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Unite & Grow Inc. (4486) AI Stock Analysis

JP:4486

Unite & Grow Inc.

(TSE/TYO:4486)

Select Model
Rating:76Outperform
Price Target:JPY 848.00â–²(13.07% Upside)
Action:reiterated
Date:08/06/26

The score is driven primarily by strong financial quality (notably a very conservative balance sheet, solid profitability, and improved recent cash conversion) and supportive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with the stock trading below key moving averages and negative MACD indicating a bearish near-term trend despite oversold signals.

Positive Factors
Revenue Growth and ProfitabilitySustained revenue expansion alongside consistently healthy gross and net margins indicates a profitable operating model rather than growth dependent on sacrificing economics. This combination supports reinvestment, strengthens earnings resilience, and provides a durable foundation for performance over the next several quarters.
Negative Factors
2025 Net Margin DeclineThe decline in net margin indicates that stronger operating performance did not fully flow through to bottom-line earnings. If this pattern persists, higher non-operating costs or taxes could constrain earnings growth and reduce the sustainability of the company’s otherwise solid profitability profile.

Unite & Grow Inc. (4486) vs. iShares MSCI Japan ETF (EWJ)

-15%-10%-5%0%5%10%15%20%25%JP:4486+9.37%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.94B
Dividend Yield
3.73%
Average Volume (3M)
12.53K
Price to Earnings (P/E)
11.9
Beta (1Y)
0.50
Revenue Growth
24.01%
EPS Growth
40.39%
Country
Japan
Employees
307
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

Unite & Grow Inc. Business Overview & Revenue Model

Company Description

Unite and Grow Inc. is a Japanese firm specializing in the provision of information technology (IT) administration insourcing services. They cater to small and medium-sized enterprises (SMEs), as well as venture and growth companies across Japan. The...

Unite & Grow Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by steady multi-year revenue growth (with a standout jump in 2025), healthy gross margins (mid-to-high 40% range) and solid net margins (~10–13%). Balance sheet strength is a major positive with near-zero leverage and stable mid-to-high teens ROE. Cash flow is currently excellent with free cash flow closely tracking net income in 2024–2025, though earlier conversion volatility and a 2025 net margin dip are key watch items.

Income Statement

86Very Positive

Balance Sheet

93Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue770.16M3.51B2.97B2.67B2.34B2.08B
Gross Profit361.74M1.64B1.33B1.31B1.12B1.01B
EBITDA140.73M616.12M555.79M395.11M338.29M308.62M
Net Income91.17M410.89M384.34M305.71M238.37M198.34M
Balance Sheet
Total Assets2.90B3.48B3.08B2.49B2.37B2.11B
Cash, Cash Equivalents and Short-Term Investments2.55B3.11B2.70B2.11B2.14B1.91B
Total Debt2.83M2.58M3.36M5.95M55.95M10.54M
Total Liabilities860.94M1.24B1.04B744.46M769.83M732.95M
Stockholders Equity2.04B2.24B2.04B1.74B1.60B1.38B
Cash Flow
Free Cash Flow0662.02M563.40M226.61M173.40M366.50M
Operating Cash Flow0679.98M566.25M374.32M213.25M432.75M
Investing Cash Flow0-258.29M-12.15M-118.92M-489.95M-66.25M
Financing Cash Flow0-213.98M-86.11M-111.26M29.52M-18.08M

Unite & Grow Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price750.00

Price Trends

50DMA698.52Positive
100DMA672.65Positive
200DMA674.02Positive

Market Momentum

MACD20.97Negative
RSI59.93Neutral
STOCH40.71Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4486, the sentiment is Positive. The current price of 750.00 is above the 20-day moving average (MA) of 718.00, above the 50-day MA of 698.52, and above the 200-day MA of 674.02, indicating a bullish trend. The MACD of 20.97 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4486.

Unite & Grow Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4486 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4386JP:438680OutperformJPY 5.52B10.36―3.24%18.18%15.13%
JP:4486JP:448676OutperformJPY 5.97B11.86―3.73%24.01%40.39%
JP:3839JP:383964NeutralJPY 5.10B86.39―1.61%1.74%-72.72%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4261JP:426158NeutralJPY 4.50B31.58――7.83%-51.12%
JP:6182JP:618251NeutralJPY 5.04B5144.44――0.06%-96.75%
JP:2338JP:233843NeutralJPY 5.27B-1.96――-12.33%-327.26%

* Technology Sector Average

Performance Comparison

-50%0%50%JP:4486JP:2338JP:3839JP:4261JP:4386JP:6182Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4486 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4486Unite & Grow Inc.750.0064.239.37%
JP:2338Quantum Solutions Co.,Ltd.99.00-469.00-82.57%
JP:3839ODK Solutions Company, Ltd.622.0017.412.88%
JP:4261AsiaQuest Co.,Ltd.3045.00232.008.25%
JP:4386SIG Group Co., Ltd.958.00200.8426.53%
JP:6182Metareal Corp.463.00-27.00-5.51%

Unite & Grow Inc. Corporate Events

Unite & Grow Delivers Strong First-Half Earnings and Boosts Shareholder Returns

Aug 14, 2026

Unite & Grow Inc., a Tokyo Stock Exchange-listed IT services company, reported strong semiannual financial results for the six months ended June 30, 2026. The firm serves corporate clients with technology support solutions and complements its gro...

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 06, 2026