Monstarlab Holdings Inc. (5255) AI Stock Analysis

• Market Cap: ¥10.99B
• Dividend Yield: N/A
• Average Volume (3M): 939.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -34.51%
• EPS Growth: 52.07%
• Country: JP
• Employees: 950
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -2.10
• Shares Outstanding: 64,900,720
• 10 Day Avg. Volume: 721,170
• 30 Day Avg. Volume: 939,660
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ¥165.00 ▼(-4.62% Downside)

Monstarlab Holdings Inc. is currently facing significant financial challenges, with declining revenues, high leverage, and negative cash flows. The technical indicators suggest a bearish trend, and the valuation metrics are unattractive due to negative profitability. These factors contribute to a low overall stock score, indicating a high-risk investment.

Monstarlab Holdings Inc. Business Overview & Revenue Model

Company Description

Monstar Lab, Inc. provides digital transformation consultancy services worldwide. It is also engaged in robotic business automation, self-order systems, and music distribution businesses. The company was incorporated in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

Monstarlab Holdings generates revenue through multiple streams, primarily by providing consulting services, software development, and project management for digital transformation initiatives. The company charges clients on a project basis, often involving retainer agreements for ongoing support and maintenance. Additionally, Monstarlab collaborates with strategic partners to deliver integrated solutions, which can enhance its service offerings and expand its market reach. The company's revenue model is further bolstered by repeat business from satisfied clients and long-term contracts with enterprises looking to innovate and modernize their operations. Significant partnerships with leading technology providers also contribute to its earnings by allowing Monstarlab to offer comprehensive and cutting-edge solutions.

Monstarlab Holdings Inc. Financial Statement Overview

Summary

Monstarlab Holdings Inc. is facing significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reveals high leverage and negative equity. The cash flow statement highlights negative cash flows and limited growth potential. The company needs to address its financial structure and improve profitability to enhance its financial health and stability.

Income Statement

Monstarlab Holdings Inc. has been experiencing declining revenue, with a negative revenue growth rate of -7.6% in the TTM period. The company also faces significant profitability challenges, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased over time, reflecting pressure on cost management. Overall, the income statement reveals a struggling financial performance with declining revenues and persistent losses.

Balance Sheet

The balance sheet of Monstarlab Holdings Inc. shows high leverage, with a negative debt-to-equity ratio in the TTM period, indicating more debt than equity. The return on equity is positive, but this is due to negative equity, which is a concerning sign. The equity ratio is low, suggesting limited financial stability. Overall, the balance sheet reflects a high-risk financial structure with significant leverage and negative equity.

Cash Flow

The cash flow statement indicates a challenging cash position, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable. However, the free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow. Overall, the cash flow situation is weak, with negative cash flows and limited growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.06B	10.00B	13.35B	14.27B	9.35B	7.42B
Gross Profit	2.30B	1.43B	3.34B	4.94B	2.93B	2.15B
EBITDA	-2.95B	-9.93B	-1.63B	203.81M	-2.46B	-1.03B
Net Income	-4.31B	-9.95B	-2.36B	-674.77M	-3.05B	-1.27B
Balance Sheet
Total Assets	9.72B	7.59B	14.46B	12.98B	9.91B	9.67B
Cash, Cash Equivalents and Short-Term Investments	4.13B	1.55B	1.78B	2.72B	4.24B	4.04B
Total Debt	6.17B	9.57B	7.08B	4.87B	3.62B	4.11B
Total Liabilities	8.49B	12.37B	10.76B	8.89B	6.60B	6.51B
Stockholders Equity	1.28B	-4.74B	3.71B	4.58B	3.75B	3.16B
Cash Flow
Free Cash Flow	-712.20M	-3.27B	-3.98B	-2.39B	-1.39B	-894.08M
Operating Cash Flow	-692.30M	-3.09B	-3.52B	-1.54B	-921.55M	-594.05M
Investing Cash Flow	-198.17M	-393.58M	-1.24B	-2.29B	-986.43M	-420.80M
Financing Cash Flow	3.94B	3.19B	3.73B	2.24B	2.01B	4.18B

Monstarlab Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 173.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5255, the sentiment is Negative. The current price of 173 is below the 20-day moving average (MA) of 175.30, below the 50-day MA of 204.14, and above the 200-day MA of 139.68, indicating a neutral trend. The MACD of -7.80 indicates Negative momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5255.

Monstarlab Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7120	―	¥4.57B	9.84	―	3.85%	3.21%	22.41%
4450	―	¥8.05B	19.18	―	0.90%	21.32%	6.83%
4068	―	¥3.32B	33.55	―	―	17.03%	644.34%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4416	―	¥4.09B	1,179.51	―	―	-0.93%	-97.16%
5250	―	¥3.26B	28.47	―	2.18%	―	―
5255	―	¥10.99B	―	―	―	-34.51%	52.07%