Ureru Net Advertising Co.,Ltd. (9235) AI Stock Analysis

• Market Cap: ¥4.32B
• Dividend Yield: N/A
• Average Volume (3M): 111.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 49.01%
• EPS Growth: -21.56%
• Country: JP
• Employees: 47
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -2.02
• Shares Outstanding: 7,701,791
• 10 Day Avg. Volume: 53,080
• 30 Day Avg. Volume: 111,793
• PEG Ratio: -0.86
• Price to Book (P/B): 15.02
• Price to Sales (P/S): 6.49
• P/FCF Ratio: -149.56
• 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: 43 Neutral
• Price Target: ¥549.00 ▼(-14.88% Downside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is primarily weighed down by weak financial quality—ongoing losses, negative operating/free cash flow, and higher leverage—despite exceptional revenue growth. Technicals also remain bearish with the stock below key long-term moving averages and a negative MACD, while valuation is unattractive due to loss-making earnings and no dividend support.

Positive Factors

Revenue Growth

Sustained, outsized revenue expansion demonstrates strong top-line traction and market demand for the firm's offerings. Over 2-6 months this scale can enable better unit economics, bargaining power with partners, and a larger addressable base to convert toward profitability if operating discipline improves.

Gross Profitability

A relatively healthy gross margin provides a structural cushion: it shows the core service/product retains value after direct costs. This allows management room to invest in sales and R&D while pursuing operating leverage, making eventual margin recovery more achievable than for businesses with weak gross economics.

Free Cash Flow Coverage

A positive free cash flow to net income ratio implies the company converts reported losses into at least partial cash coverage, reducing immediate liquidity strain. Structurally this improves runway, supports near-term operations without constant equity dilution, and aids negotiations with lenders or partners.

Negative Factors

Operating Profitability

Persistent negative EBIT and net margins indicate the company is not yet generating operating profits from its revenue base. Over months this limits internal reinvestment capacity, delays sustainable shareholder returns, and forces reliance on external financing until structural cost or pricing improvements are realized.

Cash Flow Deficit

Negative operating and free cash flows point to ongoing operational cash burn despite revenue growth. This structural cash shortfall reduces financial flexibility, increases funding dependency, and elevates execution risk for strategic initiatives unless cash conversion improves or financing is secured on favorable terms.

Rising Leverage & Negative ROE

An increased debt-to-equity ratio combined with negative ROE signals the balance sheet is becoming more leveraged while capital is not earning returns. Over time higher leverage raises interest and refinancing risk and constrains strategic flexibility, making recovery harder if revenue growth slows.

Ureru Net Advertising Co.,Ltd. Business Overview & Revenue Model

Company Description

Ureru Net Advertising Co., Ltd. (9235) is a Japanese company specializing in digital marketing solutions. The company operates primarily within the online advertising sector, providing services that include search engine marketing, social media advertising, and display advertising. Ureru Net focuses on leveraging data analytics and customer insights to optimize marketing campaigns for businesses looking to enhance their online presence and reach targeted audiences effectively.

How the Company Makes Money

Ureru Net Advertising generates revenue through multiple streams, primarily from its digital advertising services. The company charges clients for advertising placements on various platforms, including pay-per-click (PPC) campaigns, where clients pay based on user interactions with their ads. Additionally, Ureru Net offers premium services, such as campaign management and analytics reporting, which provide clients with insights into their advertising performance. The company may also partner with other businesses in the tech and marketing sectors to expand its service offerings, creating joint ventures or affiliate marketing arrangements that contribute to its earnings. Overall, the combination of direct service fees, premium offerings, and strategic partnerships establishes a robust revenue model for Ureru Net Advertising.

Ureru Net Advertising Co.,Ltd. Financial Statement Overview

Summary

Despite very strong revenue growth, profitability remains weak with negative net profit/EBIT margins, and cash generation is pressured by negative operating and free cash flows. Higher leverage and negative ROE add financial risk.

Income Statement

Ureru Net Advertising Co.,Ltd. has shown significant revenue growth in the latest year, with a remarkable increase of 789.25%. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively healthy, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow metrics reveal challenges, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some ability to cover net losses, but the negative growth in free cash flow is concerning. The operating cash flow to net income ratio is also negative, highlighting cash flow management issues.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	1.57B	756.72M	959.40M	843.80M	2.40B
Gross Profit	919.00M	462.81M	707.55M	577.77M	720.18M
EBITDA	-27.00M	-228.79M	237.73M	-6.07M	228.49M
Net Income	-444.00M	-326.73M	113.31M	-52.91M	134.74M
Balance Sheet
Total Assets	1.91B	1.43B	1.05B	879.65M	1.05B
Cash, Cash Equivalents and Short-Term Investments	497.00M	278.02M	386.94M	169.75M	544.42M
Total Debt	688.00M	396.84M	10.94M	6.45M	3.87M
Total Liabilities	1.23B	735.62M	403.44M	349.91M	464.30M
Stockholders Equity	677.00M	693.05M	643.04M	529.74M	582.65M
Cash Flow
Free Cash Flow	-68.00M	-509.62M	219.06M	-346.04M	-66.84M
Operating Cash Flow	-58.00M	-384.93M	264.46M	-65.88M	-6.04M
Investing Cash Flow	-92.00M	-190.67M	-45.41M	-306.96M	-63.32M
Financing Cash Flow	356.00M	466.68M	-1.87M	-1.83M	-10.20M

Ureru Net Advertising Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 645.00
• 50DMA: Negative
• 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:9235, the sentiment is Negative. The current price of 645 is above the 20-day moving average (MA) of 605.65, above the 50-day MA of 644.36, and below the 200-day MA of 1115.08, indicating a bearish trend. The MACD of -21.97 indicates Positive momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 28.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9235.

Ureru Net Advertising Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6045	68 Neutral	¥13.55B	21.11	―	2.19%	14.43%	10.99%
6533	64 Neutral	¥10.80B	12.67	―	0.91%	15.68%	-64.57%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.94B	31.64	―	2.61%	11.84%	246.10%
6094	50 Neutral	¥13.01B	16.25	―	―	-2.68%	91.68%
7063	44 Neutral	¥3.22B	-3.92	―	―	-83.17%	91.97%
9235	43 Neutral	¥4.32B	-9.17	―	―	49.01%	-21.56%