Statement Overview

Summary

Strong and accelerating revenue growth and improving equity position are positives, but recurring net losses, renewed negative operating profit, and consistently negative free cash flow (worsening in 2025) materially weaken financial quality and raise funding risk alongside rising debt.

Income Statement

Revenue growth is strong and consistent, accelerating into 2025 (annual revenue up ~29% vs. 2024; 2024 up ~31% vs. 2023), and gross profit has scaled with the top line. However, profitability remains the key issue: the company is still reporting net losses (including a much larger loss in 2025 vs. 2024), and operating profit also turned negative again after a brief improvement in 2024. Overall, the growth story is compelling, but earnings quality and margin stability are not yet proven.

Balance Sheet

The balance sheet shows meaningful improvement in capitalization over time, with equity rising substantially by 2025 and leverage moderating versus the high levels seen in 2022–2023. That said, debt has increased materially into 2025, and returns on equity have been negative in prior years due to ongoing losses. Overall, financial flexibility appears improved, but the rising debt load alongside continued losses adds risk.

Cash Flow

Cash generation is volatile and currently weak. After turning positive in 2024, operating cash flow fell back to negative in 2025, and free cash flow has been consistently negative across the period provided (including a larger outflow in 2025). This indicates the business is still consuming cash to support operations and investment, leaving it more dependent on financing conditions until profitability and cash conversion improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.03B	3.90B	2.55B	1.94B	1.65B	1.36B
Gross Profit	2.51B	3.02B	2.18B	1.50B	1.09B	816.24M
EBITDA	188.56M	-609.77M	220.91M	-339.58M	-653.45M	-694.08M
Net Income	-623.75M	-700.67M	-132.91M	-338.71M	-561.57M	-568.99M
Balance Sheet
Total Assets	5.98B	7.24B	4.92B	3.63B	2.35B	2.61B
Cash, Cash Equivalents and Short-Term Investments	2.06B	3.28B	2.75B	2.79B	2.06B	2.30B
Total Debt	1.97B	3.01B	1.75B	2.38B	1.43B	1.10B
Total Liabilities	3.81B	3.65B	2.31B	2.61B	1.67B	1.35B
Stockholders Equity	1.93B	3.47B	2.29B	1.02B	424.24M	997.54M
Cash Flow
Free Cash Flow	0.00	-681.23M	-314.24M	-505.49M	-577.58M	-770.66M
Operating Cash Flow	0.00	-497.74M	222.73M	-341.36M	-567.01M	-757.77M
Investing Cash Flow	0.00	-1.90B	-837.78M	-684.07M	-10.56M	-13.11M
Financing Cash Flow	0.00	2.93B	619.44M	1.70B	370.86M	479.91M

ELEMENTS,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 752.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5246, the sentiment is Positive. The current price of 752 is above the 20-day moving average (MA) of 708.55, above the 50-day MA of 617.62, and below the 200-day MA of 888.65, indicating a neutral trend. The MACD of 39.04 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 64.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5246.

ELEMENTS,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	73 Outperform	¥2.82B	14.35	―	2.35%	0.40%	21.21%
3908	68 Neutral	¥1.91B	13.40	―	―	-10.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3803	56 Neutral	¥1.23B	-5.70	―	―	39.34%	-765.51%
5246	51 Neutral	¥21.09B	-27.61	―	―	37.36%	-37605.91%
4316	47 Neutral	¥3.24B	-16.40	―	―	11.96%	-453.36%
3634	44 Neutral	¥1.61B	-34.11	―	0.42%	6.81%	62.28%