For Startups, Inc. (7089) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: N/A
• Average Volume (3M): 29.51K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.61
• Revenue Growth: 8.13%
• EPS Growth: -7.47%
• Country: JP
• Employees: 194
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): 59.66
• Shares Outstanding: 3,650,000
• 10 Day Avg. Volume: 14,740
• 30 Day Avg. Volume: 29,506
• PEG Ratio: 5.68
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 76 Outperform
• Price Target: ¥1,496.00 ▲(9.28%Upside)

For Startups, Inc. is characterized by strong financial performance and positive technical indicators, leading to a favorable stock score. However, challenges with profitability and cash flow management, along with a lack of dividend yield, slightly mitigate the score.

For Startups, Inc. Business Overview & Revenue Model

Company Description

For Startups, Inc. is a leading Japanese company that operates within the business consulting and human resource sectors. It specializes in providing startup companies with access to a comprehensive platform that connects them with potential investors, business networks, and talent acquisition services. The company's core services are designed to support and accelerate the growth and development of startups by facilitating strategic partnerships and providing essential resources within the entrepreneurial ecosystem.

How the Company Makes Money

For Startups, Inc. generates revenue through a combination of subscription fees, consulting services, and commission-based models. The company charges startups subscription fees for accessing its platform, which offers a range of networking and investment opportunities. Additionally, For Startups, Inc. provides consulting services to both startups and investors, helping them to navigate the complexities of business growth and investment strategies. The company also earns commissions from successful funding rounds facilitated through its platform, as well as from talent acquisition services where it connects startups with potential employees. Strategic partnerships with venture capital firms and corporate investors further enhance its revenue streams by providing additional business opportunities and expanding its network reach.

For Startups, Inc. Financial Statement Overview

Summary

For Startups, Inc. has demonstrated strong revenue growth and maintains high gross margins, indicating efficient operations. The balance sheet shows low leverage, but recent declines in net profit margins and ROE suggest potential areas for improvement. Cash flow inconsistencies highlight the need for better cash management.

Income Statement

For Startups, Inc. has demonstrated a strong revenue growth trend over the years, with a notable increase from 2022 to 2024. The TTM data shows a gross profit margin of 82.29%, indicating efficient cost management. Despite a decrease in net profit margin from 11.30% in 2023 to 8.05% in the TTM period, the company maintains a solid EBIT margin of 10.08%. These figures suggest robust profitability, although the decline in net profit margin warrants attention.

Balance Sheet

The company's balance sheet is strong, characterized by a low debt-to-equity ratio of 0.26 in the TTM period, signifying low leverage. The equity ratio stands at a healthy 59.58%, reflecting a stable financial position. However, there was a decline in return on equity (ROE) from 20.65% in 2023 to 13.98% in the TTM period, which might indicate less efficient use of equity capital recently.

Cash Flow

Cash flow from operations has been inconsistent, with a drop to zero in the TTM period, which is concerning. However, the company had a strong free cash flow in previous years, showing the ability to generate cash despite recent fluctuations. The free cash flow to net income ratio was not calculable in the TTM period due to zero free cash flow, highlighting the need for improved cash generation strategies.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.65B	3.42B	3.00B	2.35B	1.27B	1.26B
	Gross Profit
3.00B	2.72B	2.46B	1.99B	1.06B	1.08B
	EBIT
367.50M	423.46M	585.29M	602.32M	158.09M	308.79M
	EBITDA
322.32M	453.21M	604.44M	525.85M	147.06M	225.34M
	Net Income Common Stockholders
293.67M	386.00M	442.40M	382.57M	95.17M	203.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.12B	2.03B	2.21B	1.87B	1.04B	816.35M
	Total Assets
3.53B	3.24B	2.97B	2.56B	1.40B	1.13B
	Total Debt
541.50M	0.00	66.67M	183.34M	150.00M	0.00
	Net Debt
-1.20B	-1.66B	-1.68B	-1.53B	-892.95M	-816.35M
	Total Liabilities
1.11B	696.20M	779.33M	866.32M	358.93M	248.03M
	Stockholders Equity
2.10B	2.21B	1.79B	1.53B	1.04B	882.59M
Cash Flow		Free Cash Flow
0.00	178.72M	-119.21M	556.99M	21.42M	201.38M
	Operating Cash Flow
0.00	179.00M	-35.08M	605.50M	28.48M	209.83M
	Investing Cash Flow
0.00	-293.89M	-90.71M	-168.16M	-13.97M	-48.95M
	Financing Cash Flow
0.00	24.81M	153.29M	237.47M	212.09M	313.73M

