Monstarlab Holdings Inc. (5255) AI Stock Analysis

• Market Cap: ¥3.94B
• Dividend Yield: N/A
• Average Volume (3M): 964.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -32.31%
• EPS Growth: -226.05%
• Country: JP
• Employees: 950
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): -3.11
• Shares Outstanding: 50,486,950
• 10 Day Avg. Volume: 365,110
• 30 Day Avg. Volume: 964,016
• PEG Ratio: -0.15
• Price to Book (P/B): -4.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.44
• 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

• Rating: 48 Neutral
• Price Target: ¥79.00 ▼(-1.25%Downside)

The overall stock score is primarily driven by significant financial challenges, reflected in the low financial performance score. Despite some technical analysis strengths indicating short-term positive momentum, the long-term outlook remains weak. The valuation score is negatively impacted by ongoing losses and a lack of dividend yield, further weighing down the overall score.

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company Description

Monstarlab Holdings Inc. (5255) is a global digital consultancy firm that provides comprehensive digital transformation services. The company specializes in offering end-to-end solutions, including strategy, design, and engineering, to help businesses successfully navigate the digital landscape. Monstarlab operates across various sectors such as finance, healthcare, and retail, delivering customized digital products and services to enhance business performance and customer engagement.

How the Company Makes Money

Monstarlab Holdings Inc. generates revenue primarily through its consultancy services, which encompass digital strategy development, design, and engineering solutions. The company earns money by engaging with clients on a project basis or through long-term contracts, where it provides bespoke digital transformation services tailored to the specific needs of each client. Key revenue streams include fees for consulting services, design and development of digital products, and ongoing support and maintenance services. Monstarlab also benefits from strategic partnerships with technology providers and industry leaders, which enhance its service offerings and extend its market reach.

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, necessitating strategic restructuring to improve fiscal health and operational efficiency.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.72B	10.00B	13.35B	14.27B	9.35B	7.42B
	Gross Profit
1.49B	1.43B	3.34B	4.94B	2.93B	2.15B
	EBIT
-4.82B	-10.27B	-2.06B	-389.68M	-1.32B	-1.50B
	EBITDA
-8.36B	-9.93B	-1.63B	203.81M	-2.46B	-1.03B
	Net Income Common Stockholders
-9.74B	-9.95B	-2.36B	-674.77M	-3.05B	-1.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.72B	1.55B	1.78B	2.72B	4.24B	4.04B
	Total Assets
12.92B	7.59B	14.46B	12.98B	9.91B	9.67B
	Total Debt
4.87B	9.57B	7.08B	4.87B	3.62B	4.11B
	Net Debt
2.15B	8.02B	5.29B	2.15B	-618.89M	64.65M
	Total Liabilities
8.83B	12.37B	10.76B	8.89B	6.60B	6.51B
	Stockholders Equity
4.58B	-4.74B	3.71B	4.58B	3.75B	3.16B
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 Flow
3.74B	3.19B	3.73B	2.24B	2.01B	4.18B

Monstarlab Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 80 is above the 20-day moving average (MA) of 78.65, above the 50-day MA of 75.48, and below the 200-day MA of 102.23, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, 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	¥4.02B	7.41		4.42%	4.70%	31.78%
5250	73 Outperform	¥4.03B	26.67		1.84%	―	―
4416	70 Outperform	¥4.81B	361.00		―	-2.43%	-78.05%
4450	69 Neutral	¥3.98B	11.54		1.64%	17.68%	-31.19%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
4068	54 Neutral	¥3.82B	26.64		―	30.73%	―
5255	48 Neutral	¥3.94B	―		―	-32.31%	-226.05%