itamiarts inc. (168A) AI Stock Analysis

• Market Cap: ¥2.06B
• Dividend Yield: 1.52%
• Average Volume (3M): 19.31K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.60
• Revenue Growth: 25.50%
• EPS Growth: 194.75%
• Country: JP
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 52.59
• Shares Outstanding: 1,470,000
• 10 Day Avg. Volume: 36,370
• 30 Day Avg. Volume: 19,306
• PEG Ratio: 0.43
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -1.23
• 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: 76 Outperform
• Price Target: ¥1,583.00 ▲(13.07% Upside)

The score is driven primarily by strong financial performance (notably revenue growth and improving profitability), supported by attractive valuation (low P/E). Technicals confirm a strong uptrend, but overbought momentum signals (high RSI/Stoch) reduce the score due to near-term pullback risk, and free cash flow pressure from recent capex remains a key watch item.

Positive Factors

Revenue & profitability growth

Consistent top-line expansion and rising gross/net margins indicate the company is scaling its advertising services profitably. Improved EBIT/EBITDA margins point to operational leverage that supports sustainable earnings growth and stronger cash generation over the medium term.

Operating cash flow generation

Reliable positive operating cash flow demonstrates quality of underlying earnings and funds day-to-day operations without immediate reliance on external financing. This cash conversion underpins liquidity and resilience through industry cycles over the next several months.

Stronger equity base

An expanding equity base improves solvency and provides a buffer against demand volatility in advertising. Higher equity supports strategic investment, borrowing capacity, and reduces bankruptcy risk, strengthening the firm's structural financial position over the medium term.

Negative Factors

Negative free cash flow from capex

Recent capex-driven negative free cash flow can deplete reserves or force external funding, constraining returns or growth unless capex yields strong future returns. Persistent FCF deficits could pressure liquidity and strategic flexibility over the coming quarters.

Elevated leverage risk

Relatively high leverage raises interest and refinancing vulnerability, reducing financial flexibility to invest or absorb revenue shocks. In a cyclical advertising market, elevated debt can magnify downside and limit the company's ability to pursue opportunistic growth.

Limited forward guidance / disclosure

Absence of formal guidance and limited disclosure reduces visibility into management's expectations and planning, complicating cash flow forecasting and investor assessment. This transparency gap can hinder strategic decision-making and capital allocation over the medium term.

itamiarts inc. Business Overview & Revenue Model

Company Description

ItamiArts Inc. (168A) is a dynamic company specializing in the design and production of high-quality artisanal goods, with a focus on traditional craftsmanship blended with modern aesthetics. Operating primarily in the arts and crafts sector, ItamiArts offers a diverse range of products, including handmade ceramics, textiles, and decorative art pieces. The company is committed to sustainability and ethical sourcing, making it a preferred choice among environmentally conscious consumers. ItamiArts also engages in collaborative projects with local artisans to preserve cultural heritage while providing unique offerings in the global market.

How the Company Makes Money

ItamiArts Inc. generates revenue through multiple key streams. Primarily, the company sells its artisanal products directly to consumers via its e-commerce platform and at various craft fairs and trade shows. Additionally, ItamiArts has established partnerships with boutique retailers and galleries, allowing them to reach a wider audience and increase sales volume. The company also offers workshops and classes in traditional crafting techniques, which not only serve as an additional revenue stream but also enhance brand loyalty and community engagement. Significant factors contributing to its earnings include a growing demand for sustainable and unique home decor items, as well as the company's commitment to quality and craftsmanship, which helps build a loyal customer base.

itamiarts inc. Financial Statement Overview

Summary

Income statement strength (Score 85) shows strong revenue growth and improving profitability/margins. Balance sheet is solid but tempered by relatively high leverage (Score 70). Cash flow is positive at the operating level, but recently negative free cash flow due to higher capex (Score 65).

Income Statement

The company has demonstrated strong revenue growth over the past years, with a notable increase in total revenue from 2024 to 2025. Gross profit margin remains healthy, indicating efficient cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, suggesting operational efficiency improvements.

Balance Sheet

The balance sheet reflects a solid equity base with a significant increase in stockholders' equity, enhancing financial stability. However, the debt-to-equity ratio is relatively high, indicating potential leverage risks. The equity ratio has improved, showing a stronger asset base supported by equity.

Cash Flow

Operating cash flow has been consistently positive, supporting the company's liquidity position. However, free cash flow has turned negative recently due to substantial capital expenditures, which could impact future cash reserves. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.61B	3.11B	2.51B	2.11B
Gross Profit	1.47B	1.21B	981.80M	813.62M
EBITDA	439.01M	399.23M	280.49M	175.88M
Net Income	165.04M	153.19M	91.82M	14.99M
Balance Sheet
Total Assets	3.65B	2.53B	2.23B	2.09B
Cash, Cash Equivalents and Short-Term Investments	625.76M	449.00M	312.77M	266.95M
Total Debt	2.05B	1.71B	1.58B	1.61B
Total Liabilities	2.44B	2.11B	1.96B	1.92B
Stockholders Equity	1.20B	421.09M	270.18M	176.38M
Cash Flow
Free Cash Flow	-753.00M	-2.47M	58.27M	129.84M
Operating Cash Flow	283.13M	236.85M	153.94M	259.05M
Investing Cash Flow	-1.05B	-252.57M	-94.39M	-136.66M
Financing Cash Flow	929.74M	129.54M	-25.21M	-44.67M

itamiarts inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:168A, the sentiment is Neutral. The current price of 1400 is below the 20-day moving average (MA) of 1522.55, above the 50-day MA of 1397.35, and above the 200-day MA of 1190.46, indicating a neutral trend. The MACD of 12.10 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 1.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:168A.

itamiarts inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
168A	76 Outperform	¥2.06B	4.79	―	1.52%	25.50%	194.75%
7067	69 Neutral	¥1.72B	47.27	―	1.00%	5.79%	-30.56%
4196	63 Neutral	¥3.20B	125.16	―	―	9.93%	-81.98%
7357	62 Neutral	¥4.51B	86.64	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9241	58 Neutral	¥1.50B	26.26	―	―	1.95%	1083.13%
6573	47 Neutral	¥2.62B	-9.59	―	―	7.13%	56.87%