fureasu Co., Ltd. (7062) AI Stock Analysis

• Market Cap: ¥2.36B
• Dividend Yield: N/A
• Average Volume (3M): 7.51K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.02
• Revenue Growth: 31.45%
• EPS Growth: N/A
• Country: JP
• Employees: 604
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 44.23
• Shares Outstanding: 2,608,600
• 10 Day Avg. Volume: 7,710
• 30 Day Avg. Volume: 7,513
• PEG Ratio: 0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -3.66
• 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: 41 Neutral
• Price Target: ¥875.00 ▲(9.51% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

fureasu Co., Ltd. faces significant financial challenges, with high leverage and negative cash flows being the most critical issues. The technical indicators suggest a bearish trend, and the valuation metrics indicate potential overvaluation. These factors contribute to a low overall stock score.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth shows expanding service uptake across franchises and direct operations. Over 2-6 months this supports scaling of recurring franchise fees and utilization, improving operational leverage potential if cost control follows revenue gains.

Franchise Network & Service Model

A mixed franchise and directly managed model enables capital-light geographic expansion, recurring royalty revenue and local operator incentives. This structural model supports scalable growth, lower corporate capex needs, and durable revenue diversification over the medium term.

Stable Gross Margin

Relatively stable gross margins indicate the core unit economics of home-visit services remain intact despite wider profitability issues. If fixed costs and SG&A are addressed, stable margins provide a credible pathway to restore operating profitably over several quarters.

Negative Factors

High Leverage

Rising debt and a weakening equity ratio increase financial risk and reduce strategic flexibility. Higher leverage raises interest and refinancing vulnerability, constraining the company’s ability to invest in franchise support, training, or system upgrades over the coming months.

Negative Free Cash Flow

Persistent negative free cash flow and poor conversion of income to cash imply the business cannot self-fund operations or growth reliably. This creates dependency on external financing and limits capacity to sustain franchise support or absorb demand shocks.

Operating Profitability Weakness

Operating losses despite revenue growth point to structural cost or scale inefficiencies. Until EBIT and net margins recover, the company will struggle to generate internal capital, prolonging reliance on debt and impairing long-term financial resilience.

fureasu Co., Ltd. Business Overview & Revenue Model

Company Description

Fureasu Co.,Ltd. engages in the massage, massage franchise, and other businesses in Japan. It offers various massage services, including home acupuncture, moxibustion massage, office massage, and support for the visually impaired; small-scale multi-functional in-home nursing care, home-visit care, commuting, and overnight stays; home-visit nursing services; medical care facilities; and home care services, which include eating, excretion, and bathing. Fureasu Co.,Ltd. was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

fureasu Co., Ltd. generates revenue primarily through the sale of its software solutions and data analytics services. Key revenue streams include licensing fees from proprietary software products, subscription fees for ongoing access to cloud-based services, and consulting fees for tailored analytics solutions provided to business clients. Additionally, the company may engage in strategic partnerships with other technology firms and industry leaders, enhancing its market reach and expertise, which further contributes to its earnings. Revenue is also bolstered by providing training and support services to clients, ensuring they maximize the value of fureasu's offerings.

fureasu Co., Ltd. Financial Statement Overview

Summary

fureasu Co., Ltd. is experiencing growth in revenue but faces significant profitability and cash flow challenges. High leverage and declining equity ratios pose financial risks, while negative cash flows indicate operational inefficiencies. The company must address these issues to improve its financial health and sustain growth.

Income Statement

The company has shown revenue growth over the years, with a significant increase from 2024 to 2025. However, profitability is a concern, as evidenced by negative EBIT and net income in 2025. The gross profit margin has been relatively stable, but declining EBIT and net profit margins indicate operational inefficiencies and challenges in cost management.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio increasing over time, indicating rising financial risk. Stockholders' equity has decreased, and the equity ratio has been declining, suggesting a weakening financial position. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows negative free cash flow in recent years, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income to cash. The company needs to enhance its cash generation capabilities to support operations and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.32B	7.58B	5.71B	4.58B	4.17B	3.67B
Gross Profit	3.50B	3.20B	2.69B	2.24B	2.08B	1.62B
EBITDA	214.41M	200.26M	319.35M	200.51M	332.47M	177.24M
Net Income	-259.11M	-244.55M	58.30M	31.59M	147.85M	59.32M
Balance Sheet
Total Assets	9.89B	8.70B	6.19B	4.53B	3.39B	3.19B
Cash, Cash Equivalents and Short-Term Investments	1.17B	815.00M	1.13B	975.26M	1.21B	1.22B
Total Debt	6.68B	6.14B	3.48B	2.09B	995.35M	1.15B
Total Liabilities	8.27B	7.15B	4.42B	2.80B	1.67B	1.63B
Stockholders Equity	1.62B	1.55B	1.77B	1.73B	1.72B	1.56B
Cash Flow
Free Cash Flow	0.00	-456.86M	41.91M	-317.08M	166.38M	-118.78M
Operating Cash Flow	0.00	-319.20M	172.02M	-233.15M	309.27M	-99.96M
Investing Cash Flow	0.00	-354.88M	-193.60M	-516.91M	-149.47M	-296.84M
Financing Cash Flow	0.00	358.26M	177.13M	511.11M	-160.97M	464.35M

fureasu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 799.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7062, the sentiment is Positive. The current price of 799 is below the 20-day moving average (MA) of 843.75, below the 50-day MA of 825.10, and below the 200-day MA of 819.38, indicating a bullish trend. The MACD of 21.60 indicates Negative momentum. The RSI at 74.09 is Negative, neither overbought nor oversold. The STOCH value of 89.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7062.

fureasu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7042	71 Outperform	¥2.33B	12.99	―	2.09%	―	―
7502	64 Neutral	¥1.72B	14.00	―	2.62%	11.55%	28.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7372	57 Neutral	¥1.99B	11.66	―	―	8.17%	37.03%
3041	49 Neutral	¥2.07B	-1,661.24	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.83B	341.55	―	―	-6.45%	99.39%
7062	41 Neutral	¥2.36B	7.11	―	―	31.45%	―