FRONTEO Inc

FRONTEO Inc's capital structure is characterized by a debt-to-equity ratio of 1.03, indicating a relatively balanced mix of debt and equity financing. The company maintains a strong liquidity position, with cash and equivalents amounting to ¥3.04 billion, which is significantly higher than its operating liabilities. This liquidity is further supported by a current ratio of 1.45, suggesting the company can meet its short-term obligations comfortably.

Profitability metrics for FRONTEO Inc are currently negative, with a return on equity (ROE) of -76.98% and a return on assets (ROA) of -29.06%. These figures indicate that the company is not generating returns for its shareholders or effectively utilizing its assets to generate profit. The operating loss of ¥2.08 billion and a net loss of ¥2.19 billion further underscore the company's current financial challenges.

The company's revenue is primarily derived from its IT services and consulting business, with no specific segment breakdown provided in the available data. Geographically, the company is based in Japan, and there is no indication of significant international revenue concentration. However, the lack of segment data limits the ability to assess geographic or product diversification.

Looking ahead, FRONTEO Inc is expected to face continued financial pressure, as the company reported a net loss in the most recent fiscal year. While the company has a positive operating cash flow of ¥1.71 billion, this is not sufficient to offset the net loss. The absence of analyst estimates for future revenue growth or profitability suggests limited visibility into the company's near-term performance.

Risk factors for FRONTEO Inc include its current unprofitability and the potential for future dilution, although the risk of dilution is currently assessed as low. The company has not issued any new shares recently, and there are no immediate filing-based liquidity or dilution flags. However, the company's reliance on operating cash flow to fund operations could become a concern if cash generation declines.

Recent events related to FRONTEO Inc include the publication of its latest financial results, which show a significant operating and net loss. There are no recent filings or transcripts indicating major strategic changes or external events that could impact the company's financial position. The company's stock has a mean price target of ¥590.00, with a single "hold" recommendation from analysts, suggesting limited upside potential in the near term.

Net income surged 119.5% year-over-year to JPY 555 million, signaling a strong return to profitability in fiscal 2026.

Free cash flow improved by 125.2% to JPY 616 million, demonstrating a significant recovery in cash generation capabilities.

Long-term debt decreased to JPY 1.99 billion, reflecting a continued deleveraging trend that strengthens the balance sheet position.

Analysts assign a mean price target of JPY 590, implying a 5.4% upside from the current market price of JPY 560.

Operating income turned positive at JPY 230 million in fiscal 2026, marking a reversal from the previous year's operating loss.

The company carries a high credit risk flag, suggesting significant concerns regarding its ability to meet financial obligations.

Debt-to-equity ratio of 1.03 is significantly higher than the cohort median of 0.12, indicating elevated financial leverage.

Revenue ¥2.05B, +29,4% YoY; Operating income +134,7% YoY.

• ▍Revenue ¥2.05B, +29,4% YoY
• ▍Operating income +134,7% YoY
• ▍Net income +279,4% YoY
• ▍Net margin 14.4%

Revenue ¥1.83B, +16,9% YoY; Operating income −7,7% YoY.

• ▍Revenue ¥1.83B, +16,9% YoY
• ▍Operating income −7,7% YoY
• ▍Net income +15,8% YoY
• ▍Net margin 5.2%

Revenue ¥1.55B, −2,2% YoY; Operating income −189,5% YoY.

• ▍Revenue ¥1.55B, −2,2% YoY
• ▍Operating income −189,5% YoY
• ▍Net income −235,8% YoY
• ▍Net margin -10.9%

Revenue ¥1.37B, −37,6% YoY; Operating income +90,3% YoY.

• ▍Revenue ¥1.37B, −37,6% YoY
• ▍Operating income +90,3% YoY
• ▍Net income +112,4% YoY
• ▍Net margin 19.8%

Revenue ¥1.58B; Operating income ¥142.1M.

• ▍Revenue ¥1.58B
• ▍Operating income ¥142.1M
• ▍Net margin 4.9%

Revenue ¥1.56B; Operating income ¥140.4M.

• ▍Revenue ¥1.56B
• ▍Operating income ¥140.4M
• ▍Net margin 5.3%

Revenue ¥1.58B; Operating income ¥149.8M.

• ▍Revenue ¥1.58B
• ▍Operating income ¥149.8M
• ▍Net margin 7.8%

Revenue ¥2.20B; Operating income -¥2.08B.

• ▍Revenue ¥2.20B
• ▍Operating income -¥2.08B
• ▍Net margin -99.5%

Revenue ¥6.10B, −17,3% YoY; Operating income +107,8% YoY.

• ▍Revenue ¥6.10B, −17,3% YoY
• ▍Operating income +107,8% YoY
• ▍Net income +119,5% YoY
• ▍Free cash flow +125,2% YoY
• ▍Net margin 9.1%

Revenue ¥7.38B, +2,2% YoY; Operating income −67,3% YoY.

• ▍Revenue ¥7.38B, +2,2% YoY
• ▍Operating income −67,3% YoY
• ▍Net income −67,1% YoY
• ▍Free cash flow −78,0% YoY
• ▍Net margin -38.5%

Revenue ¥7.22B, −34,0% YoY; Operating income −207,1% YoY.

• ▍Revenue ¥7.22B, −34,0% YoY
• ▍Operating income −207,1% YoY
• ▍Net income −230,0% YoY
• ▍Free cash flow −182,1% YoY
• ▍Net margin -23.6%

Revenue ¥10.93B, +5,4% YoY; Operating income +235,4% YoY.

• ▍Revenue ¥10.93B, +5,4% YoY
• ▍Operating income +235,4% YoY
• ▍Net income +264,5% YoY
• ▍Free cash flow +122,9% YoY
• ▍Net margin 12.0%