and factory, inc. (7035) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: N/A
• Average Volume (3M): 262.14K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.30
• Revenue Growth: -36.63%
• EPS Growth: -214.65%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -5.55
• Shares Outstanding: 11,261,970
• 10 Day Avg. Volume: 24,310
• 30 Day Avg. Volume: 262,143
• PEG Ratio: 0.24
• Price to Book (P/B): 2.29
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥276.00 ▲(12.20%Upside)

The company's strong financial performance, particularly in revenue growth and cash flow, boosts its overall score. However, technical signals warn of an overbought condition, and valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily. Addressing profitability and operational efficiency remains critical.

and factory, inc. Business Overview & Revenue Model

Company Description

And Factory, Inc. (7035) is a Japanese company that operates primarily in the digital content sector. The company is known for developing mobile applications and producing digital comics and novels. It also engages in the planning and management of digital comic platforms and other related services.

How the Company Makes Money

And Factory, Inc. generates revenue through various streams, primarily focusing on digital content sales. The company earns money by developing and distributing mobile applications, which often include in-app purchases and advertising revenue. Additionally, its digital comic platforms serve as significant revenue sources by providing subscription-based access to a wide range of digital comic and novel content. The company's strategic partnerships with publishers and content creators further enhance its product offerings and contribute to its financial performance.

and factory, inc. Financial Statement Overview

Summary

The company demonstrates strong revenue growth and cash flow generation, though profitability margins are weak. The balance sheet is solid with low leverage and good equity health, supporting operational stability. Improved cost management could enhance financial strength.

Income Statement

The company has demonstrated a significant revenue growth rate of 68.71% in the most recent year, indicating strong sales momentum. However, the EBIT margin is negative, reflecting operational challenges, and the net profit margin is relatively low at 1.77%. While there's positive EBITDA, the financial health of the income statement could be strengthened with improved cost management.

Balance Sheet

The balance sheet shows a healthy equity position with an equity ratio of 46.05% and a low debt-to-equity ratio of 0.38, suggesting prudent financial management and stability. However, compared to previous years, the company has reduced its total assets and liabilities, which could indicate a scaling back of operations. The positive return on equity of 7.35% is a positive indicator of shareholder value creation.

Cash Flow

Cash flow analysis indicates robust cash generation with a free cash flow growth rate of 1,520.01%. The operating cash flow to net income ratio is notably high at 20.54, and the free cash flow to net income ratio is 20.43, suggesting strong liquidity and cash efficiency. This strong cash flow performance provides a solid foundation for future investments or debt reduction.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.89B	5.02B	2.98B	2.83B	3.04B	2.95B
	Gross Profit
1.56B	1.39B	1.76B	1.63B	1.67B	1.57B
	EBIT
-180.57M	-317.53M	146.09M	66.08M	-83.57M	-202.59M
	EBITDA
125.13M	202.48M	200.88M	-248.65M	-444.96M	-235.25M
	Net Income Common Stockholders
98.90M	88.94M	79.67M	-350.38M	-561.39M	-362.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.56B	925.36M	479.13M	774.73M	1.03B
	Total Assets
3.39B	2.63B	5.28B	4.86B	5.38B	6.34B
	Total Debt
1.33B	455.92M	3.31B	3.42B	3.76B	3.81B
	Net Debt
133.41M	-1.11B	2.38B	2.94B	2.98B	2.78B
	Total Liabilities
2.27B	1.42B	4.15B	4.31B	4.49B	4.89B
	Stockholders Equity
1.12B	1.21B	1.12B	541.00M	888.29M	1.45B
Cash Flow		Free Cash Flow
0.00	1.82B	-127.82M	-72.64M	-176.18M	-3.40B
	Operating Cash Flow
0.00	1.83B	-71.01M	-32.06M	-118.12M	-3.28B
	Investing Cash Flow
0.00	1.66B	131.67M	69.40M	-79.71M	-316.10M
	Financing Cash Flow
0.00	-2.85B	385.57M	-332.94M	-55.76M	3.27B

and factory, inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 246.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7035, the sentiment is Positive. The current price of 246 is above the 20-day moving average (MA) of 245.40, above the 50-day MA of 226.40, and above the 200-day MA of 234.72, indicating a bullish trend. The MACD of 5.62 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7035.

and factory, inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5028	80 Outperform	¥2.87B	24.23		―	28.48%	159.39%
5256	68 Neutral	¥2.85B	17.00		―	6.62%	13.88%
7035	62 Neutral	¥2.77B	22.98		―	-36.63%	-214.65%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
2334	60 Neutral	¥4.68B	―		―	-17.53%	-928.54%
4199	60 Neutral	¥2.58B	223.88		―	-22.80%	-147.34%
4166	50 Neutral	¥2.10B	―		―	-11.56%	50.90%

and factory, inc. Corporate Events

and factory, inc Reports Six-Month Loss and Revises Earnings Forecast

and factory, inc reported a net loss for the six months ending February 28, 2025, with net sales of 1,581 million yen and a loss attributable to owners of the parent at 152 million yen. The company has revised its earnings forecast for the fiscal year ending August 31, 2025, expecting continued losses, which may impact its financial stability and stakeholder confidence.