For Startups, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1369.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7089, the sentiment is Positive. The current price of 1369 is above the 20-day moving average (MA) of 1331.95, above the 50-day MA of 1146.88, and above the 200-day MA of 1089.18, indicating a bullish trend. The MACD of 53.32 indicates Positive momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7089.

For Startups, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7089	76 Outperform	¥5.00B	14.04		―	8.13%	-7.47%
4177	76 Outperform	¥4.78B	7.94		―	10.47%	―
3991	72 Outperform	¥12.64B	10.82		1.50%	4.14%	22.46%
6551	72 Outperform	¥5.69B	16.55		1.51%	13.79%	16.63%
2410	67 Neutral	¥9.55B	10.32		4.89%	2.50%	-7.87%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
4433	48 Neutral	¥16.63B	―		3.81%	-1.10%	-102.34%

For Startups, Inc. Corporate Events

For Startups, Inc. Announces Director Candidates for Upcoming AGM

For Startups, Inc. announced its proposal for the election of director candidates at its upcoming Annual General Meeting of Shareholders. The proposed candidates include reappointments of current directors and the introduction of a new director, Aiko Kokubo, who brings experience from Deloitte Touche Tohmatsu LLC. This move is expected to strengthen the company’s governance and strategic direction.

For Startups, Inc. Completes Share Repurchase Program

For Startups, Inc. has completed a share repurchase program, acquiring 23,900 shares for a total of 32,146,600 yen through market purchases on the Tokyo Stock Exchange. This concludes the company’s share repurchase initiative, which was authorized by the Board of Directors in February 2025, aiming to repurchase up to 350,000 shares.

For Startups, Inc. Updates Reporting Segment Names

For Startups, Inc. has announced a change in the names of its reporting segments to better reflect its operations, effective from the first quarter of the fiscal year ending March 2026. The ‘Talent Agency & Open Innovation Business’ segment will be renamed to ‘Human Capital & Open Innovation Business,’ while the ‘Venture Capital Business’ segment remains unchanged. This change is intended to align the segment names more closely with the company’s focus and activities, without altering the classification of reporting segments.

For Startups, Inc. Reports FY2025 Financial Results with Increased Sales but Lower Profits

For Startups, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing an 8.1% increase in net sales to 3,693 million yen. Despite the increase in sales, the profit attributable to owners of the parent decreased by 8.4% to 353 million yen. The company also experienced a decline in return on equity from 19.6% to 16.3%. The financial position showed total assets of 3,666 million yen and an equity ratio of 59.0%. The company anticipates significant growth in the next fiscal year, with forecasts indicating a 16.4% increase in net sales and a 43.5% rise in operating income.

For Startups, Inc. Cancels Stock Acquisition Rights Due to Unmet Targets

For Startups, Inc. announced the cancellation of its 4th and 5th Stock Acquisition Rights due to unmet performance targets. This decision will result in a reversal gain of share-based compensation expenses, impacting the company’s financial results by reducing selling, general, and administrative expenses for the fiscal year ending March 31, 2025.

For Startups, Inc. Revises Earnings Forecast with Positive Outlook

For Startups, Inc. has revised its earnings forecast for the fiscal year ending March 2025, reflecting a positive adjustment in operating and ordinary profits despite a slight decrease in net sales. The revision is attributed to increased productivity, cost-saving measures, and the cancellation of certain stock acquisition rights, leading to a significant improvement in profit expectations.