ELEMENTS,Inc. (JP:5246)
:5246
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ELEMENTS,Inc.
(5246)
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Rating:43Neutral
Price Target:
¥547.00
▼(-27.26% Downside)
Action:ReiteratedDate:03/24/26
The score is pressured mainly by weak profitability and inconsistent/negative cash flow despite strong revenue growth and high gross margins. Technicals also weigh on the rating as the stock trades below major moving averages with bearish momentum. Valuation is constrained by ongoing losses (negative P/E) and the absence of a dividend yield.
Positive Factors
High revenue growth and gross margins
Sustained high top-line growth with ~77% gross margins indicates strong product-market fit and durable unit economics. Over 2–6 months this supports scalable revenue expansion and pricing power, providing a foundation to leverage fixed costs and improve operating profitability if cost discipline follows.
Negative Factors
Widening net losses and negative ROE
Escalating net losses and a deeply negative ROE indicate ongoing value destruction and weak returns on invested capital. Over the medium term this impairs the company’s ability to self-fund growth, undermines shareholder equity, and raises concerns about management's capacity to convert strong revenues into durable profits.
Read all positive and negative factors
Positive Factors
Negative Factors
High revenue growth and gross margins
Sustained high top-line growth with ~77% gross margins indicates strong product-market fit and durable unit economics. Over 2–6 months this supports scalable revenue expansion and pricing power, providing a foundation to leverage fixed costs and improve operating profitability if cost discipline follows.
Read all positive factors
ELEMENTS,Inc. (5246) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.25B
Dividend YieldN/A
Average Volume (3M)426.83K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth37.36%
EPS Growth-37605.91%
CountryJP
Employees87
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-3.02
Shares Outstanding27,170,513
10 Day Avg. Volume427,890
30 Day Avg. Volume426,830
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ELEMENTS,Inc. Business Overview & Revenue Model
Company Description
ELEMENTS, Inc. provides data-based identity verification and personalization solutions as backend as a service to a range of service-providing companies across various industries. It engages in research and development of image recognition engine ...
ELEMENTS,Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
33
Negative
| 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 | 2.17B | 1.50B | 1.09B | 816.24M |
| EBITDA | 220.47M | 146.87M | 262.23M | -282.24M | -571.67M | -689.28M |
| Net Income | -623.54M | -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 | -15.88M | -384.67M | -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 | -587.07M | -10.56M | -13.11M |
| Financing Cash Flow | 0.00 | 2.93B | 619.44M | 1.61B | 370.86M | 479.91M |
ELEMENTS,Inc. Technical Analysis
Positive
752.00
Price Trends
650.36
Negative
630.63
Positive
820.48
Negative
Market Momentum
-6.93
Negative
53.56
Neutral
89.22
Negative
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 606.75, above the 50-day MA of 650.36, and below the 200-day MA of 820.48, indicating a neutral trend. The MACD of -6.93 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5246.
ELEMENTS,Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥24.16B | 16.06 | ― | 0.73% | 17.86% | 21.52% | |
69 Neutral | ¥15.38B | 8.09 | ― | 3.60% | 2.46% | -5.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥17.81B | -16.73 | ― | ― | 9.82% | -32.60% | |
43 Neutral | ¥17.25B | -19.37 | ― | ― | 37.36% | -37605.91% | |
42 Neutral | ¥6.98B | -28.24 | ― | ― | -29.41% | 79.74% |
* Technology Sector Average
JP:5246
ELEMENTS,Inc.
635.00
-195.00
-23.49%
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Cube System Inc.
1,043.00
116.65
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User Local, Inc.
1,495.00
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-2.38%
JP:4053
Sun Asterisk, Inc.
445.00
-56.00
-11.18%
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Monstarlab Holdings Inc.
108.00
37.00
52.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.