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Goodpatch, Inc.
(7351)
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Rating:66Neutral
Price Target:
¥494.00
▼(-26.60% Downside)
Action:Downgraded
Date: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 indicates durable client demand for Goodpatch's UX/UI and product design services. Given its role supporting design-driven digital transformation, this top-line momentum suggests scalable service adoption and a multi-month runway for continued contract wins and project expansion.
Negative Factors
Modest profitability metrics
Net margin of ~8% and ROE under 10% point to limited profitability and capital efficiency relative to peers. Persistently modest margins constrain cash available for reinvestment or shareholder returns and signal potential pressure on pricing power or cost structure that could limit durable earnings expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
Sustained 32.6% revenue growth indicates durable client demand for Goodpatch's UX/UI and product design services. Given its role supporting design-driven digital transformation, this top-line momentum suggests scalable service adoption and a multi-month runway for continued contract wins and project expansion.
Read all positive factors
Goodpatch, Inc. (7351) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.23B
Dividend Yield1.54%
Average Volume (3M)31.98K
Price to Earnings (P/E)10.1
Beta (1Y)0.66
Revenue Growth19.52%
EPS Growth97.35%
CountryJP
Employees262
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)46.27
Shares Outstanding9,246,820
10 Day Avg. Volume28,110
30 Day Avg. Volume31,976
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.94
Price to Sales (P/S)1.58
P/FCF Ratio9.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.09B | 3.94B | 3.93B | 3.72B | 2.74B |
| Gross Profit | 2.94B | 2.18B | 2.27B | 2.28B | 1.73B |
| EBITDA | 708.33M | 132.80M | 433.21M | 234.93M | 452.29M |
| Net Income | 407.05M | 11.53M | 216.04M | 72.54M | 327.65M |
Balance Sheet | |||||
| Total Assets | 5.25B | 4.68B | 4.67B | 4.17B | 3.44B |
| Cash, Cash Equivalents and Short-Term Investments | 2.73B | 3.28B | 3.27B | 2.91B | 2.78B |
| Total Debt | 248.40M | 401.26M | 192.73M | 361.46M | 452.81M |
| Total Liabilities | 1.11B | 804.63M | 730.54M | 963.29M | 868.37M |
| Stockholders Equity | 4.15B | 3.87B | 3.94B | 3.21B | 2.57B |
Cash Flow | |||||
| Free Cash Flow | 842.06M | -70.19M | 76.55M | 395.57M | 461.70M |
| Operating Cash Flow | 844.39M | -57.12M | 78.67M | 410.65M | 483.32M |
| Investing Cash Flow | -1.08B | -58.49M | -97.20M | -673.68M | -64.85M |
| Financing Cash Flow | -310.33M | 116.90M | 373.91M | 389.55M | 1.42B |
Goodpatch, Inc. Technical Analysis
Negative
673.00
Price Trends
465.30
Negative
473.44
Negative
583.43
Negative
Market Momentum
-3.78
Positive
45.80
Neutral
27.73
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 467.55, above the 50-day MA of 465.30, and above the 200-day MA of 583.43, indicating a bearish trend. The MACD of -3.78 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 27.73 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥51.67B | 23.41 | ― | 0.52% | 20.60% | 35.88% | |
77 Outperform | ¥231.85B | 15.55 | ― | 0.43% | 15.63% | 22.43% | |
72 Outperform | ¥8.82B | 12.26 | ― | 1.01% | 8.34% | -5.27% | |
66 Neutral | ¥4.23B | 10.12 | ― | 1.54% | 19.52% | 97.35% | |
65 Neutral | ¥8.77B | 10.32 | ― | 2.16% | -1.76% | 25.65% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥138.13B | 21.15 | ― | 1.76% | 178.95% | 4567.63% |
* Technology Sector Average
JP:7351
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Goodpatch, Inc. Corporate Events
Goodpatch Posts Modest Sales Growth but Weaker Profits, Keeps Full-Year Outlook Intact
Apr 21, 2026
Goodpatch Inc. reported consolidated net sales of ¥2.58 billion for the six months to Feb. 28, 2026, up 4.4% year on year, but operating profit fell 20.4% to ¥262 million and profit attributable to owners of parent declined 6.7% to ¥...
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.