Inbound Tech, Inc. (7031) AI Stock Analysis

• Market Cap: ¥1.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.73K
• Price to Earnings (P/E): 56.7
• Beta (1Y): 0.07
• Revenue Growth: -23.03%
• EPS Growth: -604.79%
• Country: JP
• Employees: 106
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 2.75
• 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): 1.19
• 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: 55 Neutral
• Price Target: ¥694.00 ▲(11.22% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily held back by weak financial performance (declining revenue and negative profitability) and an expensive valuation (high P/E with no dividend yield provided). These are partially offset by a relatively healthy balance sheet, improved free cash flow, and supportive near-term technical momentum.

Positive Factors

Balance sheet strength

Moderate leverage and a 58% equity ratio provide a durable capital buffer and financial flexibility. This structure supports continued investment or weathering of losses without immediate refinancing pressure, preserving optionality for strategic moves over the next several months.

Improving free cash flow

A 66.7% rise in free cash flow signals improving cash generation capability independent of reported earnings. Sustained FCF growth can fund operations, reduce reliance on external capital, and enable reinvestment or deleveraging, strengthening the company’s medium-term liquidity profile.

Core gross profitability

A near 19% gross margin and small positive EBIT margin indicate the core service offering can generate gross profit and narrow operating profitability. With revenue stabilization or regained scale, these margins provide a pathway to restore overall profitability sustainably.

Negative Factors

Revenue contraction

A sharp ~23% revenue decline materially reduces scale and erodes operating leverage, making fixed costs harder to cover. Unless top-line trends reverse, this structural shrinkage will persistently pressure margins, cash flow generation, and the ability to invest in growth over the coming months.

Negative profitability

Negative net margin and EBITDA show the business is loss-making at both operating and consolidated levels. Persistent losses will deplete reserves, constrain reinvestment, and require either sustained margin improvement or external capital to maintain operations over a multi-month horizon.

Cash conversion quality

Despite higher free cash flow, operating cash flow relative to reported losses is negative, indicating earnings are not consistently converting to cash. Weak cash conversion undermines the durability of improvements and raises funding risk if revenue or margins do not stabilize.

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.

Inbound Tech, Inc. Financial Statement Overview

Summary

Financial performance is pressured by a sharp revenue decline (-23.33%) and negative profitability (Net Profit Margin -15.70%, negative EBITDA), indicating weak operating efficiency. Offsetting factors include a solid balance sheet (Debt-to-Equity 0.39, Equity Ratio 58%) and improved free cash flow (+66.73%), though cash flow quality versus earnings remains challenged due to net losses.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	2.84B	3.89B	4.11B	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	860.23M	1.21B	1.47B	1.48B	415.28M
Stockholders Equity	1.53B	1.66B	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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 648.80, above the 50-day MA of 620.56, and below the 200-day MA of 741.03, indicating a bearish trend. The MACD of 8.50 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 14.42 is Positive, 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
2483	76 Outperform	¥6.23B	14.96	―	3.96%	-2.24%	3.22%
5587	68 Neutral	¥2.45B	9.54	―	―	28.85%	58.77%
6183	64 Neutral	¥104.11B	11.39	―	4.17%	0.44%	44.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4384	62 Neutral	¥115.05B	21.77	19.59%	0.16%	18.08%	136.77%
7031	55 Neutral	¥1.55B	56.75	―	―	-23.03%	-604.79%
7814	52 Neutral	¥29.13B	5.57	―	1.57%	9.04%	-0.91%