Fast Accounting Co.,Ltd. (5588) AI Stock Analysis

• Market Cap: ¥9.44B
• Dividend Yield: 0.12%
• Average Volume (3M): 20.36K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 1.68
• Revenue Growth: 37.21%
• EPS Growth: 129.72%
• Country: JP
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 4.11
• Shares Outstanding: 11,224,320
• 10 Day Avg. Volume: 39,140
• 30 Day Avg. Volume: 20,363
• PEG Ratio: -0.94
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 4.62
• P/FCF Ratio: 79.19
• 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): 20.1
• Revenue Forecast (FY): ¥3.11B

• Rating: 62 Neutral
• Price Target: ¥929.00 ▼(-7.84% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance—rapid growth, profitability improvement, and an exceptionally low-debt balance sheet. However, the stock is weighed down by a clear bearish technical trend and a high P/E with a low dividend yield, alongside uneven free-cash-flow conversion in the latest period.

Positive Factors

Sustained Revenue Growth

Consistent multi-year top-line growth, including ~39% in 2025, signals durable product-market fit and expanding customer adoption. A growing revenue base improves the company's ability to scale operating leverage, fund reinvestment, and support longer-term profitability and strategic initiatives.

Very Low Debt

An effectively zero-debt balance sheet and rising equity provide substantial financial flexibility, reducing default risk and enabling opportunistic investments or M&A. Low leverage supports resilience through macro cycles and underpins sustainable capital allocation over the medium term.

Turnaround to Profitability

Transition from losses in 2021–2022 to sustained operating profit and net income in 2023–2025 demonstrates operational improvements and viable unit economics. Continued profitability enhances retained earnings, supports R&D and go-to-market investments, and reduces reliance on external financing.

Negative Factors

Weak Cash Conversion

Material decline in free cash flow in the latest year and historically uneven cash conversion suggest working-capital swings or elevated investment needs. Persistent weak FCF relative to earnings can constrain organic funding for growth, raise refinancing risks, and limit margin durability over time.

Earnings Volatility

Sharp margin swings and volatile returns on equity indicate sensitivity to one-time items, cost structure shifts, or demand variability. Such earnings instability complicates forecasting, raises execution risk for consistent shareholder returns, and can weaken investor confidence in long-term guidance.

Limited Scale / Resources

A small employee base limits scale, operational redundancy, and capacity to rapidly expand product, sales, or support functions. Combined with uneven cash generation, limited organizational scale can slow go-to-market execution, prolong product development cycles, and heighten execution risk versus larger competitors.

Fast Accounting Co.,Ltd. Business Overview & Revenue Model

Company Description

Fast Accounting Co.,Ltd. develops artificial intelligence (AI) based accounting operation software solutions in Japan. It offers automation of invoice input/confirmation, automated invoice matching, automate receipt input/ confirmation, automated receipt matching, and digital invoice services. The company was incorporated in 2016 and is headquartered in Minato, Japan.

How the Company Makes Money

Fast Accounting Co., Ltd. generates revenue through a diverse range of accounting products and services. The primary revenue streams include subscription fees for their proprietary accounting software, consulting services for financial management, and fees for customized accounting solutions tailored to specific client needs. The company may also have partnerships with other financial services firms to offer integrated solutions, contributing to additional revenue. Additionally, Fast Accounting Co., Ltd. might leverage strategic collaborations and technological advancements to enhance its offerings and expand its customer base, thereby increasing its earnings.

Fast Accounting Co.,Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear turnaround to sustained profitability (2023–2025), supported by a very conservative, near zero-debt balance sheet. Offsetting this is volatility in net margin and uneven cash conversion, with free cash flow falling materially in the latest year.

Income Statement

Revenue growth is consistently strong across 2022–2025 (including ~39% growth in 2025), showing solid demand momentum. Profitability has improved markedly from losses in 2021–2022 to positive operating profit and net income in 2023–2025, with 2025 showing healthy operating profitability. The main weakness is earnings volatility: net profit margin dropped sharply in 2025 versus an unusually high 2024 level, suggesting results may be sensitive to one-time items or changing cost intensity.

