monoAI technology Co.,Ltd. (5240) AI Stock Analysis

monoAI technology Co.,Ltd.

(TSE/TYO:5240)

Select Model

Rating:38Underperform

Price Target:JPY 152.00▼(-6.17% Downside)

Action:reiterated

Date:11/03/26

The overall score is severely depressed by the company's fundamental weakness, including persistent revenue decline, deepening operating losses, and six consecutive years of negative cash flow. The stock's bearish technical posture, trading below all major moving averages with strong negative momentum, further confirms the lack of investor confidence. The negative P/E ratio and absence of a dividend provide no valuation floor. The only positive is a low-debt balance sheet, but this is insufficient to offset the overwhelming operational and market headwinds.

Positive Factors

Improving Balance SheetLower leverage reduces balance-sheet risk and gives the company more financial flexibility while it addresses operating losses. A less debt-intensive capital structure can also limit interest burden and preserve capacity to fund strategic initiatives over the next several quarters.

Negative Factors

Persistent LossesSustained operating and net losses show that the current business model is not yet converting revenue into earnings. Continued deficits can consume financial resources, limit reinvestment, and make a durable recovery dependent on substantial cost improvement or renewed revenue growth.

monoAI technology Co.,Ltd. (5240) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.75B
Dividend Yield: ―
Average Volume (3M): 759.01K
Price to Earnings (P/E): -3.6
Beta (1Y): 0.90
Revenue Growth: -53.59%
EPS Growth: -71.56%
Country: Japan
Employees: 126
Sector: General
Sector Strength: 55
Industry: Software - Infrastructure

monoAI technology Co.,Ltd. Business Overview & Revenue Model

Company Description

"monoAI technology Co.,Ltd. specializes in delivering metaverse and extended reality (XR) event services, complemented by a range of associated offerings. A key product is XR CLOUD, a sophisticated platform for constructing immersive virtual environm...

monoAI technology Co.,Ltd. Financial Statement Overview

Summary

Financial performance is critically weak. Revenue declined 25% to ¥980.9M, operating losses deepened, and the company has been unprofitable in five of the last six years. Cash flow remains negative for the sixth consecutive year, indicating persistent cash burn. The only mitigating factor is a strong balance sheet with minimal debt, but equity erosion is a growing concern.

Income Statement

20Very Negative

Balance Sheet

45Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	609.71M	980.88M	1.43B	1.24B	1.45B	1.29B
Gross Profit	169.20M	337.43M	461.27M	431.43M	660.58M	465.19M
EBITDA	-550.09M	-389.08M	-219.75M	-130.12M	87.38M	-123.33M
Net Income	-545.66M	-336.16M	-585.57M	-203.09M	71.59M	-181.65M
Balance Sheet
Total Assets	1.11B	1.42B	1.88B	1.49B	1.73B	976.74M
Cash, Cash Equivalents and Short-Term Investments	890.90M	1.19B	1.30B	941.89M	1.42B	787.37M
Total Debt	17.60M	23.20M	70.21M	152.81M	243.16M	266.95M
Total Liabilities	137.35M	191.13M	314.87M	341.61M	470.07M	666.96M
Stockholders Equity	968.40M	1.22B	1.56B	1.15B	1.26B	309.78M
Cash Flow
Free Cash Flow	0	-119.86M	-521.23M	-196.49M	-169.84M	-122.32M
Operating Cash Flow	0	-109.95M	-478.91M	-184.30M	-159.59M	-114.59M
Investing Cash Flow	0	43.89M	-72.18M	-288.60M	-80.61M	-12.46M
Financing Cash Flow	0	-46.98M	911.14M	-2.48M	840.09M	843.28M

monoAI technology Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price162.00

Price Trends

50DMA182.60Negative

100DMA173.70Negative

200DMA191.44Negative

Market Momentum

MACD-10.65Positive

RSI28.25Positive

STOCH31.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5240, the sentiment is Negative. The current price of 162.00 is above the 20-day moving average (MA) of 157.45, below the 50-day MA of 182.60, and below the 200-day MA of 191.44, indicating a bearish trend. The MACD of -10.65 indicates Positive momentum. The RSI at 28.25 is Positive, neither overbought nor oversold. The STOCH value of 31.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5240.

monoAI technology Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5240 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3904	59Neutral	JPY 6.41B	11.63	―	0.98%	20.33%	15.26%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3907	51Neutral	JPY 3.35B	-13.59	―	0.84%	-6.31%	-176.88%
JP:3928	50Neutral	JPY 2.15B	-20.57	―	―	-6.91%	-173.90%
JP:3667	42Neutral	JPY 954.17M	-0.46	―	―	-35.20%	10.73%
JP:5240	38Underperform	JPY 1.76B	-3.64	―	―	-53.59%	-71.56%
JP:3664	31Underperform	JPY 1.78B	-1.52	―	―	-2.57%	4.42%

* General Sector Average

Performance Comparison

JP:5240 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5240	monoAI technology Co.,Ltd.	162.00	-46.00	-22.12%
JP:3664	MOBCAST HOLDINGS, INC.	13.00	-37.00	-74.00%
JP:3667	enish, Inc.	17.00	-81.00	-82.65%
JP:3904	KAYAC, Inc.	399.00	-27.73	-6.50%
JP:3907	Silicon Studio Corp.	1193.00	315.96	36.03%
JP:3928	Mynet, Inc.	229.00	4.00	1.78%

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 03, 2026

monoAI technology Co.,Ltd. AI Stock Analysis