For Startups, Inc. (7089) AI Stock Analysis

• Market Cap: ¥8.88B
• Dividend Yield: N/A
• Average Volume (3M): 22.92K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.65
• Revenue Growth: 21.37%
• EPS Growth: 93.71%
• Country: JP
• Employees: 194
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 25.61
• Shares Outstanding: 6,601,200
• 10 Day Avg. Volume: 11,090
• 30 Day Avg. Volume: 22,923
• PEG Ratio: -1.43
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -341.02
• 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: 75 Outperform
• Price Target: ¥1,428.00 ▼(-25.78% Downside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial performance (strong growth, healthy margins, and low leverage) and a strong technical uptrend. These are tempered by profitability softness and negative free cash flow, plus overbought technical signals that elevate near-term downside risk; valuation appears reasonable based on the P/E.

Positive Factors

Revenue Growth

Sustained high revenue growth (~26% as reported) across 2021–2025 implies durable top-line momentum and expanding market penetration. This scale supports reinvestment, operational leverage and long-term revenue visibility, underpinning strategic growth initiatives over the next several quarters.

Margin Sustainability

Consistently strong gross and EBIT/EBITDA margins reflect effective cost management and pricing power. Durable margin profiles provide resilience to cyclical revenue swings, enabling the company to fund SG&A and capex while maintaining profitability, supporting medium-term cash generation and strategic flexibility.

Balance Sheet Strength & Cash Conversion

Improved operating cash flow combined with a solid equity base and low leverage enhances financial flexibility. Strong cash conversion from operations supports capacity to fund growth, withstand shocks, and access favorable financing, reinforcing the company’s medium-term ability to execute strategy without overreliance on external capital.

Negative Factors

Negative Free Cash Flow

Negative free cash flow in 2025, driven by elevated capex, reduces internal funding capacity and can strain liquidity if sustained. Even with improved operating cash flow, persistent negative FCF may force financing, restrict discretionary investments, or slow deleveraging, affecting financial resilience over coming quarters.

Declining Profitability / ROE

A drop in net income and reduced return on equity signals the company is not converting incremental revenue into proportional profits. This weaker profitability can erode investor returns, limit internal capital formation, and suggests management must improve margins or asset utilization to restore long-term earnings power.

Erosion of Equity Base

A declining shareholders' equity balance shrinks the capital buffer available for growth and loss absorption. Continued erosion would reduce financial flexibility, worsen leverage metrics if debt persists, and constrain the company’s ability to fund investments from internally generated equity over the medium term.

For Startups, Inc. Business Overview & Revenue Model

Company Description

for Startups, Inc. operates growth industry support platform in Japan. The company was founded in 2016 and is headquartered in Tokyo, Japan.

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

Strong revenue growth and healthy EBIT/EBITDA margins support the score, alongside low leverage and a solid equity base. Offsetting factors include a decline in net income from 2024 to 2025, reduced equity/ROE, and negative free cash flow in 2025 due to higher capital expenditures.

Income Statement

For Startups, Inc. has shown impressive revenue growth over the years, with a notable increase from 2021 to 2025. The gross profit margin remains strong, reflecting efficient cost management and pricing strategies. However, there is a slight decline in net income from 2024 to 2025, indicating potential challenges in maintaining profitability levels. EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

The company has a solid equity base with a favorable equity ratio and low debt levels, indicating financial stability and low leverage risk. However, the decline in stockholders' equity from 2024 to 2025 is a point of concern. The return on equity has decreased, suggesting a need to enhance profit-generating capabilities or asset utilization.

Cash Flow

Operating cash flow has improved significantly from 2024 to 2025, indicating enhanced cash-generating efficiency. However, the free cash flow turned negative in 2025 due to higher capital expenditures, which could impact liquidity. The operating cash flow to net income ratio reflects strong cash conversion, but the negative free cash flow requires attention to ensure sustainable growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.94B	3.69B	3.42B	3.00B	2.35B	1.27B
Gross Profit	3.27B	3.01B	2.72B	2.46B	1.87B	1.06B
EBITDA	648.40M	522.94M	453.21M	604.44M	525.85M	147.06M
Net Income	445.05M	353.75M	386.00M	442.40M	382.57M	95.17M
Balance Sheet
Total Assets	3.97B	3.67B	3.24B	2.97B	2.56B	1.40B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.27B	2.03B	2.21B	1.87B	1.04B
Total Debt	484.50M	513.00M	0.00	66.67M	183.34M	150.00M
Total Liabilities	1.27B	1.19B	696.20M	779.33M	866.32M	358.93M
Stockholders Equity	2.28B	2.17B	2.21B	1.79B	1.53B	1.04B
Cash Flow
Free Cash Flow	0.00	-11.40M	178.72M	-119.21M	556.99M	21.42M
Operating Cash Flow	0.00	355.67M	179.00M	-35.08M	605.50M	28.48M
Investing Cash Flow	0.00	-252.50M	-293.89M	-90.71M	-168.16M	-13.97M
Financing Cash Flow	0.00	149.61M	-43.19M	153.29M	237.47M	212.09M

