Unite & Grow Inc. (4486) AI Stock Analysis

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Unite & Grow Inc.

(TSE/TYO:4486)

Select Model

Rating:81Outperform

Price Target:JPY 821.00▲(15.15% Upside)

Action:reiterated

Date:11/07/26

The score is driven primarily by strong financial performance (growth, healthy profitability, very low leverage, and strong recent cash conversion) and supported by favorable valuation (low P/E and high dividend yield). Technical indicators are mixed, with near-term weakness versus the 20-day average despite an overall positive longer-term trend.

Positive Factors

Steady revenue growth and 2025 accelerationMulti-year revenue expansion indicates increasing business scale and market demand, while the especially strong 2025 increase provides additional operating momentum. If growth remains supported, it can help spread fixed costs, fund investment, and strengthen the company’s competitive position over the next several quarters.

Negative Factors

2025 net margin declineThe decline in net margin shows that strong operating progress did not fully translate into bottom-line improvement. Higher non-operating costs or taxes may be affecting earnings conversion, and continued margin pressure could reduce the durability of profit growth and constrain internally funded investment.

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

Market Cap: JPY 5.67B
Dividend Yield: 3.78%
Average Volume (3M): 14.35K
Price to Earnings (P/E): 11.5
Beta (1Y): 0.52
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 fundamentals overall: steady multi-year revenue growth with a standout jump in 2025, healthy gross margins (mid-to-high 40s) and solid net margins (~10–13%). The balance sheet is a major strength with near-zero leverage in recent years and stable mid-to-high teens ROE. Cash generation is currently excellent (FCF near 1:1 with net income in 2024–2025), though earlier cash-flow conversion was more volatile and 2025 net margin dipped versus 2024.

Income Statement

86Very Positive

Balance Sheet

93Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	770.16M	3.51B	2.97B	2.67B	2.34B	2.08B
Gross Profit	361.74M	1.64B	1.33B	1.31B	1.12B	1.01B
EBITDA	140.73M	616.12M	555.79M	395.11M	338.29M	308.62M
Net Income	91.17M	410.89M	384.34M	305.71M	238.37M	198.34M
Balance Sheet
Total Assets	2.90B	3.48B	3.08B	2.49B	2.37B	2.11B
Cash, Cash Equivalents and Short-Term Investments	2.55B	3.11B	2.70B	2.11B	2.14B	1.91B
Total Debt	2.83M	2.58M	3.36M	5.95M	55.95M	10.54M
Total Liabilities	860.94M	1.24B	1.04B	744.46M	769.83M	732.95M
Stockholders Equity	2.04B	2.24B	2.04B	1.74B	1.60B	1.38B
Cash Flow
Free Cash Flow	0	662.02M	563.40M	226.61M	173.40M	366.50M
Operating Cash Flow	0	679.98M	566.25M	374.32M	213.25M	432.75M
Investing Cash Flow	0	-258.29M	-12.15M	-118.92M	-489.95M	-66.25M
Financing Cash Flow	0	-213.98M	-86.11M	-111.26M	29.52M	-18.08M

Unite & Grow Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price713.00

Price Trends

50DMA705.04Positive

100DMA678.25Positive

200DMA674.81Positive

Market Momentum

MACD9.53Positive

RSI53.69Neutral

STOCH38.52Neutral

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 713.00 is below the 20-day moving average (MA) of 736.85, above the 50-day MA of 705.04, and above the 200-day MA of 674.81, indicating a bullish trend. The MACD of 9.53 indicates Positive momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.52 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4486	81Outperform	JPY 5.71B	11.55	―	3.78%	24.01%	40.39%
JP:4386	80Outperform	JPY 5.39B	10.00	―	3.35%	18.18%	15.13%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3839	59Neutral	JPY 5.10B	86.25	―	1.62%	1.74%	-72.72%
JP:4261	58Neutral	JPY 4.33B	29.86	―	―	7.83%	-51.12%
JP:6182	48Neutral	JPY 4.56B	4766.67	―	―	0.06%	-96.75%
JP:2338	40Underperform	JPY 4.95B	-2.24	―	―	-12.33%	-327.26%

* Technology Sector Average

Performance Comparison

JP:4486 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4486	Unite & Grow Inc.	713.00	-33.68	-4.51%
JP:2338	Quantum Solutions Co.,Ltd.	101.00	-396.00	-79.68%
JP:3839	ODK Solutions Company, Ltd.	619.00	18.35	3.06%
JP:4261	AsiaQuest Co.,Ltd.	2872.00	-127.00	-4.23%
JP:4386	SIG Group Co., Ltd.	906.00	56.01	6.59%
JP:6182	Metareal Corp.	421.00	-45.00	-9.66%

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 growth...

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: Nov 07, 2026

Unite & Grow Inc. AI Stock Analysis