Balance Sheet

The balance sheet is very conservative: total debt is effectively zero in 2024–2025 and leverage has steadily improved from modest levels in 2021–2023. Equity has expanded significantly over time, supporting growth and providing financial flexibility. A key watch item is that returns on equity have been volatile historically (negative in 2021–2022, then very strong in 2024), which reinforces that profitability has not yet shown a fully stable long-term pattern.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow both positive in 2023–2025, indicating the business can fund itself. However, cash flow quality weakened in 2025: free cash flow fell materially year over year and free cash flow is a relatively small share of net income, pointing to working-capital or investment needs consuming cash. Earlier periods also show inconsistency (negative operating cash flow and free cash flow in 2021), so cash conversion still looks uneven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.37B	1.71B	1.23B	785.53M	460.98M
Gross Profit	1.72B	1.20B	769.67M	487.43M	150.82M
EBITDA	452.01M	304.16M	167.84M	-38.06M	-330.23M
Net Income	202.14M	465.19M	125.69M	-78.03M	-360.55M
Balance Sheet
Total Assets	2.90B	2.43B	1.62B	744.06M	655.76M
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.60B	1.30B	603.79M	538.44M
Total Debt	0.00	0.00	27.88M	38.62M	86.56M
Total Liabilities	1.18B	1.04B	736.14M	575.27M	408.94M
Stockholders Equity	1.71B	1.39B	882.70M	168.79M	246.82M
Cash Flow
Free Cash Flow	138.39M	305.50M	130.32M	113.29M	-228.61M
Operating Cash Flow	349.35M	530.20M	292.99M	159.81M	-187.45M
Investing Cash Flow	-266.09M	-245.59M	-162.95M	-46.52M	-41.15M
Financing Cash Flow	79.02M	16.14M	568.67M	-47.94M	388.20M

Fast Accounting Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1008.00
• 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:5588, the sentiment is Negative. The current price of 1008 is above the 20-day moving average (MA) of 873.00, above the 50-day MA of 971.18, and below the 200-day MA of 1302.88, indicating a bearish trend. The MACD of -42.56 indicates Negative momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5588.

Fast Accounting Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥21.88B	16.24	―	3.86%	0.50%	17.15%
4477	73 Outperform	¥36.31B	20.04	―	―	27.97%	-5.25%
4397	68 Neutral	¥6.71B	16.64	―	―	11.32%	―
9629	68 Neutral	¥36.63B	25.92	―	4.58%	4.58%	-15.00%
5588	62 Neutral	¥9.44B	47.92	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4381	54 Neutral	¥1.50B	-10.14	―	―	-14.58%	54.57%

Fast Accounting Co.,Ltd. Corporate Events

Fast Accounting Beats FY2025 Profit Targets and Deepens Strategic Alliances

Fast Accounting Co., Ltd. reported full-year FY2025 net sales of JPY 2.36 billion and an operating profit of JPY 0.29 billion, delivering an operating margin of 12.3 percent and a high gross margin of 72.4 percent. The company achieved 100.3 percent of its net sales target and 123 percent of its operating profit target, indicating stronger-than-planned profitability and solid execution as it scales its recurring revenue model.

Key operating metrics underline the company’s subscription strength, with annual recurring revenue reaching JPY 2.14 billion and a monthly ARPA of JPY 1.08 million alongside a low monthly gross churn rate of 0.75 percent. Fast Accounting also reported ROE and ROIC of 12.2 percent, and it is reinforcing its market position through a lease accounting tie-up with Bengo4.com and a capital and business alliance under which Pro-Ship Inc. will acquire roughly a 5 percent stake, supporting product expansion and broader industry reach.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.

Fast Accounting Forms Capital and Business Alliance with Pro-Ship to Tackle New Lease Accounting Rules

Fast Accounting has entered into a capital and business alliance with fixed asset management specialist Pro-Ship Inc. to jointly develop solutions around Pro-Ship’s flagship platform. The partnership seeks to fuse Fast Accounting’s AI, including document reading and automatic journal entry, with Pro-Ship’s systems to deliver what the partners describe as the world’s most advanced fixed asset management solution.

