Kushim,Inc. (2345) AI Stock Analysis

• Market Cap: ¥4.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 80
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.67
• Shares Outstanding: 17,746,733
• 10 Day Avg. Volume: 467,970
• 30 Day Avg. Volume: 1,750,533
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥263.00
• Price Target Upside: 12.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥263.00 ▲(12.88% Upside)

Kushim, Inc.'s overall stock score is primarily impacted by its financial challenges, including negative profitability and cash flow issues. While technical indicators show some positive momentum, the negative valuation metrics further weigh down the score.

Kushim,Inc. Business Overview & Revenue Model

Company Description

Kushim, Inc. engages in the blockchain service, system engineering, and incubation businesses in Japan. It offers development of systems that applied advanced IT technology; research aimed at social implementation of advanced IT technology; blockchain technology research services; and development and sales of educational content related to blockchain technology. The company provides system engineering services including planning, requirements definition, design, testing, and operation and maintenance, as well as investments and loans to corporations and projects. In addition, it undertakes management and various consulting for commercialization, project promotion, and support incubation. Further, the company is involved in the training services for advanced IT engineers, and introduction and dispatch business. The company was formerly known as iStudy Co., Ltd. and changed its name to Kushim, Inc. in May 2020. Kushim, Inc. was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

Kushim, Inc. generates revenue primarily through subscription fees for its management software, which businesses pay on a monthly or annual basis. Additionally, the company earns income from consulting services that assist clients in compliance and operational efficiency. Key revenue streams include tiered subscription plans based on the size and needs of the business, as well as transaction fees for additional features or integrations. Partnerships with key players in the cannabis supply chain further enhance their offerings and provide additional income opportunities through collaborative projects and shared resources.

Kushim,Inc. Financial Statement Overview

Summary

Kushim, Inc. is experiencing significant financial challenges. Despite revenue growth, the company struggles with profitability and cash flow generation. High leverage and negative margins pose risks to financial stability. The substantial cash reserves provide some liquidity buffer, but operational and financial improvements are necessary to enhance long-term viability.

Income Statement

Kushim, Inc. has experienced significant revenue growth from 2023 to 2024, but this is overshadowed by substantial net losses and negative margins. The company has a negative EBIT and EBITDA margin, indicating operational inefficiencies and high costs relative to revenue. The net profit margin is also deeply negative, reflecting ongoing profitability challenges.

Balance Sheet

The company's balance sheet shows a high level of cash and short-term investments, which provides liquidity. However, the debt-to-equity ratio is concerning, as liabilities far exceed equity, indicating high leverage. The equity ratio is low, suggesting potential financial instability. Despite these challenges, the company maintains a positive net debt position, which is a strength.

Cash Flow

Kushim, Inc. faces negative operating and free cash flows, indicating cash outflows from core operations. The operating cash flow to net income ratio is negative, highlighting cash flow challenges relative to reported losses. The free cash flow growth rate is negative, reflecting deteriorating cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	394.08M	1.62B	1.62B	1.86B
Gross Profit	638.38M	-204.92M	785.07M	379.21M	535.58M
EBITDA	-1.66B	-1.25B	854.00M	-253.49M	249.34M
Net Income	-1.96B	-1.66B	619.02M	-362.70M	154.94M
Balance Sheet
Total Assets	86.54B	61.66B	6.44B	3.79B	2.38B
Cash, Cash Equivalents and Short-Term Investments	78.43B	7.75B	1.17B	1.69B	552.19M
Total Debt	1.37B	1.04B	308.83M	369.44M	417.16M
Total Liabilities	85.11B	57.63B	596.04M	728.13M	833.35M
Stockholders Equity	1.43B	4.03B	5.85B	3.07B	1.55B
Cash Flow
Free Cash Flow	-610.56M	-266.00M	-1.00B	-78.07M	52.37M
Operating Cash Flow	-607.47M	-200.00M	-999.61M	-49.07M	109.37M
Investing Cash Flow	-301.27M	612.81M	66.96M	-380.09M	-561.94M
Financing Cash Flow	942.78M	-52.76M	354.37M	1.57B	-66.66M

Kushim,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 233.00
• 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 JP:2345, the sentiment is Negative. The current price of 233 is below the 20-day moving average (MA) of 269.90, below the 50-day MA of 257.76, and below the 200-day MA of 270.92, indicating a bearish trend. The MACD of -12.95 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2345.

Kushim,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4075	72 Outperform	¥5.25B	36.73	―	―	25.01%	175.85%
5257	72 Outperform	¥3.56B	11.14	17.67%	―	12.35%	-4.38%
5134	66 Neutral	¥4.15B	17.03	11.57%	―	38.35%	632.28%
4069	62 Neutral	¥7.96B	76.15	-0.68%	―	13.47%	30.33%
3917	54 Neutral	¥4.04B	-579.78	-0.43%	―	17.30%	99.39%
2345	49 Neutral	¥4.13B	―	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%