Monstarlab Holdings Inc. (5255) AI Stock Analysis

• Market Cap: ¥12.09B
• Dividend Yield: N/A
• Average Volume (3M): 11.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -32.31%
• EPS Growth: -226.05%
• Country: JP
• Employees: 950
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): -3.11
• Shares Outstanding: 64,900,720
• 10 Day Avg. Volume: 4,789,220
• 30 Day Avg. Volume: 11,477,603
• PEG Ratio: -0.37
• Price to Book (P/B): -11.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.06
• 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: ¥244.00
• Price Target Upside: 30.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ¥191.00 ▲(2.14%Upside)

The overall stock score is predominantly influenced by the company's weak financial performance, marked by declining revenues, operational losses, and negative equity. Technical analysis offers some positive momentum, but these are outweighed by poor valuation metrics due to negative earnings.

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. faces significant financial challenges, with declining revenues, substantial operational losses, high leverage, and deteriorating cash flows. The negative equity and consistently high net losses suggest pressing financial instability.

Income Statement

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

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

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.

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

Monstarlab Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187.00
• 50DMA: Positive
• 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 Positive. The current price of 187 is below the 20-day moving average (MA) of 188.90, above the 50-day MA of 157.28, and above the 200-day MA of 109.54, indicating a neutral trend. The MACD of 2.96 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥4.33B	7.98		4.11%	4.70%	38.61%
5250	74 Outperform	¥3.57B	27.06		1.98%	―	―
4450	69 Neutral	¥6.15B	17.09		1.18%	17.68%	-31.19%
Sector *	58 Neutral	€2.96B	11.47	-8.77%	2.74%	4.97%	-52.21%
4416	58 Neutral	¥4.32B	323.63		―	-2.43%	-78.05%
4068	51 Neutral	¥3.76B	26.30		―	30.73%	―
5255	43 Neutral	¥12.09B	―		―	-32.31%	-226.05%