Laboro.AI, Inc. (5586) AI Stock Analysis

• Market Cap: ¥13.33B
• Dividend Yield: N/A
• Average Volume (3M): 91.41K
• Price to Earnings (P/E): 87.8
• Beta (1Y): 1.49
• Revenue Growth: 25.41%
• EPS Growth: 9.69%
• Country: JP
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 5.55
• Shares Outstanding: 15,943,285
• 10 Day Avg. Volume: 77,970
• 30 Day Avg. Volume: 91,413
• PEG Ratio: 11.06
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 8.11
• P/FCF Ratio: 95.76
• 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: 65 Neutral
• Price Target: ¥1,021.00 ▲(11.34% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is primarily supported by strong financial performance (healthy growth, high gross margins, and a very conservative balance sheet). This is tempered by weaker technical positioning (below key longer-term moving averages with negative MACD) and a very high P/E that raises valuation risk.

Positive Factors

Revenue growth momentum

Sustained ~25% revenue growth indicates the company is expanding market penetration and product adoption. Over a multi-quarter horizon this supports scale advantages, recurring top-line expansion and the capacity to reinvest in R&D and sales to solidify competitive position.

High gross margins

Gross margins near 65–70% reflect a scalable, software-oriented cost structure, enabling durable operating leverage as revenue grows. High gross profitability supports long-term ability to fund product development and margin recovery even if operating expenses fluctuate.

Very conservative balance sheet

Minimal leverage and steadily growing equity/assets provide strong financial flexibility. A conservative capital structure reduces insolvency risk, allows opportunistic M&A or investment without urgent financing, and improves resilience across business cycles.

Negative Factors

Net margin compression

Declining net margins over recent years signal pressure on profitability from higher costs, pricing mix shifts, or reinvestment. If persistent, margin erosion can reduce free cash flow available for growth, making it harder to sustain competitive investments and return targets.

Volatile cash generation

Historic swings in operating and free cash flow create uncertainty around durable cash conversion. Although 2025 shows strong recovery, inconsistent cash delivery complicates long-term planning, increases financing risk for growth initiatives, and weakens predictability of capital returns.

Modest returns on equity

ROE around mid-single digits suggests limited capital efficiency versus peers; the company is profitable but not yet generating high returns on invested equity. Sustained low ROE can constrain long-term shareholder value unless margins or asset turns improve materially.

Laboro.AI, Inc. Business Overview & Revenue Model

Company Description

Laboro.AI, Inc. (5586) is a technology company that specializes in artificial intelligence solutions. The company operates in the AI sector, focusing on developing and providing advanced AI-driven products and services designed to enhance efficiency and decision-making across various industries. Its core offerings include AI platforms, machine learning models, and data analytics tools that cater to businesses seeking to integrate AI into their operations.

How the Company Makes Money

Laboro.AI, Inc. generates revenue primarily through the sale of its AI products and services. This includes licensing fees for its AI platforms and machine learning models, which businesses use to automate and optimize their processes. The company also earns money from consulting services, where it provides expertise in implementing AI solutions tailored to specific industry needs. Additionally, Laboro.AI may enter into partnerships with other technology firms or industry leaders to expand its reach and enhance its product offerings, which can also contribute to its earnings.

Laboro.AI, Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by solid revenue growth (~25% in 2025 vs. 2024) and high gross margins (~65–70%), plus an exceptionally low-debt balance sheet. Offsetting factors are margin compression (net margin ~10.2% in 2023 to ~7.7% in 2025) and a historically uneven cash flow profile despite a strong 2025 rebound.

Income Statement

Revenue growth is solid and improving in the latest year (2025 vs. 2024: ~25% growth), and the company maintains strong gross profitability (gross margin ~65–70%). Earnings are consistently positive in recent years (2023–2025), with 2025 net margin around 7.7%. However, profitability has softened versus prior peaks (net margin ~10.2% in 2023 to ~7.7% in 2025, and operating margin also lower), showing some margin compression despite growth.

Balance Sheet

The balance sheet is very conservatively financed with minimal leverage (debt-to-equity near zero in 2024–2025 and extremely low in 2025). Equity and assets have grown steadily over time, supporting financial flexibility. Return on equity is positive but modest in 2024–2025 (~5.6–5.8%), indicating the company is profitable but not yet generating high returns on its capital base.

Cash Flow

Cash generation improved materially in 2025, with healthy operating cash flow (~216M) and positive free cash flow (~161M), a strong rebound from weak 2024 results (very low operating cash flow and negative free cash flow). That said, cash flow has been more volatile across years (negative in 2022; weak in 2024), and in 2025 operating cash flow and free cash flow were still below net income (free cash flow roughly three-quarters of net income), suggesting earnings-to-cash conversion is improving but not consistently strong.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.90B	1.52B	1.37B	733.05M	656.66M
Gross Profit	1.27B	1.00B	878.26M	515.61M	471.57M
EBITDA	253.44M	210.05M	211.75M	-44.21M	92.64M
Net Income	146.80M	133.59M	139.55M	-39.85M	60.65M
Balance Sheet
Total Assets	2.81B	2.59B	2.49B	1.32B	413.91M
Cash, Cash Equivalents and Short-Term Investments	2.05B	1.52B	1.94B	965.78M	214.76M
Total Debt	1.34M	0.00	0.00	62.30M	74.89M
Total Liabilities	265.37M	200.22M	242.49M	149.88M	205.16M
Stockholders Equity	2.55B	2.39B	2.25B	1.17B	208.75M
Cash Flow
Free Cash Flow	160.92M	-39.64M	101.07M	-221.72M	43.54M
Operating Cash Flow	215.85M	4.54M	116.53M	-182.21M	57.71M
Investing Cash Flow	300.75M	-434.18M	-15.46M	-54.49M	-14.46M
Financing Cash Flow	8.83M	9.46M	876.73M	987.72M	37.55M

Laboro.AI, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 917.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5586, the sentiment is Negative. The current price of 917 is above the 20-day moving average (MA) of 858.35, above the 50-day MA of 870.48, and below the 200-day MA of 1000.06, indicating a bearish trend. The MACD of -18.76 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5586.

Laboro.AI, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3853	70 Outperform	¥21.03B	19.00	―	0.82%	―	―
5586	65 Neutral	¥13.33B	87.84	―	―	25.41%	9.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4476	56 Neutral	¥4.24B	23.89	―	―	10.43%	-65.78%
5572	56 Neutral	¥10.23B	73.76	―	―	60.41%	-27.67%
4382	52 Neutral	¥12.93B	-173.88	―	―	16.29%	93.98%
4425	44 Neutral	¥25.14B	-49.19	―	―	36.08%	-7.71%