Goodpatch, Inc. (7351) AI Stock Analysis

• Market Cap: ¥5.72B
• Dividend Yield: 1.63%
• Average Volume (3M): 72.19K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.88
• Revenue Growth: 28.98%
• EPS Growth: 3664.62%
• 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: 38,770
• 30 Day Avg. Volume: 72,193
• 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): 7,027.77
• Revenue Forecast (FY): ¥920.67B

• Rating: 73 Outperform
• Price Target: ¥992.00 ▲(47.40% 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. 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, 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. 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.83B	3.94B	3.93B	3.72B	2.74B	2.14B
Gross Profit	2.21B	2.18B	2.27B	2.28B	1.73B	1.35B
EBITDA	601.85M	132.80M	433.21M	234.93M	452.29M	259.60M
Net Income	364.27M	11.53M	216.04M	72.54M	327.65M	215.73M
Balance Sheet
Total Assets	5.12B	4.68B	4.67B	4.17B	3.44B	1.51B
Cash, Cash Equivalents and Short-Term Investments	2.63B	3.28B	3.27B	2.91B	2.78B	939.91M
Total Debt	287.68M	401.26M	192.73M	361.46M	452.81M	301.30M
Total Liabilities	1.01B	803.62M	727.92M	960.59M	868.37M	572.79M
Stockholders Equity	4.10B	3.87B	3.94B	3.21B	2.57B	938.50M
Cash Flow
Free Cash Flow	328.00M	-70.19M	76.55M	395.57M	461.70M	122.37M
Operating Cash Flow	329.00M	-57.12M	78.67M	410.65M	483.32M	145.90M
Investing Cash Flow	-49.00M	-58.49M	-97.20M	-673.68M	-64.85M	-77.62M
Financing Cash Flow	-212.00M	116.90M	373.91M	389.55M	1.42B	359.43M

Goodpatch, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 673.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 below the 20-day moving average (MA) of 696.00, below the 50-day MA of 815.49, and below the 200-day MA of 705.16, indicating a bearish trend. The MACD of -58.07 indicates Positive momentum. The RSI at 24.29 is Positive, neither overbought nor oversold. The STOCH value of 10.34 is Positive, 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	¥6.75B	17.39	―	1.14%	7.69%	-6.56%
4374	76 Outperform	¥10.70B	24.36	―	0.50%	21.21%	82.61%
4494	75 Outperform	¥3.70B	9.88	―	―	1.62%	9.93%
7351	73 Outperform	¥5.72B	13.36	―	1.63%	28.98%	3664.62%
4391	71 Outperform	¥3.84B	13.65	―	1.50%	10.09%	11.54%
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.