Friendly Corporation (8209) AI Stock Analysis

• Market Cap: ¥855.59M
• Dividend Yield: N/A
• Average Volume (3M): 3.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 7.45%
• EPS Growth: -46.31%
• Country: JP
• Employees: 326
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -6.87
• Shares Outstanding: 2,855,699
• 10 Day Avg. Volume: 1,940
• 30 Day Avg. Volume: 3,616
• PEG Ratio: >-0.01
• Price to Book (P/B): -20.51
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -6.03
• 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: 38 Underperform
• Price Target: ¥296.00 ▼(-5.43% Downside)

Friendly Corporation's stock is rated poorly due to significant financial instability, bearish technical indicators, and unattractive valuation metrics. The company's high leverage, ongoing losses, and negative equity are major concerns, while technical analysis confirms a downtrend. The absence of a dividend yield and negative P/E ratio further detract from its investment appeal.

Positive Factors

Strong Gross Profit Margin

A high gross profit margin indicates effective cost management, which can provide a buffer against financial instability and support long-term profitability.

Diversified Business Model

A diversified business model across multiple sectors helps mitigate risks associated with market fluctuations and supports stable revenue streams over time.

Innovation and R&D Investment

Continuous investment in R&D drives innovation, leading to new products and services that can enhance competitive advantage and future growth potential.

Negative Factors

High Leverage

High leverage and negative equity indicate potential solvency issues, limiting financial flexibility and increasing risk of financial distress.

Negative Cash Flow

Negative cash flows suggest challenges in generating cash from operations, which can hinder the company's ability to invest in growth and meet financial obligations.

Ongoing Losses

Ongoing losses and negative profit margins highlight operational inefficiencies, posing a threat to long-term financial health and sustainability.

Friendly Corporation Business Overview & Revenue Model

Company Description

Friendly Corporation (8209) is a diversified enterprise operating in the technology and consumer services sectors. The company specializes in developing innovative software solutions and providing digital services that enhance user experience across various platforms. Its core products include cloud-based applications, e-commerce solutions, and customer relationship management systems, catering to a wide range of industries including retail, healthcare, and finance.

How the Company Makes Money

Friendly Corporation generates revenue through multiple streams, primarily from subscription fees for its software products and services. The company offers tiered subscription models that cater to businesses of different sizes, ensuring a steady income from recurring subscriptions. Additionally, Friendly Corporation earns revenue through consulting services, where it assists clients in implementing and optimizing its software solutions. Strategic partnerships with major tech companies and system integrators further enhance its market reach, allowing for joint ventures and collaborative projects that contribute to its overall earnings. Furthermore, the company invests in research and development to innovate and expand its product offerings, which helps maintain a competitive edge and attracts new customers.

Friendly Corporation Financial Statement Overview

Summary

The company faces significant financial challenges, including ongoing losses, high leverage, and negative equity. Despite a strong gross profit margin, profitability and cash flow generation are poor, posing substantial risks to financial stability.

Income Statement

The company has shown a consistent decline in revenue over the past few years, with a slight increase in the most recent year. Gross profit margin is relatively high at 76.6% for 2025, indicating effective cost management. However, the net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals significant financial instability. The debt-to-equity ratio is negative due to negative equity, indicating high leverage and potential solvency issues. The equity ratio is also negative, further highlighting the company's financial distress. Return on equity is not meaningful due to negative equity.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow to net income ratio is not meaningful due to negative figures. The operating cash flow to net income ratio is also negative, suggesting inefficiencies in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10B	2.07B	2.04B	1.75B	1.89B
Gross Profit	1.61B	1.56B	1.48B	1.28B	1.36B
EBITDA	-48.44M	21.92M	-88.97M	-126.03M	-213.04M
Net Income	-85.33M	-6.42M	-107.98M	-158.71M	-252.38M
Balance Sheet
Total Assets	967.11M	936.93M	978.71M	1.20B	1.56B
Cash, Cash Equivalents and Short-Term Investments	69.27M	89.29M	138.81M	275.11M	180.78M
Total Debt	614.50M	504.50M	504.50M	597.50M	2.29B
Total Liabilities	1.01B	890.60M	925.95M	1.04B	2.84B
Stockholders Equity	-40.18M	46.33M	52.76M	160.83M	-1.28B
Cash Flow
Free Cash Flow	-136.68M	-43.05M	-79.42M	-102.91M	-1.12B
Operating Cash Flow	-29.64M	-17.98M	-65.51M	-83.24M	-1.08B
Investing Cash Flow	-100.37M	-31.54M	26.30M	270.59M	771.07M
Financing Cash Flow	109.99M	-9.00K	-93.08M	-93.02M	-93.05M

Friendly Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 313.00
• 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:8209, the sentiment is Negative. The current price of 313 is above the 20-day moving average (MA) of 302.35, below the 50-day MA of 315.60, and below the 200-day MA of 340.27, indicating a bearish trend. The MACD of -4.85 indicates Negative momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 51.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8209.

Friendly Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3223	75 Outperform	¥1.65B	12.63	―	―	-0.53%	-17.97%
8181	75 Outperform	¥2.89B	6.84	―	1.33%	5.03%	129.14%
3077	67 Neutral	¥2.99B	8.76	―	―	6.16%	86.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3370	55 Neutral	¥1.15B	11.50	―	0.60%	4.19%	87.44%
7585	48 Neutral	¥1.64B	―	―	―	7.82%	-14.63%
8209	38 Underperform	¥855.59M	―	―	―	7.45%	-46.31%