Twenty-four seven, Inc. (7074) AI Stock Analysis

• Market Cap: ¥1.99B
• Dividend Yield: N/A
• Average Volume (3M): 56.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -21.04%
• EPS Growth: 76.41%
• Country: JP
• Employees: 129
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -6.64
• Shares Outstanding: 8,486,200
• 10 Day Avg. Volume: 18,880
• 30 Day Avg. Volume: 56,760
• PEG Ratio: 0.10
• Price to Book (P/B): 8.64
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -2.45
• 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: ¥195.00 ▼(-0.51% Downside)

The score is held down primarily by weak financial performance (persistent losses, declining revenue, and continued cash burn) and a bearish technical setup (price below major moving averages with negative MACD). A debt-free balance sheet provides some stability, but valuation is not supportive given the negative P/E and lack of dividend yield data.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and refinancing pressure, providing stability and flexibility for future strategic initiatives.

Narrowing Losses

Narrowing losses indicate potential operational improvements, suggesting a possible path to profitability if the trend continues.

Reduced Cash Burn

Reduced cash burn improves financial sustainability, potentially decreasing reliance on external funding and enhancing long-term viability.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing financial strain, necessitating external funding to sustain operations, which could impact long-term growth.

Declining Revenue

Declining revenue limits operating leverage and growth potential, making it challenging to achieve profitability and sustain competitive market positioning.

Eroding Shareholder Value

Declining equity reflects ongoing losses, eroding shareholder value and potentially impacting investor confidence and future capital raising efforts.

Twenty-four seven, Inc. Business Overview & Revenue Model

Company Description

Twenty-four seven Inc. provides store, Web, and application related services in Japan. It operates 24/7 Workout, a personal training gym; 24/7 English, a personal English conversation school; and online shops for dieting and health. Twenty-four seven Inc. was incorporated in 2007 and is headquartered in Tokyo, Japan. As of May 16, 2024, Twenty-four seven Inc. operates as a subsidiary of Inayoshi Capital Partners.

How the Company Makes Money

Twenty-four seven, Inc. generates revenue through a diversified model primarily based on subscription fees for its software solutions and IT services. Key revenue streams include recurring subscriptions for cloud-based services, licensing fees for proprietary software, and consulting fees for bespoke technology solutions. The company also partners with other technology firms to co-develop solutions, which contributes to its revenue through joint ventures and shared royalties. Strategic partnerships with industry leaders and a strong focus on customer retention support its financial stability and growth.

Twenty-four seven, Inc. Financial Statement Overview

Summary

The company is experiencing severe financial challenges. The income statement indicates declining revenue and persistent net losses, with a significant drop in gross profit margins. The balance sheet shows stability in equity but a decline in total assets and stockholder equity. The cash flow statement highlights negative free cash flow and operational cash deficits, raising liquidity concerns.

Income Statement

The income statement shows a concerning trend with declining revenue and consistent operating losses over the past years. The gross profit margin has decreased from 56.6% in 2019 to 36.8% in 2024, indicating reduced efficiency in covering COGS. Net profit margin has been negative over the years, with the company incurring net losses. The EBIT and EBITDA margins are significantly negative, suggesting operational difficulties.

Balance Sheet

The balance sheet reveals a stable equity position with a consistent equity ratio, but declining total assets highlight potential risks in asset management. The company has zero debt, which is a strength, but the declining stockholders' equity over the years is a concern. ROE has been negative, indicating inefficiencies in generating returns for shareholders.

Cash Flow

The cash flow statements reflect negative free cash flow growth, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative, suggesting that the company is struggling to convert its earnings into free cash flow. Although the company has raised cash through financing activities, it has not been able to cover its operating cash deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.18B	2.53B	3.21B	4.24B	5.46B	5.70B
Gross Profit	648.40M	929.46M	1.33B	1.89B	2.70B	2.77B
EBITDA	-193.63M	-362.15M	-359.00M	-404.00M	99.00M	-831.00M
Net Income	-192.99M	-435.66M	-480.59M	-1.69B	-136.71M	-1.50B
Balance Sheet
Total Assets	947.97M	1.03B	1.15B	1.63B	3.64B	3.83B
Cash, Cash Equivalents and Short-Term Investments	558.63M	651.32M	731.35M	1.10B	1.91B	1.71B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	776.89M	878.94M	1.02B	1.30B	1.61B	1.67B
Stockholders Equity	171.07M	147.81M	129.61M	333.79M	2.03B	2.17B
Cash Flow
Free Cash Flow	0.00	-520.50M	-640.21M	-777.26M	214.79M	-1.60B
Operating Cash Flow	0.00	-498.36M	-558.91M	-715.31M	342.28M	-1.32B
Investing Cash Flow	0.00	-29.03M	-75.34M	-94.13M	-144.09M	-305.69M
Financing Cash Flow	0.00	447.37M	264.57M	1.92M	1.44M	0.00

Twenty-four seven, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 196.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7074, the sentiment is Neutral. The current price of 196 is below the 20-day moving average (MA) of 213.45, below the 50-day MA of 232.52, and below the 200-day MA of 262.74, indicating a neutral trend. The MACD of -1.49 indicates Negative momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 39.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7074.

Twenty-four seven, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6537	63 Neutral	¥2.65B	72.14	―	―	27.27%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.81B	117.17	―	2.11%	0.33%	-80.32%
2196	54 Neutral	¥3.92B	-15.22	―	―	-4.35%	-132.57%
6186	54 Neutral	¥2.11B	-53.99	―	3.76%	-2.06%	-109.18%
7578	44 Neutral	¥2.10B	4.20	―	―	-15.38%	―
7074	41 Neutral	¥1.99B	-9.91	―	―	-21.04%	76.41%