A key focus is helping companies cope with Japan’s new lease accounting standard coming into force in April 2027, which is expected to sharply increase contract volumes and related accounting judgments. By linking Fast Accounting’s AI agents with Pro-Ship’s platform and cross-selling to each other’s largely large-enterprise customer bases, the companies aim to automate complex lease accounting decisions, expand sales, and enhance productivity in fixed asset management operations, reinforcing their market positions in this regulatory transition.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.

Fast Accounting Lifts Dividend Forecast on Strong FY2025 Earnings

Fast Accounting Co., Ltd. has raised its dividend forecast for the fiscal year ending December 31, 2025, after net income attributable to owners of the parent exceeded prior expectations, and now plans a year-end dividend of JPY 3.70 per share, up from the previous forecast of JPY 3.00. The company, which maintains a policy of balancing profit distribution with investment for business expansion and financial strength, will lift its dividend payout ratio from 20% to 21% for the 2026 fiscal year, signaling a stronger commitment to shareholder returns alongside continued funding for future growth.

The revised forecast represents a sharp increase in shareholder payouts compared with the previous fiscal year’s total dividend of JPY 1.20 per share, underscoring improved earnings performance and management’s confidence in the company’s growth trajectory. By explicitly framing profit return as a key management priority while preserving internal reserves for proactive investment, Fast Accounting aims to enhance its appeal to investors in the growth market and reinforce its positioning as a financially disciplined, growth-oriented player in the accounting services industry.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.

Fast Accounting Hits FY2025 Targets and Strengthens Alliances in Enterprise Accounting

Fast Accounting reported FY2025 net sales of JPY 2.36 billion and an operating profit margin of 12.3%, achieving 100.3% of its sales target and 123.0% of its operating profit target, supported by a high gross margin of 72.4% and annual recurring revenue of JPY 2.14 billion. Key operating metrics included a monthly ARPA of JPY 1.08 million, a low monthly gross churn rate of 0.75%, and returns on equity and invested capital of 12.2%, while strategic moves such as a lease accounting partnership with Bengo4.com and a planned ~5% stake acquisition by Pro-Ship Inc. strengthen its product offering and capital alliances in the enterprise accounting market.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.

Fast Accounting Forms Capital and Business Alliance with Pro-Ship for AI-Driven Fixed Asset Solutions

Fast Accounting has entered into a capital and business alliance with Pro-Ship Inc. to collaborate on fixed asset management solutions, aiming to integrate Fast Accounting’s AI-driven accounting automation with Pro-Ship’s fixed asset management platform. The partnership is designed to address the operational burden expected from Japan’s new lease accounting standard in 2027 by automating contract-related accounting judgments, enhancing productivity in fixed asset management, and expanding sales through cross-selling to both firms’ large-enterprise customer bases, thereby strengthening their positioning in advanced corporate accounting solutions.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.

Fast Accounting Raises Dividend Forecast on Strong FY2025 Earnings

Fast Accounting Co., Ltd. has revised upward its dividend forecast for the fiscal year ending December 31, 2025, after net income attributable to owners of the parent exceeded its prior forecast. The board has set the year-end dividend at JPY 3.70 per share, an increase from the previous forecast of JPY 3.00, lifting the total annual dividend for 2025 to JPY 3.70 compared with JPY 1.20 in the prior year.

The company reaffirmed that returning profits to shareholders is a key management priority, while it continues to secure internal reserves for proactive investments to drive future growth. Reflecting this stance, Fast Accounting plans to raise its dividend payout ratio from 20% to 21% for the fiscal year ending December 31, 2026, signaling confidence in its earnings capacity and a slightly more generous capital return policy for shareholders.

The most recent analyst rating on (JP:5588) stock is a Buy with a Yen1182.00 price target. To see the full list of analyst forecasts on Fast Accounting Co.,Ltd. stock, see the JP:5588 Stock Forecast page.