Inbound Tech, Inc. (7031) AI Stock Analysis

• Market Cap: ¥1.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -23.03%
• EPS Growth: -604.79%
• Country: JP
• Employees: 106
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 5.86
• Shares Outstanding: 2,523,475
• 10 Day Avg. Volume: 1,470
• 30 Day Avg. Volume: 1,726
• PEG Ratio: 0.02
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 31.53
• 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: 47 Neutral
• Price Target: ¥587.00 ▼(-5.93% Downside)

Inbound Tech, Inc. is facing significant challenges, primarily driven by poor financial performance and weak technical indicators. The company's negative profitability and bearish market trends are major concerns. The lack of earnings call data and corporate events further limits positive insights. Overall, the stock is currently unattractive due to its financial instability and negative market sentiment.

Positive Factors

Recurring subscription revenue

A subscription and tiered pricing model creates durable, recurring revenue and higher customer lifetime value. Combined with consulting and add-ons, this supports predictable cash flows, easier forecasting, and structural revenue resilience against short-term demand swings.

Conservative leverage and strong equity base

Moderate leverage and a strong equity ratio provide financial flexibility for strategic investments or downturns. A 0.39 D/E and 58% equity base reduce refinancing risk, supporting longer-term stability and the capacity to fund product development or partnerships without excessive debt strain.

Improving free cash flow

A large increase in free cash flow indicates improving cash generation even amid reported losses, enhancing the firm's ability to fund operations, invest in growth initiatives, and extend runway without immediate financing. This is a durable indicator of operational cash recovery.

Negative Factors

Sustained revenue decline

A steep year-over-year revenue decline erodes scale economics and makes fixed-cost absorption harder over time. Persistent top-line contraction weakens bargaining power with partners, limits reinvestment in product and sales, and undermines the subscription base necessary for long-term recovery.

Severe EPS deterioration

Extreme EPS decline signals rapidly worsening profitability and poses a structural threat to shareholder value. Such deterioration constrains reinvestment, raises the urgency for restructuring, and may limit management's ability to execute growth strategies without dilutive financing.

Negative margins and operational inefficiency

Low gross margin and negative EBITDA reflect weak pricing power and high operating costs relative to revenue. Persistent margin deficits indicate structural inefficiencies that must be addressed to achieve sustainable profitability and to convert improving cash flows into long-term earnings.

Inbound Tech, Inc. Business Overview & Revenue Model

Company Description

Inbound Tech Inc. engages in the Multilingual CRM and sales outsourcing businesses in Japan. It offers multilingual contact center services, including help desk and system monitoring services; multilingual/interpretation solutions that support inbound foreigners in various situations; and contact center BPO services, as well as specialized sales outsourcing services. The company was formerly known as Brainpress Inc. Inbound Tech Inc. was incorporated in 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Inbound Tech, Inc. generates revenue through a subscription-based model for its marketing automation platform, offering tiered pricing plans that cater to businesses of all sizes. Key revenue streams include monthly and annual subscription fees, which provide access to the platform's features and tools. Additionally, the company earns income through consulting services, helping clients implement effective inbound marketing strategies. Significant partnerships with e-commerce platforms and digital advertising networks enhance its offerings, driving customer acquisition and retention. By leveraging upselling opportunities and offering add-on services, Inbound Tech maximizes its earnings potential within the competitive digital marketing landscape.

Inbound Tech, Inc. Financial Statement Overview

Summary

Inbound Tech, Inc. faces significant profitability challenges, with declining revenue and negative net income impacting its financial health. While the balance sheet indicates a solid equity position and manageable debt levels, cash flow metrics reveal potential liquidity issues. The company needs to address operational inefficiencies and improve profitability to enhance financial stability.

Income Statement

Inbound Tech, Inc. experienced a significant decline in revenue from the previous year, with a Revenue Growth Rate of -23.33%. The Gross Profit Margin stands at 18.95%, and the Net Profit Margin is negative at -15.70%, indicating challenges in profitability. The EBIT Margin is 0.84%, and the EBITDA Margin is negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a healthy Debt-to-Equity Ratio of 0.39, suggesting moderate leverage. However, the Return on Equity is negative at -23.92%, indicating a loss for shareholders. The Equity Ratio is strong at 58.00%, showing a solid equity base.

Cash Flow

Free Cash Flow increased by 66.73%, a positive sign, but the Operating Cash Flow to Net Income Ratio is negative due to the net loss. The Free Cash Flow to Net Income Ratio is also negative, highlighting cash flow challenges relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.42B	2.54B	3.32B	3.29B	2.77B	2.00B
Gross Profit	477.54M	482.13M	890.96M	961.32M	669.15M	532.60M
EBITDA	-411.01M	-319.47M	519.64M	570.27M	358.40M	280.63M
Net Income	-467.55M	-414.58M	208.29M	254.48M	182.88M	179.45M
Balance Sheet
Total Assets	2.69B	2.88B	3.78B	3.98B	3.83B	2.05B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.41B	1.70B	2.04B	1.66B	1.57B
Total Debt	616.00M	652.00M	696.00M	840.00M	984.00M	130.80M
Total Liabilities	834.14M	870.85M	1.10B	1.35B	1.48B	415.28M
Stockholders Equity	1.53B	1.67B	2.13B	2.10B	1.84B	1.64B
Cash Flow
Free Cash Flow	0.00	62.34M	37.39M	560.78M	178.99M	180.64M
Operating Cash Flow	0.00	75.85M	186.54M	652.49M	234.18M	229.83M
Investing Cash Flow	0.00	-145.43M	-207.72M	-129.35M	-1.02B	-94.41M
Financing Cash Flow	0.00	-225.59M	-321.88M	-136.17M	872.27M	917.76M

Inbound Tech, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 624.00
• 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:7031, the sentiment is Negative. The current price of 624 is above the 20-day moving average (MA) of 606.45, below the 50-day MA of 648.92, and below the 200-day MA of 780.63, indicating a bearish trend. The MACD of -18.19 indicates Negative momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 29.01 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	72 Outperform	¥3.09B	39.35	―	2.05%	-16.27%	-69.91%
5587	66 Neutral	¥3.01B	14.83	―	―	28.85%	58.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9225	63 Neutral	¥2.35B	15.07	―	―	10.98%	-13.20%
3802	59 Neutral	¥2.24B	25.76	―	2.81%	3.86%	-32.58%
7031	47 Neutral	¥1.50B	-2.90	―	―	-23.03%	-604.79%
7376	46 Neutral	¥2.79B	-29.85	―	―	5.93%	-1165.40%