For Startups, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1924.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1924 is above the 20-day moving average (MA) of 1211.55, above the 50-day MA of 1053.33, and above the 200-day MA of 924.82, indicating a bullish trend. The MACD of 87.68 indicates Negative momentum. The RSI at 67.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.94 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
4177	81 Outperform	¥6.77B	15.50	―	―	10.47%	229.21%
2410	79 Outperform	¥13.34B	12.25	―	4.18%	5.14%	17.12%
3991	78 Outperform	¥10.74B	10.59	―	1.72%	3.95%	4.50%
7089	75 Outperform	¥8.88B	13.68	―	―	21.37%	93.71%
6551	68 Neutral	¥6.37B	11.35	―	1.87%	11.47%	45.70%
4433	64 Neutral	¥17.20B	26.46	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

For Startups, Inc. Corporate Events

For Startups Posts Record 3Q Earnings on Human Capital Productivity Gains, Lifts Full-Year Outlook

For Startups, Inc. reported record results for the third quarter of FY03/2025, with net sales of 624 million yen, operating income of 4,081 million yen, and orders of 3,593 million yen, reflecting year-on-year growth of 34.3% in net sales, 209.2% in operating income, and 35.5% in orders. The strong performance was driven by higher productivity and improved profitability in its core Human Capital Business, leading to significant gains in revenue and profit for the group overall and prompting management to raise full-year earnings forecasts in light of favorable recent trends and a positive outlook.

The most recent analyst rating on (JP:7089) stock is a Hold with a Yen998.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups Posts Surging Nine-Month Profit and Raises Full-Year Outlook

For Startups, Inc. reported strong consolidated results for the nine months ended December 31, 2025, with net sales up 34.3% year on year to ¥3,593 million and profit attributable to owners of parent jumping 214.6% to ¥452 million, driving basic earnings per share to ¥68.54 after reflecting a 2-for-1 stock split. The company’s equity base continued to strengthen as total assets rose to ¥4,414 million and equity to ¥2,586 million, while it maintained a policy of no dividends for the fiscal year. For the full year ending March 31, 2026, For Startups raised its earnings forecast, now targeting ¥5,100 million in net sales and ¥700 million in profit attributable to owners of parent, nearly doubling annual profit year on year and underscoring management’s confidence in sustained high growth and improved profitability, although no dividend payout is planned despite earnings momentum.

The most recent analyst rating on (JP:7089) stock is a Hold with a Yen998.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups Launches Share Buyback to Address Undervaluation and Boost Capital Efficiency

For Startups, Inc. has authorized a share buyback of up to 200,000 common shares, representing about 3.0% of its outstanding stock excluding treasury shares, with a maximum acquisition cost of 200 million yen. The buyback, to be executed via market purchases on the Tokyo Stock Exchange between February 6 and March 31, 2026, is intended to capitalize on what management views as a significantly undervalued share price, improve capital efficiency, and enhance shareholder returns, marking a more active capital policy for a company that previously held only a negligible amount of treasury stock.

The most recent analyst rating on (JP:7089) stock is a Hold with a Yen998.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups Raises Full-Year Earnings Forecast on Strong Human Capital Performance

For Startups, Inc. revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance in its Human Capital business. The company now projects net sales of ¥5.1 billion and net income attributable to owners of the parent of ¥700 million, both above the previous forecast, with corresponding operating and ordinary profits also raised. These improvements are driven by a significant increase in the number of placements, higher productivity measured by placements per employee, and sustained high average fees per placement, indicating robust demand for its services and enhanced operational efficiency that strengthen its earnings profile and market positioning.

The most recent analyst rating on (JP:7089) stock is a Hold with a Yen998.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups, Inc. Adopts Co-Representative Director System

For Startups, Inc. has announced a change in its leadership structure by adopting a Co-Representative Director System, effective January 1, 2026. This strategic move aims to enhance the company’s management foundation and expedite decision-making to better respond to the evolving business environment.

The most recent analyst rating on (JP:7089) stock is a Buy with a Yen1496.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups, Inc. Forms Strategic Alliance with SPARX Group

For Startups, Inc. has announced a capital and business alliance with SPARX Group Co., Ltd., a leading Japanese investment firm. This partnership aims to enhance talent introduction services for SPARX’s portfolio companies, thereby expanding job opportunities and contributing to the development of the startup ecosystem. The collaboration is expected to increase corporate value for both parties and foster growth in the startup and growth industry sectors.

The most recent analyst rating on (JP:7089) stock is a Buy with a Yen1496.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.

For Startups, Inc. Announces Stock Split and Articles Amendment

For Startups, Inc. has announced a two-for-one stock split to increase share liquidity and broaden its investor base, effective January 1, 2026. The company will also amend its Articles of Incorporation to reflect the increased total number of authorized shares, which is expected to positively impact market accessibility and shareholder value.

The most recent analyst rating on (JP:7089) stock is a Buy with a Yen1496.00 price target. To see the full list of analyst forecasts on For Startups, Inc. stock, see the JP:7089 Stock Forecast page.