ELEMENTS,Inc. (5246) AI Stock Analysis

• Market Cap: ¥17.82B
• Dividend Yield: N/A
• Average Volume (3M): 426.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 37.36%
• EPS Growth: -37605.91%
• Country: JP
• Employees: 87
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -3.02
• Shares Outstanding: 27,170,513
• 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: 43 Neutral
• Price Target: ¥586.00 ▼(-22.07% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by ongoing losses, renewed cash burn, and consistently negative free cash flow despite strong revenue growth. Technicals also weaken the outlook, with the stock trading below all key moving averages and negative momentum indicators. Valuation provides little support due to a negative P/E and no dividend yield data.

Positive Factors

High revenue growth

Sustained ~53% top-line growth indicates strong product-market fit and expanding customer adoption. Over a 2–6 month horizon this growth supports scalable monetization, enlarges addressable market share, and provides the base to leverage fixed costs toward eventual margin expansion.

Scaling gross profit

Gross profit scaling with revenue shows the business earns incremental margin as sales rise, a durable structural indicator of unit economics improving. If sustained, this trend underpins operating leverage and increases the odds management can convert growth into sustainable operating profitability over time.

Improved capitalization / equity base

A materially stronger equity base and moderating leverage enhance financial flexibility for investment, R&D, or M&A. This reduces near-term refinancing pressure, giving management more runway to execute growth strategies and pursue a path to cash-flow breakeven.

Negative Factors

Persistent unprofitability

Widening net losses signal the company has not yet translated revenue scale into consistent profits. Persistent losses erode equity over time, limit internally generated funding, and increase reliance on external capital, raising execution and dilution risk if profitability is not achieved.

Weak and negative cash generation

Recurrent negative operating and free cash flow indicate the business consumes cash to sustain growth, increasing dependency on financing. This structural cash burn elevates funding risk, can constrain reinvestment choices, and makes the company vulnerable to tighter capital markets.

Rising debt load

Materially higher debt alongside ongoing losses raises refinancing and interest-cost risk. Increased leverage can limit strategic flexibility, impose fixed cash interest obligations, and amplify downside if revenue growth slows before margins and cash flow strengthen.

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, accelerating revenue growth and scaling gross profit are positives, but the company remains unprofitable with a larger net loss in 2025, operating profit turning negative again, and weak cash generation (operating cash flow back to negative; consistently negative free cash flow). Balance sheet flexibility has improved via higher equity, but rising debt alongside renewed cash burn increases funding risk.

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	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 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: Neutral
• Last Price: 752.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5246, the sentiment is Neutral. The current price of 752 is above the 20-day moving average (MA) of 677.15, above the 50-day MA of 670.04, and below the 200-day MA of 873.32, indicating a bearish trend. The MACD of -19.32 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5246.

ELEMENTS,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	80 Outperform	¥26.65B	15.97	―	0.73%	17.86%	21.52%
3924	75 Outperform	¥16.91B	18.93	―	3.98%	-5.92%	3.16%
2335	71 Outperform	¥15.90B	11.36	―	3.60%	2.46%	-5.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4053	58 Neutral	¥16.31B	33.26	―	―	9.82%	-32.60%
5246	43 Neutral	¥17.82B	-23.15	―	―	37.36%	-37605.91%
5255	42 Neutral	¥8.60B	-16.30	―	―	-29.41%	79.74%