Adways, Inc. (2489) AI Stock Analysis

• Market Cap: ¥11.18B
• Dividend Yield: 1.15%
• Average Volume (3M): 110.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -5.70%
• EPS Growth: -215.73%
• Country: JP
• Employees: 1,041
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 4.47
• Shares Outstanding: 42,006,000
• 10 Day Avg. Volume: 94,300
• 30 Day Avg. Volume: 110,030
• PEG Ratio: 0.16
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -31.10
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥287.00 ▲(11.24% Upside)

The overall stock score for Adways, Inc. is primarily impacted by its weak financial performance, characterized by declining revenue, profitability, and cash flow issues. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics suggest the stock may be overvalued given its negative earnings. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability even amidst revenue declines.

Minimal Debt

Minimal leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations without significant debt burden.

Diverse Revenue Streams

Diverse revenue streams from various pricing models and strategic partnerships enhance resilience and adaptability to market changes, supporting long-term growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which can impact long-term growth prospects if not addressed.

Negative Cash Flow Trends

Negative cash flow trends suggest operational inefficiencies and potential liquidity issues, which could hinder investment in growth opportunities.

Negative Profit Margins

Negative profit margins highlight profitability challenges, potentially affecting the company's ability to reinvest in business operations and sustain long-term growth.

Adways, Inc. Business Overview & Revenue Model

Company Description

Adways Inc. provides affiliate advertisement services for PC and mobiles, and mobile application and content development services in Japan, China, Taiwan, the Philippines, and the United States. The company offers Unicorn, a marketing platform for mobile apps; AppDriver, a CPI based mobile ad platform; STROBELIGHTS, an performance ad management platform; Oct-pass, a native ad platform for smart phones; Smart-C, a Web affiliate service for feature phone and smartphone; JANet, a Web affiliate service for PCs and smartphones; and YACLE, a supporting service for advertisement expressions. It also provides Dobel, a video advertisement service; MASSIVE, a service that realizes automated mass production of banners; CHANet, an affiliate ad service for PC and smart phones; Keynet, a keyword ad service for Chinese web search engines; Blue Bee Box, a DSP trading desk tool. Blue Bee Native, a CPM based native ad network; adna, an ad analytics tool for PC, feature phone, and smart phone websites; and Rewardplus, a reward ad service for PC and mobile. In addition, the company offers Yoyaku Top10, a pre-registration platform for smart phone apps; SPOT, an online media that delivers going out and sightseeing information based on writers' experiences and interviews; and Leyifan, an international shipping agent service for overseas e-commerce users. Adways Inc. was founded in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Adways generates revenue primarily through its advertising solutions by charging clients for ad placements and services rendered. The company's revenue model is built around a combination of cost-per-click (CPC), cost-per-impression (CPM), and performance-based pricing structures, which allow advertisers to pay based on the effectiveness of their campaigns. Key revenue streams include transaction fees from ad placements on its platforms, subscription fees for access to premium features, and revenue-sharing agreements with partners. Additionally, strategic partnerships with major digital platforms and technology providers enhance Adways' market reach and capabilities, contributing significantly to its overall earnings.

Adways, Inc. Financial Statement Overview

Summary

Adways, Inc. is experiencing financial difficulties, with declining revenue and profitability, coupled with negative cash flow trends. While the company maintains a strong equity position with minimal debt, the negative return on equity and cash flow challenges pose significant risks. The company needs to address its operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

Adways, Inc. has shown a decline in revenue growth with a negative rate of -6.21% in the latest year, indicating a contraction in sales. The gross profit margin remains strong at 81.61%, suggesting efficient cost management. However, the net profit margin has turned negative at -3.73%, reflecting a significant drop in profitability compared to the previous year. The EBIT and EBITDA margins have also decreased, highlighting challenges in operational efficiency.

Balance Sheet

The company's balance sheet shows a very low debt-to-equity ratio of 0.0002, indicating minimal leverage and a strong equity position. However, the return on equity has turned negative at -3.48%, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains healthy, reflecting a stable financial structure.

Cash Flow

Adways, Inc. faces challenges in cash flow management, with a negative free cash flow growth rate of -455.89% and a high free cash flow to net income ratio of -1.99, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low, suggesting limited cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.20B	12.68B	13.52B	13.42B	12.93B	49.02B
Gross Profit	9.97B	10.35B	10.95B	10.81B	10.61B	8.77B
EBITDA	-6.85M	402.47M	1.15B	-345.92M	2.36B	1.65B
Net Income	-727.00M	-473.46M	966.14M	2.54B	1.37B	1.42B
Balance Sheet
Total Assets	21.33B	22.88B	25.23B	27.78B	25.43B	23.75B
Cash, Cash Equivalents and Short-Term Investments	10.31B	10.04B	10.19B	12.86B	12.76B	9.94B
Total Debt	173.46M	3.22M	20.68M	0.00	0.00	0.00
Total Liabilities	7.68B	9.00B	10.63B	11.46B	10.49B	12.53B
Stockholders Equity	13.37B	13.61B	14.36B	16.03B	14.66B	11.03B
Cash Flow
Free Cash Flow	0.00	-370.82M	-66.71M	-44.71M	1.02B	3.25B
Operating Cash Flow	0.00	185.81M	592.35M	385.20M	1.14B	3.42B
Investing Cash Flow	0.00	155.94M	-95.22M	1.96B	-428.56M	-130.67M
Financing Cash Flow	0.00	-236.44M	-2.86B	-1.91B	2.67B	-3.09B

Adways, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 258.00
• 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:2489, the sentiment is Negative. The current price of 258 is below the 20-day moving average (MA) of 287.05, below the 50-day MA of 296.14, and below the 200-day MA of 299.86, indicating a bearish trend. The MACD of -6.63 indicates Positive momentum. The RSI at 30.70 is Neutral, neither overbought nor oversold. The STOCH value of 18.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2489.

Adways, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	77 Outperform	¥9.70B	13.78	―	3.33%	7.47%	55.61%
6026	76 Outperform	―	―	―	―	-11.55%	-13.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6562	59 Neutral	¥14.08B	10.70	―	―	33.34%	-20.40%
2489	46 Neutral	¥11.18B	-15.50	―	1.15%	-5.70%	-215.73%
4436	44 Neutral	¥6.69B	―	―	―	-0.30%	-304.34%

Adways, Inc. Corporate Events

Adways Inc. Reports Decline in First Half 2025 Financial Performance

Adways Inc. reported a decline in its financial performance for the first half of 2025, with net sales dropping by 7.6% compared to the previous year. The company experienced an operating loss and a significant decrease in ordinary profit, highlighting challenges in its operational efficiency. Despite these setbacks, Adways maintains a strong capital adequacy ratio, indicating a stable financial position. The company plans to hold a financial results briefing to discuss these outcomes with stakeholders.