Inclusive, Inc. (7078) AI Stock Analysis

• Market Cap: ¥3.38B
• Dividend Yield: N/A
• Average Volume (3M): 18.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -8.67%
• EPS Growth: -407.35%
• Country: JP
• Employees: 210
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -9.89
• Shares Outstanding: 10,053,189
• 10 Day Avg. Volume: 18,170
• 30 Day Avg. Volume: 18,970
• PEG Ratio: <0.01
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -39.34
• 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: 42 Neutral
• Price Target: ¥385.00 ▲(14.58% Upside)

The overall stock score is primarily driven by poor financial performance and weak technical indicators. The company's negative profitability and cash flow issues are significant concerns, compounded by bearish market momentum. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Business Model Strength

A subscription-based model provides predictable revenue streams and customer retention, supporting long-term financial stability.

Market Position

Being a leader in accessibility solutions positions the company well to capitalize on growing demand for diversity and inclusion services.

Strategic Partnerships

Long-term contracts from strategic partnerships ensure recurring revenue, strengthening the company's market presence and financial outlook.

Negative Factors

Profitability Challenges

Negative margins and declining revenue indicate operational inefficiencies, which could hinder long-term growth and financial health.

Cash Flow Issues

Poor cash flow management could affect liquidity, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Revenue Decline

Declining revenue growth suggests challenges in maintaining market share and customer engagement, impacting long-term competitiveness.

Inclusive, Inc. Business Overview & Revenue Model

Company Description

INCLUSIVE Inc. engages in web media operation and monetization support services in Japan. The company also offers advertising and promotion planning services; solutions using ad technology; and various consulting related services to media development and branding strategies. In addition, it provides food-related services. INCLUSIVE Inc. was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Inclusive, Inc. generates revenue through multiple key streams. Primarily, the company earns money by offering consulting services, where they work directly with organizations to assess their diversity initiatives and develop customized strategies for improvement. Additionally, Inclusive, Inc. conducts training workshops and seminars, which serve as another significant revenue source. They also provide subscription-based access to proprietary software tools that help companies track diversity metrics and employee engagement. Significant partnerships with industry leaders and nonprofit organizations enhance their credibility and expand their market reach, contributing positively to their revenue growth.

Inclusive, Inc. Financial Statement Overview

Summary

The company 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	4.78B	4.90B	5.36B	4.80B	1.74B	1.38B
Gross Profit	1.80B	1.89B	2.22B	1.92B	816.80M	681.36M
EBITDA	-1.35B	-1.15B	648.98M	-493.15M	12.67M	71.96M
Net Income	-1.19B	-1.08B	313.57M	-871.22M	-115.90M	22.83M
Balance Sheet
Total Assets	3.49B	3.76B	5.30B	5.51B	3.22B	2.35B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.15B	2.21B	1.78B	1.25B	1.65B
Total Debt	668.58M	689.91M	780.43M	999.49M	614.56M	638.78M
Total Liabilities	1.53B	1.64B	1.90B	2.44B	1.27B	845.82M
Stockholders Equity	1.64B	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: 336.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 336 is below the 20-day moving average (MA) of 369.35, below the 50-day MA of 397.04, and below the 200-day MA of 476.85, indicating a bearish trend. The MACD of -17.09 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 5.56 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
6038	77 Outperform	¥4.55B	9.99	―	2.38%	-2.25%	116.29%
7804	76 Outperform	¥5.71B	11.48	―	3.26%	27.11%	24.70%
7370	73 Outperform	¥5.91B	11.64	―	5.56%	-9.76%	-24.52%
7857	67 Neutral	¥5.62B	50.19	―	1.93%	-0.57%	-69.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9159	56 Neutral	¥4.63B	66.43	―	―	-14.77%	-76.32%
7078	42 Neutral	¥3.38B	-2.61	―	―	-8.67%	-407.35%