f-code Inc. (9211) AI Stock Analysis

• Market Cap: ¥19.10B
• Dividend Yield: N/A
• Average Volume (3M): 209.24K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.32
• 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 Acceleration

A 43.7% revenue acceleration in 2025 signals durable demand expansion or successful client wins and service scaling. Sustained top-line momentum deepens client relationships and funds reinvestment in capabilities, supporting structural market share gains if management sustains execution.

High Gross and Operating Margins

Elevated gross (~59.7%) and operating (~15.9%) margins point to pricing power and scalable service delivery in the advertising model. These margins provide a durable profit buffer to absorb incremental costs, fund growth initiatives, and support long-term free cash flow generation if cost discipline continues.

Strong Free Cash Flow Conversion

Near-parity of free cash flow and net income (~99% in 2025) shows earnings largely convert to cash after investments. Durable cash conversion enhances funding for capex, acquisitions, or debt reduction and reduces reliance on external financing over the medium term if operational trends hold.

Negative Factors

Elevated Leverage

Debt-to-equity rising to ~1.76 materially increases financial risk and interest obligations. A debt-heavy capital structure reduces flexibility for strategic investment, heightens sensitivity to cyclical ad revenue swings, and raises refinancing and execution risk if margins weaken or cash flow softens.

Margin Compression

Notable net margin decline (17.7% to 12.2%) indicates 2025 growth incurred higher costs or integration pressures. Persistent margin erosion would undercut the company’s earnings quality and cash generation, making it harder to service debt and reinvest in the business over multiple quarters.

Low and Variable Operating Cash Flow Margin

Operating cash flow margins around the high-teens and a prior-year FCF dip signal cash conversion variability and modest cash intensity relative to revenue. This reduces the predictability of internal funding for growth or deleveraging, increasing the importance of consistent margin recovery and working capital control.

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	4.71B	7.13B	2.75B	1.40B	593.29M	402.83M
EBITDA	1.57B	2.11B	1.24B	711.17M	172.44M	163.69M
Net Income	1.16B	1.45B	905.74M	479.70M	69.35M	152.31M
Balance Sheet
Total Assets	25.84B	26.74B	21.82B	10.98B	3.28B	843.31M
Cash, Cash Equivalents and Short-Term Investments	7.21B	8.09B	6.24B	4.04B	977.96M	601.58M
Total Debt	11.10B	13.04B	7.53B	5.72B	1.96B	178.03M
Total Liabilities	19.76B	19.97B	15.72B	7.66B	2.59B	351.45M
Stockholders Equity	6.74B	7.54B	6.73B	3.19B	689.63M	491.85M
Cash Flow
Free Cash Flow	0.00	1.33B	911.38M	860.21M	96.70M	99.83M
Operating Cash Flow	0.00	1.35B	916.49M	878.18M	120.51M	102.92M
Investing Cash Flow	0.00	-4.46B	-2.88B	-3.40B	-1.44B	-16.47M
Financing Cash Flow	0.00	4.93B	4.16B	5.59B	1.69B	189.17M

f-code Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2223.00
• 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:9211, the sentiment is Negative. The current price of 2223 is above the 20-day moving average (MA) of 1539.20, above the 50-day MA of 1562.42, and above the 200-day MA of 1933.32, indicating a bearish trend. The MACD of 3.65 indicates Negative momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 53.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9211.

f-code Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥28.09B	3.66	―	5.35%	58.08%	29.89%
9782	71 Outperform	¥20.96B	16.52	―	9.87%	11.51%	-29.82%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
9211	63 Neutral	¥19.10B	12.24	―	―	162.74%	55.34%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4499	54 Neutral	¥30.43B	-21.27	―	―	4.53%	-464.41%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%

f-code Inc. Corporate Events

F-code Targets Aggressive Profit Growth on Strong FY2025 Results and Debt-Fueled M&A Strategy

F-code Inc. reported strong financial results for the fiscal year ending December 31, 2025, with net sales of ¥11.93 billion, roughly 2.3 times the previous year, and operating profit of ¥2.34 billion, about 1.8 times year on year. The company executed six M&A deals in 2025 totaling ¥3.8 billion in investment, generating ¥0.67 billion in operating profit contribution and driving acquired businesses that continue to grow at about 50% annually.

For fiscal 2026, F-code is forecasting operating profit of ¥3.3 billion, assuming around 40% growth primarily from existing businesses and excluding the impact of the recently announced acquisition of AI One Inc. and any additional deals. Management emphasizes a financial model based on debt-funded M&A and disciplined governance, under which it believes annual profit growth of around 50% is achievable, underscoring continued expansion and a more aggressive growth trajectory for stakeholders.

The most recent analyst rating on (JP:9211) stock is a Hold with a Yen1571.00 price target. To see the full list of analyst forecasts on f-code Inc. stock, see the JP:9211 Stock Forecast page.

F-code Doubles Revenue and Lifts Profits as Cash Position Strengthens

F-code Inc. reported a sharp expansion in scale for the year ended December 31, 2025, with revenue surging 132.7% year on year to ¥11.94 billion and operating income rising 76.4% to ¥2.34 billion. Net income attributable to owners of the parent grew 73.2% to ¥1.45 billion, while earnings per share climbed to ¥118.59, reflecting improved profitability despite a modest decline in the equity ratio.

The company continued to invest heavily, with negative investing cash flows offset by strong operating cash generation and substantial financing inflows that lifted year-end cash and cash equivalents to ¥8.06 billion. F-code maintained its no-dividend policy and issued an upbeat full-year 2026 forecast, projecting further double-digit growth in revenue and profit, underscoring management’s confidence in sustaining its rapid expansion trajectory.

The most recent analyst rating on (JP:9211) stock is a Hold with a Yen1571.00 price target. To see the full list of analyst forecasts on f-code Inc. stock, see the JP:9211 Stock Forecast page.