VRAIN Solution,Inc. (135A) AI Stock Analysis

• Market Cap: ¥30.85B
• Dividend Yield: N/A
• Average Volume (3M): 99.90K
• Price to Earnings (P/E): 87.0
• Beta (1Y): 1.70
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 97
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.17
• Shares Outstanding: 10,233,000
• 10 Day Avg. Volume: 149,710
• 30 Day Avg. Volume: 99,900
• PEG Ratio: 1.92
• Price to Book (P/B): 15.01
• Price to Sales (P/S): 9.95
• P/FCF Ratio: -89.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥3,238.00 ▲(2.31% Upside)

The score is primarily supported by strong revenue and profitability trends and a solid, low-leverage balance sheet, but it is materially held back by negative operating/free cash flow, weak technical momentum (below key moving averages with negative MACD), and a high P/E valuation.

Positive Factors

Subscription-based recurring revenue

A subscription licensing model creates recurring, predictable revenue and higher customer lifetime value, supporting durable cash generation and ease of scaling sales. Over 2-6 months this improves revenue visibility and supports investment in R&D and customer success for long-term retention.

Strong revenue and profitability momentum

Sustained high revenue growth and improving net margins indicate product-market fit and pricing power. This durable trend supports reinvestment into R&D and sales, enabling continued market share gains and higher operating leverage if margins expansion continues over the medium term.

Conservative leverage, strong equity position

A solid balance sheet and low leverage provide financial flexibility to fund growth, weather downturns, and pursue strategic investments or partnerships without immediate refinancing risk. This structural strength enhances resilience over multiple quarters.

Negative Factors

Negative operating cash flow trend

Negative operating cash flow and sharply weaker free cash flow signal a structural cash conversion issue: revenue and accounting profits are not translating into cash. Over months this pressures liquidity, may force external financing, and constrains organic funding for growth or R&D.

Declining cash reserves

A reduction in cash balances erodes short-term liquidity buffers and limits the company's ability to absorb shocks or invest opportunistically. If sustained, declining cash combined with negative operating cash flow raises the likelihood of needing external capital within a few quarters.

Operational efficiency headroom

Margins that are good but not best-in-class indicate potential cost or scale inefficiencies. Over the medium term, failing to tighten EBIT/EBITDA margins could limit return on incremental revenue and make it harder to justify reinvestment, constraining long-term profitability improvement.

VRAIN Solution,Inc. Business Overview & Revenue Model

Company Description

Vrain Solution Inc is engaged in providing AI solutions for the manufacturing industry. It provides AI visual inspection, AI vibration inspection, AI abnormal sound inspection, production planning optimization and Safety management.

How the Company Makes Money

VRAIN Solution, Inc. generates revenue primarily through a subscription-based model for its software products, which allows clients to access its advanced analytics tools and machine learning applications on an ongoing basis. Key revenue streams include licensing fees from its proprietary software, consulting services for customized AI solutions, and training programs for client teams to effectively utilize these technologies. Additionally, VRAIN has established strategic partnerships with industry leaders, enhancing its market reach and enabling collaborative projects that drive further revenue. The company also benefits from government contracts and grants for research initiatives, contributing to its overall earnings.

VRAIN Solution,Inc. Financial Statement Overview

Summary

VRAIN Solution, Inc. shows strong revenue growth and profitability with a solid balance sheet. However, negative cash flow trends pose a risk to liquidity and operational funding, which needs attention.

Income Statement

VRAIN Solution, Inc. has demonstrated impressive revenue growth, with a significant increase from 2024 to 2025. The gross profit margin remains strong, indicating efficient cost management. The net profit margin has improved, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while healthy, suggest room for further operational efficiency improvements.

Balance Sheet

The company maintains a robust equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity has improved, showcasing effective use of shareholder funds. However, the decrease in cash and cash equivalents over the period may warrant attention.

Cash Flow

The cash flow statement reveals a concerning decline in operating cash flow, turning negative in 2025, which could impact liquidity. The free cash flow has also decreased significantly, indicating potential challenges in funding operations without external financing. The operating cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.97B	2.14B	1.41B	617.40M	344.47M
Gross Profit	1.56B	1.68B	1.14B	547.09M	305.53M
EBITDA	343.95M	631.55M	515.57M	76.91M	19.80M
Net Income	232.48M	425.07M	330.16M	49.93M	11.19M
Balance Sheet
Total Assets	1.55B	1.87B	1.45B	341.12M	242.28M
Cash, Cash Equivalents and Short-Term Investments	380.00M	488.89M	962.10M	18.09M	81.90M
Total Debt	2.00M	5.20M	68.69M	119.66M	102.85M
Total Liabilities	278.00M	451.39M	452.86M	251.90M	207.35M
Stockholders Equity	1.27B	1.42B	997.04M	89.21M	34.93M
Cash Flow
Free Cash Flow	15.74M	-238.74M	417.85M	-87.99M	-8.49M
Operating Cash Flow	70.17M	-161.24M	435.92M	-40.93M	13.29M
Investing Cash Flow	-209.46M	-242.10M	-18.61M	-39.69M	-75.37M
Financing Cash Flow	-45.97M	-69.89M	526.70M	16.80M	93.67M

VRAIN Solution,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3165.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:135A, the sentiment is Negative. The current price of 3165 is below the 20-day moving average (MA) of 3215.00, below the 50-day MA of 3347.40, and above the 200-day MA of 2701.36, indicating a neutral trend. The MACD of -41.35 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:135A.

VRAIN Solution,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥20.21B	29.32	―	0.17%	31.39%	13.12%
4374	71 Outperform	¥10.32B	20.72	―	0.47%	19.35%	71.74%
135A	63 Neutral	¥30.85B	86.96	―	―	―	―
2351	62 Neutral	¥2.39B	10.90	―	1.05%	-4.77%	42.04%
3042	62 Neutral	¥2.97B	20.44	―	0.58%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4417	60 Neutral	¥54.49B	45.64	―	0.90%	25.06%	37.24%