TECHNOLOGIES,Inc. (5248) AI Stock Analysis

• Market Cap: ¥7.34B
• Dividend Yield: N/A
• Average Volume (3M): 133.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -11.49%
• EPS Growth: 40.26%
• Country: JP
• Employees: 136
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 16,922,400
• 10 Day Avg. Volume: 78,350
• 30 Day Avg. Volume: 133,006
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥419.00 ▼(-12.53% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is primarily pressured by weakening financial quality—recent negative operating/free cash flow and significantly higher leverage versus equity—alongside a clear technical downtrend with weak momentum. Valuation provides limited support due to a negative P/E and no dividend yield data.

Positive Factors

Operating Profitability

Sustained operating profit indicates the core software business generates underlying operating earnings even during revenue pressure. Durable operating profitability supports reinvestment, covers operating expenses, and gives management time to execute recovery without immediate margin dilution.

Historic Revenue Scaling

A prior multi-year scaling phase implies product-market fit, distribution capability and addressable market traction. These structural capabilities increase the likelihood revenue can stabilize or re-accelerate when execution or market conditions improve.

Prior Free Cash Flow Track Record

A recent history of positive free cash flow shows the business can convert revenue to cash under normal conditions. That operational cash-generation capability is a durable strength that can support deleveraging or strategic investment once growth normalizes.

Negative Factors

High Leverage

A materially higher debt load relative to equity sharply reduces financial flexibility and raises refinancing and interest coverage risk. Elevated leverage constrains strategic options, increases bankruptcy risk in stress, and magnifies earnings volatility from macro shocks.

Negative Operating Cash Flow

A reversal to negative operating cash flow and deep free cash flow deficits indicates the business is not generating internal funding for operations or capex. This structural cash shortfall forces reliance on external financing and limits capacity to invest or service debt sustainably.

Recent Sharp Revenue Contraction

A steep year-on-year revenue decline weakens growth momentum and reduces operating leverage, making margins and cash flow more fragile. If persistent, it signals demand or competitive issues that could erode long-term market position and recovery prospects.

TECHNOLOGIES,Inc. Business Overview & Revenue Model

Company Description

TECHNOLOGIES, Inc. provides IT solutions primarily in the areas of AI and entertainment software fields in Japan. The company operates through two segments, IT Solutions and SaaS Business. It engages in the planning, development, and installation of software for gaming machines and 3D signage; projection mapping, virtual apparel try-on applications, and 3D animation video production. The company designs, develops, and provides various software, such as autonomous driving applications for automobile manufacturers; automotive remote-control systems; AI learning teaching materials with robots for children; and LIVE streaming applications. It also offers SAZANAMI SYSTEM, a system that performs automatic foreign exchange trading. In addition, the company develops and offers SaaS products, such as Jobs, a cloud-based management system for small and medium-sized temporary staffing companies; and Circle, a cloud-based business chat tool. The company was formerly known as BEL AIR Co., Ltd. and changed its name to TECHNOLOGIES, Inc. in May 2022. TECHNOLOGIES, Inc. was incorporated in 2014 and is headquartered in Tokyo, Japan.

TECHNOLOGIES,Inc. Financial Statement Overview

Summary

Income statement shows past scaling and positive operating profit, but the latest year has a sharp revenue contraction and thin net income conversion. Balance sheet risk is elevated due to a large debt load relative to equity. Cash flow is a major weakness with operating cash flow turning negative and free cash flow deeply negative in the most recent periods.

Income Statement

Revenue scaled rapidly from 2023–2025, but the latest annual period (2026) shows a sharp contraction (about -24.7%), raising questions on sustainability after a high-growth phase. Profitability is positive with meaningful operating profit (EBIT roughly ¥1.9B in 2026), but net income remains relatively thin versus revenue (about ¥0.27B in 2026), indicating limited bottom-line conversion despite solid operating earnings.

Balance Sheet

Leverage has increased materially: total debt rose to ~¥9.9B in 2026 while equity is ~¥1.5B, implying a highly levered capital structure. Earlier periods showed manageable leverage (2022–2023), but the step-change in debt from 2024 onward increases financial risk and reduces balance-sheet flexibility, even though reported returns on equity have remained decent.

Cash Flow

Cash generation has deteriorated significantly: operating cash flow flipped from positive in 2024–2025 to negative in 2026 (about -¥0.69B), and free cash flow is deeply negative in 2025–2026 (including about -¥2.01B in 2026). The earlier track record of positive free cash flow (notably 2022–2024) is a positive, but the recent reversal suggests higher reinvestment needs and/or weaker cash conversion, which is a key near-term risk.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	13.47B	10.15B	13.90B	7.13B	1.08B	789.28M
Gross Profit	4.21B	3.53B	3.43B	1.83B	504.82M	277.15M
EBITDA	2.71B	2.15B	2.01B	1.05B	177.97M	68.40M
Net Income	443.55M	266.88M	265.95M	149.83M	74.64M	81.26M
Balance Sheet
Total Assets	18.97B	23.09B	18.95B	16.75B	1.02B	589.86M
Cash, Cash Equivalents and Short-Term Investments	4.21B	2.59B	2.36B	3.67B	612.90M	263.53M
Total Debt	9.05B	9.87B	7.48B	8.52B	198.13M	155.24M
Total Liabilities	14.22B	17.78B	14.55B	12.89B	311.33M	232.41M
Stockholders Equity	1.41B	1.53B	1.27B	989.24M	708.09M	357.45M
Cash Flow
Free Cash Flow	0.00	-2.01B	-273.84M	666.72M	59.16M	131.22M
Operating Cash Flow	0.00	-685.86M	414.47M	959.50M	63.99M	132.04M
Investing Cash Flow	0.00	-875.29M	-333.90M	1.48B	-32.51M	2.38M
Financing Cash Flow	0.00	1.95B	-1.41B	70.73M	318.89M	-18.53M

TECHNOLOGIES,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 479.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5248, the sentiment is Negative. The current price of 479 is below the 20-day moving average (MA) of 512.75, below the 50-day MA of 533.38, and below the 200-day MA of 649.37, indicating a bearish trend. The MACD of -17.99 indicates Positive momentum. The RSI at 26.07 is Positive, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5248.

TECHNOLOGIES,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4054	72 Outperform	¥8.21B	16.14	―	0.70%	0.11%	-4.41%
4168	67 Neutral	¥8.91B	11.67	―	0.70%	9.78%	-23.98%
5244	65 Neutral	¥9.45B	7.53	―	1.20%	12.21%	6.86%
5588	63 Neutral	¥7.87B	54.21	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5572	59 Neutral	¥8.90B	33.78	―	―	60.41%	-27.67%
5248	43 Neutral	¥7.34B	-38.62	―	―	-11.49%	40.26%