Excite Holdings Co.,Ltd. (5571) AI Stock Analysis

• Market Cap: ¥5.99B
• Dividend Yield: 2.46%
• Average Volume (3M): 12.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 23.91%
• EPS Growth: -101.16%
• Country: JP
• Employees: 177
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 2.49
• Shares Outstanding: 4,873,430
• 10 Day Avg. Volume: 7,220
• 30 Day Avg. Volume: 12,023
• PEG Ratio: -0.63
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 0.00
• 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: 46 Neutral
• Price Target: ¥1,212.00 ▼(-2.42% Downside)

The score is primarily held back by deteriorating financial quality—negative operating cash flow, zero free cash flow, and sharply higher leverage alongside weaker margins. Technical indicators are mixed but lean weak (negative MACD and price below key moving averages), while valuation is only modestly supported by the dividend and is constrained by a negative P/E.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and potential for future expansion, supporting long-term business sustainability.

Gross Margin Improvement

Improved gross margins suggest better cost management and pricing power, enhancing profitability potential over the long term.

Positive Return on Equity

A positive return on equity indicates effective use of shareholder funds, which can attract investment and support growth initiatives.

Negative Factors

Rising Leverage

Increased leverage heightens financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Negative Operating Cash Flow

Negative operating cash flow suggests challenges in converting sales into cash, which can strain liquidity and limit growth funding.

Declining Profitability

Declining profitability reflects cost pressures or inefficiencies, which could undermine financial health and competitive positioning.

Excite Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

Excite Holdings Co., Ltd. engages in the platform, broadband, and SaaS/DX businesses in Japan. Its various services include woman excite, a media platform for working mothers; excite news, a news media platform that provides information, such as news, entertainment, trends, interesting stories, drama and movie reviews, columns, and interviews; Excite phone fortune telling, a platform service that sends fortunes over the phone or by email; Excite trouble consultation room, an online counseling service; EMININAL, a mouthpiece orthopedic treatment system; M&A BASE, a platform that provides mergers and acquisitions (M and A) advisory, mediation, due diligence and PMI support, and M and A strategy planning; and SENOBAS+, a supplement drink for children. The company also offers Internet services, such as optical fiber lines, internet connection services, SIMs, smartphones, etc. under BB Excite and excite mobile brand names. In addition, it provides KUROTEN, a business management cloud solution, that centrally manage the management accounting sales results, forecasts, ledgers, KPIs, and personal data; FanGrowth, a webinar PDCA cloud platform; SAISON INVOICE, a payment and billing service for BtoB customers; and sub, a subscription service introduction support tool. The company was founded in 1997 and is based in Minato-ku, Japan.

How the Company Makes Money

Excite Holdings Co., Ltd. generates revenue through a combination of digital advertising, subscription services, and technology solutions. The company leverages its digital platforms to offer targeted advertising opportunities to businesses, creating a significant portion of its income. Additionally, Excite Holdings offers subscription-based services for premium content and features, providing a steady stream of recurring revenue. The company also collaborates with technology partners to deliver customized solutions, contributing to its overall earnings. These key revenue streams, combined with strategic partnerships, play a crucial role in the company's financial performance.

Excite Holdings Co.,Ltd. Financial Statement Overview

Summary

Excite Holdings shows strong revenue growth and operational efficiency. The balance sheet is stable with moderate leverage, but there are challenges in profitability variability and operating cash flow pressures.

Income Statement

Excite Holdings demonstrates strong revenue growth with a consistent upward trend from 2021 to TTM 2024. The gross profit margin has remained healthy, suggesting efficient cost management. However, the net profit margin has seen fluctuations, indicating potential variability in profitability. The EBIT and EBITDA margins have shown stability, reflecting solid operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. The equity ratio indicates a stable financial structure, with equity making up a significant portion of total assets. However, a decrease in return on equity suggests challenges in generating returns for shareholders.

Cash Flow

Cash flow metrics reveal stability, with free cash flow growing consistently over the reported periods. The free cash flow to net income ratio highlights effective conversion of income to cash, yet the operating cash flow to net income ratio's recent decline suggests potential pressures on operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.62B	9.09B	7.71B	7.53B	7.13B	6.83B
Gross Profit	5.38B	4.89B	3.75B	3.55B	3.25B	3.10B
EBITDA	609.73M	642.16M	770.88M	774.71M	415.03M	495.97M
Net Income	95.92M	184.12M	400.07M	453.97M	346.94M	487.61M
Balance Sheet
Total Assets	10.28B	10.35B	6.30B	4.55B	4.24B	4.10B
Cash, Cash Equivalents and Short-Term Investments	1.70B	2.70B	2.53B	1.18B	984.23M	852.91M
Total Debt	4.35B	5.25B	1.14B	1.33B	1.52B	1.71B
Total Liabilities	6.73B	6.71B	2.67B	2.53B	2.73B	2.83B
Stockholders Equity	3.41B	3.50B	3.62B	2.02B	1.51B	1.26B
Cash Flow
Free Cash Flow	0.00	0.00	557.55M	385.42M	262.96M	273.97M
Operating Cash Flow	0.00	-242.34M	864.33M	688.87M	704.51M	479.00M
Investing Cash Flow	0.00	-3.45B	-548.15M	-299.48M	-383.17M	-164.98M
Financing Cash Flow	0.00	3.86B	1.04B	-198.09M	-190.03M	-190.00M

Excite Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1242.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5571, the sentiment is Positive. The current price of 1242 is above the 20-day moving average (MA) of 1226.50, above the 50-day MA of 1236.94, and below the 200-day MA of 1251.24, indicating a neutral trend. The MACD of -2.24 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5571.

Excite Holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6185	64 Neutral	¥6.98B	14.78	―	―	8.77%	―
6049	63 Neutral	¥5.44B	31.08	―	―	-7.10%	347.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2454	59 Neutral	¥5.55B	97.83	―	0.77%	4.75%	―
198A	53 Neutral	¥1.81B	-55.99	―	―	―	―
3815	49 Neutral	¥5.12B	-8.96	―	―	-6.92%	-86.77%
5571	46 Neutral	¥5.99B	-1,188.82	―	2.46%	23.91%	-101.16%