Inclusive, Inc. (7078) AI Stock Analysis

• Market Cap: ¥3.67B
• Dividend Yield: N/A
• Average Volume (3M): 18.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -8.67%
• EPS Growth: -407.35%
• Country: JP
• Employees: 210
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.14
• 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): 2.68
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -34.92
• 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: 51 Neutral
• Price Target: ¥367.00 ▲(3.09% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by weak financial performance—ongoing losses and cash flow strain outweigh a comparatively stable balance sheet. Technicals provide some near-term support with improving momentum and the price above shorter-term averages, but longer-term trend measures remain weaker. Valuation is pressured because losses (negative P/E) reduce visibility and limit support from earnings-based metrics.

Positive Factors

Balance-sheet resilience

A healthy equity ratio and moderate debt indicate the company has structural balance-sheet strength despite operating losses. This provides lasting financial flexibility to absorb short-term cash shortfalls, access financing on reasonable terms, and preserve optionality for strategic investments or restructurings.

Stable gross margins

Relatively stable gross margins point to an enduring core service pricing and cost structure, suggesting the business retains basic unit economics. That durability supports eventual operating leverage when revenue stabilizes and reduces the risk that topline declines will fully erode core profitability.

Modest headcount (lean cost base)

A modest workforce size implies a relatively lean fixed-cost base and potential for nimble decision-making. Over the medium term this can help limit cash burn, enable faster operational adjustments, and allow management to reallocate resources toward higher-return client segments or digital initiatives.

Negative Factors

Ongoing unprofitable operations

Sustained negative operating and net margins indicate the business is not generating profit from core operations. Over months this erodes retained earnings, constrains reinvestment, and increases reliance on external capital or restructurings to restore viability and fund strategic initiatives.

Weak cash generation

Negative FCF growth and a weak operating-cash-to-income conversion create durable liquidity pressure. This raises the risk of funding shortfalls, need for external financing, and limited ability to invest in client acquisition or product development without diluting shareholders or increasing leverage.

Declining revenue trend

A multi-period revenue decline reduces scale and undermines fixed-cost absorption, making margin recovery harder. Over the medium term shrinking top-line can harm client relationships, weaken competitive positioning in advertising services, and increase pressure on pricing and margins.

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.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	-243.17M	-133.56M	163.86M	-46.43M	55.84M	59.09M
Net Income	-1.19B	-1.07B	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	694.91M	780.43M	999.49M	614.56M	638.78M
Total Liabilities	1.53B	1.63B	1.90B	2.44B	1.27B	845.82M
Stockholders Equity	1.64B	1.78B	2.83B	2.46B	1.88B	1.50B
Cash Flow
Free Cash Flow	0.00	-136.51M	54.64M	27.16M	111.25M	-56.90M
Operating Cash Flow	0.00	-102.31M	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: 356.00
• 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:7078, the sentiment is Negative. The current price of 356 is below the 20-day moving average (MA) of 400.35, below the 50-day MA of 406.56, and below the 200-day MA of 449.56, indicating a bearish trend. The MACD of -7.01 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, 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
7067	69 Neutral	¥1.58B	62.94	―	1.00%	5.79%	-30.56%
9466	62 Neutral	¥3.13B	8.14	―	6.49%	-13.21%	103.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.07B	7.59	―	―	-4.44%	―
7078	51 Neutral	¥3.67B	-645.05	―	―	-8.67%	-407.35%
4196	51 Neutral	¥3.55B	563.91	―	―	9.93%	-81.98%
9235	43 Neutral	¥3.91B	-15.53	―	―	49.01%	-21.56%