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ABEJA,Inc. (5574) AI Stock Analysis

JP:5574

ABEJA,Inc.

(TSE/TYO:5574)

Select Model
Rating:58Neutral
Price Target:JPY 2,309.00▲(7.20% Upside)
Action:reiterated
Date:10/17/26

The overall score is constrained by a major divergence between strong reported earnings and weak cash generation, which is the most significant risk factor. This is compounded by bearish technical momentum, with the stock trading below key moving averages. The company's debt-free balance sheet and high growth rate provide a solid foundation, but the score reflects the need for the cash flow trend to reverse to justify the income statement's strength.

Positive Factors
Revenue Growth and MarginsStrong 2026 revenue growth combined with healthy gross, operating, and net margins indicates that ABEJA is converting expanding demand into profitable operations. If sustained, this combination can support reinvestment in AI products, deepen enterprise adoption, and strengthen earnings power over the next several quarters.
Negative Factors
Volatile Cash ConversionUneven operating cash generation reduces confidence that reported earnings consistently convert into funds available for reinvestment or other capital allocation. Although 2026 free cash flow remained positive, the sharp year-over-year operating cash flow decline could constrain execution if weak conversion persists.

ABEJA,Inc. (5574) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:5574-22.93%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 21.40B
Dividend Yield
―
Average Volume (3M)
164.13K
Price to Earnings (P/E)
20.1
Beta (1Y)
1.49
Revenue Growth
27.68%
EPS Growth
126.99%
Country
Japan
Employees
133
Sector
General
Sector Strength
55
Industry
Software - Application

ABEJA,Inc. Business Overview & Revenue Model

Company Description

ABEJA, Inc. engages in the digital platform business. It offers ABEJA platform, a software suite that provides the processes, including design, development, construction, operation, and enhancement according to the needs of client companies, as well...

How the Company Makes Money

ABEJA primarily makes money by providing AI software and AI-related services to business customers. Revenue is generally generated through (1) fees for delivering and operating AI/data solutions (including building models and systems, integrating the...

ABEJA,Inc. Financial Statement Overview

Summary

Strong income statement and balance sheet are offset by a severe decline in cash flow generation. Revenue growth of 27.7% and a debt-free balance sheet with 18.8% ROE are major strengths, but the 90% drop in operating cash flow is a significant risk that drags the score down.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue3.58B4.58B3.59B2.77B2.78B1.98B
Gross Profit2.22B2.79B2.24B1.84B1.73B1.18B
EBITDA464.15M727.39M464.87M292.77M380.19M-30.75M
Net Income447.91M1.07B448.27M218.71M421.60M-196.37M
Balance Sheet
Total Assets5.32B6.47B5.32B4.24B4.11B2.16B
Cash, Cash Equivalents and Short-Term Investments4.59B4.42B4.59B2.87B3.54B1.84B
Total Debt000080.00M80.00M
Total Liabilities846.44M808.50M846.44M341.76M628.61M366.09M
Stockholders Equity4.47B5.66B4.47B3.90B3.48B1.79B
Cash Flow
Free Cash Flow-7.54M151.03M1.61B-773.66M459.89M-267.56M
Operating Cash Flow8.38M165.21M1.62B-760.01M460.53M-253.49M
Investing Cash Flow-28.41M-403.65M-28.41M-28.57M-5.64M-14.06M
Financing Cash Flow-272.00K75.88M124.28M116.95M1.24B3.96M

ABEJA,Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price2154.00

Price Trends

50DMA2838.36Negative
100DMA2618.84Negative
200DMA2714.39Negative

Market Momentum

MACD-187.57Positive
RSI31.09Neutral
STOCH13.23Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5574, the sentiment is Negative. The current price of 2154.00 is below the 20-day moving average (MA) of 2569.10, below the 50-day MA of 2838.36, and below the 200-day MA of 2714.39, indicating a bearish trend. The MACD of -187.57 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5574.

ABEJA,Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5574 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3984JP:398480OutperformJPY 22.67B13.49―1.73%16.61%15.32%
JP:4725JP:472573OutperformJPY 33.35B9.2710.39%5.10%3.46%6.90%
JP:6572JP:657270OutperformJPY 13.67B14.21―2.27%16.73%105.01%
JP:5574JP:557458NeutralJPY 22.68B20.11――27.68%126.99%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2158JP:215850NeutralJPY 28.61B46.31――27.44%131.69%

* General Sector Average

Performance Comparison

-40%-20%0%JP:5574JP:4725JP:2158JP:3984JP:6572Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5574 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5574ABEJA,Inc.2154.00-719.00-25.03%
JP:4725CAC Holdings Corporation1962.00-63.12-3.12%
JP:2158FRONTEO, Inc.715.00-191.00-21.08%
JP:3984User Local, Inc.1385.00-526.91-27.56%
JP:6572RPA Holdings, Inc.214.00-95.07-30.76%
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: Oct 17, 2026