Monstarlab Holdings Inc. (5255) AI Stock Analysis

• Market Cap: ¥14.03B
• Dividend Yield: N/A
• Average Volume (3M): 5.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -34.51%
• EPS Growth: 52.07%
• Country: JP
• Employees: 950
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): -2.10
• Shares Outstanding: 64,900,720
• 10 Day Avg. Volume: 2,527,410
• 30 Day Avg. Volume: 5,931,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥221.00
• Price Target Upside: 1.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥221.00 ▲(1.84% Upside)

Monstarlab Holdings Inc. faces significant financial challenges, with declining revenues, high leverage, and negative equity, which heavily impact its overall score. Technical analysis provides mixed signals, with some bullish momentum but short-term weakness. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Global Presence

Monstarlab's global presence enhances its ability to attract diverse clients across industries, providing a stable revenue base and growth potential.

Strategic Partnerships

Partnerships with tech providers strengthen Monstarlab's service offerings, enhancing competitive advantage and enabling access to cutting-edge technologies.

Industry Diversification

Diverse industry engagement reduces dependency on any single sector, mitigating risks and providing multiple growth avenues.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and financial strain, challenging the company's ability to sustain operations without external funding.

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company Description

Monstarlab 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 Money

Monstarlab 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 facing significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reveals high leverage and negative equity. The cash flow statement highlights negative cash flows and limited growth potential. The company needs to address its financial structure and improve profitability to enhance its financial health and stability.

Income Statement

Monstarlab Holdings Inc. has been experiencing declining revenue, with a negative revenue growth rate of -7.6% in the TTM period. The company also faces significant profitability challenges, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased over time, reflecting pressure on cost management. Overall, the income statement reveals a struggling financial performance with declining revenues and persistent losses.

Balance Sheet

The balance sheet of Monstarlab Holdings Inc. shows high leverage, with a negative debt-to-equity ratio in the TTM period, indicating more debt than equity. The return on equity is positive, but this is due to negative equity, which is a concerning sign. The equity ratio is low, suggesting limited financial stability. Overall, the balance sheet reflects a high-risk financial structure with significant leverage and negative equity.

Cash Flow

The cash flow statement indicates a challenging cash position, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable. However, the free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow. Overall, the cash flow situation is weak, with negative cash flows and limited growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.06B	10.00B	13.35B	14.27B	9.35B	7.42B
Gross Profit	2.30B	1.43B	3.34B	4.94B	2.93B	2.15B
EBITDA	-2.95B	-9.93B	-1.63B	203.81M	-2.46B	-1.03B
Net Income	-4.31B	-9.95B	-2.36B	-674.77M	-3.05B	-1.27B
Balance Sheet
Total Assets	9.72B	7.59B	14.46B	12.98B	9.91B	9.67B
Cash, Cash Equivalents and Short-Term Investments	4.13B	1.55B	1.78B	2.72B	4.24B	4.04B
Total Debt	6.17B	9.57B	7.08B	4.87B	3.62B	4.11B
Total Liabilities	8.49B	12.37B	10.76B	8.89B	6.60B	6.51B
Stockholders Equity	1.28B	-4.74B	3.71B	4.58B	3.75B	3.16B
Cash Flow
Free Cash Flow	-712.20M	-3.27B	-3.98B	-2.39B	-1.39B	-894.08M
Operating Cash Flow	-692.30M	-3.09B	-3.52B	-1.54B	-921.55M	-594.05M
Investing Cash Flow	-198.17M	-393.58M	-1.24B	-2.29B	-986.43M	-420.80M
Financing Cash Flow	3.94B	3.19B	3.73B	2.24B	2.01B	4.18B

Monstarlab Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 217.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 217 is below the 20-day moving average (MA) of 231.10, below the 50-day MA of 218.24, and above the 200-day MA of 127.99, indicating a neutral trend. The MACD of -2.18 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7120	80 Outperform	¥4.40B	9.49		4.04%	3.21%	22.41%
5250	74 Outperform	¥3.54B	26.80		2.00%	―	―
4450	69 Neutral	¥6.34B	15.13		1.15%	21.32%	6.83%
4068	65 Neutral	¥3.68B	37.22		―	17.03%	642.80%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
4416	55 Neutral	¥4.19B	1,208.82		―	-0.93%	-97.16%
5255	45 Neutral	¥14.03B	―		―	-34.51%	52.07%