Inclusive, Inc. (7078) AI Stock Analysis

• Market Cap: ¥5.15B
• Dividend Yield: N/A
• Average Volume (3M): 31.02K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.64
• Revenue Growth: -8.33%
• EPS Growth: -462.10%
• Country: JP
• Employees: 210
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): -14.14
• Shares Outstanding: 10,053,189
• 10 Day Avg. Volume: 27,040
• 30 Day Avg. Volume: 31,023
• 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: ¥528.00
• Price Target Upside: 4.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥528.00 ▲(4.97% Upside)

The overall stock score of 48 reflects significant financial performance challenges, particularly in profitability and cash flow management. Technical analysis shows mixed signals with short-term bearish momentum but some longer-term support. Valuation is constrained by negative earnings and lack of dividends, further impacting the stock's attractiveness.

Inclusive, Inc. Business Overview & Revenue Model

Company Description

Inclusive, Inc. (7078) is a leading provider of innovative solutions aimed at enhancing accessibility and diversity across various sectors, including technology, education, and workplace environments. The company specializes in developing software tools, consulting services, and training programs that promote inclusivity, enabling organizations to better serve diverse populations and comply with accessibility regulations. Inclusive, Inc. is committed to creating a more equitable society through its core offerings, which include accessibility audits, inclusive design consulting, and tailored training modules focused on fostering a culture of diversity and inclusion.

How the Company Makes Money

Inclusive, Inc. generates revenue through multiple streams, primarily by offering subscription-based access to its software tools and resources, which help organizations assess and improve their accessibility practices. Additionally, the company earns income from consulting services, where it partners with businesses to conduct accessibility audits and develop customized strategies for inclusivity. Training programs are another significant revenue source, as organizations pay for workshops and sessions designed to educate their staff on best practices in diversity and inclusion. Strategic partnerships with educational institutions and corporate clients further enhance its earning potential, as these collaborations often lead to long-term contracts and recurring revenue through ongoing support and updates.

Inclusive, Inc. Financial Statement Overview

Summary

Inclusive, Inc. faces significant profitability challenges with negative margins and declining revenue. While the balance sheet remains relatively stable with a strong equity base, cash flow issues highlight potential liquidity risks. The company needs to address operational inefficiencies to improve financial health.

Income Statement

The company has experienced fluctuating revenue growth with a decline in the most recent year. Gross profit margins have been relatively stable, but the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative due to net losses. The equity ratio is healthy, suggesting a strong capital structure despite profitability issues.

Cash Flow

Cash flow analysis reveals negative free cash flow growth and a negative operating cash flow to net income ratio, indicating cash management issues. The company struggles to convert net income into cash flow, which could affect liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.90B	4.90B	5.36B	4.80B	1.74B	1.38B
Gross Profit	1.89B	1.89B	2.22B	1.92B	816.80M	681.36M
EBITDA	-1.17B	-1.15B	648.98M	-493.15M	12.67M	71.96M
Net Income	-1.08B	-1.08B	313.57M	-871.22M	-115.90M	22.83M
Balance Sheet
Total Assets	3.76B	3.76B	5.30B	5.51B	3.22B	2.35B
Cash, Cash Equivalents and Short-Term Investments	2.15B	2.15B	2.21B	1.78B	1.25B	1.65B
Total Debt	689.91M	689.91M	780.43M	999.49M	614.56M	638.78M
Total Liabilities	1.64B	1.64B	1.90B	2.44B	1.27B	845.82M
Stockholders Equity	1.77B	1.77B	2.83B	2.46B	1.88B	1.50B
Cash Flow
Free Cash Flow	0.00	-121.19M	30.85M	26.66M	109.56M	-56.90M
Operating Cash Flow	0.00	-82.45M	88.32M	48.45M	113.89M	-27.08M
Investing Cash Flow	0.00	120.48M	468.78M	-579.83M	-838.22M	-248.30M
Financing Cash Flow	0.00	-56.23M	-138.77M	1.07B	321.30M	740.76M

Inclusive, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 503.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7078, the sentiment is Negative. The current price of 503 is below the 20-day moving average (MA) of 537.00, below the 50-day MA of 535.24, and below the 200-day MA of 506.85, indicating a neutral trend. The MACD of -6.86 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7078.

Inclusive, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	76 Outperform	¥6.01B	12.96		2.25%	24.65%	41.72%
9159	73 Outperform	¥7.03B	39.69		―	-0.81%	-48.29%
7370	73 Outperform	¥6.12B	10.94		4.48%	-10.63%	-27.06%
6038	70 Outperform	¥4.36B	14.18		2.48%	-0.66%	87.68%
7857	61 Neutral	¥5.56B	24.81		1.87%	2.54%	-36.12%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
7078	48 Neutral	¥5.15B	12.72		―	-8.33%	-462.10%