ONDECK Co., Ltd. (7360) AI Stock Analysis

• Market Cap: ¥2.29B
• Dividend Yield: N/A
• Average Volume (3M): 1.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 20.14%
• EPS Growth: 278.37%
• Country: JP
• Employees: 55
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.89
• Shares Outstanding: 2,863,500
• 10 Day Avg. Volume: 1,610
• 30 Day Avg. Volume: 1,333
• PEG Ratio: 0.09
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 2.46
• 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: 47 Neutral
• Price Target: ¥809.00 ▼(-5.71% Downside)

The score is held back primarily by unstable profitability and cash generation (sharp 2025 deterioration and negative operating cash flow), despite a conservatively leveraged balance sheet. Technicals are neutral-to-mixed and valuation is constrained by current losses (negative P/E).

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility and lowers insolvency risk across downturns. This structural strength supports survival through weak operating periods, gives access to financing optionality, and preserves capacity to invest when revenues recover.

Proven cash generation in good years

The company has demonstrated the ability to produce meaningful free cash flow in stronger operating years, indicating an inherently cash-generative business model. When revenue normalizes, this capability can fund reinvestment, reduce reliance on external capital, and improve resilience.

Ability to deliver strong earnings historically

Past periods of solid profitability show the operating model can produce attractive margins under healthier top-line conditions. This suggests scalable unit economics and potential margin recovery if revenue stabilizes, making profitable outcomes achievable over the medium term.

Negative Factors

Severe revenue decline

A near-50% revenue contraction materially erodes scale and weakens competitive position. Structural top-line losses impair fixed-cost absorption, reduce pricing power, and extend recovery timelines, forcing strategic trade-offs and making multi-quarter rebounding of profitability uncertain.

Volatile and negative operating cash flow

Negative operating cash flow in 2025 indicates active cash burn despite a conservative balance sheet. Sustained OCF volatility raises refinancing or dilution risk, constrains investment, and limits the company's ability to capitalize on opportunities without external funding or asset adjustments.

Profitability instability

Large swings from strong to negative net margins signal unstable economics and weak operating leverage. Such variability undermines reliable earnings generation, complicates planning, depresses return on equity, and heightens execution risk for sustaining long-term profitable growth.

ONDECK Co., Ltd. Business Overview & Revenue Model

Company Description

ONDECK Co., Ltd. (7360) is a company that operates in the technology sector, primarily focusing on providing digital solutions and IT services. The company offers a range of products and services that cater to the needs of businesses and individuals seeking technological advancements and efficient IT support.

How the Company Makes Money

ONDECK Co., Ltd. generates revenue through a diversified model that includes the sale of digital solutions, IT services, and consultancy. The company earns money by providing tailored software solutions, offering IT support services, and engaging in technology consulting projects. Key revenue streams include subscription fees for software products, service charges for IT support, and consultancy fees. Strategic partnerships and collaborations with other tech companies and service providers also play a significant role in enhancing the company's market presence and contributing to its financial performance.

ONDECK Co., Ltd. Financial Statement Overview

Summary

Balance sheet is a clear strength with very low leverage (78 score), but operating results and cash flow are weak and volatile. The company swung from strong profitability in 2024 to meaningful losses in 2025 alongside a sharp revenue decline, and operating cash flow/FCF also turned negative again (Income Statement 32; Cash Flow 35).

Income Statement

Results are highly volatile. The company swung from solid profitability in 2024 (about 14% net margin) to meaningful losses in 2025 (about -18% net margin), alongside a sharp revenue decline (about -38% year over year). Gross margin also compressed materially versus 2024, and operating profitability turned negative, signaling weaker operating leverage and/or higher cost pressure. Strengths include a demonstrated ability to generate strong earnings in better years (2022 and 2024), but the recent deterioration and inconsistency weigh heavily on the score.

Balance Sheet

Balance sheet leverage appears conservative. Debt-to-equity stays very low across the period (roughly 0.0x–0.15x), which provides flexibility and lowers financial risk. Equity remains sizable relative to assets, supporting resilience through down cycles. The key weakness is profitability on equity: return on equity turns negative in the loss years (2023 and 2025), indicating that while the capital base is strong, returns are not consistently attractive.

Cash Flow

Cash generation is inconsistent and recently weakened. Operating cash flow was strong in 2022 and 2024, with free cash flow closely tracking net income in 2024, but it turned sharply negative in 2023 and again in 2025. The 2025 profile (negative operating cash flow alongside net losses) highlights near-term cash burn risk. A positive is that the business has shown it can produce substantial free cash flow in stronger periods, but the volatility reduces confidence.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.40B	864.42M	1.67B	826.66M	1.34B	778.76M
Gross Profit	737.57M	316.66M	960.29M	299.66M	706.05M	390.58M
EBITDA	119.33M	-211.09M	365.92M	-181.31M	220.69M	45.63M
Net Income	71.20M	-151.64M	239.07M	-152.76M	151.32M	22.79M
Balance Sheet
Total Assets	1.12B	1.16B	1.68B	1.02B	1.77B	1.33B
Cash, Cash Equivalents and Short-Term Investments	649.00M	664.47M	888.56M	520.79M	1.38B	1.07B
Total Debt	38.00M	36.67M	46.67M	0.00	14.26M	48.56M
Total Liabilities	168.00M	202.73M	575.99M	159.21M	503.64M	210.11M
Stockholders Equity	954.00M	952.54M	1.10B	865.14M	1.27B	1.12B
Cash Flow
Free Cash Flow	0.00	0.00	410.75M	-535.87M	337.63M	-23.26M
Operating Cash Flow	0.00	-218.25M	411.15M	-509.44M	347.11M	-7.74M
Investing Cash Flow	0.00	4.15M	-90.02M	-77.72M	-4.09M	-23.13M
Financing Cash Flow	0.00	-10.00M	46.63M	-268.11M	-34.35M	503.99M

ONDECK Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 858.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7360, the sentiment is Negative. The current price of 858 is above the 20-day moving average (MA) of 838.15, above the 50-day MA of 809.16, and below the 200-day MA of 878.08, indicating a bearish trend. The MACD of -5.08 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 18.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7360.

ONDECK Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	84 Outperform	¥13.38B	6.22	―	4.13%	-9.87%	4.37%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8700	65 Neutral	¥7.12B	11.25	―	3.66%	4.48%	19.69%
8746	55 Neutral	¥6.44B	-4.59	―	―	42.97%	-335.79%
8617	50 Neutral	¥5.02B	-63.32	―	1.12%	-34.90%	-1619.67%
3747	49 Neutral	¥5.03B	-34.76	―	―	-0.68%	-48.23%
7360	47 Neutral	¥2.29B	-13.93	―	―	20.14%	278.37%