Retty Inc. (7356) AI Stock Analysis

• Market Cap: ¥2.40B
• Dividend Yield: N/A
• Average Volume (3M): 81.57K
• Price to Earnings (P/E): 203.1
• Beta (1Y): 0.66
• Revenue Growth: 4.36%
• EPS Growth: N/A
• Country: JP
• Employees: 96
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.23
• Shares Outstanding: 14,981,674
• 10 Day Avg. Volume: 75,050
• 30 Day Avg. Volume: 81,570
• PEG Ratio: 0.00
• 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: 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: 45 Neutral
• Price Target: ¥148.00 ▼(-6.33% Downside)

Retty Inc.'s stock score reflects significant financial performance challenges, particularly in revenue growth and cash flow generation. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. These factors contribute to a cautious outlook for the stock.

Positive Factors

Leverage Management

Improved leverage management indicates better financial discipline and reduces risk, enhancing long-term financial stability.

Profitability Improvements

Improving EBIT and EBITDA margins suggest operational enhancements, which could lead to sustained profitability over time.

User Base Growth

An expanding user base strengthens the revenue model by increasing potential advertising and partnership opportunities, supporting long-term growth.

Negative Factors

Revenue Decline

A declining revenue trend poses a challenge to growth and sustainability, potentially impacting long-term financial health.

Cash Flow Challenges

Negative cash flow metrics indicate inefficiencies in cash generation, which could hinder investment and operational flexibility.

Profitability Challenges

Low net profit margins despite positive gross margins highlight ongoing profitability challenges, affecting long-term viability.

Retty Inc. Business Overview & Revenue Model

Company Description

Retty Inc. operates gourmet platform. It operates Retty, a platform that provides information on restaurants and stores in Japan. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Retty Inc. generates revenue primarily through advertising and promotional services offered to restaurants featured on its platform. Restaurants pay for enhanced visibility and promotional placements, which helps them reach a larger audience. Additionally, the company may earn revenue through partnerships with food delivery services and other related businesses, providing a commission-based model for transactions initiated through its platform. The success of Retty's revenue model is bolstered by its growing user base and the increasing trend of consumers relying on online reviews and recommendations when choosing dining options.

Retty Inc. Financial Statement Overview

Summary

Retty Inc. faces considerable financial challenges with declining revenue, persistent losses, and cash flow issues. The high leverage and low profitability raise concerns about the company's ability to sustain operations without significant changes. While there are strengths in gross profit margins, the overall financial health suggests a need for strategic adjustments to improve growth, profitability, and liquidity.

Income Statement

Retty Inc.'s income statement shows declining revenue and persistent net losses. The TTM gross profit margin stands at 67.6%, indicating good cost management, but the net profit margin is negative at -4.6% due to substantial losses. Revenue has decreased over the years, with a TTM revenue of ¥1.6 billion compared to ¥2.2 billion in 2020, signaling a negative growth trajectory. The EBIT and EBITDA margins are also negative, reflecting challenges in achieving operational profitability.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio of approximately 1.82, indicating significant leverage. Stockholders' equity is positive but has declined over the years. The equity ratio is 29.2%, suggesting a balanced but leveraged capital structure. Despite having cash reserves, the company faces risks due to high liabilities compared to equity, which could impact financial stability.

Cash Flow

Retty Inc.'s cash flow statements reveal ongoing challenges in generating positive cash flows. The operating cash flow is consistently negative, and the free cash flow has not improved, with a TTM free cash flow of zero. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, further highlighting cash management issues. These factors indicate significant risks in liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.63B	1.63B	1.56B	1.56B	1.72B	1.94B
Gross Profit	1.13B	1.14B	1.10B	947.45M	905.80M	1.26B
EBITDA	7.13M	27.89M	-87.38M	-559.79M	-783.82M	-334.64M
Net Income	12.35M	11.73M	-79.95M	-612.20M	-859.68M	-358.59M
Balance Sheet
Total Assets	922.54M	932.28M	1.07B	1.27B	1.67B	1.73B
Cash, Cash Equivalents and Short-Term Investments	413.31M	367.81M	660.31M	872.61M	894.62M	629.16M
Total Debt	474.71M	454.45M	596.33M	701.60M	1.18B	378.67M
Total Liabilities	601.64M	592.99M	753.05M	878.26M	1.37B	613.75M
Stockholders Equity	320.90M	339.29M	314.61M	392.94M	304.93M	1.11B
Cash Flow
Free Cash Flow	0.00	-150.64M	-107.08M	-293.40M	-571.31M	-444.68M
Operating Cash Flow	0.00	-41.06M	-105.85M	-284.40M	-558.22M	-439.73M
Investing Cash Flow	0.00	-109.64M	-1.22M	42.64M	-8.74M	-61.19M
Financing Cash Flow	0.00	-141.80M	-105.21M	219.75M	832.33M	671.48M

Retty Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 158.00
• 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:7356, the sentiment is Negative. The current price of 158 is above the 20-day moving average (MA) of 157.25, below the 50-day MA of 160.16, and below the 200-day MA of 181.03, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7356.

Retty Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	61 Neutral	¥2.86B	15.99	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.72B	-46.55	―	―	-32.32%	-69.96%
7356	45 Neutral	¥2.40B	203.07	―	―	4.36%	―
3645	43 Neutral	¥2.64B	-299.85	―	1.01%	13.89%	82.37%