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

• Market Cap: ¥12.69B
• Dividend Yield: N/A
• Average Volume (3M): 91.41K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.25
• 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: 15,947,051
• 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: 94.47
• 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

Conservative Balance Sheet

Near-zero leverage and steadily growing equity/assets provide durable financial flexibility. This lowers insolvency risk, preserves borrowing optionality for strategic investments or M&A, and supports operating stability through cyclical downturns — a long-term strength.

Revenue Growth and High Gross Margins

Sustained top-line expansion combined with 65–70% gross margins indicates strong product economics and pricing power. Over 2–6 months this supports scalable operating leverage, the ability to fund R&D or sales expansion, and resilience against input-cost swings.

Improving Cash Generation

A material rebound to positive operating and free cash flow strengthens self-funding capacity for capex and growth. While prior volatility exists, consistent FCF would bolster balance-sheet resilience and reduce reliance on external financing over the medium term.

Negative Factors

Margin Compression

A multiyear decline in net margin signals rising cost pressure or mix shifts that can persistently erode cash generation. Lower margins reduce reinvestment capacity and return on incremental revenue, constraining sustainable profit growth if not reversed.

Historic Cash-Flow Volatility

Prior negative and weak cash-flow years highlight inconsistent earnings-to-cash conversion. That volatility increases financing uncertainty for investments and dividends, necessitating a larger liquidity buffer despite recent improvement.

Modest Return on Equity

ROE in the mid-single digits indicates limited capital efficiency and modest profitability relative to equity. Over time this can limit shareholder returns and suggest the company needs faster margin improvement or higher asset turnover to justify capital deployment.

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	1.25B	1.00B	878.26M	509.35M	467.20M
EBITDA	229.69M	209.60M	223.89M	-43.87M	91.04M
Net Income	146.80M	133.59M	139.55M	-39.85M	60.65M
Balance Sheet
Total Assets	2.82B	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	268.15M	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	163.12M	-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: Negative
• 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 814.95, above the 50-day MA of 861.98, and below the 200-day MA of 974.44, indicating a bearish trend. The MACD of -11.73 indicates Negative momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.63 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	¥21.10B	12.24	―	0.82%	―	―
5586	65 Neutral	¥12.69B	37.90	―	―	25.41%	9.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5572	59 Neutral	¥8.90B	33.78	―	―	60.41%	-27.67%
4476	56 Neutral	¥3.89B	35.15	―	―	10.43%	-65.78%
4382	52 Neutral	¥12.50B	-90.49	―	―	16.29%	93.98%
4425	44 Neutral	¥22.60B	35.20	―	―	36.08%	-7.71%