HOUSEI Inc. AI Stock Analysis
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HOUSEI Inc. (5035) AI Stock Analysis
HOUSEI Inc.
(TSE/TYO:5035)
HOUSEI scores poorly, driven primarily by a sharp fundamental reversal: a net loss, the first revenue decline in years, and collapsing operating profit point to margin and competitive pressure. The strongest counterweight is exceptional cash generation — ¥1.04 billion operating cash flow and ¥1.01 billion free cash flow — alongside a conservatively leveraged balance sheet with a ~64% equity ratio, which together buy management time to stabilize the business. Technicals compound the concern, with the price well below all key moving averages and negative MACD confirming a sustained downtrend. Valuation offers little support given the negative P/E and a modest 1.08% yield of uncertain durability. Recovery hinges on management restoring revenue growth and converting its cash strength back into reported profits.
HOUSEI Inc. (5035) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 1.73B
- Dividend Yield
- 1.08%
- Average Volume (3M)
- 3,926
- Price to Earnings (P/E)
- -6.0
- Beta (1Y)
- 0.47
- Revenue Growth
- -6.00%
- EPS Growth
- -480.80%
- Country
- Japan
- Employees
- 456
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
HOUSEI Inc. Business Overview & Revenue Model
Company Description
Operating within Japan, HOUSEI Inc. delivers a comprehensive suite of cloud-based solutions. Its extensive service offerings include bespoke system development, the deployment of skilled IT engineers, and comprehensive cross-border e-commerce platfor...
HOUSEI Inc. Financial Statement Overview
Summary
HOUSEI's fundamentals have deteriorated materially. The income statement (32) shows a swing to a ¥195 million net loss from a ¥126 million profit, a 3.7% revenue decline that breaks the prior growth streak, and operating profit collapsing over 50% to ¥37 million amid gross margin compression. The balance sheet (58) is the steadier element, with total debt reduced to ¥545 million, a ~64% equity ratio and debt-to-equity near 0.18, though the equity base shrank due to losses. Cash flow (71) is the clear bright spot, with operating cash flow of ¥1.04 billion and free cash flow of ¥1.01 billion, suggesting the loss is largely non-cash and providing meaningful runway. Weighted toward the weak earnings power, the blended result is below average.
Income Statement
32NegativeBalance Sheet
58NeutralCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.70B | 4.78B | 4.92B | 4.64B | 4.25B | 4.10B |
| Gross Profit | 1.36B | 1.35B | 1.36B | 1.24B | 1.14B | 1.10B |
| EBITDA | 313.57M | 297.76M | 334.95M | 333.38M | 341.46M | 355.57M |
| Net Income | -173.16M | -195.09M | 126.00M | 147.03M | 134.71M | 271.44M |
Balance Sheet | ||||||
| Total Assets | 4.44B | 4.79B | 5.13B | 4.72B | 4.23B | 3.92B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.42B | 840.29M | 830.37M | 1.58B | 1.09B |
| Total Debt | 489.72M | 545.28M | 774.76M | 729.29M | 511.30M | 788.49M |
| Total Liabilities | 1.35B | 1.71B | 1.83B | 1.53B | 1.27B | 1.57B |
| Stockholders Equity | 3.08B | 3.06B | 3.29B | 3.17B | 2.95B | 2.35B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 1.01B | 332.76M | -469.49M | 355.18M | 379.54M |
| Operating Cash Flow | 0 | 1.04B | 361.14M | -417.19M | 395.54M | 413.16M |
| Investing Cash Flow | 0 | -158.90M | -88.87M | -610.45M | -258.78M | -28.57M |
| Financing Cash Flow | 0 | -305.17M | -83.85M | 240.22M | 131.09M | -49.45M |
HOUSEI Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5035, the sentiment is Negative. The current price of 258.00 is below the 20-day moving average (MA) of 328.25, below the 50-day MA of 350.58, and below the 200-day MA of 384.01, indicating a bearish trend. The MACD of -18.98 indicates Positive momentum. The RSI at 11.90 is Positive, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5035.
HOUSEI Inc. Peers Comparison
Overall Rating
JP:447773Outperform
JP:406072Outperform
JP:383566.5Neutral
JP:439760Neutral
JP:503359Neutral- JP:503545Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4477 | 73Outperform | JPY 36.56B | 15.34 | ― | 1.65% | 36.14% | 304.76% |
| JP:4060 | 72Outperform | JPY 6.60B | 24.15 | ― | 0.80% | 30.60% | 17.83% |
| JP:3835 | 67Neutral | JPY 15.71B | 15.64 | ― | 4.29% | 1.86% | -12.57% |
| JP:4397 | 60Neutral | JPY 5.81B | 15.40 | ― | ― | 23.50% | 2.72% |
| JP:5033 | 59Neutral | JPY 8.01B | 47.24 | ― | ― | 7.04% | -67.36% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:5035 | 45Neutral | JPY 1.97B | -5.98 | ― | 1.08% | -6.00% | -480.80% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5035 | HOUSEI Inc. | 258.00 | -159.79 | -38.25% | |
| JP:3835 | eBASE Co., Ltd. | 348.00 | -79.92 | -18.68% | |
| JP:4060 | rakumo Inc. | 1117.00 | 28.88 | 2.65% | |
| JP:4397 | TeamSpirit, Inc. | 348.00 | -162.00 | -31.76% | |
| JP:4477 | BASE, Inc. | 303.00 | -28.93 | -8.72% | |
| JP:5033 | Nulab Inc. | 1209.00 | 444.00 | 58.04% |
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 12, 2026