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ABEJA,Inc. (5574) AI Stock Analysis

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JP:5574

ABEJA,Inc.

(TSE/TYO:5574)

Select Model
Rating:60Neutral
Price Target:JPY 1,911.00â–²(5.00% Upside)
Action:reiterated
Date:11/07/26

The score is primarily supported by strong fundamentals (healthy margins, accelerating revenue, and a near zero-debt balance sheet), but is meaningfully weighed down by weak technicals (price below major moving averages with negative MACD) and uneven cash-flow conversion, which reduces confidence in the quality of reported earnings. Valuation is reasonable but not a major offset, and no dividend data is available.

Positive Factors
Revenue GrowthRevenue growth of 27.7% indicates expanding demand for ABEJA’s AI and data solutions and supports the scalability of its enterprise-focused model. If this pace remains durable, higher volume can strengthen operating leverage, fund product development, and deepen customer adoption over the next several quarters.
Negative Factors
Volatile Cash ConversionThe sharp decline in operating cash flow despite stronger net income raises questions about the consistency and timing of earnings conversion into cash. Although 2026 free cash flow remained positive, recurring volatility could constrain internally funded growth and make financial performance less predictable over the next several quarters.

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

-40%-30%-20%-10%0%10%20%30%JP:5574-33.04%EWJ+10.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 18.08B
Dividend Yield
―
Average Volume (3M)
167.84K
Price to Earnings (P/E)
17.0
Beta (1Y)
1.58
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 profitability and growth with a very strong balance sheet (minimal debt; improving ROE), but the overall financial score is held back by inconsistent and volatile cash generation, including a sharp drop in operating cash flow in 2026 despite higher net income.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

52Neutral
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 Price1820.00

Price Trends

50DMA2804.30Negative
100DMA2613.44Negative
200DMA2708.26Negative

Market Momentum

MACD-216.33Positive
RSI26.63Positive
STOCH8.40Positive

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 1820.00 is below the 20-day moving average (MA) of 2464.30, below the 50-day MA of 2804.30, and below the 200-day MA of 2708.26, indicating a bearish trend. The MACD of -216.33 indicates Positive momentum. The RSI at 26.63 is Positive, neither overbought nor oversold. The STOCH value of 8.40 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 21.77B12.29―1.90%16.61%15.32%
JP:4725JP:472579OutperformJPY 33.36B9.1410.39%5.17%3.46%6.90%
JP:6572JP:657273OutperformJPY 13.41B13.54―2.31%16.73%105.01%
JP:5574JP:557460NeutralJPY 20.09B17.00――27.68%126.99%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2158JP:215850NeutralJPY 26.17B39.90――27.44%131.69%

* General Sector Average

Performance Comparison

-40%-20%0%20%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.1820.00-887.00-32.77%
JP:4725CAC Holdings Corporation1934.00-104.40-5.12%
JP:2158FRONTEO, Inc.616.00-313.00-33.69%
JP:3984User Local, Inc.1262.00-644.98-33.82%
JP:6572RPA Holdings, Inc.204.00-105.07-34.00%
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 06, 2026