Earlyworks Co., Ltd. Sponsored ADR (ELWS) AI Stock Analysis

• Market Cap: $6.72M
• Dividend Yield: N/A
• Average Volume (3M): 297.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 136.36%
• EPS Growth: 28.66%
• Country: US
• Employees: 15
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.57
• Shares Outstanding: 3,015,380
• 10 Day Avg. Volume: 101,060
• 30 Day Avg. Volume: 297,267
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: -0.02
• 1Y Price Target: $2.00
• Price Target Upside: -10.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $2.00 ▼(-10.31% Downside)

The overall stock score is primarily influenced by significant financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates bearish momentum, further impacting the score. Valuation concerns, such as a negative P/E ratio and lack of dividend yield, also weigh heavily on the stock's attractiveness.

Earlyworks Co., Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

How the Company Makes Money

Earlyworks generates revenue through a multi-faceted business model that includes subscription fees for its software and applications, licensing agreements with educational institutions, and partnerships with content providers. The primary revenue stream comes from subscriptions, where schools and parents pay for access to the platform's educational resources and tools. Additionally, Earlyworks benefits from strategic partnerships with educational organizations and technology companies, enabling them to expand their reach and enhance their product offerings. These collaborations often lead to co-branded products or bundled services, contributing further to the company's earnings.

Earlyworks Co., Ltd. Sponsored ADR Financial Statement Overview

Summary

ELWS shows significant financial challenges with a strong gross profit margin offset by substantial net losses and negative cash flow. Revenue growth is positive, but profitability remains elusive. The balance sheet is stable with manageable debt, yet ongoing losses raise concerns.

Income Statement

The income statement shows significant challenges with profitability. Despite a substantial revenue increase to $179.36M in the latest year, the company remains unprofitable with a net loss of $336.15M. The gross profit margin is strong at nearly 79%, but high operating expenses lead to negative EBIT and EBITDA margins. Revenue growth is positive, but substantial losses highlight financial instability.

Balance Sheet

The balance sheet reflects a moderately strong equity position with a debt-to-equity ratio of 0.54, indicating manageable leverage. However, the return on equity is negative due to persistent losses. The equity ratio of 57.47% suggests a stable capital structure, yet ongoing losses and liabilities could pose risks to financial health.

Cash Flow

Cash flow analysis reveals significant concerns. Operating cash flow is deeply negative at -$393.86M, reflecting ongoing operational challenges. Free cash flow is also negative, and the free cash flow to net income ratio is unfavorable. Although financing activities have provided substantial cash inflow, reliance on external financing is unsustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.30M	440.36M	179.36M	46.57M	463.72M	216.21M
Gross Profit	135.46M	227.10M	141.77M	16.07M	355.34M	182.67M
EBITDA	-347.11M	-252.97M	-333.67M	-388.05M	-571.96M	-84.62M
Net Income	-474.19M	-256.70M	-336.15M	-382.31M	-602.47M	-70.52M
Balance Sheet
Total Assets	575.57M	190.50M	575.57M	453.04M	752.05M	437.23M
Cash, Cash Equivalents and Short-Term Investments	437.91M	104.38M	437.91M	177.89M	657.42M	364.26M
Total Debt	179.27M	51.84M	179.27M	195.54M	69.79M	74.73M
Total Liabilities	244.84M	116.47M	244.84M	244.52M	161.23M	114.07M
Stockholders Equity	330.72M	74.03M	330.72M	208.51M	590.82M	323.16M
Cash Flow
Free Cash Flow	-404.32M	-223.97M	-394.20M	-401.36M	99.28M	33.91M
Operating Cash Flow	-403.98M	-191.73M	-393.86M	-399.74M	100.27M	34.52M
Investing Cash Flow	-103.70M	87.76M	-100.34M	-1.63M	3.76M	-611.15K
Financing Cash Flow	651.82M	-119.31M	644.85M	-78.41M	189.13M	91.52M

Earlyworks Co., Ltd. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELWS, the sentiment is Negative. The current price of 2.23 is below the 20-day moving average (MA) of 3.06, below the 50-day MA of 3.16, and below the 200-day MA of 2.60, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 5.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELWS.

Earlyworks Co., Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.52B	8.84	-11.04%	1.87%	8.55%	-8.14%
NVNI	46 Neutral	$18.60M	―		―	―	―
ULY	41 Neutral	$5.28M	0.07		―	-20.81%	-139.45%
ELWS	41 Neutral	$6.72M	―	-127.37%	―	136.36%	28.66%
PETXQ	40 Underperform	$302.49K	―		―	-29.08%	-45.89%
RYDE	40 Underperform	$7.82M	―	230.42%	―	3.69%	-50.95%
WCT	―	$11.10M	―		―	―	―