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Monstarlab Holdings Inc. (JP:5255)
:5255
Japanese Market

Monstarlab Holdings Inc. (5255) AI Stock Analysis

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JP

Monstarlab Holdings Inc.

(5255)

Rating:48Neutral
Price Target:
¥180.00
▲(7.14%Upside)
Monstarlab Holdings Inc. is facing significant financial difficulties, which are the primary drivers of its low stock score. While technical analysis shows some positive trends, the company's financial instability and negative valuation metrics weigh heavily on its overall attractiveness. The absence of earnings call and corporate events data prevents any positive offset to these challenges.

Monstarlab Holdings Inc. (5255) vs. iShares MSCI Japan ETF (EWJ)

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company DescriptionMonstarlab Holdings Inc. (5255) is a digital transformation consultancy headquartered in Tokyo, Japan. The company specializes in providing comprehensive digital solutions and services, including strategy, design, engineering, and management consulting. Monstarlab works across multiple sectors such as finance, healthcare, automotive, and retail, leveraging cutting-edge technology to enhance business performance and customer experiences.
How the Company Makes MoneyMonstarlab Holdings Inc. generates revenue primarily through consulting and digital transformation services. The company offers tailored solutions to businesses seeking to enhance their operations and customer interactions through technology. Revenue streams include fees for strategic consulting, system integration, application development, and ongoing digital support and maintenance. Significant partnerships with technology providers and a strong global presence also contribute to its revenue, allowing Monstarlab to scale its services and reach a broader client base across different industries.

Monstarlab Holdings Inc. Financial Statement Overview

Summary
Monstarlab Holdings Inc. is experiencing severe financial challenges with declining revenues, substantial operational losses, high leverage, and deteriorating cash flows. The negative equity and persistently high net losses suggest significant financial instability, necessitating urgent strategic restructuring.
Income Statement
30
Negative
Monstarlab Holdings Inc. shows significant revenue volatility with a declining trend, notably dropping from ¥14.27 billion in 2022 to ¥8.72 billion in TTM 2025. Gross profit margins have also decreased from 34.65% in 2022 to 17.07% in TTM 2025. Consistently negative net profit margins highlight profitability challenges, with a severe decline to -111.69% in TTM 2025. EBIT and EBITDA margins are deeply negative, indicating ongoing operational struggles.
Balance Sheet
25
Negative
The company's balance sheet reflects financial instability, with a negative stockholders' equity of ¥726.79 million in TTM 2025 indicating potential insolvency risks. The debt-to-equity ratio is uncalculable due to negative equity, but high total debt levels suggest significant leverage. The equity ratio has deteriorated sharply, moving from 35.31% in 2021 to a negative figure by 2025, underscoring declining financial health.
Cash Flow
20
Very Negative
Monstarlab's cash flow statement reveals worsening free cash flow, falling from -¥894.08 million in 2020 to -¥2.77 billion in TTM 2025, indicating increasing cash outflows. The operating cash flow to net income ratio is negative, reflecting cash management issues alongside significant net losses. The negative free cash flow to net income ratio further highlights the challenges in generating cash relative to losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.72B10.00B13.35B14.27B9.35B7.42B
Gross Profit1.49B1.43B3.34B4.94B2.93B2.15B
EBITDA-8.36B-9.93B-1.63B203.81M-2.46B-1.03B
Net Income-9.74B-9.95B-2.36B-674.77M-3.05B-1.27B
Balance Sheet
Total Assets7.80B7.59B14.46B12.98B9.91B9.67B
Cash, Cash Equivalents and Short-Term Investments1.92B1.55B1.78B2.72B4.24B4.04B
Total Debt6.23B9.57B7.08B4.87B3.62B4.11B
Total Liabilities8.57B12.37B10.76B8.89B6.60B6.51B
Stockholders Equity-726.79M-4.74B3.71B4.58B3.75B3.16B
Cash Flow
Free Cash Flow-2.77B-3.27B-3.98B-2.39B-1.39B-894.08M
Operating Cash Flow-2.71B-3.09B-3.52B-1.54B-921.55M-594.05M
Investing Cash Flow-323.10M-393.58M-1.24B-2.29B-986.43M-420.80M
Financing Cash Flow3.74B3.19B3.73B2.24B2.01B4.18B

Monstarlab Holdings Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price168.00
Price Trends
50DMA
128.46
Positive
100DMA
104.18
Positive
200DMA
106.85
Positive
Market Momentum
MACD
18.05
Positive
RSI
47.22
Neutral
STOCH
2.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5255, the sentiment is Neutral. The current price of 168 is below the 20-day moving average (MA) of 205.15, above the 50-day MA of 128.46, and above the 200-day MA of 106.85, indicating a neutral trend. The MACD of 18.05 indicates Positive momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 2.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5255.

Monstarlab Holdings Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥4.14B7.63
4.30%4.70%38.61%
74
Outperform
¥4.06B26.88
1.75%
69
Neutral
¥4.24B11.77
1.82%17.68%-31.19%
64
Neutral
¥4.42B331.25
-2.43%-78.05%
63
Neutral
$33.79B5.85-11.85%1.81%5.29%-18.24%
54
Neutral
¥3.83B26.82
30.73%
48
Neutral
¥10.80B
-32.31%-226.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5255
Monstarlab Holdings Inc.
167.00
-115.00
-40.78%
JP:4068
Basis Corporation
2,035.00
796.00
64.25%
JP:4416
True Data Inc.
913.00
447.00
95.92%
JP:4450
Power Solutions Ltd.
1,365.00
-190.51
-12.25%
JP:5250
Prime Strategy Co., Ltd.
1,146.00
-67.70
-5.58%
JP:7120
SHINKO Inc.
2,257.00
189.49
9.17%
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.Date of analysis: Jul 03, 2025