Inbound Tech, Inc. (7031) AI Stock Analysis

• Market Cap: ¥2.02B
• Dividend Yield: N/A
• Average Volume (3M): 953.00
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.21
• Revenue Growth: -23.31%
• EPS Growth: -309.90%
• Country: JP
• Employees: 106
• Sector: Industrials
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): -1.44
• Shares Outstanding: 2,492,275
• 10 Day Avg. Volume: 640
• 30 Day Avg. Volume: 953
• PEG Ratio: <0.01
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• 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: ¥888.00
• Price Target Upside: 9.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ¥811.00 ▲(0.12%Upside)

The overall stock score of 47 reflects significant challenges in financial performance, with declining revenue and negative profitability. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively weigh heavily on the stock's potential, necessitating operational improvements for future stability.

Inbound Tech, Inc. Business Overview & Revenue Model

Company Description

Inbound Tech, Inc. (7031) is a technology company specializing in providing innovative inbound marketing solutions, data analytics, and customer relationship management (CRM) software. Operating primarily in the digital marketing and software sectors, Inbound Tech, Inc. focuses on helping businesses enhance their online presence, optimize customer engagement, and drive sales through tailored marketing strategies and advanced technological tools.

How the Company Makes Money

Inbound Tech, Inc. generates revenue through multiple streams, primarily by offering subscription-based services for its CRM software and digital marketing platforms. The company charges businesses a monthly or annual fee for access to its software, which includes features such as lead generation, email marketing, and analytics dashboards. Additionally, Inbound Tech earns revenue from consulting services, where it provides expertise in digital marketing strategies and implementation for its clients. The company may also have partnerships with other tech firms to integrate services, which can enhance its offerings and lead to additional revenue sharing agreements. Seasonal promotional campaigns and upselling additional features or services to existing customers further contribute to its earnings.

Inbound Tech, Inc. Financial Statement Overview

Summary

Inbound Tech, Inc. faces challenges with declining revenues and profitability, affecting its income statement performance. While the balance sheet remains robust with a strong equity base, the company's ability to generate returns has weakened. Cash flow management is concerning due to decreased cash generation from operations. Improvement in revenue growth and operational efficiency is essential.

Income Statement

Inbound Tech, Inc. displayed a significant decline in revenue from the prior year, dropping from 3.32 billion to 2.54 billion, indicating a revenue contraction of approximately 23.3%. The net profit margin turned negative as the company incurred a net loss of 399.67 million, compared to a profit of 208.29 million previously. Additionally, both the EBIT and EBITDA margins were negatively affected, with the EBITDA margin falling into negative territory. Despite the gross profit margin being relatively stable, the overall profitability and growth metrics suggest challenges in maintaining revenue and controlling costs.

Balance Sheet

The balance sheet of Inbound Tech, Inc. shows a strong equity base with a stockholders' equity of 1.67 billion against total assets of 2.88 billion, resulting in a healthy equity ratio. However, the debt-to-equity ratio increased slightly, with total debt of 652 million. The return on equity declined due to the net loss, indicating reduced efficiency in generating returns from shareholders' investments. Overall, the company maintains a strong asset base and equity position, but profitability challenges have impacted return metrics.

Cash Flow

Inbound Tech, Inc. experienced a decrease in operating cash flow, dropping from 186.54 million to 74.80 million. Despite the decline in operating cash flow, the company managed to maintain a positive free cash flow, aided by reduced capital expenditures. However, both the operating cash flow and free cash flow to net income ratios were impacted by the net loss, highlighting challenges in converting income into cash. The company needs to address cash flow generation to support future operations and investments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.54B	3.32B	3.29B	2.77B	2.00B
Gross Profit	482.13M	890.96M	961.32M	669.15M	532.60M
EBITDA	-319.47M	519.64M	570.27M	358.40M	280.63M
Net Income	-399.67M	208.29M	254.48M	182.88M	179.45M
Balance Sheet
Total Assets	2.88B	3.78B	3.98B	3.83B	2.05B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.70B	2.04B	1.66B	1.57B
Total Debt	652.00M	696.00M	840.00M	984.00M	130.80M
Total Liabilities	870.85M	1.10B	1.35B	1.48B	415.28M
Stockholders Equity	1.67B	2.13B	2.10B	1.84B	1.64B
Cash Flow
Free Cash Flow	62.34M	37.39M	560.78M	178.99M	180.64M
Operating Cash Flow	74.80M	186.54M	652.49M	234.18M	229.83M
Investing Cash Flow	-143.60M	-207.72M	-129.35M	-1.02B	-94.41M
Financing Cash Flow	-225.59M	-321.88M	-136.17M	872.27M	917.76M

Inbound Tech, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 810.00
• 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:7031, the sentiment is Negative. The current price of 810 is below the 20-day moving average (MA) of 835.30, below the 50-day MA of 850.84, and below the 200-day MA of 869.64, indicating a bearish trend. The MACD of -5.89 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 43.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7031.

Inbound Tech, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4664	80 Outperform	¥1.71B	9.16		4.03%	9.24%	-23.24%
Sector *	71 Outperform	¥270.65B	14.28	8.44%	2.84%	6.34%	11.66%
9225	70 Outperform	¥2.70B	15.45		―	18.94%	61.02%
5587	68 Neutral	¥3.20B	18.62		―	15.67%	-18.07%
3802	59 Neutral	¥2.26B	52.35		2.70%	-7.85%	-89.50%
7376	48 Neutral	¥2.00B	―		―	7.11%	-222.15%
7031	47 Neutral	¥2.02B	37.42		―	-23.31%	-309.90%