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

• Market Cap: ¥11.33B
• Dividend Yield: 0.12%
• Average Volume (3M): 20.36K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.94
• Revenue Growth: 37.21%
• EPS Growth: 129.72%
• Country: JP
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.11
• Shares Outstanding: 11,216,120
• 10 Day Avg. Volume: 39,140
• 30 Day Avg. Volume: 20,363
• PEG Ratio: 0.17
• Price to Book (P/B): 14.99
• Price to Sales (P/S): 12.22
• P/FCF Ratio: 68.29
• 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: 66 Neutral
• Price Target: ¥1,089.00 ▲(8.04% Upside)

The score is driven by strong financial performance (rapid growth, significant margin expansion, and a debt-free balance sheet), partially offset by weak technicals (price below key moving averages with negative MACD). Valuation is neutral-to-middling given a moderate P/E and low dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, enhancing long-term competitiveness and market position.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without leverage constraints.

Profitability Improvement

Significant margin expansion reflects operational efficiency and pricing power, supporting sustainable profitability and competitive advantage.

Negative Factors

Cash Conversion

Lower cash conversion indicates that not all earnings are translating into cash, which may limit reinvestment capacity and financial flexibility.

Margin Sustainability

The significant margin increase in 2024 may be challenging to sustain, posing a risk to future profitability if market conditions or cost structures change.

Cash Flow Variability

Inconsistent cash flow conversion from earnings could impact the company's ability to fund operations and growth initiatives consistently.

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 turnaround and growth: revenue rose sharply (2024 up ~39% YoY) with a major profitability inflection (net margin ~27% in 2024; gross margin ~70%) and improved operating leverage. Balance sheet is very conservative with debt effectively eliminated (debt-to-equity 0) and strong ROE (~33%). Main risk is durability of the large 2024 margin/return step-up, and cash conversion trails earnings (FCF ~58% of net income in 2024).

Income Statement

Revenue growth has been very strong from 2022–2024 (2024 revenue up ~39% year over year), and profitability has inflected meaningfully: net margin improved from losses in 2021–2022 to ~10% in 2023 and ~27% in 2024. Gross margin also expanded materially (to ~70% in 2024), supporting higher operating leverage with EBIT margin rising to ~11%. Key watchout: the step-up in 2024 profitability is large versus history, so sustaining these margins will be important to validate durability.

Balance Sheet

The balance sheet is conservatively positioned with debt effectively eliminated in 2024 (debt-to-equity at 0), a sharp improvement from prior years. Equity has grown substantially alongside profitability, and return on equity is strong in 2024 (~33%), reflecting improved earnings power. Primary risk is less about leverage and more about whether the very high recent returns are repeatable given the company’s earlier loss-making period.

Cash Flow

Cash generation is solid and improving: operating cash flow and free cash flow rose in 2024, with free cash flow up sharply versus 2023. However, cash conversion is somewhat mixed—free cash flow is only ~58% of net income in 2024 (and ~45% in 2023), suggesting profits are not fully translating into free cash at the same pace. The company has still moved from negative cash flow in 2021 to consistently positive operating and free cash flow in 2022–2024, which is a meaningful strengthening trend.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.71B	1.23B	785.53M	460.98M
Gross Profit	1.20B	769.67M	487.43M	150.82M
EBITDA	304.16M	167.84M	-38.06M	-330.23M
Net Income	465.19M	125.69M	-78.03M	-360.55M
Balance Sheet
Total Assets	2.43B	1.62B	744.06M	655.76M
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.30B	603.79M	538.44M
Total Debt	0.00	27.88M	38.62M	86.56M
Total Liabilities	1.04B	736.14M	575.27M	408.94M
Stockholders Equity	1.39B	882.70M	168.79M	246.82M
Cash Flow
Free Cash Flow	305.50M	130.32M	113.29M	-228.61M
Operating Cash Flow	530.20M	292.99M	159.81M	-187.45M
Investing Cash Flow	-245.59M	-162.95M	-46.52M	-41.15M
Financing Cash Flow	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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 1055.75, below the 50-day MA of 1037.30, and below the 200-day MA of 1370.38, indicating a bearish trend. The MACD of -8.30 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 11.65 is Positive, 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
3712	80 Outperform	¥21.64B	18.14	―	1.81%	6.39%	6.38%
2307	70 Outperform	¥15.82B	10.39	―	3.14%	3.58%	0.23%
4013	66 Neutral	¥22.10B	22.16	―	0.68%	26.89%	151.62%
5588	66 Neutral	¥11.33B	23.16	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	49 Neutral	¥14.96B	-11.60	―	―	14.63%	-760.87%
4192	41 Neutral	¥10.79B	-27.12	―	―	22.18%	28.27%