Howtelevision, Inc. (7064) AI Stock Analysis

• Market Cap: ¥2.60B
• Dividend Yield: N/A
• Average Volume (3M): 3.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 14.50%
• EPS Growth: -51.06%
• Country: JP
• Employees: 81
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -11.65
• Shares Outstanding: 2,720,882
• 10 Day Avg. Volume: 1,000
• 30 Day Avg. Volume: 3,016
• PEG Ratio: -0.58
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 10.30
• 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): 34
• Revenue Forecast (FY): ¥3.05B

• Rating: 57 Neutral
• Price Target: ¥957.00 ▼(-25.99% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily supported by fundamentally solid multi-year recovery and positive cash generation, but it is materially weighed down by the sharp 2026 profitability/FCF slowdown and clearly bearish technicals (price far below key moving averages with negative MACD). Valuation contributes limited support due to the negative P/E and missing dividend yield.

Positive Factors

Multi-year revenue recovery

The company completed a durable recovery since 2021 with multi-year revenue expansion through 2022–2025, creating a larger, more stable revenue base. That scale supports pricing leverage, sales footprint expansion and reduces single-period execution risk over the next 2–6 months.

Consistent cash generation

Consistent positive operating and free cash flow from 2022–2026 indicates the business converts sales into cash reliably. Durable cash generation supports capex, working capital and debt service without depending on external funding, preserving operational flexibility over time.

Moderate leverage and equity growth

Equity growth and a leverage profile with debt below equity in 2026 provide a buffer against shocks and funding flexibility. A stronger equity base improves capacity to invest or absorb short-term profit volatility, supporting longer-term strategic initiatives and credit access.

Negative Factors

2026 profitability deterioration

Net income fell in 2026 even as revenue rose, signaling margin compression or rising costs. Persistent or recurring margin weakness can erode return on invested capital and limit ability to fund growth internally, weakening long-term earnings quality and reinvestment capacity.

Free cash flow momentum cooled

A step-down in free cash flow and operating cash flow after a peak reduces internal funding available for capex, debt repayment and strategic initiatives. If this trend persists, the company may face tighter choices between investment, debt reduction and shareholder returns, harming resilience.

Rising debt between 2023–2025

Material debt growth in 2023–2025 elevated balance-sheet risk even though debt eased in 2026. Higher leverage can increase interest expense and constrain financial flexibility, making the company more sensitive to earnings shocks and potentially limiting strategic options over the medium term.

Howtelevision, Inc. Business Overview & Revenue Model

Company Description

Howtelevision,Inc. operates and manages a carrier platform in Japan. The company's carrier platform offers students a growth environment through internships and job hunting activities; and provides content, such as company information, and recruitment information. It also provides Liiga, a career improvement support service for working people. The company was founded in 2010 and is based in Tokyo, Japan.

Howtelevision, Inc. Financial Statement Overview

Summary

Solid turnaround since 2021 with strong multi-year revenue expansion and consistently positive operating/free cash flow (2022–2026). However, 2026 shows clear deterioration: revenue growth slowed (~5%), net income dropped meaningfully despite higher revenue (margin pressure), and free cash flow stepped down from 2025.

Income Statement

Revenue has expanded strongly from 2022–2025, but growth slowed sharply in 2026 (annual revenue growth ~5%). Profitability improved materially versus 2021’s loss, supported by very high gross profit levels; however, earnings power has weakened recently with net income dropping meaningfully in 2026 despite higher revenue, signaling margin compression and/or higher costs. Overall: solid scale and recovery, but the latest year shows deteriorating profitability that needs monitoring.

Balance Sheet

The company has grown its equity base over time, and leverage is not extreme on the latest balance sheet (debt remains well below equity in 2026). That said, debt increased materially from 2023 to 2025 and, while it eased in 2026, balance-sheet risk is higher than the very low-leverage profile seen in 2023. Returns on equity were strong in 2023–2025, but the 2026 profit decline likely pressures overall return quality.

Cash Flow

Operating cash flow and free cash flow are consistently positive from 2022 through 2026, indicating good cash generation and business convertibility versus the 2021 cash burn. However, cash flow momentum has cooled: free cash flow peaked in 2025 and fell in 2026, and operating cash flow also stepped down versus 2023–2025 levels. Overall cash profile is healthy, but trending softer in the most recent period.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	2.43B	2.56B	2.17B	1.84B	1.54B	1.14B
Gross Profit	1.96B	2.03B	1.78B	1.48B	1.25B	752.48M
EBITDA	523.47M	406.61M	505.98M	498.06M	472.95M	121.60M
Net Income	234.95M	96.58M	243.00M	300.62M	283.04M	79.39M
Balance Sheet
Total Assets	2.64B	2.70B	2.35B	1.91B	1.11B	786.73M
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.52B	1.60B	1.42B	632.61M	309.47M
Total Debt	506.80M	398.19M	615.00M	579.99M	80.25M	200.26M
Total Liabilities	1.15B	1.27B	1.04B	865.28M	367.86M	399.90M
Stockholders Equity	1.49B	1.43B	1.31B	1.04B	740.00M	386.83M
Cash Flow
Free Cash Flow	0.00	326.99M	421.00M	308.21M	399.47M	61.08M
Operating Cash Flow	0.00	344.64M	421.00M	418.40M	468.63M	130.99M
Investing Cash Flow	0.00	-210.48M	-261.00M	-130.19M	-69.16M	-69.92M
Financing Cash Flow	0.00	-217.71M	15.47M	504.14M	-76.34M	-62.66M

Howtelevision, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1293.00
• 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:7064, the sentiment is Negative. The current price of 1293 is above the 20-day moving average (MA) of 1193.45, above the 50-day MA of 1230.72, and above the 200-day MA of 1190.50, indicating a bearish trend. The MACD of -76.29 indicates Positive momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 5.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7064.

Howtelevision, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9242	81 Outperform	¥2.29B	1.46	―	1.03%	29.39%	116.52%
7361	79 Outperform	¥4.10B	20.00	―	2.09%	24.84%	2.56%
9253	71 Outperform	¥1.97B	-26.16	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7064	57 Neutral	¥2.60B	-26.57	―	―	14.50%	-51.06%
9331	44 Neutral	¥1.35B	30.71	―	―	3.33%	-80.47%