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Morpho, Inc. (JP:3653)
:3653
Japanese Market
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Morpho, Inc. (3653) AI Stock Analysis

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JP:3653

Morpho, Inc.

(3653)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
¥918.00
▲(8.38% Upside)
Action:Reiterated
Date:08/29/26
The score is driven primarily by mixed fundamentals: strong top-line growth and a very strong balance sheet are offset by renewed losses and weakening cash flow. Technicals are supportive due to strong momentum above key moving averages, but overbought indicators add near-term risk. Valuation is constrained by the negative P/E and lack of dividend yield data.
Positive Factors
Strong Revenue Expansion
The sharp top-line increase indicates meaningful product or market adoption and provides a larger revenue base for operating leverage. Sustaining this growth could improve the company’s ability to absorb fixed costs and build a stronger competitive position.
Negative Factors
Return to Net Loss
The return to losses shows that strong sales growth has not yet translated into dependable earnings. Persistent operating volatility could limit internally funded expansion, reduce strategic flexibility, and make future profitability dependent on execution improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Expansion
The sharp top-line increase indicates meaningful product or market adoption and provides a larger revenue base for operating leverage. Sustaining this growth could improve the company’s ability to absorb fixed costs and build a stronger competitive position.
Read all positive factors

Morpho, Inc. (3653) vs. iShares MSCI Japan ETF (EWJ)

Morpho, Inc. Business Overview & Revenue Model

Company Description
Morpho, Inc. engages in the research and development of artificial intelligence and image processing technologies in Japan, the United States, China, South Korea, Europe, and internationally. The company offers Morpho Automotive Suite, an AI Solut...

Morpho, Inc. Financial Statement Overview

Summary
Strong revenue acceleration and solid gross margins are positives, supported by a very conservative balance sheet (near-zero leverage). However, profitability and cash generation are volatile: the company returned to a net loss in 2025 and free cash flow turned negative, limiting the overall financial performance score.
Income Statement
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
41
Neutral
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue2.98B3.36B3.30B2.38B2.00B1.73B
Gross Profit1.44B1.84B1.90B1.36B952.07M866.53M
EBITDA-213.85M159.15M326.88M-226.63M-473.41M-734.07M
Net Income-566.66M-77.57M301.48M-300.18M-668.39M-793.42M
Balance Sheet
Total Assets3.46B4.15B4.26B3.71B3.86B4.55B
Cash, Cash Equivalents and Short-Term Investments2.13B2.53B2.94B2.71B3.06B3.39B
Total Debt17.44M10.48M23.29M36.25M12.84M21.95M
Total Liabilities509.88M526.38M621.77M558.59M460.63M400.45M
Stockholders Equity2.95B3.62B3.64B3.15B3.40B4.15B
Cash Flow
Free Cash Flow-37.01M-37.01M65.73M-365.22M-477.78M-694.79M
Operating Cash Flow14.06M14.06M207.18M-267.62M-415.53M-653.58M
Investing Cash Flow-413.32M-413.32M-140.72M-92.50M161.38M-175.87M
Financing Cash Flow-9.22M-9.22M131.83M-16.21M-176.43M-257.00M

Morpho, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price847.00
Price Trends
50DMA
650.22
Positive
100DMA
656.31
Positive
200DMA
734.47
Positive
Market Momentum
MACD
33.58
Negative
RSI
81.76
Negative
STOCH
94.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3653, the sentiment is Positive. The current price of 847 is above the 20-day moving average (MA) of 703.00, above the 50-day MA of 650.22, and above the 200-day MA of 734.47, indicating a bullish trend. The MACD of 33.58 indicates Negative momentum. The RSI at 81.76 is Negative, neither overbought nor oversold. The STOCH value of 94.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3653.

Morpho, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥38.31B83.7422.56%
72
Outperform
¥12.82B50.8512.23%38.11%
63
Neutral
¥14.11B57.4834.57%80.99%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥4.19B-8.21-9.43%-8128.33%
43
Neutral
¥16.73B-591.1975.12%97.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3653
Morpho, Inc.
887.00
-413.00
-31.77%
JP:4375
Safie Inc.
701.00
-320.00
-31.34%
JP:4425
Kudan, Inc.
1,543.00
512.00
49.66%
JP:5572
Ridge-i Inc.
3,060.00
40.00
1.32%
JP:5586
Laboro.AI, Inc.
911.00
-115.00
-11.21%
JP:334A
Visual Processing Japan Co.,Ltd
1,045.00
248.71
31.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2026