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

• Market Cap: ¥4.08B
• Dividend Yield: N/A
• Average Volume (3M): 111.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• 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: -0.76
• Price to Book (P/B): 15.02
• Price to Sales (P/S): 6.49
• P/FCF Ratio: -149.64
• 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: ¥511.00 ▼(-20.78% 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

Exceptionally strong top-line expansion demonstrates meaningful customer adoption and market traction. Sustained revenue growth provides operational leverage potential, enabling scale benefits and investment in core capabilities over the next several months if cost structure is managed.

Healthy Gross Margin

A relatively healthy gross margin gives the company a structural buffer to cover fixed costs and fund growth. If maintained, it permits margin recovery through operating efficiencies or pricing, supporting durable improvement in profitability as revenues scale.

Stable Equity Ratio

A stable equity ratio indicates a balanced asset-financing mix and some solvency resilience. This structural stability improves the company’s ability to withstand shocks and access additional financing on reasonable terms during growth or restructuring periods.

Negative Factors

Negative Operating & Free Cash Flow

Ongoing negative operating and free cash flows materially constrain internal funding for working capital and capex. Over months this pressure increases reliance on external financing, raising dilution or interest burden risk and limiting reinvestment in growth initiatives.

Higher Leverage and Negative ROE

Rising leverage combined with negative ROE raises financial fragility; debt servicing can divert cash from growth and compress margins. Persisting elevated leverage amplifies downside in stressed periods and constrains strategic flexibility over the medium term.

Negative EBIT and Operational Inefficiency

Sustained negative EBIT/EBITDA shows the business has structural cost or scale inefficiencies. Without clear margin recovery, losses will persist despite revenue growth, undermining long-term free cash flow generation and making profitability dependent on material operational improvements.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 572.95, above the 50-day MA of 618.00, and below the 200-day MA of 1075.59, indicating a bearish trend. The MACD of -19.41 indicates Positive momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 12.90 is Positive, 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	¥13.15B	22.31	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥19.07B	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	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%
9235	43 Neutral	¥4.08B	-15.53	―	―	49.01%	-21.56%