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freee K.K.
(4478)
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Rating:61Neutral
Price Target:
¥4,167.00
▲(70.71% Upside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by improving fundamentals (turn to profitability and continued revenue growth), but is held back by thin margins, rising leverage, and weaker 2026 cash flow consistency. Technicals are strong with the stock well above key moving averages, though momentum is very stretched. Valuation is a major constraint due to the very high P/E and no provided dividend yield.
Positive Factors
Recurring SaaS Revenue Model
Subscription-based SaaS revenue can provide recurring visibility and supports scalable delivery through internet-based applications. As SMB customers retain services, add seats, or adopt additional modules, freee can build durable revenue from its installed customer base over time.
Negative Factors
Thin Profit Margins
Thin margins leave limited room for execution errors, slower growth, or continued investment spending to be absorbed without affecting earnings. The decline in net margin despite higher revenue also indicates that cost discipline and operating leverage have not yet become consistently durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS Revenue Model
Subscription-based SaaS revenue can provide recurring visibility and supports scalable delivery through internet-based applications. As SMB customers retain services, add seats, or adopt additional modules, freee can build durable revenue from its installed customer base over time.
Read all positive factors
freee K.K. (4478) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥249.31B
Dividend YieldN/A
Average Volume (3M)463.78K
Price to Earnings (P/E)228.6
Beta (1Y)0.72
Revenue Growth27.57%
EPS Growth-21.74%
CountryJP
Employees2,327
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)18.20
Shares Outstanding59,787,100
10 Day Avg. Volume618,610
30 Day Avg. Volume463,783
Financial Highlights & Ratios
PEG Ratio-5.03
Price to Book (P/B)5.58
Price to Sales (P/S)2.79
P/FCF Ratio130.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,833.33Price Target Upside98.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)55.55
Revenue Forecast (FY)¥52.20B
freee K.K. Business Overview & Revenue Model
Company Description
Established in 2012 and headquartered in Tokyo, Japan, freee K.K. specializes in delivering cloud-native accounting and human resources software. Its product portfolio includes Accounting freee, an integrated accounting platform tailored for small...
How the Company Makes Money
freee primarily generates revenue by selling subscriptions to its cloud-based software (SaaS). Customers (typically SMBs) pay recurring fees—generally on a monthly or annual basis—for access to its applications, with pricing commonly varying by pl...
freee K.K. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.44B | 33.27B | 25.43B | 19.22B | 14.38B |
| Gross Profit | 34.40B | 27.36B | 20.99B | 16.07B | 11.54B |
| EBITDA | 2.57B | 1.02B | -8.39B | -7.92B | -2.46B |
| Net Income | 1.08B | 1.37B | -10.15B | -12.34B | -11.61B |
Balance Sheet | |||||
| Total Assets | 61.92B | 52.60B | 39.95B | 42.79B | 47.41B |
| Cash, Cash Equivalents and Short-Term Investments | 36.19B | 35.79B | 31.75B | 36.41B | 42.55B |
| Total Debt | 14.30B | 9.60B | 4.70B | 0.00 | 576.00M |
| Total Liabilities | 40.73B | 32.93B | 23.00B | 15.73B | 10.98B |
| Stockholders Equity | 21.19B | 19.66B | 16.95B | 26.06B | 36.43B |
Cash Flow | |||||
| Free Cash Flow | 909.25M | 3.62B | -7.43B | -5.44B | -2.68B |
| Operating Cash Flow | 1.52B | 3.66B | -6.77B | -4.75B | -1.07B |
| Investing Cash Flow | -5.90B | -4.60B | -2.09B | -935.42M | -4.48B |
| Financing Cash Flow | 4.77B | 4.98B | 4.71B | -456.14M | 451.99M |
freee K.K. Technical Analysis
Positive
2441.00
Price Trends
3746.92
Positive
2995.39
Positive
2683.49
Positive
Market Momentum
106.14
Negative
70.14
Negative
82.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4478, the sentiment is Positive. The current price of 2441 is below the 20-day moving average (MA) of 3690.25, below the 50-day MA of 3746.92, and below the 200-day MA of 2683.49, indicating a bullish trend. The MACD of 106.14 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 82.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4478.
freee K.K. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥29.39B | 14.00 | ― | 6.11% | 8.18% | 35.49% | |
72 Outperform | ¥30.34B | 56.17 | ― | ― | 21.27% | -53.38% | |
64 Neutral | ¥7.59B | 31.49 | ― | 0.55% | 25.25% | -49.30% | |
61 Neutral | ¥249.31B | 228.57 | ― | ― | 27.57% | -21.74% | |
61 Neutral | ¥6.18B | 16.59 | ― | ― | 23.50% | 2.72% | |
61 Neutral | ¥370.01B | 68.51 | 12.28% | ― | 34.69% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4478
freee K.K.
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freee K.K. Corporate Events
freee K.K. Reports Slow Pace in Ongoing Share Buyback Program
Oct 6, 2026
freee K.K. reported that it conducted no share repurchases during the period from September 1 to September 30, 2026, despite having authorization to buy back common shares via open-market transactions on the Tokyo Stock Exchange. The company had p...
Freee K.K. Begins Share Buyback Under ¥5 Billion Authorization
Sep 4, 2026
Freee K.K. has initiated a share repurchase program under the Companies Act and its Articles of Incorporation, buying back 88,400 common shares for a total of about 300 million yen on the Tokyo Stock Exchange between August 14 and August 31, 2026....
Freee K.K. Delivers Strong FY2026.6 Growth and Sets Ambitious AI-Driven Targets
Aug 13, 2026
Freee K.K. reported robust results for the fiscal year ended June 30, 2026, with revenue rising 27.6% year-on-year, driven by strong growth across both self-employed and corporate customer segments that underscored the stickiness of its system-of-...
Freee K.K. Beats FY2026 Sales and Profit Targets but Misses on Cash Flow
Aug 13, 2026
Freee K.K. reported consolidated net sales of ¥42.44 billion for the fiscal year ended June 2026, up 27.6% from a year earlier, as operating and ordinary profit surged 78.6% and 81.0% respectively, helped by strong revenue growth and improved...
Freee K.K. Launches ¥5 Billion Share Buyback Amid AI-Driven Growth Strategy
Aug 13, 2026
Freee K.K. has authorized a share repurchase program of up to 2.4 million common shares, representing about 4.04% of its outstanding stock, with a maximum outlay of ¥5 billion. The buyback will be conducted via open-market purchases on the To...
Freee K.K. Lifts Sales and Profit, Signals Strong Growth in SaaS Platform for FY2027
Aug 13, 2026
Freee K.K. reported consolidated net sales of ¥42.4 billion for the fiscal year ended June 30, 2026, up 27.6% year on year, with operating profit rising to ¥1.09 billion and profit attributable to owners of parent at ¥1.08 billion d...
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.