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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:
¥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. (5255) vs. iShares MSCI Japan ETF (EWJ)

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company DescriptionMonstarlab 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 MoneyMonstarlab 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
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.72B10.00B13.35B14.27B9.35B7.42B
Gross Profit
1.49B1.43B3.34B4.94B2.93B2.15B
EBIT
-4.82B-10.27B-2.06B-389.68M-1.32B-1.50B
EBITDA
-8.36B-9.93B-1.63B203.81M-2.46B-1.03B
Net Income Common Stockholders
-9.74B-9.95B-2.36B-674.77M-3.05B-1.27B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.72B1.55B1.78B2.72B4.24B4.04B
Total Assets
12.92B7.59B14.46B12.98B9.91B9.67B
Total Debt
4.87B9.57B7.08B4.87B3.62B4.11B
Net Debt
2.15B8.02B5.29B2.15B-618.89M64.65M
Total Liabilities
8.83B12.37B10.76B8.89B6.60B6.51B
Stockholders Equity
4.58B-4.74B3.71B4.58B3.75B3.16B
Cash FlowFree 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
3.74B3.19B3.73B2.24B2.01B4.18B

Monstarlab Holdings Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price80.00
Price Trends
50DMA
75.48
Positive
100DMA
79.40
Positive
200DMA
102.23
Negative
Market Momentum
MACD
0.74
Negative
RSI
56.25
Neutral
STOCH
75.56
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥4.02B7.41
4.42%4.70%31.78%
73
Outperform
¥4.03B26.67
1.84%
70
Outperform
¥4.81B361.00
-2.43%-78.05%
69
Neutral
¥3.98B11.54
1.64%17.68%-31.19%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
54
Neutral
¥3.82B26.64
30.73%
48
Neutral
¥3.94B
-32.31%-226.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5255
Monstarlab Holdings Inc.
80.00
-255.00
-76.12%
JP:4068
Basis Corporation
1,997.00
865.00
76.41%
JP:4416
True Data Inc.
995.00
555.00
126.14%
JP:4450
Power Solutions Ltd.
1,343.00
-171.31
-11.31%
JP:5250
Prime Strategy Co., Ltd.
1,121.00
-300.54
-21.14%
JP:7120
SHINKO Inc.
2,199.00
261.07
13.47%
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.