Inclusive, Inc. (7078) AI Stock Analysis

• Market Cap: ¥4.26B
• Dividend Yield: N/A
• Average Volume (3M): 18.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -8.67%
• EPS Growth: -407.35%
• Country: US
• 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: 52 Neutral
• Price Target: ¥416.00 ▲(16.85% Upside)

The score is primarily constrained by weak financial performance, driven by ongoing losses and cash flow pressure, despite a comparatively steadier balance sheet. Technicals are moderately supportive in the near term but are mixed versus longer-term moving averages. Valuation is also pressured by the negative P/E and lack of dividend yield data.

Positive Factors

Healthy balance sheet / manageable leverage

A healthy equity ratio and moderate leverage provide a stable capital base that lets the company absorb losses and continue investing in product and sales capabilities. That structural resilience supports operational continuity and strategic initiatives over the next several months.

Diverse revenue streams

Multiple revenue channels — consulting, training, subscription software and partner relationships — reduce reliance on any single customer or contract. This diversification improves revenue stability, enables cross-selling, and supports margin recovery as scale and recurring subscription revenue grow.

Secular demand for D&I services

Corporate emphasis on diversity, inclusion and analytics-driven HR solutions is a multi-year structural trend. Persistent regulatory, investor and employee pressures create durable demand for D&I services, benefiting companies with tailored offerings and data capabilities over a multi-quarter horizon.

Negative Factors

Ongoing losses and negative margins

Negative net, EBIT and EBITDA margins indicate the business is not yet profitable, eroding retained capital and limiting reinvestment. Persistent losses reduce flexibility to scale sales or product development, making a credible path to sustainable profitability a critical near-term structural challenge.

Poor cash conversion and negative FCF growth

Weak conversion of earnings into cash and declining free cash flow signal liquidity strain and operational cash burn. Over months, this constrains funding for growth initiatives, may force external financing or cost cuts, and increases execution risk absent a clear cash-flow improvement plan.

Declining revenue growth

Recent negative revenue growth undermines scale economics and makes fixed-cost absorption harder, pressuring margins. Continued contraction reduces headroom for investment in sales and product, increasing the importance of stabilizing or reversing top-line trends to restore long-term profitability.

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

Income statement is weak with declining recent revenue and negative net/EBIT/EBITDA margins, indicating ongoing losses. The balance sheet is comparatively steadier with a healthy equity ratio and manageable leverage, but negative ROE reflects unprofitable operations. Cash flow is a key concern with negative free cash flow growth and poor conversion of earnings into operating cash flow, raising liquidity risk.

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: Positive
• Last Price: 356.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7078, the sentiment is Positive. The current price of 356 is below the 20-day moving average (MA) of 382.65, below the 50-day MA of 376.34, and below the 200-day MA of 464.68, indicating a neutral trend. The MACD of 13.02 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 63.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7078.

Inclusive, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	78 Outperform	¥5.87B	11.83	―	3.26%	27.11%	24.70%
6038	77 Outperform	¥4.73B	10.41	―	2.38%	-2.25%	116.29%
7370	77 Outperform	¥6.09B	14.13	―	5.56%	-9.76%	-24.52%
7857	67 Neutral	¥5.50B	49.67	―	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	66.27	―	―	-14.77%	-76.32%
7078	52 Neutral	¥4.26B	-3.29	―	―	-8.67%	-407.35%