GEOCODE CO.,Ltd. (7357) AI Stock Analysis

• Market Cap: ¥4.09B
• Dividend Yield: 2.36%
• Average Volume (3M): 7.46K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.58
• Revenue Growth: 5.91%
• EPS Growth: -64.01%
• Country: JP
• Employees: 118
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 12.84
• Shares Outstanding: 2,796,100
• 10 Day Avg. Volume: 3,440
• 30 Day Avg. Volume: 7,460
• PEG Ratio: 6.90
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 14.61
• 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: 62 Neutral
• Price Target: ¥1,552.00 ▲(8.68% Upside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

The overall stock score is primarily influenced by the company's solid financial foundation and positive technical indicators, suggesting potential for growth. However, the extremely high P/E ratio raises concerns about overvaluation, which significantly impacts the score.

Positive Factors

Balance sheet strength

A healthy equity base and low leverage provide durable financial resilience. This strengthens the company's ability to fund investments, withstand downturns, access credit on favorable terms and sustain client-focused spending, supporting long-term operational stability.

Operating cash flow improvement

Improved operating cash generation indicates the core digital marketing business converts revenue into cash efficiently. Sustained OCF supports reinvestment in tools and services, funds working capital, and provides flexibility for capex, dividends or opportunistic M&A.

High gross profit margins

Strong gross margins reflect pricing power or efficient service delivery in digital marketing. Durable margin advantage allows investment in product development and client retention while absorbing SG&A variability, supporting resilient operating economics over time.

Negative Factors

Declining profitability margins

A persistent decline in EBIT and net margins from rising operating losses erodes long-term profitability and return on capital. If structural, it may force cost restructuring, reduce cash available for growth initiatives and weaken competitive reinvestment capacity.

Shrinking asset and equity base

A shrinking asset and equity base can signal constrained capacity to scale services or invest in platform enhancements. Over time this reduces financial flexibility, limits balance-sheet-backed growth initiatives and may restrict the firm's ability to pursue larger client engagements.

Volatile revenue and free cash flow

Inconsistent revenue and unstable free cash flow complicate multi-period planning and capital allocation. Structural volatility increases execution risk for long-term projects, hampers predictable reinvestment or payouts, and may force conservative spending or emergency financing.

GEOCODE CO.,Ltd. Business Overview & Revenue Model

Company Description

GEOCODE CO.,Ltd. engages web marketing and cloud businesses. The company offers search engine optimization and advertisement agency services; and website and various systems planning, production, and consulting services. It also develops, operates, and sells Next IC Card, a cloud-based attendance management, transportation expenses, and expense settlement tool; and Next SFA, a cloud-based sales support tool. The company was founded in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GEOCODE generates revenue primarily by providing digital marketing services to corporate clients and charging fees tied to the delivery and management of those services. Key revenue streams typically include (1) service/consulting fees for planning and operating digital marketing initiatives (e.g., campaign management and performance improvement support) and (2) fees associated with implementing and operating marketing-related solutions for clients. Any material segment breakdowns, named products, pricing structures (fixed vs. performance-based), and significant partnerships are null.

GEOCODE CO.,Ltd. Financial Statement Overview

Summary

GEOCODE CO.,Ltd. demonstrates financial resilience with a robust equity base and improving cash flow operations. However, declining profitability margins and fluctuating revenues pose challenges. The company needs to focus on stabilizing income and optimizing asset management to ensure sustainable growth.

Income Statement

The company shows strong gross profit margins, but a declining trend in EBIT and net profit margins due to increasing operating losses. Revenue growth is inconsistent, reflecting volatility in income generation.

Balance Sheet

The balance sheet reflects a healthy equity position with a low debt-to-equity ratio, suggesting financial stability. However, declining total assets and equity over the years could be a concern.

Cash Flow

Operating cash flow has improved recently, but free cash flow growth is unstable. The operating cash flow to net income ratio indicates efficient cash generation from operations despite inconsistent free cash flow.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	1.61B	1.58B	1.52B	1.52B	3.45B	3.04B
Gross Profit	813.33M	806.16M	808.39M	855.69M	910.91M	880.67M
EBITDA	-6.20M	-1.45M	12.44M	109.71M	215.00M	238.12M
Net Income	11.92M	16.73M	14.21M	79.66M	132.78M	111.29M
Balance Sheet
Total Assets	1.76B	1.84B	1.94B	2.01B	1.97B	1.70B
Cash, Cash Equivalents and Short-Term Investments	725.56M	939.86M	1.22B	1.31B	1.26B	1.19B
Total Debt	122.32M	159.46M	206.90M	276.26M	289.70M	156.76M
Total Liabilities	672.33M	666.67M	720.65M	774.91M	820.82M	687.30M
Stockholders Equity	1.09B	1.17B	1.22B	1.24B	1.15B	1.01B
Cash Flow
Free Cash Flow	0.00	129.24M	23.78M	71.63M	36.00M	95.50M
Operating Cash Flow	0.00	130.90M	26.18M	74.93M	42.40M	99.02M
Investing Cash Flow	0.00	-301.76M	-7.93M	-19.31M	-114.20M	-9.81M
Financing Cash Flow	0.00	-105.80M	-110.53M	-5.49M	138.39M	505.65M

GEOCODE CO.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1428.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7357, the sentiment is Positive. The current price of 1428 is below the 20-day moving average (MA) of 1481.45, below the 50-day MA of 1538.63, and above the 200-day MA of 1272.01, indicating a neutral trend. The MACD of -27.95 indicates Negative momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7357.

GEOCODE CO.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥28.09B	3.66	―	5.35%	58.08%	29.89%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
7357	62 Neutral	¥4.09B	26.45	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%