ELEMENTS,Inc. AI Stock Analysis
Want to see JP:5246 full AI Analyst Report?
ELEMENTS,Inc. (5246) AI Stock Analysis
ELEMENTS,Inc.
(TSE/TYO:5246)
The score is primarily constrained by weak financial quality despite strong growth—widening losses and renewed cash burn in 2025 outweigh high gross margins and improved leverage. Technicals are supportive with a strong uptrend, but overbought signals reduce confidence near-term. Valuation further limits the score due to a very high P/E and no dividend support.
ELEMENTS,Inc. (5246) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 25.27B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.30M
- Price to Earnings (P/E)
- 76.8
- Beta (1Y)
- 0.88
- Revenue Growth
- 61.39%
- EPS Growth
- ―
- Country
- Japan
- Employees
- 103
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
ELEMENTS,Inc. Business Overview & Revenue Model
Company Description
ELEMENTS, Inc. delivers advanced data-driven identity verification and personalized service solutions through a backend-as-a-service (BaaS) model, catering to a diverse array of companies across numerous sectors. The firm also dedicates resources to...
ELEMENTS,Inc. Financial Statement Overview
Summary
Strong revenue growth (+28.6% in 2025) and high gross margin (~77%) support the growth profile, but profitability and cash generation are key weaknesses: net losses widened materially (net margin ~-18%), EBIT turned negative, and operating/free cash flow moved sharply negative in 2025. Balance sheet leverage improved (debt-to-equity ~0.87), yet ROE remains negative (~-20%) and debt increased year-over-year, keeping execution and funding risk elevated.
Income Statement
46NeutralBalance Sheet
55NeutralCash Flow
33Negative| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.50B | 3.90B | 2.55B | 1.94B | 1.65B | 1.36B |
| Gross Profit | 4.25B | 3.02B | 2.17B | 1.50B | 1.09B | 816.24M |
| EBITDA | 859.91M | -609.78M | 220.90M | -339.58M | -653.45M | -694.08M |
| Net Income | 332.77M | -700.67M | -132.91M | -338.71M | -561.57M | -568.99M |
Balance Sheet | ||||||
| Total Assets | 6.97B | 7.24B | 4.92B | 3.63B | 2.35B | 2.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.43B | 3.28B | 2.75B | 2.79B | 2.06B | 2.30B |
| Total Debt | 2.25B | 3.01B | 1.75B | 2.38B | 1.43B | 1.10B |
| Total Liabilities | 2.96B | 3.65B | 2.31B | 2.61B | 1.67B | 1.35B |
| Stockholders Equity | 3.99B | 3.47B | 2.29B | 1.02B | 424.24M | 997.54M |
Cash Flow | ||||||
| Free Cash Flow | 0 | -681.23M | -15.88M | -384.67M | -577.58M | -770.66M |
| Operating Cash Flow | 0 | -497.74M | 222.73M | -341.36M | -567.01M | -757.77M |
| Investing Cash Flow | 0 | -1.90B | -837.78M | -587.07M | -10.56M | -13.11M |
| Financing Cash Flow | 0 | 2.93B | 619.44M | 1.61B | 370.86M | 479.91M |
ELEMENTS,Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5246, the sentiment is Negative. The current price of 928.00 is below the 20-day moving average (MA) of 1029.35, below the 50-day MA of 938.50, and above the 200-day MA of 742.43, indicating a neutral trend. The MACD of -4.78 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5246.
ELEMENTS,Inc. Peers Comparison
Overall Rating
JP:233579Outperform
JP:398475.5Outperform
JP:405374Outperform- JP:524649Neutral
JP:525540Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2335 | 79Outperform | JPY 15.06B | 10.18 | ― | 4.70% | -0.28% | 31.14% |
| JP:3984 | 76Outperform | JPY 21.19B | 13.68 | ― | 1.74% | 15.59% | 6.88% |
| JP:4053 | 74Outperform | JPY 22.25B | 23.44 | ― | ― | 18.07% | -0.13% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:5246 | 49Neutral | JPY 24.96B | 76.82 | ― | ― | 61.39% | ― |
| JP:5255 | 40Underperform | JPY 4.01B | -29.54 | ― | ― | -1.67% | 98.41% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5246 | ELEMENTS,Inc. | 928.00 | 306.00 | 49.20% | |
| JP:2335 | Cube System Inc. | 1022.00 | 4.17 | 0.41% | |
| JP:3984 | User Local, Inc. | 1380.00 | -534.86 | -27.93% | |
| JP:4053 | Sun Asterisk, Inc. | 555.00 | 52.00 | 10.34% | |
| JP:5255 | Monstarlab Holdings Inc. | 63.00 | -136.00 | -68.34% |
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: Oct 21, 2026