Monstarlab Holdings Inc. (5255) AI Stock Analysis

• Market Cap: ¥11.06B
• Dividend Yield: N/A
• Average Volume (3M): 939.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -29.41%
• EPS Growth: 79.74%
• Country: JP
• Employees: 950
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 10.77
• Shares Outstanding: 64,900,720
• 10 Day Avg. Volume: 721,170
• 30 Day Avg. Volume: 939,660
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.65
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -0.94
• 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: 39 Underperform
• Price Target: ¥161.00 ▼(-5.29% Downside)

Monstarlab Holdings Inc. is facing severe financial difficulties, with declining revenue, high leverage, and negative cash flows. Technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance Monstarlab's service offerings and market reach, providing a durable competitive advantage in delivering comprehensive solutions.

Revenue Model

The company's focus on long-term contracts and repeat business ensures a stable revenue stream, supporting sustained growth and financial stability.

Industry Position

Monstarlab's leadership in digital consultancy positions it well to capitalize on the growing demand for digital transformation across industries.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market competitiveness and customer retention, impacting long-term business sustainability.

High Leverage

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

Negative Cash Flow

Negative cash flow challenges Monstarlab's ability to fund operations and growth, posing a risk to its financial health and strategic initiatives.

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company Description

Monstarlab Holdings Inc. (5255) is a global digital transformation company that specializes in the development of software solutions, mobile applications, and digital products across various sectors. With a focus on enhancing user experience and business efficiency, Monstarlab serves industries such as finance, healthcare, retail, and entertainment. The company leverages innovative technologies and design methodologies to create tailored solutions that meet the specific needs of its clients, positioning itself as a leader in the digital consultancy space.

How the Company Makes Money

Monstarlab Holdings generates revenue through multiple streams, primarily by providing consulting services, software development, and project management for digital transformation initiatives. The company charges clients on a project basis, often involving retainer agreements for ongoing support and maintenance. Additionally, Monstarlab collaborates with strategic partners to deliver integrated solutions, which can enhance its service offerings and expand its market reach. The company's revenue model is further bolstered by repeat business from satisfied clients and long-term contracts with enterprises looking to innovate and modernize their operations. Significant partnerships with leading technology providers also contribute to its earnings by allowing Monstarlab to offer comprehensive and cutting-edge solutions.

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	7.89B	10.00B	13.35B	14.27B	9.35B	7.42B
Gross Profit	3.04B	1.43B	3.34B	4.94B	2.93B	2.15B
EBITDA	-1.61B	-9.93B	-1.63B	203.81M	-2.46B	-1.03B
Net Income	-1.91B	-9.95B	-2.36B	-674.77M	-3.05B	-1.27B
Balance Sheet
Total Assets	9.96B	7.59B	14.46B	12.98B	9.91B	9.67B
Cash, Cash Equivalents and Short-Term Investments	4.07B	1.55B	1.78B	2.72B	4.24B	4.04B
Total Debt	6.12B	9.57B	7.08B	4.87B	3.62B	4.11B
Total Liabilities	8.46B	12.37B	10.76B	8.89B	6.60B	6.51B
Stockholders Equity	1.55B	-4.74B	3.71B	4.58B	3.75B	3.16B
Cash Flow
Free Cash Flow	-74.51M	-3.27B	-3.98B	-2.39B	-1.39B	-894.08M
Operating Cash Flow	-51.56M	-3.09B	-3.52B	-1.54B	-921.55M	-594.05M
Investing Cash Flow	5.99M	-393.58M	-1.24B	-2.29B	-986.43M	-420.80M
Financing Cash Flow	2.85B	3.19B	3.73B	2.24B	2.01B	4.18B

Monstarlab Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5255, the sentiment is Negative. The current price of 170 is below the 20-day moving average (MA) of 179.60, below the 50-day MA of 175.72, and above the 200-day MA of 157.18, indicating a neutral trend. The MACD of -3.41 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	84 Outperform	¥5.18B	9.01	―	3.44%	6.56%	46.55%
5250	67 Neutral	¥5.38B	46.93	―	1.39%	―	―
4068	66 Neutral	¥3.42B	34.85	―	―	9.33%	133.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4450	61 Neutral	¥6.45B	14.10	―	1.13%	22.22%	28.14%
4416	57 Neutral	¥3.73B	84.54	―	―	5.05%	-50.80%
5255	39 Underperform	¥11.06B	-3.22	―	―	-29.41%	79.74%