itsumo.inc. (7694) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: N/A
• Average Volume (3M): 140.74K
• Price to Earnings (P/E): 50.1
• Beta (1Y): 0.60
• Revenue Growth: -2.30%
• EPS Growth: -179.57%
• Country: JP
• Employees: 279
• Sector: Industrials
• Sector Strength: 73
• Industry: Specialty Business Services
• EPS (TTM): -14.94
• Shares Outstanding: 5,946,998
• 10 Day Avg. Volume: 42,310
• 30 Day Avg. Volume: 140,740
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥862.00
• Price Target Upside: 3.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥862.00 ▲(3.61% Upside)

The overall stock score reflects a challenging financial situation with negative profitability and high leverage. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings. Improving cash flows offer a glimmer of hope for recovery.

itsumo.inc. Business Overview & Revenue Model

Company Description

itsumo.inc. (7694) is a Japanese company specializing in the e-commerce sector, particularly focused on supporting businesses in their digital transformation and online expansion. The company provides a range of services including e-commerce platform development, digital marketing, and consulting services to help businesses optimize their online presence and sales performance.

How the Company Makes Money

itsumo.inc. generates revenue through a combination of service fees and subscription models. They charge clients for developing and maintaining e-commerce platforms, offering tailored solutions that include setup, integration, and ongoing technical support. Additionally, the company earns from digital marketing services, where they provide strategies and execution for online advertising, SEO, and social media campaigns. Consultancy services are another revenue stream, where itsumo.inc. leverages its expertise to advise businesses on efficient e-commerce strategies, often forming partnerships with technology providers to offer comprehensive solutions. Key factors contributing to their earnings include their ability to attract a diverse client base across various industries seeking to enhance their digital footprint.

itsumo.inc. Financial Statement Overview

Summary

itsumo.inc. displays a mixed financial performance. Revenue growth is present but profitability metrics have deteriorated, leading to negative net income. The balance sheet is pressured by high leverage, though cash flows show recovery signs. Addressing profitability and leverage is crucial for long-term health.

Income Statement

The company's revenue growth has slowed down significantly from past years, with a minor increase from 2024 to 2025. The gross profit margin is stable, but net income has turned negative in the recent year, resulting in a negative net profit margin. EBIT and EBITDA margins have decreased, indicating weakened operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting elevated leverage levels that could pose financial risks. However, the company's equity ratio is stable, reflecting a solid base of stockholder equity relative to total assets. Return on equity has turned negative due to recent losses, which could affect investor confidence.

Cash Flow

The cash flow statement reveals a turnaround in operating cash flow, now positive, improving the operating cash flow to net income ratio. Free cash flow has also improved from the previous year's negative figure, but the free cash flow to net income ratio is still a concern due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.94B	13.94B	13.86B	12.31B	11.65B	8.80B
Gross Profit	2.98B	2.98B	3.27B	3.06B	3.08B	2.12B
EBITDA	209.74M	196.51M	405.92M	188.63M	703.62M	629.85M
Net Income	-98.01M	-98.09M	258.96M	-219.83M	361.14M	419.76M
Balance Sheet
Total Assets	8.61B	8.61B	7.42B	6.60B	6.93B	4.43B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.93B	2.13B	2.70B	4.12B	2.83B
Total Debt	4.12B	4.12B	2.90B	2.50B	2.94B	920.98M
Total Liabilities	6.25B	6.25B	4.97B	4.40B	4.52B	2.40B
Stockholders Equity	2.36B	2.36B	2.45B	2.20B	2.41B	2.03B
Cash Flow
Free Cash Flow	0.00	61.30M	-900.36M	-353.73M	364.62M	649.13M
Operating Cash Flow	0.00	65.31M	-609.17M	-344.31M	399.82M	668.15M
Investing Cash Flow	0.00	-486.29M	-356.31M	-650.34M	-925.65M	-25.62M
Financing Cash Flow	0.00	1.22B	376.18M	-429.20M	1.89B	1.10B

itsumo.inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 832.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7694, the sentiment is Neutral. The current price of 832 is below the 20-day moving average (MA) of 871.60, below the 50-day MA of 934.08, and above the 200-day MA of 574.84, indicating a neutral trend. The MACD of -28.77 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 33.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7694.

itsumo.inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7850	72 Outperform	¥2.66B	5.81		2.20%	1.84%	75.79%
3958	70 Outperform	¥3.17B	12.71		3.21%	-3.07%	-36.85%
7919	68 Neutral	¥3.45B	6.88		3.73%	2.39%	-8.65%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
7916	60 Neutral	¥4.75B	29.47		3.23%	-0.55%	―
7805	60 Neutral	¥3.44B	8.77		1.88%	-5.37%	48.09%
7694	55 Neutral	¥5.00B	50.08		―	-2.30%	-179.57%