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

• Market Cap: ¥5.26B
• Dividend Yield: 2.46%
• Average Volume (3M): 12.02K
• Price to Earnings (P/E): 118.0
• Beta (1Y): 0.80
• Revenue Growth: 23.91%
• EPS Growth: -101.16%
• Country: JP
• Employees: 177
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 5.00
• Shares Outstanding: 4,875,590
• 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: ¥1,044.00 ▼(-15.94% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Consistent revenue growth & higher gross margin

Steady top-line growth with a meaningful gross margin improvement signals stronger core unit economics and pricing or scale benefits. That durable improvement in gross profit provides a structural opportunity to restore operating profitability if operating costs are managed.

Sizable equity base and positive ROE

A sizable equity buffer and positive ROE provide long-term solvency support and evidence the business still earns returns on capital. This capitalization gives the company more resilience to shocks and capacity to fund strategic initiatives without immediate dilution.

Operates in Internet Content & Information sector

Being in the Internet content/information sector exposes the company to durable structural demand for digital content, advertising and recurring user monetization. This secular trend supports medium-term revenue opportunities and scale advantages for incumbents.

Negative Factors

Negative operating cash flow & zero free cash flow

Earnings are not translating into cash: negative OCF and zero FCF materially weaken internal funding capacity. This reduces flexibility to invest, pay dividends, or service debt, making the company more reliant on external financing over the medium term.

Material increase in leverage

A sharp rise in leverage increases interest and refinancing risk just as operating profitability weakened. Higher debt amplifies downside in a stress scenario and limits strategic optionality, creating a persistent financial vulnerability over the next several quarters.

Sharp decline in operating and net margins

Despite revenue and gross margin improvements, operating and net margins collapsed, indicating cost pressure or one-off hits below gross profit. Sustained weak margins impair cash generation, reduce reinvestment capacity, and erode competitive reinvestment over time.

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

Despite steady revenue growth and improved gross margin in 2025, operating and net margins fell sharply. Leverage rose materially (higher debt-to-equity), and operating cash flow turned negative with free cash flow dropping to zero—creating elevated financial risk.

Income Statement

Revenue has grown steadily from 2022–2025 (2025 revenue up ~6.0% YoY), and gross margin improved meaningfully in 2025 (~53.7% vs ~48.6% in 2024). However, profitability weakened sharply in 2025: EBIT margin fell to ~2.8% (from ~7.3% in 2024) and net margin dropped to ~2.0% (from ~5.2%), indicating significant cost pressure or non-recurring headwinds despite higher sales.

Balance Sheet

Leverage increased materially in 2025, with debt-to-equity rising to ~1.50 (from ~0.31 in 2024) alongside a large jump in total debt. While equity remains sizable and return on equity is positive (~5.3% in 2025), it deteriorated versus 2024 (~11.0%), suggesting the balance sheet is carrying more risk at a time when earnings power has softened.

Cash Flow

Cash generation deteriorated sharply in 2025: operating cash flow turned negative (-242M) versus strong positive operating cash flow in 2022–2024, and free cash flow fell to zero (vs +558M in 2024). This creates a key near-term concern, as profits are not currently translating into cash and internal funding capacity appears pressured.

Breakdown	TTM	Mar 2024	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 1242.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5571, the sentiment is Negative. The current price of 1242 is above the 20-day moving average (MA) of 1187.25, above the 50-day MA of 1220.18, and below the 200-day MA of 1248.04, indicating a bearish trend. The MACD of -53.37 indicates Positive momentum. The RSI at 24.09 is Positive, neither overbought nor oversold. The STOCH value of 22.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.33B	13.41	―	―	8.77%	―
6049	63 Neutral	¥5.24B	29.89	―	―	-7.10%	347.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
198A	60 Neutral	¥2.54B	-15.65	―	―	―	―
2454	59 Neutral	¥5.54B	-112.79	―	0.77%	4.75%	―
3815	49 Neutral	¥4.78B	-8.36	―	―	-6.92%	-86.77%
5571	46 Neutral	¥5.26B	118.04	―	2.46%	23.91%	-101.16%