Feedforce Group Inc. (7068) AI Stock Analysis

• Market Cap: ¥13.10B
• Dividend Yield: 1.27%
• Average Volume (3M): 97.40K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.56
• Revenue Growth: 7.24%
• EPS Growth: 215.65%
• Country: JP
• Employees: 229
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 23,867,258
• 10 Day Avg. Volume: 65,430
• 30 Day Avg. Volume: 97,403
• PEG Ratio: 0.11
• Price to Book (P/B): 3.83
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 9.27
• 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: 75 Outperform
• Price Target: ¥618.00 ▼(-9.38% Downside)
• Action: Reiterated Date: 12/27/25
• Date: Action: Reiterated 12/27/25

The score is primarily driven by strong financial performance (growth, profitability, and cash generation). Technical signals are mixed with softer near-term momentum, while valuation appears reasonable but not especially compelling.

Positive Factors

Consistent revenue and margin improvement

Sustained revenue growth with improving operating margins indicates the core business is scaling efficiently. Over the next 2–6 months this durability supports predictable cash flow, reinforces client retention and pricing power, and reduces reliance on one-off gains for profitability.

Strong free cash flow generation

Robust free cash flow and healthy operating cash conversion provide durable funding for capex, shareholder returns, and debt reduction. Reliable cash generation improves resilience to downturns and underpins strategic investments or M&A without immediate dilution.

Improving balance sheet and strong ROE

An improving leverage profile and high ROE show effective capital allocation and a healthier funding mix. This structural improvement enhances financial flexibility for multi-quarter planning, lowering refinancing risk and supporting sustained reinvestment in growth initiatives.

Negative Factors

Substantial total debt

Meaningful outstanding debt increases interest and refinancing exposure, reducing optionality for strategic spending. Over a multi-month horizon this constrains capacity for aggressive expansion or acquisitions and raises vulnerability to rate or revenue shocks.

Historical margin and FCF volatility

Past swings in net margin and free cash flow reduce predictability of earnings and cash available for deleveraging or growth. Persistent volatility complicates budgeting, increases refinancing risk under stress, and raises execution demands on management to stabilize results.

Modest scale in a competitive industry

Relative small size in a fragmented, competitive advertising market can limit pricing power, breadth of service offerings, and bargaining leverage with large clients. Scale disadvantages may pressure margins and slow market share gains absent clear differentiation or sustained investment.

Feedforce Group Inc. Business Overview & Revenue Model

Company Description

Feedforce Group Inc. engages in data feed, digital advertising, social media marketing, and other businesses in Japan. The company offers App Unity, a corporate alliance to provide Shopify apps adapted for the domestic environment; dfplus.io, a data feed management tool; DF PLUS, a data feed outsourcing service; EC Booster, an automated advertising operation service that delivers Google Shopping Ads; and Feedmatic, an advertising consulting agency service. It also provides Omni Hub, a service that centralizes member information between the multi-channel commerce platform Shopify and the cloud POS service Smaregi. The company was formerly known as Feedforce Inc. Feedforce Group Inc. was incorporated in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

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Feedforce Group Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by consistent revenue growth, robust EBIT/EBITDA margins, improving net profitability, and solid free-cash-flow generation. Main risks are historical fluctuations in net margin/FCF and still-substantial debt despite improving leverage.

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	May 2024	May 2023	May 2022	May 2021	May 2021
Income Statement
Total Revenue	4.52B	4.37B	4.23B	3.97B	3.00B	2.59B
Gross Profit	3.25B	3.12B	2.81B	2.62B	2.10B	1.78B
EBITDA	1.82B	1.67B	1.24B	724.00M	1.13B	1.06B
Net Income	1.14B	1.00B	473.00M	112.00M	602.00M	472.00M
Balance Sheet
Total Assets	7.45B	7.65B	7.56B	7.12B	8.02B	6.47B
Cash, Cash Equivalents and Short-Term Investments	3.54B	4.23B	3.52B	2.60B	3.64B	3.19B
Total Debt	2.00B	2.20B	2.24B	1.74B	2.51B	1.68B
Total Liabilities	4.33B	4.33B	4.67B	4.23B	4.87B	4.07B
Stockholders Equity	3.12B	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: Negative
• Last Price: 682.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7068, the sentiment is Negative. The current price of 682 is above the 20-day moving average (MA) of 594.15, above the 50-day MA of 625.46, and above the 200-day MA of 616.26, indicating a bearish trend. The MACD of -19.31 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 33.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7068.

Feedforce Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7068	75 Outperform	¥13.10B	11.18	―	1.27%	7.24%	215.65%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
7354	65 Neutral	¥14.05B	10.92	―	1.51%	7.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%

Feedforce Group Inc. Corporate Events

Feedforce Group Delivers Strong First-Half Earnings and Confirms Double-Digit Full-Year Outlook

Feedforce Group Inc. reported strong interim results for the six months to November 30, 2025, with revenue rising 13.7% year on year to ¥2.37 billion and profit attributable to owners of parent jumping 76.3% to ¥706 million, reflecting improved profitability and cost efficiency as EBITDA and operating profit expanded faster than sales. The company’s financial position also strengthened, with total assets and equity both increasing and the equity ratio edging up to 42.8%, while management kept its full-year forecast unchanged, projecting double-digit growth in revenue and profits and maintaining an annual dividend of ¥10 per share, signaling confidence in earnings sustainability and continued shareholder returns.

The most recent analyst rating on (JP:7068) stock is a Buy with a Yen767.00 price target. To see the full list of analyst forecasts on Feedforce Group Inc. stock, see the JP:7068 Stock Forecast page.