note inc. (5243) AI Stock Analysis

• Market Cap: ¥21.65B
• Dividend Yield: N/A
• Average Volume (3M): 353.43K
• Price to Earnings (P/E): 80.6
• Beta (1Y): 0.81
• Revenue Growth: 22.37%
• EPS Growth: 655.34%
• Country: JP
• Employees: 151
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 8.63
• Shares Outstanding: 16,676,400
• 10 Day Avg. Volume: 200,960
• 30 Day Avg. Volume: 353,426
• PEG Ratio: -0.61
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 33.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,501.00 ▲(6.53% Upside)

The company's strong financial performance is the most significant factor, with improvements in revenue growth and profitability. Technical analysis indicates mixed signals with some medium-term strength but short-term bearishness. The high P/E ratio suggests potential overvaluation, which impacts the overall score.

note inc. Business Overview & Revenue Model

Company Description

Note Inc. (5243) is a Japanese company specializing in the development and provision of digital content and software solutions. The company operates primarily in the edtech sector, offering innovative tools for learning management, content creation, and digital publishing. Its core products include educational software applications, e-learning platforms, and a range of digital resources aimed at enhancing educational outcomes for students and educators alike.

How the Company Makes Money

Note Inc. generates revenue primarily through subscription fees for its e-learning platforms and software applications. The company offers tiered subscription models catering to individual users, educational institutions, and corporate clients, which provide access to its full suite of digital tools and resources. Additional revenue streams include licensing agreements for its proprietary technology, sales of digital content, and partnerships with educational institutions that integrate Note's solutions into their curriculum. Significant collaborations with tech firms and educational organizations further bolster its earnings by expanding its market reach and enhancing product offerings.

note inc. Financial Statement Overview

Summary

The company has demonstrated strong financial performance with significant improvements across income, balance sheet, and cash flow metrics. The positive revenue growth and profitability turnaround are notable strengths. The balance sheet remains stable with low leverage, and cash flow generation is robust.

Income Statement

The company has shown significant improvement in its income statement metrics. The gross profit margin is high at 93.9%, indicating strong cost management. The net profit margin has turned positive to 3.0% from a negative position, showcasing a turnaround. Revenue growth rate is impressive at 19.2%, reflecting strong top-line growth. EBIT and EBITDA margins have also improved significantly, indicating better operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating low financial leverage. The return on equity has improved to 5.7%, reflecting better profitability. The equity ratio is healthy at 45.7%, suggesting a solid capital structure. However, the company should continue to monitor its liabilities to maintain this stability.

Cash Flow

The cash flow statement shows a remarkable turnaround with a positive free cash flow growth rate. The operating cash flow to net income ratio is 2.28, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 2.27, reflecting efficient cash management. These metrics highlight the company's improved liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.67B	3.31B	2.78B	2.32B	1.88B	1.52B
Gross Profit	3.44B	3.11B	2.57B	2.10B	1.64B	1.22B
EBITDA	92.59M	86.15M	-398.79M	-733.26M	-418.75M	-335.02M
Net Income	155.87M	98.94M	-414.84M	-756.49M	-436.17M	-352.31M
Balance Sheet
Total Assets	4.88B	3.77B	3.31B	3.30B	1.75B	2.24B
Cash, Cash Equivalents and Short-Term Investments	2.03B	2.15B	1.99B	2.19B	872.08M	1.52B
Total Debt	80.00M	80.00M	160.00M	160.00M	160.00M	160.00M
Total Liabilities	2.46B	2.05B	1.75B	1.49B	1.18B	1.23B
Stockholders Equity	2.43B	1.72B	1.56B	1.82B	574.11M	1.01B
Cash Flow
Free Cash Flow	19.00M	224.37M	-358.94M	-683.10M	-652.22M	-217.07M
Operating Cash Flow	19.00M	225.76M	-346.58M	-660.12M	-646.87M	-155.22M
Investing Cash Flow	-358.89M	-9.77M	-12.78M	-23.45M	-5.35M	-133.88M
Financing Cash Flow	287.37M	-38.14M	158.93M	2.00B	0.00	160.33M

note inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1409.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5243, the sentiment is Negative. The current price of 1409 is below the 20-day moving average (MA) of 1413.75, above the 50-day MA of 1348.46, and below the 200-day MA of 1439.68, indicating a bearish trend. The MACD of 1.29 indicates Positive momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 8.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5243.

note inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3901	77 Outperform	¥25.90B	16.80	―	2.42%	9.05%	2.71%
3930	76 Outperform	¥2.97B	12.45	―	―	14.67%	267.69%
3662	70 Outperform	¥19.83B	19.95	―	1.98%	―	8.68%
5243	69 Neutral	¥21.65B	80.56	―	―	22.37%	655.34%
3843	66 Neutral	¥30.56B	11.04	―	1.89%	8.93%	-18.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

note inc. Corporate Events

Note Inc. Reports Strong Financial Growth in 2025

Note Inc. reported a strong financial performance for the first three quarters of the fiscal year ending November 2025, with significant year-on-year growth in net sales and profits. The company’s strategic initiatives have resulted in a substantial increase in net sales by 23.8% and a remarkable rise in profit attributable to owners by 344.2%. This positive financial trajectory suggests a robust operational strategy and positions Note Inc. favorably within its industry, potentially benefiting shareholders and investors.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1418.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

note inc. Records Deferred Tax Assets Amid Strong Performance

note inc. has recorded deferred tax assets in the third quarter of the fiscal year ending November 2025, amounting to ¥38 million in income taxes-deferred (benefit), resulting in a cumulative total of ¥74 million. This adjustment reflects the company’s solid business performance and future forecasts, impacting the upward revision of the full-year consolidated earnings forecast and financial results for the first three quarters.

The most recent analyst rating on (JP:5243) stock is a Hold with a Yen1418.00 price target. To see the full list of analyst forecasts on note inc. stock, see the JP:5243 Stock Forecast page.

Note Inc. Launches Shareholder Benefit Program to Boost Engagement

Note Inc. has announced the introduction of a shareholder benefit program aimed at expressing gratitude to shareholders and encouraging long-term investment. This program is expected to enhance shareholder engagement and potentially increase the company’s corporate value by offering ‘note points’ to eligible shareholders, which can be used on the company’s platform. The initiative is anticipated to improve trading volume and liquidity, although its immediate financial impact is projected to be minor.

Note Inc. Reports Accelerated Revenue Growth in Q2 FY2025

Note Inc. reported a significant acceleration in revenue growth for Q2 FY2025, driven by a 24.9% year-over-year increase in Gross Merchandise Volume (GMV) within its core business. This growth is attributed to the successful implementation of the company’s ‘Growth Model’ strategy, which has increased both the number of creators and the volume of content on the platform. The adoption of generative AI, including the integration of tools like Gemini, has facilitated content creation, expanding the creator base and enhancing productivity, ultimately boosting the company’s growth trajectory.