Alue Co., Ltd. (7043) AI Stock Analysis

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Alue Co., Ltd.

(TSE/TYO:7043)

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Rating:66Neutral

Price Target:JPY 1,008.00▲(9.92% Upside)

Action:reiterated

Date:11/05/26

The score is driven primarily by improved financial performance (return to profitability, solid margins, and stronger cash generation) and an attractive low P/E valuation. Offsetting these positives are historically volatile earnings/cash flow and mixed technical signals (neutral momentum with an extended short-term stochastic reading).

Positive Factors

Reaccelerating revenue and profitabilityThe return to profitability alongside faster revenue growth indicates improved operating execution and renewed demand for Alue’s training and consulting services. The strong gross margin provides a foundation for reinvestment and suggests that incremental business can contribute meaningfully to earnings over the coming quarters.

Negative Factors

Cyclical earnings historyRepeated loss years show that Alue’s profitability is not yet consistently durable across business conditions. Because corporate training and consulting demand can vary with clients’ priorities, renewed weakness could reverse recent earnings gains and make forward operating performance less predictable.

Alue Co., Ltd. (7043) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.34B
Dividend Yield: 0.76%
Average Volume (3M): 1,678
Price to Earnings (P/E): 7.8
Beta (1Y): 0.06
Revenue Growth: 12.42%
EPS Growth: 104.89%
Country: Japan
Employees: 198
Sector: General
Sector Strength: 55
Industry: Staffing & Employment Services

Alue Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 2003 and based in Tokyo, Japan, Alue Co.,Ltd. specializes in delivering professional education to adults, primarily within Japan. The firm leverages sophisticated human resource development data and machine learning technology to enhan...

How the Company Makes Money

Alue primarily makes money by selling corporate training and related human-capital development services to business customers. Revenue is generated from fees paid by client companies for (1) delivery of training programs (e.g., instructor-led session...

Alue Co., Ltd. Financial Statement Overview

Summary

Financials show a clear rebound with accelerating revenue growth (~8.6%), restored profitability (positive operating profit and net income), and strong gross margin (~63%). Balance sheet leverage is manageable (debt roughly one-third of equity) and improved versus historical peaks, while cash flow conversion is good in the latest period. The main constraint on the score is historical volatility (losses and negative cash flow in 2020 and 2024), indicating cyclicality/execution risk.

Income Statement

67Positive

Balance Sheet

74Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.62B	3.64B	3.09B	3.03B	2.77B	2.40B
Gross Profit	2.27B	2.28B	1.83B	1.86B	1.77B	1.50B
EBITDA	439.03M	437.11M	-12.42M	128.31M	276.41M	323.70M
Net Income	280.66M	242.21M	-73.71M	56.85M	166.87M	183.29M
Balance Sheet
Total Assets	2.23B	2.40B	1.90B	1.72B	1.86B	2.02B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.30B	822.65M	986.86M	1.10B	1.33B
Total Debt	658.19M	467.03M	448.84M	214.15M	397.61M	667.09M
Total Liabilities	927.01M	987.02M	717.47M	466.47M	652.61M	982.43M
Stockholders Equity	1.30B	1.42B	1.18B	1.26B	1.20B	1.04B
Cash Flow
Free Cash Flow	0	539.38M	-46.01M	132.76M	89.42M	351.32M
Operating Cash Flow	0	539.65M	-37.30M	133.10M	90.02M	365.85M
Investing Cash Flow	0	-69.93M	-218.84M	-52.35M	-48.21M	-60.54M
Financing Cash Flow	0	1.54M	76.01M	-201.21M	-286.18M	-285.63M

Alue Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price917.00

Price Trends

50DMA935.90Negative

100DMA924.27Negative

200DMA907.97Positive

Market Momentum

MACD-5.98Positive

RSI43.72Neutral

STOCH42.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7043, the sentiment is Negative. The current price of 917.00 is below the 20-day moving average (MA) of 929.50, below the 50-day MA of 935.90, and above the 200-day MA of 907.97, indicating a neutral trend. The MACD of -5.98 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7043.

Alue Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7043 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7089	86Outperform	JPY 9.83B	8.62	―	―	43.16%	124.82%
JP:4377	77Outperform	JPY 49.13B	21.26	―	0.94%	38.37%	62.98%
JP:7043	66Neutral	JPY 2.32B	7.79	―	0.76%	12.42%	104.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3900	52Neutral	JPY 9.34B	-12.66	―	―	1.74%	-199.70%
JP:9331	41Neutral	JPY 1.07B	307.91	―	―	-2.93%	―

* General Sector Average

Performance Comparison

JP:7043 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7043	Alue Co., Ltd.	917.00	-59.39	-6.08%
JP:3900	CrowdWorks, Inc.	590.00	-209.00	-26.16%
JP:4377	ONE CAREER Inc.	2665.00	15.42	0.58%
JP:7089	For Startups, Inc.	1486.00	529.00	55.28%
JP:7374	Interworks Confidence Inc.	1385.00	-126.57	-8.37%
JP:9331	Caster Co. Ltd.	545.00	-281.00	-34.02%

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 05, 2026

Alue Co., Ltd. AI Stock Analysis