LIGUA, Inc. (7090) AI Stock Analysis

• Market Cap: ¥1.65B
• Dividend Yield: N/A
• Average Volume (3M): 15.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -20.62%
• EPS Growth: -377.66%
• Country: JP
• Employees: 140
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -102.30
• Shares Outstanding: 1,611,800
• 10 Day Avg. Volume: 7,040
• 30 Day Avg. Volume: 15,666
• PEG Ratio: 0.01
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 8.27
• 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: 44 Neutral
• Price Target: ¥992.00 ▲(7.83% Upside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

The overall stock score of 44 reflects significant financial and technical challenges. The company's profitability issues and increased leverage are major concerns. Additionally, the stock's bearish technical indicators and negative valuation metrics further weigh down the score. Improvement in operational efficiency and financial management is crucial for enhancing the company's outlook.

Positive Factors

Operating Cash Flow Improvement

Operating cash flow turning positive reflects underlying cash generation from core operations rather than financing or one-offs. That durable improvement gives management runway to fund working capital, invest in product development, or shore up margins over the next several quarters.

Free Cash Flow Recovery

Significant free cash flow improvement indicates the business is converting revenue into cash after capex. Sustained free cash flow supports debt servicing, capital allocation flexibility, and longer-term recovery even if earnings remain temporarily depressed.

Liquidity Cushion

A reasonable level of cash and short-term investments provides a liquidity buffer against operational volatility and higher leverage. This cushion reduces short-term refinancing risk and supports strategic actions needed to restore profitability over a multi-quarter horizon.

Negative Factors

Declining Revenue

A >20% revenue decline signals weakening demand or loss of market share. Sustained revenue contraction pressures gross margins and operating leverage, making margin recovery and fixed-cost absorption harder over coming quarters unless top-line stabilization or new wins occur.

Negative Profitability

Negative net income and margins indicate the business is not covering operating costs. Persistent negative profitability undermines retained earnings, restricts investment, and makes long-term recovery dependent on structural cost cuts, revenue restoration, or capital injections.

Rising Leverage & Eroded Equity

Higher leverage combined with materially lower equity raises solvency and refinancing risks. Elevated debt burdens increase interest obligations and reduce strategic flexibility, making the company more vulnerable to external shocks until leverage is meaningfully repaired.

LIGUA, Inc. Business Overview & Revenue Model

Company Description

Ligua Inc., a consultancy company, engages in the provision of management support services in the healthcare industry. It operates through two segments: Orthopedic Clinic Solutions Business and Financial Services Business. The company offers orthopedic clinic software solutions comprising Ligoo POS & CRM, a patient information management system for osteopathic clinics; and ReceONE is a receipt calculation system used when submitting a medical expenses payment application to a health insurance association. It also provides orthopedic clinic equipment/consumables, such as EMS-indepth-, an electrical muscle stimulation device that exercises muscles by applying electrical stimulation to the body from the outside; Thomson bed, a hydraulic-electric treatment table, designed to treat pain caused by distortion of the pelvis and spine; Inject Energy, a low-frequency treatment device, used to reduce pain and improve muscle atrophy by stimulating the deep parts of the body; Dr.Supporter, a general medical device that uses Integrated Functional Mineral Crystal technology, that promotes blood circulation, recovers from fatigue, relieves muscle fatigue and stiffness, relieves neuralgia, lower back pain, muscle pain, and supports the core; and teaching materials and technical DVDs for treatment methods. In addition, the company educational training consulting services, including training programs and online customer attraction consulting based on the characteristics and guidelines of the orthopedic clinic industry; and medical expenses billing agency services. Further, it is involved in the insurance agency and financial instruments intermediary activities, as well as provision of financial consulting, including mergers and acquisitions mediation, to general business companies. The company was incorporated in 2004 and is headquartered in Osaka, Japan.

LIGUA, Inc. Financial Statement Overview

Summary

LIGUA, Inc. is facing profitability challenges with declining revenue and negative income margins. The balance sheet shows increased leverage, which could pose financial risks if not managed properly. On a positive note, cash flow from operations has improved, suggesting potential for recovery if profitability issues are addressed.

Income Statement

LIGUA, Inc. has experienced fluctuating revenue with a recent decline from 2024 to 2025. The gross profit margin has decreased, indicating potential cost management issues. The company has reported negative net income in 2025, leading to a negative net profit margin, which is concerning for profitability. EBIT and EBITDA margins have also turned negative, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage and potential financial risk. Stockholders' equity has decreased significantly, impacting the equity ratio negatively. However, the company has maintained a reasonable level of cash and short-term investments, which provides some liquidity cushion.

Cash Flow

Operating cash flow has improved in 2025, turning positive, which is a positive sign for cash generation. Free cash flow has also improved significantly, indicating better cash management. However, the free cash flow to net income ratio is skewed due to negative net income, highlighting profitability concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.74B	2.87B	3.43B	2.84B	3.20B	2.69B
Gross Profit	1.65B	1.71B	1.88B	1.22B	1.63B	1.44B
EBITDA	-81.91M	-90.80M	274.91M	-258.56M	359.47M	333.54M
Net Income	-319.01M	-301.00M	104.08M	-774.47M	72.41M	157.24M
Balance Sheet
Total Assets	2.91B	3.14B	3.87B	3.37B	3.28B	3.32B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.35B	1.33B	1.17B	1.38B	1.93B
Total Debt	1.93B	2.10B	2.39B	2.26B	1.51B	1.67B
Total Liabilities	2.65B	2.82B	3.26B	3.02B	2.14B	2.26B
Stockholders Equity	254.38M	319.81M	604.90M	353.17M	1.14B	1.06B
Cash Flow
Free Cash Flow	0.00	146.47M	-5.19M	-384.94M	40.15M	177.75M
Operating Cash Flow	0.00	163.38M	2.83M	-328.22M	80.06M	207.19M
Investing Cash Flow	0.00	147.72M	10.78M	-600.71M	-474.61M	-495.69M
Financing Cash Flow	0.00	-290.02M	137.19M	716.85M	-154.13M	1.27B

LIGUA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 920.00
• 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:7090, the sentiment is Positive. The current price of 920 is below the 20-day moving average (MA) of 993.15, below the 50-day MA of 965.16, and below the 200-day MA of 1026.06, indicating a neutral trend. The MACD of 17.09 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7090.

LIGUA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	80 Outperform	¥9.39T	21.89	25.14%	1.01%	8.83%	8.63%
5889	78 Outperform	¥50.10B	12.81	―	3.22%	12.92%	29.48%
7780	74 Outperform	¥128.58B	9.26	7.81%	1.78%	3.17%	7.07%
3046	65 Neutral	¥122.77B	23.93	27.95%	1.97%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7743	51 Neutral	¥17.28B	58.26	―	2.65%	0.81%	-26.76%
7090	44 Neutral	¥1.65B	-2.25	―	―	-20.62%	-377.66%