CAICA Inc. (2315) AI Stock Analysis

• Market Cap: ¥15.13B
• Dividend Yield: N/A
• Average Volume (3M): 8.30M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.23
• Revenue Growth: -3.48%
• EPS Growth: N/A
• Country: JP
• Employees: 349
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.28
• Shares Outstanding: 151,406,800
• 10 Day Avg. Volume: 4,821,310
• 30 Day Avg. Volume: 8,298,093
• PEG Ratio: 0.19
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 22.67
• 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: ¥89.66
• Price Target Upside: -10.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥89.00 ▼(-11.00% Downside)

CAICA Inc.'s overall stock score reflects significant financial challenges, with sustained losses and negative profit margins being the most impactful factors. The technical analysis indicates bearish momentum, while the valuation is moderate but lacks dividend appeal. The absence of earnings call data and corporate events limits additional insights.

CAICA Inc. Business Overview & Revenue Model

Company Description

CAICA DIGITAL Inc., together with its subsidiaries, provides information services in Japan and internationally. The company offers systems development services, including development and distribution of various business package software's for information service providers, such as financial strategy support systems for Internet banking for financial institutions; purchasing procurement systems using the Internet for manufacturers and distributors; and information processing systems and network monitoring systems for traders. It also provides finance industry solutions comprising accounts, information, legacy, financing, foreign exchange, sales branch terminals, Internet banking, and payment systems for banks; and in-house information management systems, asset management, consulting tools, etc. for various securities companies and securities system companies, as well as life and non-insurance SE solutions. In addition, the company offers ordering, MD, inventory warehouse management, logistics, B to C, B to B, customer management systems, etc. for the distribution industry that includes department stores, convenience stores, apparel industries, etc.; and customer management, mileage, ticket sale, accommodation reservation, content service, transportation/service industry, and other systems. Further, it provides manufacturing and public systems; and Web systems, which comprise construction, application design, and development system solutions. The company was formerly known as CAICA Inc. and changed its name to CAICA DIGITAL Inc. in November 2021. CAICA DIGITAL Inc. was founded in 1989 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CAICA Inc. generates revenue through multiple streams, including software licensing fees, subscription-based cloud services, and consulting fees for IT services. The company's primary revenue model is based on a combination of one-time sales for software licenses and recurring revenue from ongoing service contracts and subscriptions. Additionally, CAICA has established strategic partnerships with key technology providers, which enhance its service offerings and expand its market reach. These collaborations often lead to joint ventures or bundled services that attract more clients and create additional revenue opportunities. The company's focus on delivering high-quality, tailored solutions has also fostered long-term relationships with clients, contributing to a steady stream of repeat business and referrals.

CAICA Inc. Financial Statement Overview

Summary

CAICA Inc. faces significant financial challenges, primarily driven by sustained losses and negative profit margins. While the balance sheet shows low leverage, the company must focus on improving profitability and cash flow generation to strengthen its financial position. The positive trend in gross profit margin and operating cash flow is encouraging, but further efforts are needed to attain sustainable growth and profitability.

Income Statement

CAICA Inc.'s income statement shows significant challenges. The company has been consistently unprofitable, with negative net income and EBIT margins. Despite a slight revenue growth from the previous year, the company struggles with negative profit margins, indicating poor cost management or high operating expenses. The gross profit margin has improved slightly, which is a positive sign, but the overall financial health in terms of profitability remains weak.

Balance Sheet

The balance sheet reveals a relatively stable financial position, with a strong equity base compared to total assets, reflected in a high equity ratio. The debt-to-equity ratio is low, indicating prudent leverage management. However, the company’s return on equity is negative due to consistent losses, which is concerning. The assets have decreased over time, signaling potential asset management issues or divestitures.

Cash Flow

CAICA Inc.'s cash flow statement indicates some improvement in operating cash flow, turning positive in the latest year, which is a positive development. However, the historical trend of negative free cash flow and reliance on external financing is concerning. The free cash flow to net income ratio is not ideal due to persistent net losses, suggesting that the company needs to improve its operational efficiency and cost management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.28B	5.61B	5.68B	6.44B	5.95B	6.00B
Gross Profit	802.00M	609.82M	245.00M	2.22B	1.69B	857.47M
EBITDA	627.07M	-355.17M	-4.09B	-5.88B	-680.68M	-290.89M
Net Income	616.77M	-359.86M	-3.89B	-6.24B	-799.90M	-557.82M
Balance Sheet
Total Assets	3.05B	2.43B	2.97B	59.03B	107.22B	11.30B
Cash, Cash Equivalents and Short-Term Investments	641.93M	698.98M	1.38B	4.26B	4.75B	4.96B
Total Debt	0.00	170.00M	70.00M	812.39M	995.59M	1.21B
Total Liabilities	527.57M	765.79M	773.22M	53.88B	95.82B	2.06B
Stockholders Equity	2.52B	1.66B	2.18B	4.89B	11.07B	9.24B
Cash Flow
Free Cash Flow	0.00	282.85M	-1.77B	-1.44B	-2.23B	-696.00M
Operating Cash Flow	0.00	282.85M	-1.75B	-1.14B	-2.07B	-591.21M
Investing Cash Flow	0.00	-386.87M	-572.75M	-212.31M	-187.48M	446.55M
Financing Cash Flow	0.00	-246.49M	701.46M	-229.68M	1.54B	2.54B

CAICA Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.00
• 50DMA: Negative
• 100DMA: Positive
• 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:2315, the sentiment is Positive. The current price of 100 is below the 20-day moving average (MA) of 102.70, below the 50-day MA of 106.46, and above the 200-day MA of 72.09, indicating a neutral trend. The MACD of -4.70 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2315.

CAICA Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4430	77 Outperform	¥8.82B	9.41	―	3.06%	27.08%	18.85%
4374	76 Outperform	¥11.17B	25.60	―	0.47%	21.21%	82.61%
4667	75 Outperform	¥8.39B	29.02	―	1.64%	8.21%	-16.15%
3633	71 Outperform	¥11.01B	16.47	―	2.55%	3.28%	13.20%
4496	66 Neutral	¥5.70B	39.94	―	2.50%	3.20%	-61.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2315	52 Neutral	¥15.13B	21.60	30.04%	―	-3.48%	―