Feedforce Group Inc. (7068) AI Stock Analysis

• Market Cap: ¥13.61B
• Dividend Yield: 1.79%
• Average Volume (3M): 35.92K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.67
• Revenue Growth: 3.41%
• EPS Growth: 117.10%
• Country: JP
• Employees: 229
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 11.81
• Shares Outstanding: 24,309,158
• 10 Day Avg. Volume: 51,890
• 30 Day Avg. Volume: 35,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥631.00
• Price Target Upside: 12.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥631.00 ▲(12.68% Upside)

Feedforce Group Inc. demonstrates strong financial performance with consistent revenue growth and effective cash flow management, which are the most significant factors in its overall score. The technical analysis suggests a cautious outlook due to bearish trends, while the valuation indicates the stock is reasonably priced. The absence of earnings call and corporate events data did not impact the score.

Feedforce Group Inc. Business Overview & Revenue Model

Company Description

Feedforce Group Inc. (7068) is a prominent player in the digital marketing and advertising sector, specializing in leveraging data analytics and technology to optimize marketing strategies for businesses. The company operates primarily within the fields of online marketing, customer relationship management, and performance marketing, providing innovative solutions that enhance customer engagement and improve conversion rates. Feedforce Group Inc. offers a range of services including data-driven insights, digital advertising solutions, and marketing automation tools to help clients effectively reach their target audiences.

How the Company Makes Money

Feedforce Group Inc. generates revenue through multiple channels, primarily by providing digital marketing services and subscription-based software solutions. The key revenue streams include fees for performance marketing services, which are often based on measurable outcomes such as leads generated or sales completed. Additionally, the company earns income through licensing its proprietary marketing technology and analytics platforms to clients, facilitating data-driven decision-making. Strategic partnerships with other technology providers and marketing agencies further enhance its capabilities and expand its customer reach, contributing significantly to its overall earnings. The company's focus on delivering measurable results helps to maintain strong client relationships and encourages repeat business, which is essential for its revenue stability.

Feedforce Group Inc. Financial Statement Overview

Summary

Feedforce Group Inc. exhibits strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The company has improved its leverage position over time, although maintaining a watchful eye on debt levels is crucial.

Income Statement

Feedforce Group Inc. has demonstrated consistent revenue growth over the years, with a notable increase of 4.87% in the latest year. The company maintains strong profitability, evidenced by a high gross profit margin and a significant improvement in net profit margin from the previous year. The EBIT and EBITDA margins are robust, indicating efficient operational management. However, the net profit margin has fluctuated in past years, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, which has improved over the years. The return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio indicates a healthy proportion of equity financing. However, the total debt remains substantial, which could impact financial flexibility if not managed carefully.

Cash Flow

The cash flow statement shows impressive growth in free cash flow, particularly in the most recent year, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from earnings. The free cash flow to net income ratio is also favorable, highlighting efficient cash management. Nonetheless, past fluctuations in free cash flow growth suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.31B	4.37B	4.23B	3.97B	3.00B	2.59B
Gross Profit	3.02B	3.12B	2.81B	2.62B	2.10B	1.78B
EBITDA	1.61B	1.67B	1.24B	724.00M	1.13B	1.06B
Net Income	898.00M	1.00B	473.00M	112.00M	602.00M	472.00M
Balance Sheet
Total Assets	7.14B	7.65B	7.56B	7.12B	8.02B	6.47B
Cash, Cash Equivalents and Short-Term Investments	3.56B	4.23B	3.52B	2.60B	3.64B	3.19B
Total Debt	2.20B	2.20B	2.24B	1.74B	2.51B	1.68B
Total Liabilities	4.12B	4.33B	4.67B	4.23B	4.87B	4.07B
Stockholders Equity	3.02B	3.32B	2.89B	2.87B	3.06B	2.40B
Cash Flow
Free Cash Flow	0.00	1.37B	788.00M	151.00M	613.00M	1.32B
Operating Cash Flow	0.00	1.41B	862.00M	175.00M	623.00M	1.33B
Investing Cash Flow	0.00	-43.00M	74.00M	-115.00M	-880.00M	-11.72M
Financing Cash Flow	0.00	-651.00M	-10.00M	-1.05B	699.00M	-312.76M

Feedforce Group Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 560.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7068, the sentiment is Neutral. The current price of 560 is below the 20-day moving average (MA) of 573.65, below the 50-day MA of 566.38, and above the 200-day MA of 509.81, indicating a neutral trend. The MACD of -0.77 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7068.

Feedforce Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7050	80 Outperform	¥11.08B	12.44		4.04%	20.01%	79.47%
7068	74 Outperform	¥13.61B	14.12		1.79%	3.41%	117.10%
7354	73 Outperform	¥14.33B	13.16		1.50%	-0.12%	―
9162	66 Neutral	¥9.65B	31.60		―	24.29%	―
9554	61 Neutral	¥12.36B	27.09		―	23.13%	54.75%
Sector *	60 Neutral	$46.60B	4.09	-11.41%	4.12%	1.85%	-42.71%
6094	47 Neutral	¥9.21B	228.95		―	13.70%	94.10%

Feedforce Group Inc. Corporate Events

Feedforce Group Inc. Reports Strong Q3 Financial Performance

Feedforce Group Inc. reported its consolidated financial results for the third quarter of the fiscal year ending May 31, 2025, showing a significant year-on-year increase in profits. The company’s net sales rose by 2.6%, while profit attributable to owners of the parent surged by 150.8%. This growth reflects strong operational performance and improved market positioning, with expectations of continued financial strength as indicated by their earnings forecast for the fiscal year.