Goodpatch, Inc. (7351) AI Stock Analysis

• Market Cap: ¥5.23B
• Dividend Yield: 1.79%
• Average Volume (3M): 33.69K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.89
• Revenue Growth: 28.98%
• EPS Growth: 3659.13%
• Country: JP
• Employees: 264
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.97
• Shares Outstanding: 9,246,620
• 10 Day Avg. Volume: 45,720
• 30 Day Avg. Volume: 33,690
• PEG Ratio: -3.36
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -52.39
• 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: 67 Neutral
• Price Target: ¥608.00 ▼(-9.66% Downside)

Goodpatch, Inc. scores well due to its strong financial performance and attractive valuation. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for Goodpatch's offerings, suggesting a strong market position and potential for continued expansion.

Cash Generation

Strong cash generation enhances financial flexibility, allowing Goodpatch to invest in growth opportunities and weather economic fluctuations effectively.

Balance Sheet Health

A strong balance sheet with low leverage provides Goodpatch with stability and the ability to pursue strategic initiatives without financial strain.

Negative Factors

Net Profit Margin

Lower net profit margins suggest potential inefficiencies in cost management, which could limit profitability and shareholder returns if not addressed.

Return on Equity

A lower ROE compared to peers indicates that Goodpatch may not be utilizing shareholder funds as effectively, potentially impacting investor confidence and valuation.

Cash Flow Volatility

Volatility in cash flow can pose risks to financial stability, affecting Goodpatch's ability to consistently fund operations and growth initiatives.

Goodpatch, Inc. Business Overview & Revenue Model

Company Description

Goodpatch, Inc. provides UI/UX design consulting services. The company offers UI/UX design, business model design, brand experience design, organizational design, and software development services. It provides ReDesigner, a designer recruitment support service; ReDesigner for Students, a recruiting service; Goodpatch Anywhere, a full remote design team; Strap, an online whiteboard tool; and Prott, a prototyping tool. The company was incorporated in 2011 and is based in Tokyo, Japan.

How the Company Makes Money

Goodpatch generates revenue primarily through its design services, which include project-based work for clients seeking to develop or enhance their digital products. The company charges fees for consulting, design, and development services, which can vary based on the project's complexity and duration. Additionally, Goodpatch may have recurring revenue from retainer agreements with clients who require ongoing support and updates for their digital solutions. Strategic partnerships with technology firms and collaborations on joint projects may also contribute to revenue, as these relationships can lead to new business opportunities and increased visibility in the market.

Goodpatch, Inc. Financial Statement Overview

Summary

Goodpatch, Inc. demonstrates strong financial stability with a robust balance sheet, marked by a high equity ratio and low debt. However, declines in profitability and negative cash flow from operations indicate potential challenges in liquidity and growth momentum.

Income Statement

Goodpatch, Inc. showed a small revenue increase in the latest year compared to the previous, with a slight decline in gross profit margin from 57.8% to 55.4%. The net profit margin decreased significantly from 5.5% to 0.3% due to a substantial drop in net income. However, the EBIT and EBITDA margins remained relatively stable, suggesting operational efficiency despite the drop in net income.

Balance Sheet

The company maintains a strong balance sheet with a high equity ratio of 82.8% and a low debt-to-equity ratio of 0.1. The return on equity decreased from 5.5% to 0.3%, reflecting the decline in profitability, but the overall financial stability remains robust with substantial equity backing.

Cash Flow

Cash flow from operations turned negative, impacting free cash flow, which also saw a substantial decline. The free cash flow to net income ratio was negative, indicating challenges in converting net income into cash. This suggests potential liquidity issues despite positive financing activities in the past year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.83B	5.09B	3.94B	3.93B	3.72B	2.74B
Gross Profit	2.21B	2.94B	2.18B	2.27B	2.28B	1.73B
EBITDA	601.85M	708.33M	132.80M	433.21M	234.93M	452.29M
Net Income	364.27M	407.05M	11.53M	216.04M	72.54M	327.65M
Balance Sheet
Total Assets	5.12B	5.25B	4.68B	4.67B	4.17B	3.44B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.73B	3.28B	3.27B	2.91B	2.78B
Total Debt	287.68M	248.40M	401.26M	192.73M	361.46M	452.81M
Total Liabilities	1.01B	1.10B	803.62M	727.92M	960.59M	868.37M
Stockholders Equity	4.10B	4.15B	3.87B	3.94B	3.21B	2.57B
Cash Flow
Free Cash Flow	328.00M	842.06M	-70.19M	76.55M	395.57M	461.70M
Operating Cash Flow	329.00M	844.39M	-57.12M	78.67M	410.65M	483.32M
Investing Cash Flow	-49.00M	-1.08B	-58.49M	-97.20M	-673.68M	-64.85M
Financing Cash Flow	-212.00M	-310.33M	116.90M	373.91M	389.55M	1.42B

Goodpatch, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 673.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7351, the sentiment is Negative. The current price of 673 is above the 20-day moving average (MA) of 578.00, above the 50-day MA of 645.62, and below the 200-day MA of 709.44, indicating a bearish trend. The MACD of -23.52 indicates Negative momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	78 Outperform	¥6.31B	15.92	―	1.22%	6.95%	-9.62%
4374	76 Outperform	¥11.94B	23.98	―	0.45%	19.35%	71.74%
4391	71 Outperform	¥3.60B	14.54	―	1.60%	8.31%	-2.44%
4494	67 Neutral	¥3.43B	9.11	―	―	1.62%	9.93%
7351	67 Neutral	¥5.23B	12.21	―	1.79%	28.98%	3659.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Goodpatch, Inc. Corporate Events

Goodpatch Inc. Reports Strong Financial Growth and Positive Dividend Outlook

Goodpatch Inc. reported a significant improvement in its financial performance for the nine months ending May 31, 2025, with net sales increasing by 27.8% year-on-year. The company has revised its dividend forecast, indicating a positive outlook for stakeholders, and maintains a strong equity-to-asset ratio, reflecting its stable financial position.