KG Intelligence Co., Ltd. (2408) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: 5.27%
• Average Volume (3M): 11.55K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.30
• Revenue Growth: 6.79%
• EPS Growth: -30.39%
• Country: JP
• Employees: 176
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 8.53
• Shares Outstanding: 7,398,000
• 10 Day Avg. Volume: 16,050
• 30 Day Avg. Volume: 11,553
• PEG Ratio: -0.49
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.71
• P/FCF Ratio: -12.99
• 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: 60 Neutral
• Price Target: ¥717.00 ▲(4.98% Upside)

The score is primarily driven by financial performance: a very strong, low-risk balance sheet and continued profitability are outweighed by the 2024 cash-flow reversal and softer revenue/margin trends. Technicals are broadly neutral, while valuation is supported by the high dividend yield despite a mid-range P/E.

Positive Factors

Balance Sheet Strength

A strong balance sheet with no debt enhances financial stability and resilience, providing a solid foundation for future growth and investment.

Profitability

Sustained profitability and healthy operating margins indicate effective cost management and a competitive business model, supporting long-term viability.

Dividend Yield

A high dividend yield provides attractive returns to shareholders, enhancing investor appeal and potentially supporting stock price stability.

Negative Factors

Revenue Decline

Declining revenue and margins suggest challenges in maintaining market share or pricing power, potentially impacting future growth prospects.

Cash Flow Weakness

Negative cash flow indicates potential liquidity issues, reducing financial flexibility and the ability to invest in growth or weather downturns.

Margin Pressure

Decreasing margins may reflect rising costs or competitive pressures, challenging the company's ability to sustain profitability over the long term.

KG Intelligence Co., Ltd. Business Overview & Revenue Model

Company Description

KG Intelligence Co., Ltd. (2408) specializes in providing cutting-edge data analytics and artificial intelligence solutions. The company operates in the technology sector, focusing on developing advanced software and AI-driven tools designed to optimize business processes and decision-making for various industries. Their core products include data management platforms, AI-driven analytics tools, and customized software solutions that cater to specific industry needs.

How the Company Makes Money

KG Intelligence Co., Ltd. generates revenue through a combination of software sales, subscription services, and consulting fees. The company offers its products on a licensing basis, where clients pay for the right to use the software for a specified period. Subscription services provide recurring revenue, as clients pay regular fees for continuous access to the company's platform and updates. Additionally, KG Intelligence provides consultancy services, helping businesses implement and customize AI solutions, which constitutes another significant revenue stream. The company may also engage in strategic partnerships with other technology firms to expand its offerings and customer base, contributing to its financial growth.

KG Intelligence Co., Ltd. Financial Statement Overview

Summary

KG Intelligence Co., Ltd. demonstrates strong recovery and growth potential, particularly in terms of profitability and balance sheet strength. Nonetheless, recent declines in revenue and cash flow warrant cautious optimism. Maintaining its debt-free status and improving cash flow stability will be crucial for sustaining long-term growth.

Income Statement

KG Intelligence Co., Ltd. has shown consistent revenue growth over the years, though it faced a slight dip in 2024. The company achieved a remarkable turnaround from negative net income in previous years to positive net income in 2022 and 2023. Gross Profit Margin improved significantly from a negative figure in 2020 to 27.75% in 2023. However, the recent decline in revenue and net income in 2024 suggests a need for careful monitoring.

Balance Sheet

The company maintains a strong balance sheet characterized by zero debt, resulting in a Debt-to-Equity Ratio of zero, and high liquidity with substantial cash reserves. The Equity Ratio is consistently high, indicating solid financial stability. However, the Total Assets have been declining slightly in recent years, which could be a concern if the trend continues.

Cash Flow

The cash flow situation is mixed. While operating cash flows were positive in 2022 and 2023, they turned negative in 2024, impacting Free Cash Flow significantly. The Free Cash Flow to Net Income Ratio showed strong performance in 2023 but deteriorated in 2024 due to negative operating cash flow. This volatility in cash flows requires closer attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.27B	2.47B	2.66B	2.49B	2.17B	1.91B
Gross Profit	945.03M	665.79M	737.28M	586.12M	345.48M	-51.62M
EBITDA	500.39M	352.00M	413.03M	308.21M	96.40M	-298.00M
Net Income	304.51M	241.04M	371.43M	337.66M	72.46M	-385.46M
Balance Sheet
Total Assets	6.76B	6.73B	7.44B	7.16B	6.59B	6.20B
Cash, Cash Equivalents and Short-Term Investments	4.97B	5.08B	5.71B	5.53B	4.53B	4.16B
Total Debt	0.00	0.00	0.00	0.00	1.64M	4.93M
Total Liabilities	910.00M	821.00M	1.49B	1.49B	1.20B	811.53M
Stockholders Equity	5.85B	5.91B	5.96B	5.66B	5.39B	5.39B
Cash Flow
Free Cash Flow	0.00	-325.56M	264.25M	490.99M	356.30M	-344.27M
Operating Cash Flow	0.00	-293.17M	282.31M	504.99M	364.83M	-333.00M
Investing Cash Flow	0.00	167.77M	-238.52M	-235.09M	183.64M	319.63M
Financing Cash Flow	0.00	-295.13M	-84.73M	-73.92M	-75.93M	-75.71M

KG Intelligence Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 683.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2408, the sentiment is Positive. The current price of 683 is below the 20-day moving average (MA) of 683.55, below the 50-day MA of 684.25, and above the 200-day MA of 637.53, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2408.

KG Intelligence Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2481	75 Outperform	¥3.73B	9.42	―	2.95%	1.41%	-6.45%
6176	73 Outperform	¥9.81B	14.12	―	―	7.76%	12.44%
9478	73 Outperform	¥6.64B	16.89	―	0.87%	-3.02%	-30.86%
2376	67 Neutral	¥4.15B	29.55	―	2.04%	4.91%	-60.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2408	60 Neutral	¥5.00B	20.18	―	5.27%	6.79%	-30.39%
2341	58 Neutral	¥3.97B	-7.19	―	2.78%	6.71%	-1627.44%