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FRONTEO

TYO:2158 · JP3944630007
IT ServicesSmall

360

36
Medium confidence — indicative
EV / EBIT3
Price / Owner Earnings11
Owner Earnings Yield33
Dividend Yield1
Price/Sales29
EV / Gross Profit15
Price/Book17
Return on Capital54
Cash Return on Capital82
Return on Equity75
EBIT Margin83
Gross Profitability78
Cash Conversion22
Accruals3
Owner Earnings Margin86
Sales growth96
Profit Growth63
Long-Term EPS Growth67
Reinvestment97
Price momentum58
Debt load20
Refinancing63
Debt Payback39
Liquidity57
Analyst ratings10
Expectations trend50
Market mood72
Value Creation20/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

FRONTEO generates returns well above its cost of capital, the foundation of durable shareholder value.

Based on 3/5 components.

Profile

CountryJapan
IndustryIT Services
SizeSmall
TypePublic Company
ExchangeTSE
Founded2003
Websitefronteo.com
ISINJP3944630007
Last UpdateApr 2, 2026
Index & Theme
Natural Language ProcessingMachine LearningE-DiscoveryArtificial IntelligencePredictive AnalyticsText AnalyticsInformation TechnologyLegalProfessional Services

Description

FRONTEO, Inc. provides Asian-language eDiscovery solutions and services. The company’s clients include law firms, corporate legal departments and government agencies. In its eDiscovery solutions business, the company assists clients involved in cros…

Analysis

Hope premium

FRONTEO, Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 25.8×; owner earnings: the cash an owner could take out each year.

Growth is moderate; the safety picture is adequate. The company scores 20/20 on our value-creation score: strong value creator.

Flags to be aware of: Some accounting patterns deserve a closer look. The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
27
2023202420252026

All-time high

31

Mar 2026

All-time low

1

Jan 2025

Average rank

15

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
29
44
45
34
Price/Earnings
18
14
3
30
Price/Book
17
20
28
11
Dividend Yield
1
31
29
53
Value (overall)
6
19
23
33

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →