NOVARESE,Inc. (9160) AI Stock Analysis

• Market Cap: ¥7.57B
• Dividend Yield: N/A
• Average Volume (3M): 21.96K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.47
• Revenue Growth: 12.19%
• EPS Growth: 28.25%
• Country: JP
• Employees: 1,130
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 46.99
• Shares Outstanding: 25,073,093
• 10 Day Avg. Volume: 24,400
• 30 Day Avg. Volume: 21,960
• PEG Ratio: 0.07
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 3.45
• 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): 34.8
• Revenue Forecast (FY): ¥45.70B

• Rating: 65 Neutral
• Price Target: ¥344.00 ▲(9.90% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by improving financial performance (recovery in revenue and profitability) but constrained by still-elevated leverage and a recent decline in free cash flow. Valuation is a positive contributor due to the low P/E, while technicals are mixed with negative MACD and the price sitting below key longer-term moving averages.

Positive Factors

Revenue recovery

Sustained revenue growth through 2025 demonstrates the company has regained demand traction since the 2020 trough. A rising top line provides a firmer base for operating leverage, supports reinvestment in products and services, and reduces reliance on one-off gains for earnings stability.

Improving profitability

Higher operating and net margins in 2025 point to better cost control and pricing execution. Durable margin improvement, if maintained, strengthens cash flow generation potential and the ability to reinvest in automation capabilities, improving long-term competitive positioning.

Positive cash generation

Consistent positive operating and free cash flow since the turnaround supports internal funding for capex and working capital, lowering dependence on external financing. The move from negative to positive cash flow indicates structural improvement in business economics and liquidity resilience.

Negative Factors

Elevated leverage

A debt-heavy capital structure (debt > equity, D/E ~1.22x) constrains financial flexibility, raising refinancing and interest-rate risk. Elevated leverage limits the company's ability to pursue opportunistic investments or absorb cyclical downturns without increasing financial strain.

Weaker cash conversion

Declining free cash flow and FCF below net income suggest working capital or capex pressures and weaker earnings-to-cash conversion. If persistent, this reduces capacity to pay down debt, fund growth organically, or sustain distributions, increasing reliance on external financing.

Margin volatility

Notable margin swings versus the 2022 high indicate earnings are sensitive to cost or mix shifts. Ongoing margin volatility undermines predictability of profits, complicates strategic planning and valuation of long-term returns, and may reflect exposure to cyclical industrial demand or pricing pressure.

NOVARESE,Inc. Business Overview & Revenue Model

Company Description

Novarese, Inc. engages in the wedding and restaurant businesses in Japan and internationally. The company provides wedding-related services, including venue guidance, wedding day planning, food and gift selection, and day-of operations; operates dress shops under the NOVARESE and ECRUSPOSE brands, that sells and rents wedding dresses, tuxedos, and Japanese attire, as well as party dresses for wedding and reception attendees; operates wedding banquets and restaurants; and provides flower decoration, as well as photography and videography services for weddings, and other events and parties. It also involved in the operation of WEDO, system that supports marriage preparation; provision of gifts to bride, groom, and guests at the wedding reception; business support services; and advertising agency services, including advertising planning, visual photography, graphic design, production of promotional tools, media purchasing, and planning and management of PR events. The company was formerly known as Workaholic Co., Ltd. and changed its name to Novarese, Inc. in December 2002. Novarese, Inc. was founded in 2000 and is headquartered in Chuo, Japan.

How the Company Makes Money

NOVARESE, Inc. generates revenue primarily through the sale of its proprietary therapeutic products and diagnostic services. The company has established key revenue streams from direct product sales to healthcare providers and institutions, as well as licensing agreements with pharmaceutical companies for its patented technologies. Additionally, NOVARESE engages in strategic partnerships with research organizations and healthcare systems, which not only enhances its research capabilities but also opens up new markets and distribution channels. Government grants and funding for research initiatives also contribute to the company's financial health, allowing for sustained innovation and development.

NOVARESE,Inc. Financial Statement Overview

Summary

Improving operating results and steady revenue growth (2025 revenue up ~5.3% YoY) support the score, but earnings quality is tempered by margin volatility versus the 2022 peak. The balance sheet is gradually de-risking, yet leverage remains elevated (2025 debt-to-equity ~1.22x). Cash flow is positive, though 2025 free cash flow declined (~-13.8% YoY) and trails net income, indicating weaker cash conversion.

Income Statement

Revenue has rebounded strongly from 2020 and continued to grow through 2025 (2025 revenue up ~5.3% year over year). Profitability also improved versus 2024, with higher operating and net margins in 2025. However, margins are still well below the 2022 peak (notably net margin and operating margin), highlighting some volatility in underlying earnings power.

Balance Sheet

Leverage remains elevated, with debt still exceeding equity (2025 debt-to-equity ~1.22x), which can limit flexibility in a downturn. The good news is the balance sheet has been de-risking versus prior years (debt-to-equity fell materially from 2021–2023 levels), supported by a growing equity base. Overall asset size is stable, but the capital structure is still meaningfully debt-heavy.

Cash Flow

Cash generation is solid: 2025 operating cash flow and free cash flow are both positive and sizable. That said, free cash flow declined in 2025 (about -13.8% year over year), and free cash flow is less than net income in 2025, suggesting weaker cash conversion than some prior years. The company has improved significantly from 2020’s negative cash flow, but cash flow consistency remains a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.04B	19.30B	18.27B	17.22B	11.19B
Gross Profit	12.24B	10.86B	10.18B	10.14B	6.40B
EBITDA	4.73B	3.82B	3.91B	4.93B	2.93B
Net Income	1.26B	663.90M	942.27M	1.66B	374.02M
Balance Sheet
Total Assets	36.82B	34.73B	32.30B	31.98B	32.63B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.57B	1.72B	2.80B	2.25B
Total Debt	12.37B	13.53B	19.01B	14.13B	22.31B
Total Liabilities	26.71B	25.89B	24.12B	24.75B	27.04B
Stockholders Equity	10.11B	8.85B	8.18B	7.23B	5.59B
Cash Flow
Free Cash Flow	2.27B	2.50B	1.02B	3.26B	2.15B
Operating Cash Flow	4.76B	3.89B	3.00B	4.62B	2.37B
Investing Cash Flow	-2.65B	-1.45B	-2.03B	-1.34B	-253.64M
Financing Cash Flow	-2.22B	-621.47M	-2.04B	-2.73B	-2.21B

NOVARESE,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 313.00
• 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:9160, the sentiment is Negative. The current price of 313 is below the 20-day moving average (MA) of 313.75, below the 50-day MA of 314.42, and below the 200-day MA of 323.01, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9160.

NOVARESE,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2198	71 Outperform	¥24.03B	3.59	―	3.04%	-3.47%	14.42%
4331	69 Neutral	¥10.32B	5.24	―	5.06%	0.36%	81.58%
2424	69 Neutral	¥3.45B	-6.02	―	1.24%	6.77%	40.10%
9160	65 Neutral	¥7.57B	6.24	―	―	12.19%	28.25%
2485	64 Neutral	¥11.70B	12.72	―	4.02%	14.46%	18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	54 Neutral	¥3.80B	3.91	―	―	-4.35%	-132.57%