and factory, inc. (7035) AI Stock Analysis

• Market Cap: ¥2.32B
• Dividend Yield: N/A
• Average Volume (3M): 39.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -36.13%
• EPS Growth: -466.63%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -13.64
• Shares Outstanding: 11,261,970
• 10 Day Avg. Volume: 35,610
• 30 Day Avg. Volume: 39,470
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥206.00 ▼(-0.48% Downside)

The overall stock score is primarily influenced by the company's financial struggles, including declining revenues and negative cash flows. Technical indicators suggest a bearish trend, and valuation metrics highlight profitability challenges. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Business Model Strength

The company's business model, relying on direct sales and long-term contracts, provides a stable revenue stream and market presence, enhancing resilience.

Market Position

Strong partnerships with industry leaders bolster the company's market position, providing competitive advantages and stability in revenue streams.

Sustainability Commitment

Focus on sustainability and efficiency can attract eco-conscious clients and reduce costs, aligning with global trends towards environmentally friendly practices.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competitive positioning, potentially affecting long-term growth and profitability.

Negative Cash Flows

Negative cash flows highlight inefficiencies in operations and potential difficulties in funding growth or managing financial obligations.

Profitability Challenges

Persistent profitability issues suggest structural inefficiencies or competitive pressures, impacting the company's ability to generate sustainable earnings.

and factory, inc. Business Overview & Revenue Model

Company Description

And Factory, Inc. develops and sells various applications for smartphones. It provides tool-based applications, game strategy bulletin board applications, and manga applications. The company also offers IOT services primarily for accommodation facilities. and factory,inc. was incorporated in 2014 and is based in Tokyo, Japan.

How the Company Makes Money

And Factory, Inc. generates revenue primarily through the sale of manufactured components and products to a diverse range of industries. Their revenue model is based on direct sales to original equipment manufacturers (OEMs) and contract manufacturing agreements, which provide a steady stream of income. Key revenue streams include the production of precision parts, assembly services, and engineering consulting. The company also benefits from long-term partnerships with major industry players, which enhance its market presence and stability. Additionally, investments in research and development allow And Factory, Inc. to innovate and expand its product offerings, attracting new clients and increasing overall sales.

and factory, inc. Financial Statement Overview

Summary

The company has shown strong revenue growth and improved cash flow metrics, indicating a positive trajectory. However, challenges with operational profitability, as seen in the negative EBIT margin, and potential risks from past high debt levels need attention.

Income Statement

The company has demonstrated strong revenue growth with a 68.7% increase from the previous year. However, the gross profit margin decreased from 59.1% to 27.7%, indicating rising costs or pricing pressures. The net profit margin improved slightly to 1.8%, but EBIT margin turned negative, suggesting operational challenges. EBITDA margin remains positive at 4.0%, showing some operational cash flow strength.

Balance Sheet

The debt-to-equity ratio improved significantly, indicating reduced leverage, with total debt decreasing and equity increasing. The equity ratio is 46.0%, showing a healthy balance between equity and assets. Return on equity improved to 7.4%, reflecting better profitability relative to equity. However, the company still faces potential risks from past high leverage.

Cash Flow

The company has shown a remarkable turnaround in cash flow, with free cash flow growing significantly. The operating cash flow to net income ratio is strong at 20.5, indicating efficient cash generation from operations. The free cash flow to net income ratio is also robust at 20.4, highlighting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.21B	3.21B	5.02B	2.98B	2.83B	3.04B
Gross Profit	1.44B	1.39B	1.39B	1.76B	1.63B	1.67B
EBITDA	46.09M	-273.15M	202.48M	167.25M	-248.65M	-444.96M
Net Income	-17.93M	-323.03M	88.94M	79.67M	-350.38M	-561.39M
Balance Sheet
Total Assets	2.13B	2.02B	2.63B	5.28B	4.86B	5.38B
Cash, Cash Equivalents and Short-Term Investments	1.03B	860.67M	1.56B	925.36M	479.13M	774.73M
Total Debt	379.80M	357.06M	455.92M	3.31B	3.42B	3.76B
Total Liabilities	1.08B	1.13B	1.42B	4.15B	4.31B	4.49B
Stockholders Equity	1.05B	891.41M	1.21B	1.12B	541.00M	888.29M
Cash Flow
Free Cash Flow	0.00	-488.76M	1.82B	-127.82M	-72.64M	-176.18M
Operating Cash Flow	0.00	-428.88M	1.83B	-71.01M	-32.06M	-118.12M
Investing Cash Flow	0.00	-122.41M	1.66B	131.67M	69.40M	-79.71M
Financing Cash Flow	0.00	-151.90M	-2.85B	385.57M	-332.94M	-55.76M

and factory, inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 207.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7035, the sentiment is Negative. The current price of 207 is below the 20-day moving average (MA) of 209.40, below the 50-day MA of 212.30, and below the 200-day MA of 243.97, indicating a bearish trend. The MACD of -1.88 indicates Negative momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7035.

and factory, inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5256	75 Outperform	¥2.87B	14.24	―	―	13.48%	61.77%
5028	70 Outperform	¥3.08B	19.40	―	―	33.55%	293.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2334	60 Neutral	¥14.84B	87.74	―	―	56.35%	―
4166	53 Neutral	¥2.23B	-16.46	―	―	12.27%	73.45%
7035	45 Neutral	¥2.32B	-7.15	―	―	-36.13%	-466.63%
4199	45 Neutral	¥2.34B	-20.66	―	―	-5.44%	-242.43%

and factory, inc. Corporate Events

and factory, inc Reports Nine-Month Financial Results with Notable Losses

and factory, inc reported consolidated financial results for the nine months ending May 31, 2025, showing a net sales figure of 2,418 million yen but also a net loss of 172 million yen. The company’s financial position includes total assets of 2,125 million yen and an equity ratio of 49.2%. The transition to consolidated financial statements marks a significant change, and the inclusion of SouthWorks Co., Ltd could impact future operations. The company has not revised its earnings forecasts and continues to face challenges in achieving profitability.