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freee K.K.
(4478)
Select Model
Select Model
Rating:61Neutral
Price Target:
¥4,463.00
▲(82.83% 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
A subscription-led SaaS model creates recurring revenue and supports customer expansion through accounting, payroll, HR and other bundled back-office modules. This can improve revenue visibility and deepen workflow integration over time.
Negative Factors
Thin Profit Margins
Despite the profitability turnaround, thin margins leave limited protection against slower growth, higher costs or continued product investment. The 2026 net-margin decline suggests that scale benefits have not yet translated into durable earnings leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS Revenue
A subscription-led SaaS model creates recurring revenue and supports customer expansion through accounting, payroll, HR and other bundled back-office modules. This can improve revenue visibility and deepen workflow integration over time.
Read all positive factors
freee K.K. (4478) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥250.19B
Dividend YieldN/A
Average Volume (3M)621.82K
Price to Earnings (P/E)217.9
Beta (1Y)0.68
Revenue Growth27.57%
EPS Growth-21.74%
CountryJP
Employees1,901
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)18.20
Shares Outstanding59,781,403
10 Day Avg. Volume829,840
30 Day Avg. Volume621,823
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
¥5,100.00Price Target Upside108.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)55.36
Revenue Forecast (FY)¥51.72B
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 software products (SaaS). Customers (primarily businesses) pay recurring fees to use the company’s back-office applications, with pricing typically differentiated by plan tier...
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
2782.24
Positive
2484.98
Positive
2572.73
Positive
Market Momentum
435.11
Negative
65.45
Neutral
57.10
Neutral
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 3523.30, below the 50-day MA of 2782.24, and below the 200-day MA of 2572.73, indicating a bullish trend. The MACD of 435.11 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, 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 | ¥31.49B | 14.27 | ― | 4.58% | 8.18% | 35.49% | |
68 Neutral | ¥7.05B | 15.05 | ― | ― | 23.42% | 457.78% | |
68 Neutral | ¥9.69B | 38.62 | ― | 0.12% | 25.25% | -49.30% | |
67 Neutral | ¥29.38B | 53.43 | ― | ― | 21.27% | -53.38% | |
61 Neutral | ¥250.19B | 217.86 | ― | ― | 27.57% | -21.74% | |
61 Neutral | ¥348.81B | 78.76 | 10.13% | ― | 28.28% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4478
freee K.K.
3,965.00
855.00
27.49%
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freee K.K. Corporate Events
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.