Goodpatch, Inc. (7351) AI Stock Analysis

• Market Cap: ¥7.70B
• Dividend Yield: N/A
• Average Volume (3M): 111.39K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.00
• Revenue Growth: 17.72%
• EPS Growth: 844.91%
• Country: JP
• Employees: 264
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 15.19
• Shares Outstanding: 9,225,420
• 10 Day Avg. Volume: 52,750
• 30 Day Avg. Volume: 111,393
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥992.00
• Price Target Upside: 18.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥992.00 ▲(18.80% Upside)

Goodpatch, Inc. scores 73, driven by strong technical analysis and financial performance. The company's robust balance sheet supports financial stability, while its technical indicators show bullish momentum. However, challenges in profitability and cash flow, along with a moderate valuation, suggest a need for cautious optimism.

Goodpatch, Inc. Business Overview & Revenue Model

Company Description

Goodpatch, Inc. (7351) is a Tokyo-based digital design company specializing in creating impactful user experiences and interfaces. The company operates in the technology and design sectors, offering services such as UX/UI design, prototyping, and design consulting. Goodpatch is known for its ability to integrate advanced design methodologies with cutting-edge technology to deliver innovative solutions for various industries including automotive, healthcare, and finance.

How the Company Makes Money

Goodpatch, Inc. generates revenue primarily through its design and consulting services. The company charges clients for its expertise in crafting user-centered digital products and experiences. Its key revenue streams include project-based fees for design and prototyping services, as well as consulting fees for strategic design advisory roles. Goodpatch also engages in partnerships with businesses across different sectors, which can lead to long-term contracts and recurring revenue streams. Additionally, the company may earn income from licensing its proprietary design tools and software solutions to other businesses looking to enhance their design capabilities.

Goodpatch, Inc. Financial Statement Overview

Summary

Goodpatch, Inc. displays strong financial stability with a robust balance sheet, scoring 85, although recent declines in profitability (Income Statement score of 72) and cash flow generation (Cash Flow score of 60) suggest a need for closer monitoring. The company faces challenges in maintaining growth momentum and converting earnings into cash, which could impact future operations if not addressed.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.19B	3.94B	3.93B	3.72B	2.74B	2.14B
Gross Profit	1.81B	2.18B	2.27B	2.28B	1.73B	1.35B
EBITDA	245.57M	132.80M	433.21M	234.93M	452.29M	259.60M
Net Income	130.23M	11.53M	216.04M	72.54M	327.65M	215.73M
Balance Sheet
Total Assets	4.75B	4.68B	4.67B	4.17B	3.44B	1.51B
Cash, Cash Equivalents and Short-Term Investments	3.23B	3.28B	3.27B	2.91B	2.78B	939.91M
Total Debt	364.00M	401.26M	192.73M	361.46M	452.81M	301.30M
Total Liabilities	866.00M	803.62M	727.92M	960.59M	868.37M	572.79M
Stockholders Equity	3.86B	3.87B	3.94B	3.21B	2.57B	938.50M
Cash Flow
Free Cash Flow	0.00	-70.19M	76.55M	395.57M	461.70M	122.37M
Operating Cash Flow	0.00	-57.12M	78.67M	410.65M	483.32M	145.90M
Investing Cash Flow	0.00	-58.49M	-97.20M	-673.68M	-64.85M	-77.62M
Financing Cash Flow	0.00	116.90M	373.91M	389.55M	1.42B	359.43M

Goodpatch, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 835.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 835 is above the 20-day moving average (MA) of 816.15, above the 50-day MA of 752.30, and above the 200-day MA of 599.32, indicating a neutral trend. The MACD of 18.43 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 35.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥7.27B	18.72		1.10%	9.41%	21.49%
4374	76 Outperform	¥11.08B	25.22		0.52%	21.21%	82.61%
7351	73 Outperform	¥7.70B	20.15		―	17.72%	844.91%
4391	71 Outperform	¥4.31B	13.00		1.37%	11.09%	61.37%
4494	68 Neutral	¥3.48B	10.04		―	1.13%	-1.12%
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%

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.