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Goodpatch, Inc. (JP:7351)
:7351
Japanese Market
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Goodpatch, Inc. (7351) AI Stock Analysis

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JP:7351

Goodpatch, Inc.

(7351)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥483.00
▼(-28.23% Downside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial performance (rapid revenue and free cash flow growth and a low-leverage balance sheet) and supportive valuation (low P/E and a solid dividend yield). These positives are tempered by weak technicals, with the stock trading below key moving averages and bearish momentum indicators.
Positive Factors
Strong revenue growth
Sustained 32.6% revenue growth signals durable demand for Goodpatch's UX/UI and digital product services. For 2-6 months this implies scalable client pipelines and stronger contract flow, supporting investment in capabilities and higher long-term organic growth potential.
Negative Factors
Modest net margin and ROE
Relatively low net margin and ROE versus peers constrain internal capital generation and shareholder return potential. Over months this limits the pace of margin-driven reinvestment and may signal pricing pressure or cost structure inefficiencies requiring strategic action to sustainably boost profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Sustained 32.6% revenue growth signals durable demand for Goodpatch's UX/UI and digital product services. For 2-6 months this implies scalable client pipelines and stronger contract flow, supporting investment in capabilities and higher long-term organic growth potential.
Read all positive factors

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

Goodpatch, Inc. Business Overview & Revenue Model

Company Description
Goodpatch, Inc. engages in the provision of 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 desi...
How the Company Makes Money
Goodpatch primarily makes money by providing professional services to client companies in areas such as UX/UI design, digital product design, and related consulting/support delivered on a project or contract basis, with revenue recognized as servi...

Goodpatch, Inc. Financial Statement Overview

Summary
Strong overall fundamentals supported by 32.6% revenue growth, solid gross margin (57.9%), and sharply higher free cash flow (+156.7%). Balance sheet leverage is very low (debt-to-equity 0.06) with a high equity ratio (79.0%). Offsetting factors are a relatively modest net profit margin (8.0%) and ROE (9.8%) versus peers, plus prior-year cash flow volatility.
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue5.10B5.09B3.94B3.93B3.72B2.74B
Gross Profit2.89B2.94B2.18B2.27B2.28B1.73B
EBITDA538.84M708.33M132.80M433.21M234.93M452.29M
Net Income327.10M407.05M11.53M216.04M72.54M327.65M
Balance Sheet
Total Assets5.08B5.25B4.68B4.67B4.17B3.44B
Cash, Cash Equivalents and Short-Term Investments2.59B2.73B3.28B3.27B2.91B2.78B
Total Debt143.86M248.40M401.26M192.73M361.46M452.81M
Total Liabilities670.94M1.11B804.63M730.54M963.29M868.37M
Stockholders Equity4.41B4.15B3.87B3.94B3.21B2.57B
Cash Flow
Free Cash Flow579.37M842.06M-70.19M76.55M395.57M461.70M
Operating Cash Flow580.69M844.39M-57.12M78.67M410.65M483.32M
Investing Cash Flow50.22M-1.08B-58.49M-97.20M-673.68M-64.85M
Financing Cash Flow59.52M-310.33M116.90M373.91M389.55M1.42B

Goodpatch, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price673.00
Price Trends
50DMA
456.40
Negative
100DMA
459.35
Negative
200DMA
519.31
Negative
Market Momentum
MACD
-6.09
Negative
RSI
36.47
Neutral
STOCH
24.76
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 442.05, above the 50-day MA of 456.40, and above the 200-day MA of 519.31, indicating a bearish trend. The MACD of -6.09 indicates Negative momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 24.76 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥62.41B27.570.83%20.60%35.88%
77
Outperform
¥258.82B17.150.43%15.63%22.43%
73
Outperform
¥10.11B14.231.01%8.34%-5.27%
71
Outperform
¥4.04B11.671.54%6.71%-9.62%
71
Outperform
¥9.15B10.782.16%-1.76%25.65%
70
Outperform
¥170.38B25.811.76%178.95%4567.63%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7351
Goodpatch, Inc.
433.00
-363.26
-45.62%
JP:3633
GMO Pepabo, Inc.
1,786.00
243.15
15.76%
JP:4431
Smaregi, Inc.
3,200.00
-328.36
-9.31%
JP:4686
Justsystems Corporation
4,060.00
178.21
4.59%
JP:4784
GMO AD Partners Inc.
532.00
-992.36
-65.10%
JP:4811
DreamArts Corp.
773.00
-478.08
-38.21%

Goodpatch, Inc. Corporate Events

Goodpatch Nine-Month Profit Slips Despite Stable Sales and Strong Balance Sheet
Jul 23, 2026
Goodpatch Inc. reported consolidated net sales of ¥3,847 million for the nine months ended May 31, 2026, essentially flat year on year, while operating profit fell 35.2% to ¥329 million and profit attributable to owners of parent decline...
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: Aug 06, 2026