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Goodpatch, Inc. (JP:7351)
:7351
Japanese Market

Goodpatch, Inc. (7351) AI Stock Analysis

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JP:7351

Goodpatch, Inc.

(7351)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥500.00
▼(-25.71% Downside)
Action:DowngradedDate:01/16/26
The score is driven by strong financial performance (high growth, strong cash generation, and low leverage), but is meaningfully held back by weak technicals with the stock trading below key moving averages. Valuation is supportive with a moderate P/E and a modest dividend yield.
Positive Factors
Revenue Growth
Sustained 32.6% revenue growth reflects strong demand for Goodpatch's UI/UX design and consulting services. Over 2-6 months this trend implies expanding client adoption and project scale, supporting repeat business, pricing leverage and continued top-line momentum tied to structural digital transformation spending.
Negative Factors
Modest Profitability
An 8% net margin and sub-10% ROE are modest for a high-growth services business, limiting capital returns and reinvestment efficiency. Structurally, labor intensity and competitive pricing in design services can cap margins, making sustained improvement in shareholder returns more challenging over 2-6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained 32.6% revenue growth reflects strong demand for Goodpatch's UI/UX design and consulting services. Over 2-6 months this trend implies expanding client adoption and project scale, supporting repeat business, pricing leverage and continued top-line momentum tied to structural digital transformation spending.
Read all positive factors

Goodpatch, Inc. (7351) vs. iShares MSCI Japan ETF (EWJ)

Goodpatch, Inc. Business Overview & Revenue Model

Company Description
Goodpatch, Inc. (7351) is a design and technology company based in Japan, specializing in user experience (UX) and digital product development. The company operates primarily in the technology and creative sectors, offering services that include p...
How the Company Makes Money
null...

Goodpatch, Inc. Financial Statement Overview

Summary
Strong overall fundamentals supported by 32.6% revenue growth and sharp free cash flow growth (156.7%). Balance sheet leverage is very low (debt-to-equity 0.06) with a high equity ratio (79%). Offsets include a comparatively modest net margin (8.0%) and ROE (9.8%), plus prior-year negative cash flow indicating some volatility.
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue5.09B3.94B3.93B3.72B2.74B
Gross Profit2.94B2.18B2.27B2.28B1.73B
EBITDA708.33M132.80M433.21M234.93M452.29M
Net Income407.05M11.53M216.04M72.54M327.65M
Balance Sheet
Total Assets5.25B4.68B4.67B4.17B3.44B
Cash, Cash Equivalents and Short-Term Investments2.73B3.28B3.27B2.91B2.78B
Total Debt248.40M401.26M192.73M361.46M452.81M
Total Liabilities1.11B804.63M730.54M963.29M868.37M
Stockholders Equity4.15B3.87B3.94B3.21B2.57B
Cash Flow
Free Cash Flow842.06M-70.19M76.55M395.57M461.70M
Operating Cash Flow844.39M-57.12M78.67M410.65M483.32M
Investing Cash Flow-1.08B-58.49M-97.20M-673.68M-64.85M
Financing Cash Flow-310.33M116.90M373.91M389.55M1.42B

Goodpatch, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price673.00
Price Trends
50DMA
497.70
Negative
100DMA
549.07
Negative
200DMA
673.58
Negative
Market Momentum
MACD
-12.11
Negative
RSI
45.12
Neutral
STOCH
58.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7351, the sentiment is Negative. The current price of 673 is above the 20-day moving average (MA) of 464.35, above the 50-day MA of 497.70, and below the 200-day MA of 673.58, indicating a bearish trend. The MACD of -12.11 indicates Negative momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7351.

Goodpatch, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥9.52B19.471.01%15.34%67.96%
71
Outperform
¥43.41B20.490.52%26.98%19.69%
69
Neutral
¥224.14B21.080.43%15.01%19.66%
66
Neutral
¥4.28B21.711.54%28.98%3659.13%
65
Neutral
¥10.17B13.232.16%2.75%25.24%
62
Neutral
¥189.11B46.191.76%377.76%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7351
Goodpatch, Inc.
463.00
-171.04
-26.98%
JP:3633
GMO Pepabo, Inc.
1,922.00
567.09
41.85%
JP:4431
Smaregi, Inc.
2,219.00
-595.68
-21.16%
JP:4686
Justsystems Corporation
3,490.00
128.47
3.82%
JP:4784
GMO AD Partners Inc.
690.00
-463.52
-40.18%
JP:4811
DreamArts Corp.
795.00
-20.42
-2.50%

Goodpatch, Inc. Corporate Events

Goodpatch Posts Profit Decline but Holds Full-Year Forecast and Dividend Plan
Jan 27, 2026
Goodpatch Inc. reported consolidated results for the three months ended November 30, 2025, showing flat net sales of ¥1,206 million, down 0.6% year on year, and a sharp decline in profitability, with operating profit falling 39.9% to ¥77...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 16, 2026