f-code Inc. (9211) AI Stock Analysis

• Market Cap: ¥19.85B
• Dividend Yield: N/A
• Average Volume (3M): 209.24K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.35
• Revenue Growth: 162.74%
• EPS Growth: 55.34%
• Country: JP
• Employees: 149
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 34.06
• Shares Outstanding: 12,409,400
• 10 Day Avg. Volume: 195,350
• 30 Day Avg. Volume: 209,243
• PEG Ratio: 0.23
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 13.33
• 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): 159.8
• Revenue Forecast (FY): ¥14.10B

• Rating: 63 Neutral
• Price Target: ¥1,619.00 ▼(-27.17% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by strong revenue growth, solid gross profitability, and generally good free-cash-flow conversion. It is held back by increased leverage and 2025 margin compression, alongside weak technicals with the stock trading below key moving averages.

Positive Factors

Revenue Growth

Revenue accelerated 43.7% in 2025, reflecting expanding client demand and successful commercial execution. Sustained top-line momentum increases scale economies, deepens client relationships and recurring business, and funds investments that support durable competitive positioning over coming quarters.

High Margins

Gross margins near 60% and operating margins ~15.9% indicate structural pricing power and a scalable advertising/services model. These durable margins provide operating leverage, enabling the firm to absorb cost pressures while preserving cash generation and maintaining strategic flexibility over multiple quarters.

Strong FCF Conversion

Free cash flow tracked net income very closely (~89% in 2024; ~99% in 2025), signalling high-quality earnings and effective cash conversion. Reliable FCF supports reinvestment, debt reduction or returns, and reduces reliance on accounting adjustments for cash-driven financing decisions over time.

Negative Factors

Elevated Leverage

Debt-to-equity rising to ~1.76 from ~1.12 implies materially higher leverage and reduced balance-sheet flexibility. Elevated indebtedness increases fixed servicing costs, restricts strategic options, and magnifies downside risk if revenue or margins weaken in a cyclical advertising environment.

Margin Compression

Net margin compression from ~17.7% to ~12.2% in 2025 suggests growth came with higher costs, pricing pressure, or integration expense. Persistent margin erosion reduces cash available for debt paydown or reinvestment and weakens resilience to revenue volatility over medium-term horizons.

Low/Variable Operating Cash Flow

Operating cash flow relative to revenue remains low (~15.1% in 2024; ~18.5% in 2025) and FCF dipped in 2024, indicating variability in cash conversion. Low OCF margins constrain internal funding for growth or deleveraging and increase reliance on external financing during downturns or M&A activity.

f-code Inc. Business Overview & Revenue Model

Company Description

f-Code Inc. provides digital customer acquisition and development support services in Japan. Its product portfolio includes CODE marketing cloud, a CX improvement SaaS product. The company also provides DX strategy design/implementation support and digital marketing consulting services. f-Code Inc. was incorporated in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

f-code Inc. generates revenue primarily through its software development services and product sales. The company operates on a project-based revenue model, where clients pay for custom software solutions tailored to their specific needs. Additionally, f-code Inc. earns income from licensing its proprietary software products to businesses, which includes ongoing support and updates as part of the service. Key revenue streams also include subscription fees from its cloud-based platforms, where companies pay for access to advanced features and data analytics tools. Strategic partnerships with tech firms and enterprises further bolster its earnings, allowing f-code Inc. to expand its market reach and collaborate on larger projects.

f-code Inc. Financial Statement Overview

Summary

Strong 2025 revenue growth (+43.7% YoY) and solid profitability (gross margin ~59.7%, operating margin ~15.9%) support the score. Offsetting this are clear 2025 margin compression (net margin down to ~12.2%) and a more leveraged balance sheet (debt-to-equity ~1.76), which increases financial risk despite generally good free cash flow conversion.

Income Statement

Profitability is solid, with 2025 annual gross margin at ~59.7% and operating margin at ~15.9%, indicating good pricing power and scalability for an advertising-related model. Growth is a clear strength: revenue accelerated sharply in 2025 (43.7% year-over-year) after modest growth in 2024. The main concern is margin compression versus 2024 (net margin fell from ~17.7% to ~12.2%, and operating margin also declined), suggesting the 2025 growth came with higher costs or integration/expansion pressure.

Balance Sheet

The balance sheet shows elevated leverage. Total debt rose materially into 2025, and debt-to-equity increased to ~1.76 (from ~1.12 in 2024), which reduces financial flexibility and increases sensitivity to earnings volatility. Equity has grown over time, but the overall capital structure remains debt-heavy for the profile, making execution risk higher if profitability softens.

Cash Flow

Cash generation quality is generally supportive: free cash flow is close to net income in both 2024 and 2025 (about ~89% and ~99%, respectively), implying earnings convert well into cash after investment needs. However, operating cash flow relative to revenue remains low (about ~15.1% in 2024 and ~18.5% in 2025), and 2024 free cash flow dipped slightly year-over-year, pointing to some variability in underlying cash conversion even as reported profits grew.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.31B	11.94B	5.13B	2.48B	1.07B	660.57M
Gross Profit	4.78B	7.13B	2.84B	1.47B	627.57M	402.83M
EBITDA	2.09B	2.11B	1.80B	719.13M	169.25M	156.47M
Net Income	1.18B	1.45B	905.74M	479.70M	69.35M	152.31M
Balance Sheet
Total Assets	25.84B	26.74B	21.75B	10.98B	3.23B	843.31M
Cash, Cash Equivalents and Short-Term Investments	7.21B	8.09B	6.24B	4.04B	977.96M	601.58M
Total Debt	11.24B	13.31B	7.53B	5.72B	1.96B	178.03M
Total Liabilities	19.76B	19.97B	15.65B	7.66B	2.55B	351.46M
Stockholders Equity	6.74B	7.54B	6.73B	3.19B	689.63M	491.85M
Cash Flow
Free Cash Flow	0.00	1.33B	817.33M	831.87M	85.91M	79.25M
Operating Cash Flow	0.00	1.35B	916.49M	878.18M	120.51M	102.92M
Investing Cash Flow	0.00	-4.46B	-3.09B	-3.40B	-1.44B	-16.47M
Financing Cash Flow	0.00	4.93B	4.37B	5.59B	1.69B	189.17M

f-code Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2223.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9211, the sentiment is Positive. The current price of 2223 is above the 20-day moving average (MA) of 1544.20, above the 50-day MA of 1543.80, and above the 200-day MA of 1955.94, indicating a neutral trend. The MACD of -17.44 indicates Positive momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 52.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9211.

f-code Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2148	80 Outperform	¥37.94B	29.36	―	6.44%	2.09%	-2.15%
6535	75 Outperform	¥30.58B	194.87	―	5.35%	58.08%	29.89%
2461	69 Neutral	¥30.50B	25.63	―	5.08%	3.22%	13.97%
9211	63 Neutral	¥19.85B	12.24	―	―	162.74%	55.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2491	57 Neutral	¥14.19B	-1.99	―	7.85%	-3.20%	34.08%
4499	54 Neutral	¥33.29B	-21.27	―	―	4.53%	-464.41%