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

• Market Cap: ¥4.21B
• Dividend Yield: N/A
• Average Volume (3M): 111.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 49.01%
• EPS Growth: -21.56%
• Country: JP
• Employees: 47
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -9.90
• 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: ¥545.00 ▼(-15.50% 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

Strong Revenue Growth

Exceptional top-line growth indicates strong market demand and product-market fit, creating room to achieve scale economies. Sustained high revenue growth over months can enable operating leverage, support reinvestment in marketing and product, and improve long-term profitability prospects if cost structure is controlled.

Relatively Healthy Gross Margin

A healthy gross margin provides a structural cushion to absorb SG&A and investment spending while pursuing growth. This margin strength supports the potential to attain positive operating margins as fixed costs are leveraged across higher sales, underpinning sustainable earnings improvement over the medium term.

Stable Equity Ratio / Balanced Asset Structure

A stable equity ratio signals a resilient asset funding mix and less dependency on volatile short-term liabilities. Structurally, this balance improves the company's ability to withstand funding stress, access capital when needed, and execute strategic investments without immediate solvency pressure.

Negative Factors

Negative Profitability

Persistent negative EBIT and net margins erode retained earnings and limit the firm's ability to self-finance growth. Over a multi-month horizon, continued unprofitability increases the likelihood of financing needs, reduces resilience to cost shocks, and makes achieving durable shareholder returns more challenging.

Negative Operating & Free Cash Flow

Ongoing cash burn undermines financial flexibility: negative operating and free cash flows force reliance on external funding, constrain capital allocation, and can limit investment in growth initiatives. This structural cash shortfall heightens refinancing and liquidity risk over the medium term.

Rising Leverage and Negative ROE

Higher leverage combined with negative ROE raises financial vulnerability: increased interest burden and lower equity returns reduce buffer against downturns. Structurally, this limits strategic flexibility, elevates default risk if performance weakens, and can increase future cost of capital.

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

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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	919.10M	462.81M	681.05M	555.16M	713.24M
EBITDA	-26.14M	-223.88M	222.10M	-16.98M	218.50M
Net Income	-444.11M	-326.73M	113.31M	-52.91M	134.74M
Balance Sheet
Total Assets	1.91B	1.43B	1.05B	882.16M	1.05B
Cash, Cash Equivalents and Short-Term Investments	497.28M	278.02M	386.94M	169.75M	544.42M
Total Debt	689.77M	396.84M	10.94M	6.45M	3.87M
Total Liabilities	1.23B	735.62M	403.44M	352.42M	466.72M
Stockholders Equity	677.03M	693.05M	643.04M	529.74M	582.65M
Cash Flow
Free Cash Flow	-67.96M	-385.46M	219.06M	-346.04M	-66.84M
Operating Cash Flow	-58.24M	-384.93M	264.46M	-65.88M	-6.04M
Investing Cash Flow	-92.44M	-190.67M	-45.41M	-306.96M	-63.32M
Financing Cash Flow	356.33M	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: Negative
• 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 583.60, above the 50-day MA of 624.76, and below the 200-day MA of 1089.02, indicating a bearish trend. The MACD of -16.54 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 56.68 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	¥13.51B	22.31	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥19.58B	8.10	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥9.00B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.70B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥12.68B	2.40	―	―	-2.68%	91.68%
9235	43 Neutral	¥4.21B	-15.53	―	―	49.01%	-21.56%