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Goodpatch, Inc. (JP:7351)
:7351
Japanese Market
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Goodpatch, Inc. (7351) AI Stock Analysis

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JP:7351

Goodpatch, Inc.

(7351)

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Neutral 69 (OpenAI - Gpt-5.6Sol)
Rating:69Neutral
Price Target:
¥505.00
▼(-24.96% Downside)
Action:Downgraded
Date:10/16/26
The score is driven by strong financial safety (very low leverage) and attractive valuation (low P/E with a moderate dividend). These positives are tempered by weaker technical momentum and concerns about cash-flow volatility and the recent sharp drop in operating/free cash flow.
Positive Factors
Conservative balance sheet
Very low leverage gives Goodpatch financial flexibility to withstand weaker periods and continue investing in its digital product design capabilities. A predominantly equity-funded capital structure also limits interest burden and refinancing exposure, supporting resilience over the next several quarters.
Negative Factors
Material cash-flow deterioration
The steep decline in operating and free cash flow weakens confidence that reported earnings consistently convert into usable cash. Although free cash flow remains positive, the deterioration can restrict internally funded investment and makes future cash generation more dependent on operating execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives Goodpatch financial flexibility to withstand weaker periods and continue investing in its digital product design capabilities. A predominantly equity-funded capital structure also limits interest burden and refinancing exposure, supporting resilience over the next several quarters.
Read all positive factors

Goodpatch, Inc. (7351) vs. iShares MSCI Japan ETF (EWJ)

Goodpatch, Inc. Business Overview & Revenue Model

Company Description
Goodpatch, Inc. engages in the provision of UI/UX design consulting services. The company offers UI/UX design, business model design, brand experience design, organizational design, and software development services. It provides ReDesigner, a desi...

Goodpatch, Inc. Financial Statement Overview

Summary
Financials are mixed but generally solid: a very strong balance sheet with minimal leverage supports stability, and revenue growth rebounded sharply (~194%). Offsetting this, profitability has been uneven (EBIT margin down to ~8.6% from ~12.3% last year) and cash generation deteriorated materially with volatile operating and free cash flow.
Income Statement
70
Positive
Balance Sheet
88
Very Positive
Cash Flow
55
Neutral
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue5.10B5.20B5.09B3.94B3.93B3.72B
Gross Profit2.89B2.93B2.94B2.18B2.27B2.28B
EBITDA538.84M544.19M708.33M132.80M433.21M234.93M
Net Income327.10M353.68M407.05M11.53M216.04M72.54M
Balance Sheet
Total Assets5.08B5.11B5.25B4.68B4.67B4.17B
Cash, Cash Equivalents and Short-Term Investments2.59B2.53B2.73B3.28B3.27B2.91B
Total Debt143.86M116.61M248.40M401.26M192.73M361.46M
Total Liabilities670.94M660.94M1.11B804.63M730.54M963.29M
Stockholders Equity4.41B4.45B4.15B3.87B3.94B3.21B
Cash Flow
Free Cash Flow579.37M140.91M842.06M-70.19M76.55M395.57M
Operating Cash Flow580.69M182.88M844.39M-57.12M78.67M410.65M
Investing Cash Flow50.22M-1.26B-1.08B-58.49M-97.20M-673.68M
Financing Cash Flow59.52M-236.51M-310.33M116.90M373.91M389.55M

Goodpatch, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price673.00
Price Trends
50DMA
464.06
Negative
100DMA
455.71
Negative
200DMA
473.07
Negative
Market Momentum
MACD
-4.08
Positive
RSI
42.65
Neutral
STOCH
29.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7351, the sentiment is Negative. The current price of 673 is above the 20-day moving average (MA) of 466.55, above the 50-day MA of 464.06, and above the 200-day MA of 473.07, indicating a bearish trend. The MACD of -4.08 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7351.

Goodpatch, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥74.34B29.29―0.63%20.70%56.44%
81
Outperform
¥317.91B20.95―0.61%10.37%17.89%
73
Outperform
¥13.48B8.53―2.63%-3.72%138.33%
73
Outperform
¥11.03B16.12―2.19%7.28%-14.91%
70
Outperform
¥155.17B23.02―4.24%80.85%61.80%
69
Neutral
¥4.23B11.28―2.19%2.20%-12.53%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7351
Goodpatch, Inc.
452.00
-214.20
-32.15%
JP:3633
GMO Pepabo, Inc.
2,642.00
638.88
31.89%
JP:4431
Smaregi, Inc.
3,765.00
838.25
28.64%
JP:4686
Justsystems Corporation
5,000.00
509.72
11.35%
JP:4784
GMO AD Partners Inc.
498.00
-514.03
-50.79%
JP:4811
DreamArts Corp.
930.00
-309.57
-24.97%

Goodpatch, Inc. Corporate Events

Goodpatch Nine-Month Profit Slips Despite Stable Sales and Strong Balance Sheet
Jul 23, 2026
Goodpatch Inc. reported consolidated net sales of ¥3,847 million for the nine months ended May 31, 2026, essentially flat year on year, while operating profit fell 35.2% to ¥329 million and profit attributable to owners of parent decline...
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 16, 2026