Quantum Solutions Co.,Ltd. (2338) AI Stock Analysis

• Market Cap: ¥18.06B
• Dividend Yield: N/A
• Average Volume (3M): 273.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -3.04
• Shares Outstanding: 49,248,592
• 10 Day Avg. Volume: 262,150
• 30 Day Avg. Volume: 273,710
• PEG Ratio: 1.27
• Price to Book (P/B): 114.00
• Price to Sales (P/S): 38.87
• P/FCF Ratio: -52.08
• 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: 42 Neutral
• Price Target: ¥323.00 ▼(-55.69% Downside)

The score is held down primarily by persistent losses and ongoing cash burn despite strong gross margins and a sharp revenue rebound. Technicals also remain weak with the stock in a clear downtrend, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Very high gross margins

Sustained gross margins near 92% indicate the company delivers high-value, low-variable-cost services or products. This structural margin advantage provides a durable cushion to absorb SG&A and R&D, enabling scalable profit recovery if operating costs are controlled and revenue growth persists.

Sharp revenue rebound

A 416% revenue rebound shows the business can regain demand and scale quickly, suggesting product-market fit or restored commercial traction. If sustained, this growth creates a larger base to leverage fixed costs and supports durable improvement in operating leverage over the coming quarters.

Low leverage / zero debt

Zero reported debt reduces solvency and interest-rate risks and preserves financial flexibility. This conservative capital structure gives the company runway to invest or raise equity without servicing debt, a durable advantage while it works to convert margins into positive cash flow and profits.

Negative Factors

Persistent negative operating cash flow

Consistent negative operating and free cash flow, including ~-521M in FY2025, indicates the business burns cash rather than self-funds. Over months this forces reliance on external financing, increases dilution or financing costs, and constrains the company’s ability to invest in durable growth initiatives.

Deep net losses

A roughly -45% net margin shows the company has not yet converted strong gross profit into operating profitability. Persistently large losses limit shareholder value creation, reduce reinvestable free cash, and require structural cost or revenue improvements to achieve sustainable earnings.

Volatile equity and negative ROE

Volatile equity and persistently negative ROE reflect ongoing erosion of shareholder capital. This undermines investor confidence and makes future capital raises more dilutive or costly, impairing the company’s long-term ability to fund growth without harming existing shareholders.

Quantum Solutions Co.,Ltd. Business Overview & Revenue Model

Company Description

Quantum Solutions Co.,Ltd. engages in the system solutions, contents development and distribution, software outsourced development, and eyelash care businesses worldwide. The company engages in system consulting, system integration, software development, and system contract development. It also operates eyelash extension salon, eyelash extension school, and eyelash care business for selling cosmetics. In addition, the company is involved in planning, designing, development, operation, and maintenance activities, as well as EV business. The company was formerly known as Bit One Group Co.,Ltd. and changed its name to Quantum Solutions Co.,Ltd. in August 2021. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Quantum Solutions Co.,Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	271.52M	698.09M	205.24M	264.29M	256.51M	245.50M
Gross Profit	209.70M	640.86M	139.31M	177.15M	192.17M	186.39M
EBITDA	-176.82M	-316.06M	-904.92M	-931.65M	-278.55M	-389.11M
Net Income	-530.66M	-317.24M	-902.42M	-954.36M	-280.88M	-392.12M
Balance Sheet
Total Assets	1.66B	324.49M	1.15B	468.70M	1.08B	1.01B
Cash, Cash Equivalents and Short-Term Investments	1.18B	136.13M	137.11M	236.34M	507.85M	792.82M
Total Debt	1.48B	0.00	0.00	0.00	0.00	300.00M
Total Liabilities	1.59B	86.99M	1.13B	72.04M	72.68M	337.99M
Stockholders Equity	67.00M	238.00M	16.68M	396.00M	1.01B	672.00M
Cash Flow
Free Cash Flow	0.00	-520.99M	-662.20M	-379.05M	-471.50M	-272.47M
Operating Cash Flow	0.00	-520.78M	-657.39M	-379.05M	-277.75M	-272.47M
Investing Cash Flow	0.00	-11.81M	-128.74M	-477.41M	-218.75M	-107.77M
Financing Cash Flow	0.00	531.51M	681.45M	583.37M	195.15M	301.32M

Quantum Solutions Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4396	76 Outperform	¥32.13B	20.38	―	1.70%	22.25%	31.88%
3788	76 Outperform	¥26.68B	25.84	―	1.50%	7.83%	49.73%
3393	74 Outperform	¥28.89B	14.60	―	4.36%	12.32%	10.42%
2359	74 Outperform	¥29.90B	12.43	―	2.93%	2.11%	5.55%
6050	69 Neutral	¥19.61B	20.81	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2338	42 Neutral	¥18.06B	-31.54	―	―	―	―